Document:

EXHIBIT 10.25

 

APPENDIX 1

 

 

INTEREST PLEDGE AGREEMENT

RELATING TO THE INTERESTS IN

KABEL DEUTSCHLAND VERTRIEB UND
SERVICE GMBH & CO. KG

 

 

12 May
2006

 

 

between

 

KABEL DEUTSCHLAND GMBH

as Pledgor

 

 

and

 

THE ROYAL BANK OF SCOTLAND

as Security Agent

 

and

 

THE FINANCE PARTIES

 

 

 

 

 

 

 

Allen
& Overy LLP

 

	
  

  	
  Page

  
	
  Clause

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  1

  
	
  2.

  	
  Pledges

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
  9

  
	
  4.

  	
  Security Purpose

  	
  9

  
	
  5.

  	
  Dividends

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
  9

  
	
  7.

  	
  Enforcements of Pledges

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
  12

  
	
  10.

  	
  Release of Security

  	
  13

  
	
  11.

  	
  Indemnity

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
  14

  
	
  15.

  	
  Amendments

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
  15

  
	
  18.

  	
  Notification

  	
  15

  
	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Addresses of Notices

  	
  16

  

 

 

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

BETWEEN:

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

(the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

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

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)                                     €650,000,000; and

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

and

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

 

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

 

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing
Interests and the Future Interests.

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

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

Lender means:

(a)                                  the Original Lender;

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

 

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

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

Mandated Lead Arranger
means each of:

(a)                                   The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)                                  Goldman
Sachs International;

(b)                                 Morgan
Stanley Capital Services Inc.;

(c)                                  Société
Générale;

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

(e)                                  The
Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche
Bank AG, London;

(h)                                 HSBC
Bank plc; and

(i)                                     Calyon
Corporate and Investment Bank.

Original Lender means each of:

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

(b)                                 Deutsche Bank AG London;

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

 

(d)                                 Goldman
Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

Second Limited Partner
means Kabel Deutschland Vertrieb und Service Beteiligungs GmbH & Co. KG, a
limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84369.

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

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

(d)                                 JPMorgan Chase Bank, N.A.

 

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

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

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

1.2                               Construction

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

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

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

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

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

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

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

2.                                      PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The
Pledgor and the Second Limited Partner are the only limited partners (Kommanditisten) of the Company as of the date of this
Agreement.

(b)                                 The
Company’s sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The
Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company (the Existing Interest).  Its capital interest (Kapitalanteil)
currently amounts to EUR 1,500 (in words: Euro one thousand and five hundred)
and its liable capital amounts to EUR 1,000 (in words: Euro one thousand).  The Second Limited Partner does not have any
capital interest (Kapitalanteil) in the Company but
its liability capital (Haftsumme)
amounts to EUR 1,000 (in words: Euro one thousand).

(d)                                 The
Existing Interest is fully paid up. 
There is no obligation for the Pledgor to make any additional
contributions.

2.2                               Constitution of Pledges

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

 

 

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

3.                                      INDEPENDENT PLEDGES

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

4.                                      SECURITY PURPOSE

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

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

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

(a)                                  dividends,
if any, payable on any of the Interests; and

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

5.2                               Entitlement to Receive Dividend Payments

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

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

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

 

6.2                               Impairment

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

6.3                               Information by the Pledgor

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

7.                                      ENFORCEMENTS OF PLEDGES

7.1                               Pledgees’ Rights

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

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

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

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

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

 

collateral for the
Secured Claims, notwithstanding its right to seek satisfaction from such
proceeds at any time.

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

7.2                               Ancillary Rights

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

7.3                               Application of Proceeds

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

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

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

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

7.4                               Release of Pledged Rights

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

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to
notify the Security Agent promptly of any change in the partnership of, or the
capital contributions to, the Company or of any change in the partnership
agreement (Gesellschaftsvertrag) or any
registrations in the commercial register other than with respect to holders of
a statutory power of attorney (Prokura);

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

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

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

 

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

(ii)                                  if
the Pledges have become enforceable pursuant to Clause 6.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Agent,

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

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

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

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

8.2                               Pledges over all Interests

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

9.                                      REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  except
for the limited partner’s interest held by the Second Limited Partner, the
Existing Interest pledged hereunder is the only limited partner’s interest in
the Company in existence at the date hereof;

(b)                                 except
for the requirement of a written approval by all holders of a partnership
interest in the Company which approval has been given, the Pledgor is not
subject to any restriction of any kind with regard to the transfer of, or the
granting of a pledge in, or any other disposal of, any of the Interests;

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

(d)                                 the
Existing Interest is fully paid and there is no obligation for the Pledgor to
make additional contributions;

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

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

 

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

10.                               RELEASE OF SECURITY

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

11.                               INDEMNITY

11.1                        Liability for Damages

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

11.2                        Indemnification

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

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

12.                               DURATION AND INDEPENDANCE

12.1                        Duration

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

12.2                        Continuing Security

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

12.3                        Independence

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

 

13.                               COST
AND EXPENSES

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

14.                               PARTIAL INVALIDITY;WAIVER

14.1                        Invalidity

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

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

14.2                        Waiver

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

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

15.                               AMENDMENTS

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

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

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

16.2                        Language

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

 

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

17.                               APPLICABLE LAW;JURISDICTION

17.1                        Governing Law

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

17.2                        Jurisdiction

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

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

 

	
  To the Pledgor:

  	
  Kabel Deutschland GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

   

  
	
                                                                 Att.:

  	
  Paul Thomason

   

  
	
                                                                    Fax:

  	
  +49 89 96010 198

   

  

 

 

	
  To the Security Agent

  and all other Pledgees:

  	
   

  The
  Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
                                                                 Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
                                                                    Fax:

  	
  +44 (0) 20 7085 4564

  

 

	
  To the Company:

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

   

  
	
                                                                 Att.:

  	
  Paul Thomason

   

  
	
                                                                    Fax:

  	
  +49 89 96010 198

   

  

 

APPENDIX 1

INTEREST PLEDGE AGREEMENT

RELATING TO THE INTERESTS
IN

TKS TELEPOST KABEL-SERVICE
KAISERSLAUTERN GMBH & CO. KG

12 May 2006

between

KABEL DEUTSCHLAND VERTRIEB
UND SERVICE GMBH & CO. KG

as
Pledgor

and

THE
ROYAL BANK OF SCOTLAND

as Security Agent

and

THE
FINANCE PARTIES

 

 

 

 

 

 

 

 

Allen & Overy LLP

 

	
  

  	
  Page

  
	
  Clause

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  1

  
	
  2.

  	
  Pledges

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
  9

  
	
  4.

  	
  Security Purpose

  	
  9

  
	
  5.

  	
  Dividends

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
  9

  
	
  7.

  	
  Enforcements of Pledges

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
  12

  
	
  10.

  	
  Release of Security

  	
  13

  
	
  11.

  	
  Indemnity

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
  14

  
	
  15.

  	
  Amendments

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
  15

  
	
  18.

  	
  Notification

  	
  15

  
	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  
	
  1

  	
  Addresses of Notices

  	
  16

  

 

 

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

BETWEEN:

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

(the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.             INTERPRETATION

1.1          Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

Company means TKS Telepost Kabel-Service Kaiserslautern GmbH & Co. KG, a
limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in
Kaiserslautern, Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht)
of Kaiserslautern under registration number HRA 2278.

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

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)            €650,000,000;
and

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

and

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

 

proceeds of enforcement of all Security Documents
subject to the sharing provisions of the Priority Agreement).

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)           the
Credit Agreement;

(b)           the
Commitment Letter;

(c)           a
Fee Letter;

(d)           an
Obligor Accession Deed;

(e)           a
Transfer Certificate;

(f)            an
Ancillary Facility Document;

(g)           the
Hedging Letter;

(h)           an
Add-On Facility Accession Agreement;

(i)            a
Hedging Document;

(j)            a
Security Document;

(k)           the
Priority Agreement;

(l)            a
Compliance Certificate;

 

(m)          a Request; and

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)           each
Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing
Interests and the Future Interests.

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

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

Lender means:

(a)           the
Original Lender;

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

 

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

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

Mandated Lead Arranger
means each of:

(a)            The
Royal Bank of Scotland plc;

(b)           Deutsche
Bank AG London;

(c)           Goldman
Sachs International; and

(d)           J.P.
Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)           Goldman Sachs International;

(b)           Morgan Stanley Capital
Services Inc.;

(c)           Société Générale;

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

(e)           The Royal Bank of Scotland
plc;

(f)            BNP
Paribas S.A.;

(g)           Deutsche Bank AG, London;

(h)           HSBC Bank plc; and

(i)            Calyon Corporate and
Investment Bank.

Original Lender means each of:

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

(b)           Deutsche
Bank AG London;

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

 

(d)           Goldman Sachs Credit
Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)           The
Royal Bank of Scotland plc;

(b)           Deutsche
Bank AG London;

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

(d)           JPMorgan
Chase Bank, N.A.

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

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

 

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

1.2          Construction

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

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

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

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

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

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

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

2.             PLEDGES

2.1          Pledged
Limited Partner’s Interest

(a)           The Pledgor is the only
limited partner (Kommanditisten) of the Company as
of the date of this Agreement.

(b)           The Company’s sole general
partner (Komplementär) is TKS Telepost
Kabel-Service Kaiserslautern Beteiligungs-GmbH which does not hold any interest
(Kapitalanteil) in the Company.

(c)           The Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company (the Existing Interest).  Its capital interest (Kapitalanteil)
currently amounts to DEM 3,128,000 (in words: Deutsche Mark three million one
hundred twenty eighth thousand) and its liability capital (Haftsumme)
amounts to DEM 3,128,000 (in words: Deutsche Mark three million one hundred
twenty eight thousand).

(d)           The Existing Interest is
fully paid up.  There is no obligation
for the Pledgor to make any additional contributions.

2.2          Constitution
of Pledges

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

(b)           Each of the Original
Pledgees hereby accepts the Pledge.  In
addition, the Security Agent accepts each of the Pledges for and on behalf of
each Future Pledgee hereunder as proxy without power of attorney (Vertreter ohne Vertretungsmacht).  Each Future Pledgee will ratify such
acceptance for itself by executing an accession agreement to the Security Trust
Agreement thereby becoming a Pledgee. 
All Parties hereto confirm that the validity of any

 

of the Pledges
constituted hereunder shall not be affected by the Security Agent acting as
proxy without power of attorney for each Future Pledgee.

3.             INDEPENDENT PLEDGES

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

4.             SECURITY PURPOSE

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

5.             DIVIDENDS

5.1          Extent
of the Pledge

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

(a)           dividends, if any, payable
on any of the Interests; and

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

5.2          Entitlement
to Receive Dividend Payments

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

6.             EXERCISE OF VOTING RIGHTS

6.1          Voting
Rights

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

6.2          Impairment

The Pledgor shall not take, or participate in, any
action which impairs, or which would for any other reason be inconsistent with,
the security interest of the Pledgees or the security purpose as described

 

in
Clause 4 hereof or defeat, impair or circumvent the rights of the Pledgees
hereunder in each case in any respect.

6.3          Information
by the Pledgor

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

7.             ENFORCEMENTS OF PLEDGES

7.1          Pledgees’
Rights

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

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

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

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

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

 

 

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

7.2          Ancillary
Rights

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

7.3          Application
of Proceeds

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

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

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

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

7.4          Release
of Pledged Rights

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

8.             UNDERTAKINGS OF THE PLEDGOR

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Agent
promptly of any change in the partnership of, or the capital contributions to,
the Company or of any change in the partnership agreement (Gesellschaftsvertrag)
or any registrations in the commercial register other than with respect to
holders of a statutory power of attorney (Prokura);

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

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

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

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

 

(ii)           if the Pledges have become
enforceable pursuant to Clause 6.1, for facilitating the realisation of all or
any part of the Interests which are subject to this Agreement and the exercise
of all powers, authorities and discretions vested in the Security Agent,

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

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

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

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

8.2          Pledges
over all Interests

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

9.             REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)           the Existing Interest
pledged hereunder is the only limited partner’s interest in the Company in
existence at the date hereof;

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

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

(d)           the Existing Interest is
fully paid and there is no obligation for the Pledgor to make additional
contributions;

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

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

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

 

10.          RELEASE OF
SECURITY

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

11.          INDEMNITY

11.1        Liability
for Damages

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

11.2        Indemnification

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

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

12.          DURATION AND INDEPENDANCE

12.1        Duration

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

12.2        Continuing
Security

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

12.3        Independence

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

13.          COST AND EXPENSES

Any notarial fees and expenses incurred in connection
with the execution of this Agreement shall be borne by the Pledgor. The Pledgor
must pay to each Finance Party the amount of all costs and

 

expenses
(including the costs and expenses of legal advisers) incurred by it in
connection with the enforcement of, or the preservation of any rights under,
any Finance Document.

14.          PARTIAL INVALIDITY;WAIVER

14.1        Invalidity

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

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

14.2        Waiver

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

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

15.          AMENDMENTS

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

16.          NOTICES AND THEIR LANGUAGE

16.1        Notices

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

16.2        Language

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

 

17.          APPLICABLE
LAW;JURISDICTION

17.1        Governing
Law

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

17.2        Jurisdiction

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

18.          NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

   

  
	
  Att.:

  	
  Paul Thomason

   

  
	
  Fax:

  	
  +49 89 96010 198

   

  

 

 

	
  To the Security Agent

  and all other Pledgees:

  	
   

  The
  Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  
	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 20 7085 4564

  

 

	
  To the Company:

  	
  TKS Telepost Kabel-Service Kaiserslautern GmbH &
  Co. KG

  Altes Forsthaus 2

  67661 Kaiserslautern

  Germany

   

  
	
  Att.:

  	
  Hartmut Dismon / Karl-Heinz Stahl

   

  
	
  Fax:

  	
  +49 631 35 22 110

   

  

 

 

APPENDIX 1 - KG

INTEREST
PLEDGE AGREEMENT

RELATING TO THE INTERESTS IN

KABEL DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS
GMBH & CO. KG

12 May 2006

between

KABEL DEUTSCHLAND GMBH

as Pledgor

and

THE ROYAL BANK OF SCOTLAND

as Security Agent

and

THE FINANCE PARTIES

 

 

 

 

 

 

 

 

Allen & Overy LLP

 

 

	
  

  	
  Page

  
	
  Clause

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  1

  
	
  2.

  	
  Pledges

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
  9

  
	
  4.

  	
  Security Purpose

  	
  9

  
	
  5.

  	
  Dividends

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
  9

  
	
  7.

  	
  Enforcements of Pledges

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
  12

  
	
  10.

  	
  Release of Security

  	
  13

  
	
  11.

  	
  Indemnity

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
  14

  
	
  15.

  	
  Amendments

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
  15

  
	
  18.

  	
  Notification

  	
  15

  
	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  
	
  1

  	
  Addresses of Notices

  	
  16

  

 

 

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

BETWEEN:

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

(the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.             INTERPRETATION

1.1          Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

Company means Kabel Deutschland Vertrieb und Service Beteiligungs GmbH &
Co. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84369.

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)            €650,000,000;
and

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

and

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

 

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)           the
Credit Agreement;

(b)           the
Commitment Letter;

(c)           a
Fee Letter;

(d)           an
Obligor Accession Deed;

(e)           a
Transfer Certificate;

(f)            an
Ancillary Facility Document;

(g)           the
Hedging Letter;

(h)           an
Add-On Facility Accession Agreement;

(i)            a
Hedging Document;

(j)            a
Security Document;

(k)           the
Priority Agreement;

(l)            a
Compliance Certificate;

(m)          a
Request; and

 

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)           each
Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing
Interests and the Future Interests.

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

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

Lender means:

(a)           the
Original Lender;

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

 

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

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

Mandated Lead Arranger
means each of:

(a)            The
Royal Bank of Scotland plc;

(b)           Deutsche
Bank AG London;

(c)           Goldman
Sachs International; and

(d)           J.P.
Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)           Goldman Sachs International;

(b)           Morgan Stanley Capital
Services Inc.;

(c)           Société Générale;

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

(e)           The Royal Bank of Scotland
plc;

(f)            BNP
Paribas S.A.;

(g)           Deutsche Bank AG, London;

(h)           HSBC Bank plc; and

(i)            Calyon Corporate and
Investment Bank.

Original Lender means each of:

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

(b)           Deutsche
Bank AG London;

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

 

(d)           Goldman Sachs Credit
Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)           The
Royal Bank of Scotland plc;

(b)           Deutsche
Bank AG London;

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

(d)           JPMorgan
Chase Bank, N.A.

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

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

 

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

1.2          Construction

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

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

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

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

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

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

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

2.             PLEDGES

2.1          Pledged
Limited Partner’s Interest

(a)           The Pledgor is the only
limited partner (Kommanditist) of the Company as
of the date of this Agreement.

(b)           The Company’s sole general
partner (Komplementär) is Kabel Deutschland
Vertrieb und Service Beteiligungs Verwaltungs GmbH which does not hold any
interest (Kapitalanteil) in the Company.

(c)           The Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company (the Existing Interest).  Its capital interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liability
capital (Haftsumme) amounts to EUR 1,000 (in
words: Euro one thousand).

(d)           The Existing Interest is
fully paid up.  There is no obligation
for the Pledgor to make any additional contributions.

2.2          Constitution
of Pledges

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

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

 

3.             INDEPENDENT
PLEDGES

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

4.             SECURITY PURPOSE

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

5.             DIVIDENDS

5.1          Extent
of the Pledge

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

(a)           dividends, if any, payable
on any of the Interests; and

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

5.2          Entitlement
to Receive Dividend Payments

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

6.             EXERCISE OF VOTING RIGHTS

6.1          Voting
Rights

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

6.2          Impairment

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

 

6.3          Information
by the Pledgor

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

7.             ENFORCEMENTS OF PLEDGES

7.1          Pledgees’
Rights

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

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

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

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

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

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

 

 

7.2          Ancillary
Rights

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

7.3          Application
of Proceeds

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

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

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

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

7.4          Release
of Pledged Rights

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

8.             UNDERTAKINGS OF THE PLEDGOR

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Agent
promptly of any change in the partnership of, or the capital contributions to,
the Company or of any change in the partnership agreement (Gesellschaftsvertrag)
or any registrations in the commercial register other than with respect to
holders of a statutory power of attorney (Prokura);

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

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

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

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

(ii)           if the Pledges have become
enforceable pursuant to Clause 6.1, for facilitating the realisation of all or
any part of the Interests which are subject to this Agreement and the exercise
of all powers, authorities and discretions vested in the Security Agent,

 

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

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

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

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

8.2          Pledges
over all Interests

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

9.             REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)           the Existing Interest
pledged hereunder is the only limited partner’s interest in the Company in
existence at the date hereof;

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

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

(d)           the Existing Interest is
fully paid and there is no obligation for the Pledgor to make additional
contributions;

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

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

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

10.          RELEASE OF SECURITY

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect

 

to
the Secured Claims exceeds, not only temporarily, the Secured Claims by more
than 10%.  The Security Agent may, at its
discretion, determine which part of the Security shall be released.

11.          INDEMNITY

11.1        Liability
for Damages

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

11.2        Indemnification

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

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

12.          DURATION AND INDEPENDANCE

12.1        Duration

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

12.2        Continuing
Security

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

12.3        Independence

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

13.          COST AND EXPENSES

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

 

14.          PARTIAL
INVALIDITY;WAIVER

14.1        Invalidity

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

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

14.2        Waiver

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

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

15.          AMENDMENTS

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

16.          NOTICES AND THEIR LANGUAGE

16.1        Notices

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

16.2        Language

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

 

17.          APPLICABLE
LAW;JURISDICTION

17.1        Governing
Law

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

17.2        Jurisdiction

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

18.          NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
  Kabel Deutschland GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

   

  
	
  Att.:

  	
  Paul Thomason

   

  
	
  Fax:

  	
  +49 89 96010 198

   

  

 

 

	
  To the Security Agent

  and all other Pledgees:

  	
   

  The
  Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

   

  United Kingdom

  
	
   

  	
   

  
	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 20 7085 4564

  

 

	
  To the Company:

  	
  Kabel Deutschland Vertrieb und Service Beteiligungs
  GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

   

  
	
  Att.:

  	
  Paul Thomason

   

  
	
  Fax:

  	
  +49 89 96010 198

  

 

APPENDIX 2 - KG

 

 

INTEREST
PLEDGE AGREEMENT

RELATING
TO THE INTERESTS IN

KABEL
DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG

 

 

12 May 2006

 

 

between

 

KABEL DEUTSCHLAND
VERTRIEB UND SERVICE BETEILIGUNGS GMBH & CO. KG

as Pledgor

 

 

and

 

THE ROYAL BANK OF SCOTLAND

as Security Agent

 

and

 

THE FINANCE PARTIES

 

 

 

 

 

Allen
& Overy LLP

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  Clause

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
   

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
   

  	
  Independent Pledges

  	
   

  	
  9

  
	
  4.

  	
   

  	
  Security Purpose

  	
   

  	
  9

  
	
  5.

  	
   

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  9

  
	
  7.

  	
   

  	
  Enforcements of Pledges

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
   

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
   

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
   

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
   

  	
  Cost and Expenses

  	
   

  	
  14

  
	
  14.

  	
   

  	
  Partial Invalidity;Waiver

  	
   

  	
  14

  
	
  15.

  	
   

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
   

  	
  Applicable Law;Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
   

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

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

BETWEEN:

(1)                                  KABEL DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS GMBH & CO. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84369,

(the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

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

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)                                     €650,000,000; and

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

and

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

 

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

 

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing
Interests and the Future Interests.

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

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

Lender means:

(a)                                  the Original Lender;

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

 

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

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

Mandated Lead Arranger
means each of:

(a)                                   The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)                                  Goldman Sachs International;

(b)                                 Morgan Stanley Capital Services Inc.;

(c)                                  Société Générale;

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

(e)                                  The Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche Bank AG, London;

(h)                                 HSBC Bank plc; and

(i)                                     Calyon Corporate and Investment Bank.

Original Lender means each of:

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

(b)                                 Deutsche Bank AG London;

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

 

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

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

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

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

(d)                                 JPMorgan Chase Bank, N.A.

 

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

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

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

1.2                               Construction

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

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

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

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

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

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

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

2.                                      PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The Pledgor and the Second Limited Partner are the only limited partners
(Kommanditisten) of the Company as of the
date of this Agreement.

(b)                                 The Company’s sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 0% of the capital interest in the Company (the Existing Interest) but its liability capital (Haftsumme) amounts to EUR 1,000 (in words: Euro one
thousand).  The Second Limited Partner
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company.  Its capital interest (Kapitalanteil) currently amounts to EUR 1,500 (in words:
Euro one thousand and five hundred) and its liability capital (Haftsumme) amounts to EUR 1,000 (in words: Euro one
thousand).

(d)                                 The Existing Interest is fully paid up. 
There is no obligation for the Pledgor to make any additional
contributions.

2.2                               Constitution of Pledges

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

 

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

3.                                      INDEPENDENT PLEDGES

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

4.                                      SECURITY PURPOSE

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

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

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

(a)                                  dividends, if any, payable on any of the Interests; and

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

5.2                               Entitlement to Receive Dividend Payments

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

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

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

 

6.2                               Impairment

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

6.3                               Information by the Pledgor

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

7.                                      ENFORCEMENTS OF PLEDGES

7.1                               Pledgees’ Rights

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

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

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

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

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

 

collateral for the Secured Claims, notwithstanding its
right to seek satisfaction from such proceeds at any time.

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

7.2                               Ancillary Rights

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

7.3                               Application of Proceeds

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

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

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

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

7.4                               Release of Pledged Rights

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

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to notify the Security Agent promptly of any change in the partnership
of, or the capital contributions to, the Company or of any change in the
partnership agreement (Gesellschaftsvertrag)
or any registrations in the commercial register other than with respect to
holders of a statutory power of attorney (Prokura);

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

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

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

 

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

(ii)                                  if the Pledges have become enforceable pursuant to Clause 6.1, for
facilitating the realisation of all or any part of the Interests which are
subject to this Agreement and the exercise of all powers, authorities and
discretions vested in the Security Agent,

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

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

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

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

8.2                               Pledges over all Interests

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

9.                                      REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  except for the limited partner’s interest held by the Second Limited
Partner, the Existing Interest pledged hereunder is the only limited partner’s
interest in the Company in existence at the date hereof;

(b)                                 except for the requirement of a written approval by all holders of a
partnership interest in the Company which approval has been given, the Pledgor
is not subject to any restriction of any kind with regard to the transfer of,
or the granting of a pledge in, or any other disposal of, any of the Interests;

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

(d)                                 the Existing Interest is fully paid and there is no obligation for the
Pledgor to make additional contributions;

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

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

 

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

10.                               RELEASE OF SECURITY

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

11.                               INDEMNITY

11.1                        Liability for Damages

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

11.2                        Indemnification

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

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

12.                               DURATION AND INDEPENDANCE

12.1                        Duration

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

12.2                        Continuing Security

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

12.3                        Independence

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

 

13.                               COST AND EXPENSES

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

14.                               PARTIAL INVALIDITY;WAIVER

14.1                        Invalidity

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

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

14.2                        Waiver

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

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

15.                               AMENDMENTS

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

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

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

16.2                        Language

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

 

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

17.                               APPLICABLE LAW;JURISDICTION

17.1                        Governing Law

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

17.2                        Jurisdiction

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

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

 

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und Service Beteiligungs
  GmbH

  & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent and all other Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  

 

 

APPENDIX 3 - KG

 

INTEREST
PLEDGE AGREEMENT

RELATING
TO THE INTERESTS IN

KABEL DEUTSCHLAND VERMÖGEN BETEILIGUNGS GMBH & CO.
KG

12 May 2006

between

KABEL DEUTSCHLAND
VERTRIEB UND SERVICE GMBH & CO. KG

as
Pledgor

and

THE ROYAL BANK OF SCOTLAND

as
Security Agent

and

THE
FINANCE PARTIES

 

 

 

 

 

Allen & Overy LLP

 

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
   

  	
  9

  
	
  4.

  	
  Security Purpose

  	
   

  	
  9

  
	
  5.

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
   

  	
  9

  
	
  7.

  	
  Enforcements of Pledges

  	
   

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
   

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
   

  	
  14

  
	
  15.

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

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

BETWEEN:

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

(the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

Company means Kabel Deutschland Vermögen Beteiligungs GmbH & Co. KG, a
limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht)
of Munich under registration number HRA 84471.

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)                                     €650,000,000; and

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

and

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

 

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

 

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing
Interests and the Future Interests.

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

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

Lender means:

(a)                                  the Original Lender;

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

 

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

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

Mandated Lead Arranger
means each of:

(a)                                   The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)                                  Goldman Sachs International;

(b)                                 Morgan Stanley Capital Services Inc.;

(c)                                  Société Générale;

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

(e)                                  The Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche Bank AG, London;

(h)                                 HSBC Bank plc; and

(i)                                     Calyon Corporate and Investment Bank.

Original Lender means each of:

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

(b)                                 Deutsche Bank AG London;

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

 

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

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

(d)                                 JPMorgan Chase Bank, N.A.

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

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

 

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

1.2                               Construction

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

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

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

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

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

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

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

2.                                      PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The Pledgor is the only limited partner (Kommanditist)
of the Company as of the date of this Agreement.

(b)                                 The Company’s sole general partner (Komplementär)
is Kabel Deutschland Vermögen Beteiligungs Verwaltungs GmbH which does not hold
any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 100% of the capital interest in the Company (the Existing Interest). 
Its capital interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liability
capital (Haftsumme) amounts to EUR 1,000 (in
words: Euro 1000 thousand).

(d)                                 The Existing Interest is fully paid up. 
There is no obligation for the Pledgor to make any additional
contributions.

2.2                               Constitution of Pledges

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

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

 

3.                                      INDEPENDENT PLEDGES

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

4.                                      SECURITY PURPOSE

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

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

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

(a)                                  dividends, if any, payable on any of the Interests; and

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

5.2                               Entitlement to Receive Dividend Payments

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

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

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

6.2                               Impairment

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

 

6.3          Information
by the Pledgor

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

7.             ENFORCEMENTS OF PLEDGES

7.1          Pledgees’
Rights

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

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

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

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

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

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

 

7.2          Ancillary
Rights

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

7.3          Application
of Proceeds

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

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

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

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

7.4          Release
of Pledged Rights

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

8.             UNDERTAKINGS OF THE PLEDGOR

8.1          Undertakings

The Pledgor undertakes

(a)           to notify the Security Agent
promptly of any change in the partnership of, or the capital contributions to,
the Company or of any change in the partnership agreement (Gesellschaftsvertrag)
or any registrations in the commercial register other than with respect to
holders of a statutory power of attorney (Prokura);

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

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

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

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

(ii)           if the Pledges have become
enforceable pursuant to Clause 6.1, for facilitating the realisation of all or
any part of the Interests which are subject to this Agreement and the exercise
of all powers, authorities and discretions vested in the Security Agent,

 

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

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

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

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

8.2          Pledges
over all Interests

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

9.             REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)           the Existing Interest
pledged hereunder is the only limited partner’s interest in the Company in
existence at the date hereof;

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

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

(d)           the Existing Interest is
fully paid and there is no obligation for the Pledgor to make additional
contributions;

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

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

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

10.          RELEASE OF SECURITY

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect

 

to
the Secured Claims exceeds, not only temporarily, the Secured Claims by more
than 10%.  The Security Agent may, at its
discretion, determine which part of the Security shall be released.

11.          INDEMNITY

11.1        Liability
for Damages

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

11.2        Indemnification

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

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

12.          DURATION AND INDEPENDANCE

12.1        Duration

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

12.2        Continuing
Security

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

12.3        Independence

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

13.          COST AND EXPENSES

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

 

14.          PARTIAL INVALIDITY;WAIVER

14.1        Invalidity

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

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

14.2        Waiver

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

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

15.          AMENDMENTS

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

16.          NOTICES AND THEIR LANGUAGE

16.1        Notices

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

16.2        Language

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

 

17.          APPLICABLE LAW;JURISDICTION

17.1        Governing
Law

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

17.2        Jurisdiction

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

18.          NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  
	
   

  	
   

  	
   

  
	
  To the Security
  Agent and

  all other Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vermögen Beteiligungs GmbH &
  Co. KG

  Betastraße 6-8 

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 89 96010 198

  

 

 

APPENDIX 4 - KG

 

INTEREST
PLEDGE AGREEMENT

RELATING
TO THE INTERESTS IN

KABEL
DEUTSCHLAND VERMÖGEN GMBH & CO. KG

 

 

12 May 2006

 

 

between

 

KABEL DEUTSCHLAND VERMÖGEN
BETEILIGUNGS GMBH & CO. KG

as Pledgor

 

 

and

 

THE ROYAL BANK OF SCOTLAND

as Security Agent

 

and

 

THE FINANCE PARTIES

 

 

 

 

 

Allen &
Overy LLP

 

 

	
  Clause

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
   

  	
  9

  
	
  4.

  	
  Security Purpose

  	
   

  	
  9

  
	
  5.

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
   

  	
  10

  
	
  7.

  	
  Enforcements of Pledges

  	
   

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
   

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
   

  	
  14

  
	
  15.

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

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

BETWEEN:

(1)                                  KABEL
DEUTSCHLAND VERMÖGEN BETEILIGUNGS GMBH & CO. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht)
of Munich under registration number HRA 84471. (the Pledgor );

on one side;

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

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

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

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

 

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

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

Add-On Facility Lender
means:

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

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

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

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

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

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility.

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

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

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

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

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

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

 

Company means Kabel Deutschland Vermögen GmbH & Co. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of Germany, having its corporate seat in Unterföhring (Landkreis
München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht)
of Munich under registration number HRA 84511.

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

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

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

Eligible Terms means, in respect of
any Additional Facility:

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

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

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

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

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

(i)                                     €650,000,000; and

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

and

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

 

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

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

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

Existing Shares means the shares set
forth in Clause 2.1.

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

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

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

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

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement;

(l)                                     a Compliance Certificate;

(m)                               a Request; and

 

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

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

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

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

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

Germany means the Federal Republic
of Germany.

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

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

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

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

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

Hedging Document means

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

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

Interests means the Existing Interests
and the Future Interests.

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

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

 

Lender means:

(a)                                  the Original Lender;

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

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

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

Mandated Lead Arranger
means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

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

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

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

Original Hedging Bank
means each of:

(a)                                  Goldman
Sachs International;

(b)                                 Morgan
Stanley Capital Services Inc.;

(c)                                  Société
Générale;

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

(e)                                  The
Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche
Bank AG, London;

(h)                                 HSBC
Bank plc; and

(i)                                     Calyon
Corporate and Investment Bank.

Original Lender means each of:

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

 

(b)                                 Deutsche
Bank AG London;

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

(d)                                 Goldman Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

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

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

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

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

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

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

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

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

Subsidiary means any of:

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

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

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

 

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

(d)                                 JPMorgan Chase Bank, N.A.

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

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

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

1.2                               Construction

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

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

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

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

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

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

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

2.                                      PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The
Pledgor and the Second Limited Partner are the only limited partners (Kommanditisten) of the Company as of the date of this
Agreement.

(b)                                 The
Company’s sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The
Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 0% of the capital interest in
the Company (the Existing Interest) but its
liability capital (Haftsumme)
amounts to EUR 1,000 (in words: Euro one thousand).  The Second Limited Partner holds a limited
partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company.  Its capital interest (Kapitalanteil) currently amounts to EUR 1,000 (in words:
Euro one thousand) and its liability capital (Haftsumme)
amounts to EUR 1,000 (in words: Euro one thousand).

(d)                                 The
Existing Interest is fully paid up. 
There is no obligation for the Pledgor to make any additional
contributions.

 

2.2                               Constitution
of Pledges

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

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

3.                                      INDEPENDENT PLEDGES

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

4.                                      SECURITY PURPOSE

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

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

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

(a)                                  dividends,
if any, payable on any of the Interests; and

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

5.2                               Entitlement to Receive Dividend Payments

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

 

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

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

6.2                               Impairment

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

6.3                               Information by the Pledgor

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

7.                                      ENFORCEMENTS OF PLEDGES

7.1                               Pledgees’ Rights

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

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

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

 

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

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

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

7.2                               Ancillary Rights

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

7.3                               Application of Proceeds

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

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

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

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

7.4                               Release of Pledged Rights

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

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to
notify the Security Agent promptly of any change in the partnership of, or the
capital contributions to, the Company or of any change in the partnership
agreement (Gesellschaftsvertrag) or any
registrations in the commercial register other than with respect to holders of
a statutory power of attorney (Prokura);

 

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

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

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

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

(ii)                                  if
the Pledges have become enforceable pursuant to Clause 6.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Agent,

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

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

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

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

8.2                               Pledges over all Interests

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

9.                                      REPRESENTATIONS AND WARRANTIES

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  except
for the limited partner’s interest held by the Second Limited Partner, the
Existing Interest pledged hereunder is the only limited partner’s interest in
the Company in existence at the date hereof;

(b)                                 except
for the requirement of a written approval by all holders of a partnership
interest in the Company which approval has been given, the Pledgor is not
subject to any restriction of any kind with regard to the transfer of, or the
granting of a pledge in, or any other disposal of, any of the Interests;

 

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

(d)                                 the
Existing Interest is fully paid and there is no obligation for the Pledgor to
make additional contributions;

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

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

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

10.                               RELEASE OF SECURITY

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

11.                               INDEMNITY

11.1                        Liability for Damages

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

11.2                        Indemnification

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

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

12.                               DURATION AND INDEPENDANCE

12.1                        Duration

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

12.2                        Continuing Security

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

 

12.3                        Independence

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

13.                               COST AND EXPENSES

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

14.                               PARTIAL INVALIDITY;WAIVER

14.1                        Invalidity

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

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

14.2                        Waiver

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

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

15.                               AMENDMENTS

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

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

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

 

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

16.2                        Language

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

17.                               APPLICABLE LAW;JURISDICTION

17.1                        Governing Law

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

17.2                        Jurisdiction

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

18.                               NOTIFICATION

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 

SCHEDULE 1

ADDRESSES OF NOTICES

	
  To the Pledgor:

  	
  Kabel Vermögen Beteiligungs GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49 89 96010 198

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Security Agent

  and all other Pledgees:

  	
  The
  Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

   

  United Kingdom

  
	
   

  	
   

  
	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Company:

  	
  Kabel Deutschland Vermögen GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49 89 96010 198

  

 

 

Appendix
5 - KG

 

Interest Pledge Agreement

RELATING TO THE INTERESTS IN

kABEL dEUTSCHLAND Vermögen
GMBH & CO. KG

 

 

12
May 2006

 

 

between

 

KABEL DEUTSCHLAND VERTRIEB
UND SERVICE GMBH & CO. KG

as Pledgor 

 

 

and

 

THE ROYAL BANK OF SCOTLAND

as Security Agent

 

 

and

 

THE FINANCE PARTIES

 

 

 

 

Allen & Overy LLP

 

 

	
  Clause

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  	
  1

  
	
  2.

  	
  Pledges

  	
   

  	
  8

  
	
  3.

  	
  Independent Pledges

  	
   

  	
  9

  
	
  4.

  	
  Security Purpose

  	
   

  	
  9

  
	
  5.

  	
  Dividends

  	
   

  	
  9

  
	
  6.

  	
  Exercise of Voting Rights

  	
   

  	
  9

  
	
  7.

  	
  Enforcements of Pledges

  	
   

  	
  10

  
	
  8.

  	
  Undertakings of the Pledgor

  	
   

  	
  11

  
	
  9.

  	
  Representations and Warranties

  	
   

  	
  12

  
	
  10.

  	
  Release of Security

  	
   

  	
  13

  
	
  11.

  	
  Indemnity

  	
   

  	
  13

  
	
  12.

  	
  Duration and Independance

  	
   

  	
  13

  
	
  13.

  	
  Cost and Expenses

  	
   

  	
  14

  
	
  14.

  	
  Partial Invalidity;Waiver

  	
   

  	
  14

  
	
  15.

  	
  Amendments

  	
   

  	
  14

  
	
  16.

  	
  Notices and their Language

  	
   

  	
  14

  
	
  17.

  	
  Applicable Law;Jurisdiction

  	
   

  	
  15

  
	
  18.

  	
  Notification

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Addresses of Notices

  	
   

  	
  16

  

 

 

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

BETWEEN: 

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

(the Pledgor ); 

on one side; 

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

(the Security Agent);
and

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

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

on the other side.

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

WHEREAS:

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

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

IT IS AGREED as follows:

1.                                      Interpretation

1.1                               Definitions

In
this Agreement:

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

Additional Borrower
means a member of the Group which becomes a borrower under the Credit Agreement
after the date of its execution.

Additional Facility
means an Add-On Facility or an External Facility.

 1
 

 

Add-On
Facility Accession Agreement
means an accession deed pursuant to which any person or entity accedes to the
Credit Agreement as provider of an Add-On Facility. 

Add-On Facility means any additional
loan facility provided under the Credit Agreement which has Eligible Terms.

Add-On Facility Lender
means:

(a)                                  an Original Add-On Facility Lender; or

(b)                                 any person which has become a lender under an Add-On Facility. 

Administrative Party
means the Mandated Lead Arrangers, the Facility Agent or the Security Agent.

Agreed Priority Agreement Principles means
the principles pursuant to which the Existing Priority Agreement shall be
amended.

Ancillary Facility
means any facility or financial accomodation (including any overdraft, foreign
exchange, guarantee, bonding, documentary or standby letter of credit, credit
card or automated payments facility) established by a Lender in place of all or
parts of its respective facility commitment.

Ancillary Facility Document
means any document evidencing any Ancillary Facility.

Ancillary Lender means any lender
providing for an Ancillary Facility. 

Ancillary Outstandings
means, at any time and with respect to any Ancillary Facility of any Ancillary
Lender, the aggregate of all of the following amounts (as calculated by that
Ancillary Lender) outstanding at that time under that Ancillary Facility:

(a)                                  all amounts of principal then outstanding under any overdraft, cheque
drawing or other account facilities determined on a gross basis unless such
facilities are made available on the basis of netting arrangements satisfactory
to the Ancillary Lender in which case, such outstanding principal amounts shall
be determined on the net debt basis used by that Ancillary Lender;

(b)                                 the maximum potential liability (excluding amounts stated to be in
respect of interest and fees) under all guarantees, bonds and letters of credit
then outstanding under that Ancillary Facility; and

(c)                                  in respect of any other facility or financial accommodation, such other
amount (excluding interest and similar charges) as fairly represents the
aggregate exposure of that Ancillary Lender under that facility or
accommodation, as reasonably determined by that Ancillary Lender from time to
time in accordance with its usual banking practice for facilities or
accommodation of the relevant type.

BGB means the German Civil Code
(Bürgerliches Gesetzbuch).

Borrower means KDVS or an Additional
Borrower.

Business Day means a day (other than a
Saturday or a Sunday) on which banks are open for general business in London
and Frankfurt am Main and which is also a TARGET Day.

 2
 

 

Company means Kabel Deutschland Vermögen GmbH & Co. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of Germany, having its corporate seat in Unterföhring (Landkreis
München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht)
of Munich under registration number HRA 84511.

Commitment Letter means the commitment
letter dated on or about the date of the Credit Agreement between the Arranger,
the Original Lender, KDG and KDVS.

Compliance Certificate
means any compliance certificate issued or to be issued by any Obligor in
connection with the Credit Agreement setting out the compliance with certain
financial ratios and/or covenants.

Credit Agreement means the EUR
1,350,000,000 senior credit agreement dated on or about 13 March 2006 between,
amongst others, the Mandated Lead Arranger, the Facility Agent, the Security
Agent, KDVS, KDG and the Original Lender providing for EUR 1,350,000,000 senior
credit facilities and up to EUR 650,000,000 Add-On Facilities.

Eligible Terms means, in respect of
any Additional Facility:

(a)                                  the final maturity date of that Additional Facility must be a date
falling at least six months after 31 March 2012;

(b)                                 there must be no amortisation required in respect of that Additional
Facility;

(c)                                  that Additional Facility must be a term facility (which, in the case of
an External Facility, may include notes, bonds or any other term credit
arrangement which is not capable, by its terms, of being repaid or prepaid and
redrawn before the date falling at least six months after 31 March 2012 (it
being acknowledged that such arrangement may have customary change of control,
voluntary prepayment, asset sale and similar prepayment provisions)); and

(d)                                 the purpose must be to fund a Permitted Acquisition;

(e)                                  the principal amount of that Additional Facility (together with the
principal amount of all other Additional Facilities) may not exceed the lower
of:

(i)                                     €650,000,000; and

(ii)                                  the amount which, if fully utilised on the date of completion of the
relevant Permitted Acquisition, would not result in any breach of certain
financial covenant ratios; 

and

(f)                                    the liabilities of the obligors thereunder are to be treated and rank as
a senior debt under the Existing Priority Agreement and/or the Priority
Agreement and to have the benefit of all relevant Security Documents (whether
through execution of new documents or amendment to existing documents) or (in
each case) to have such lower ranking as is agreed by all the lenders of that
Additional Facility.  For these purposes relevant Security Documents means Security Documents
comprising the same assets and shares comprised in Security Documents executed
prior to the establishment of that Additional Facility, it being acknowledged
that prior-ranking Security Documents will remain in place (with the proceeds
of enforcement of all Security Documents subject to the sharing provisions of
the Priority Agreement).

 3
 

 

Euro,
euro, EUR or €
means the single European currency introduced 1 January 1999.

Existing Interest means each of the
interests set forth in Clause 2.1 (together the Existing
Interests).

Existing Priority Agreement means
the priority agreement dated 29 March 2004, as amended and restated prior to
the date of the Credit Agreement and in force on the date of the Credit
Agreement to which, amongst others, KDG and KDVS are parties (disregarding the
amendments implemented to create an amended priority agreement in connection with
the Credit Agreement).

Existing Shares means the shares set
forth in Clause 2.1.

External Facility means any term
credit agreement which has Eligible Terms.

Event of Default means an event of
default under any of the Finance Documents, which entitles the Facility Agent
to declare that all or part of any amounts outstanding under the Finance
Documents or any of them are immediately due and payable, or payable on demand.

Facility Agent means The Royal Bank
of Scotland plc, a public limited company, having its registered office at: 36
St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated under the laws of
the United Kingdom and being registered with the Companies House under
registration number SC 090312.

Fee Letter means any letter entered
into by reference to the Credit Agreement between one or more Administrative
Parties and an Obligor setting out the amount of certain fees which are
payable, inter alia, in relation to the Credit Agreement.

Finance Document means:

(a)                                  the Credit Agreement;

(b)                                 the Commitment Letter;

(c)                                  a Fee Letter;

(d)                                 an Obligor Accession Deed;

(e)                                  a Transfer Certificate;

(f)                                    an Ancillary Facility Document;

(g)                                 the Hedging Letter;

(h)                                 an Add-On Facility Accession Agreement;

(i)                                     a Hedging Document;

(j)                                     a Security Document;

(k)                                  the Priority Agreement; 

(l)                                     a Compliance Certificate;

(m)                               a Request; and

 4
 

 

(n)                                 any
other document designated as such by the Facility Agent and KDG.

Finance Party means an
Administrative Party, an Underwriter, a Lender or a Hedging Bank.

Future Interests means any and all
interests in the Company, other than the Existing Interests, which the Pledgor
may acquire in future.

Future Pledgee means a Finance
Party (other than an Original Finance Party).

Germany means the Federal Republic
of Germany.

Group means KDG and its
Subsidiaries (but excluding any Unrestricted Subsidiary).

Hedging Letter means a letter dated
on or about the date of the Credit Agreement between KDG, the Mandated Lead
Arranger and the Facility Agent relating to the interest and currency hedging
to be effected by the Group and any other letter designated as such by KDG and
the Facility Agent which amends or supplements the terms of that letter.

Hedging means any interest rate or
currency swap, derivative transaction or hedging facility.

Hedging Bank means:

(a)                                  each Original Hedging Bank; or

(b)                                 each party (other than an Obligor) which shall at any relevant time be
or become a party to any Hedging Document. 

Hedging Document means 

(a)                                  each master agreement, confirmation or other document evidencing any
Hedging provided by a Hedging Bank to an Obligor; or 

(b)                                 otherwise entered into on the basis that under the terms of the Finance
Documents any party to such document (other than an Obligor) in such regard
becomes entitled to the benefit of, among other things, any security interest
created under this Agreement. 

Interests means the Existing
Interests and the Future Interests.

KDG means Kabel Deutschland
GmbH, a limited liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRB 145837.

KDVS means Kabel Deutschland
Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902.

Lender means:

(a)                                  the Original Lender; 

(b)                                 an Original Add-On Facility Lender; or

 5
 

 

(c)                                  any
person which becomes a lender after the date of, and in accordance with the
terms of, the Credit Agreement,

but only for so long as it has any outstanding
commitment or participation in any loan provided under the Credit Agreement or
Ancillary Outstanding or any amount is owed to it (whether actually or
contingently) in its capacity as Lender.

Mandated Lead Arranger
means each of:

(a)                                   The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a Borrower.

Obligor Accession Deed
means a deed of accession pursuant to which any person or entity accedes, inter
alia, to the Credit Agreement as Additional Borrower.

Original Add-On Facility Lender
means any lender providing for an additional facility under the Credit
Agreement by way of executing an Add-On Facility Accession Agreement.

Original Finance Party
means an Administrative Party, an Underwriter, an Original Lender or an
Original Hedging Bank.

Original Hedging Bank
means each of:

(a)                                  Goldman
Sachs International;

(b)                                 Morgan
Stanley Capital Services Inc.;

(c)                                  Société
Générale;

(d)                                 Coöperatieve
Centrale Raiffeisen-Boerenleenbank B.A.;

(e)                                  The
Royal Bank of Scotland plc;

(f)                                    BNP Paribas S.A.;

(g)                                 Deutsche
Bank AG, London;

(h)                                 HSBC
Bank plc; and

(i)                                     Calyon
Corporate and Investment Bank.

Original Lender means each of:

(a)                                  The Royal Bank of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG London;

(c)                                  JPMorgan Chase Bank, N.A.; and

 6
 

 

(d)                                 Goldman
Sachs Credit Partners L.P.

Pledge means each of the pledges
constituted under Clause 2.2.

Pledgee means an Original Pledgee
or a Future Pledgee (together the Pledgees).

Priority Agreement
means the Existing Priority Agreement amended on a basis consistent with the
Agreed Priority Agreement Principles after the date of the Credit Agreement.

Request means any request for the
draw down of any credit facility under the Credit Agreement by any Obligor.

Second Limited Partner
means Kabel Deutschland Vermögen Beteiligungs GmbH & Co. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of Germany, having its corporate seat in Unterföhring, Germany,
which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84471.

Secured Claims means all present
and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of any of the Finance Parties against any of the
Obligors under the Finance Documents, each as amended, restated, varied,
supplemented, novated or extended from time to time, including, without
limitation, any increase of principal or interest, in each case together with
all costs, charges and expenses incurred by the Finance Parties (or any of
them) in connection with the protection, preservation or enforcement of their
respective rights under the Finance Documents.

Security means any and all security
granted to secure the Secured Claims. 

Security Document means any document
evidencing or creating security over any asset of any Obligor to secure any
obligation of any Obligor to a Finance Party under any Finance Document
referred to under (a) to (i) and (k) to (n) of the definition of “Finance
Document”.

Security Trust Agreement means
the agreement dated on or about the date hereof between, amongst others, KDG,
KDVS, the Security Agent and the other Finance Parties under which the Security
Agent has been granted certain rights and has assumed certain obligations.

Subsidiary means any of:

(a)                                  an entity of which a person has direct or indirect control or owns
directly or indirectly more than 50% of the voting capital or similar right of
ownership, and control for this purpose means the
power to direct the management and the policies of the entity whether through
the ownership of voting capital, by contract or otherwise; or

(b)                                 an entity consolidated for the purpose of the financial statements of
any person pursuant to the Accounting Principles.

Underwriter means each of:

(a)                                  The Royal Bank of Scotland plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs Credit Partners L.P.; and

(d)                                 JPMorgan Chase Bank, N.A.

 7
 

 

Unrestricted
Subsidiary means any Subsidiary of
KDVS or KDG (which is not an Obligor) nominated by KDVS to the Facility Agent
at any time when no Event of Default is outstanding.

TARGET Day means a day on which the
Trans-European Automated Real-Time Gross Settlement Express Transfer System is
open for the settlement of payments in Euro.

Transfer Certificate
means any transfer certificate pursuant to which any rights under the Credit
Agreement shall be transferred by novation or otherwise to any New Lender.

1.2                               Construction

(a)                                  In
this Agreement, unless the contrary intention appears, a reference to:

(i)                                     the
Security Agent means the Security Agent acting as agent for and on behalf of
the Pledgees unless otherwise provided herein; and

(ii)                                  promptly
means promptly (unverzüglich) as contemplated in
§ 121 (1) BGB.

(b)                                 Where
the context so admits, the singular includes the plural and vice versa.

(c)                                  The
headings in this Agreement are for convenience only and are to be ignored in
construing this Agreement.

(d)                                 Any
reference in this Agreement to a defined document is a reference to that
defined document as amended, restated, novated or supplemented from time to
time.

(e)                                  References
to parties herein shall also be deemed to include references to their
respective successors, transferees and assignees.

2.                                      Pledges

2.1                               Pledged Limited Partner’s Interest

(a)                                  The
Pledgor and the Second Limited Partner are the only limited partners (Kommanditisten) of the Company as of the date of this
Agreement.

(b)                                 The
Company’s sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The
Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company (the Existing Interest).  Its capital interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liable
capital amounts to EUR 1,000 (in words: Euro one thousand). The Second Limited
Partner does not have any capital interest (Kapitalanteil)
in the Company but its liability capital (Haftsumme)
amounts to EUR 1,000 (in words: Euro one thousand).

(d)                                 The
Existing Interest is fully paid up. 
There is no obligation for the Pledgor to make any additional
contributions.

2.2                               Constitution of Pledges

(a)                                  The
Pledgor hereby pledges the Interests to each of the Original Pledgees and to
each Future Pledgee for their rateable interest as Security.

 8
 

 

(b)                                 Each
of the Original Pledgees hereby accepts the Pledge.  In addition, the Security Agent accepts each
of the Pledges for and on behalf of each Future Pledgee hereunder as proxy
without power of attorney (Vertreter ohne
Vertretungsmacht).  Each
Future Pledgee will ratify such acceptance for itself by executing an accession
agreement to the Security Trust Agreement thereby becoming a Pledgee.  All Parties hereto confirm that the validity
of any of the Pledges constituted hereunder shall not be affected by the
Security Agent acting as proxy without power of attorney for each Future
Pledgee.

3.                                      Independent Pledges

The validity and effect of each of the Pledges shall
be independent from the validity and the effect of any of the other Pledges
created hereunder and is in addition, and without any prejudice, to any other
security which any and all of the Pledgees may now or hereafter hold in respect
of the Secured Claims. Each of the Pledges to each of the Pledgees shall be
separate and individual pledges. Each of the Pledges shall rank pari passu to each other Pledge created hereunder.

4.                                      Security Purpose

The Pledges are constituted in order to secure the
prompt and complete satisfaction of any and all Secured Claims.

5.                                      Dividends

5.1                               Extent of the Pledge

The Pledge constituted by this Agreement includes the
present and future rights of the Pledgor to receive

(a)                                  dividends,
if any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of the Pledgor of the Company (Abfindungsanspruch  bei Ausscheiden),
the surplus in case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding that the dividends are pledged
hereunder, the Pledgor shall be entitled to receive and retain all dividend
payments in cash in respect of the Interest until the requirements for enforcement
referred to under Clause 7 below are met and unless the Facility Agent has
notified the Pledgor that according to the Credit Agreement any dividend
payments in respect of the Interests are no longer permitted to be made to the
Pledgor, in which case the payments are to be made to the Security Agent.  

6.                                      Exercise of Voting Rights

6.1                               Voting Rights

The voting rights resulting from the Interests remain
with the Pledgor. This shall, however, not affect the obligations of the
Pledgor under Clause 7.1 below. The Pledgor shall at all times until the full
and complete satisfaction of all Secured Claims or the release of the Pledges
be required, in exercising its voting rights, to act in good faith to ensure
that the Pledges are not in any way adversely affected.

 9
 

 

6.2                               Impairment

The Pledgor shall not take, or participate in, any
action which impairs, or which would for any other reason be inconsistent with,
the security interest of the Pledgees or the security purpose as described in
Clause 4 hereof or defeat, impair or circumvent the rights of the Pledgees
hereunder in each case in any respect.

6.3                               Information by the Pledgor

The Pledgor shall inform the Security Agent promptly
of all other actions concerning the Company which might adversely affect the
security interest of the Pledgees. In particular, the Pledgor shall notify the
Security Agent forthwith of any partners’ meeting at which a resolution is
intended to be adopted which could be expected to have an adverse effect upon
the Pledges. In any event the Security Agent shall promptly receive, as soon as
they are available, a copy of the convocation notice for such ordinary or
extraordinary partners’ meeting setting forth the agenda (to the extent it
relates to such resolution) and all applications and decisions to be taken and
the minutes of any such partners’ meeting (in each case to the extent they
relate to such resolution).

7.                                      Enforcements of Pledges

7.1                               Pledgees’ Rights

(a)                                  If
(i) an Event of Default has occurred, (ii) the requirements set forth in §§ 1204
et seq. of the German Civil Code (Bürgerliches Gesetzbuch)
with regard to the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 Business Days
following the receipt of a notification in accordance with Clause 7.1(b), the
Pledgees may enforce any of the Pledges (or any part thereof) through the
Security Agent by way of public auction (öffentliche Versteigerung)
or in any other way permitted under German law, in all cases notwithstanding §
1277 of the German Civil Code without any enforceable judgement or other
instrument (vollstreckbarer Titel).

(b)                                 The
Security Agent shall notify the Pledgor of the intention to realise any of the
Pledges over the Interests not less than 5 (five) Business Days before the date
on which the respective Pledge is intended to be realised. The Pledgor
expressly agrees that in the event of a realisation by way of public auction 5
(five) Business Days prior written notice of the place and time of any such
public auction shall be sufficient. The public auction may be held at any place
in Germany which will be determined by the Security Agent. 

(c)                                  If
the Security Agent should seek to enforce any of the Pledges pursuant to, and
in accordance with Clause 7.1(a) above, the Pledgor shall, at its own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Interests or any part thereof and/or the exercise by the Security
Agent of any other right the Pledgees may have under German law. 

(d)                                 The
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims. The Pledgees shall at all times until the full and complete
satisfaction of all the Secured Claims in exercising their rights under this
Agreement take into consideration the legitimate interests of the Pledgor.

(e)                                  In
derogation of § 1225 of the German Civil Code, in the event of enforcement of
any of the Pledges, no rights of the Pledgees shall pass to the Pledgor by
subrogation or otherwise unless and until all of the Secured Claims have been
satisfied and discharged in full. Until then, the Security Agent shall be
entitled to treat all enforcement proceeds as additional

 10
 

 

collateral for the Secured Claims, notwithstanding its
right to seek satisfaction from such proceeds at any time. 

(f)                                    After
the complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Pledges (or part thereof) shall be transferred to the Pledgor at the cost
and expense of the Pledgor.

7.2                               Ancillary Rights

Provided that the requirements for enforcement
referred to under Clause 7.1(a) above are met, all payments based on ancillary
rights attributed to the Interests may be applied by the Security Agent in satisfaction
in whole or in part of the Secured Claims notwithstanding the Pledgees’ right
to treat such payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The
proceeds resulting from the enforcement of the Pledge must be applied by the
Security Agent in the following order of priority:

(b)                                 first,
in or towards payment of, or provision for, all costs and expenses incurred by
the Security Agent in connection with the enforcement of the Pledge; and

(c)                                  second,
in or towards payment of the Secured Claims by transferring the proceeds to the
Facility Agent for distribution.

(d)                                 The
Security Agent may determine which part of the Security, if applicable, shall
be used to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon the full and complete satisfaction of all Secured
Claims the Security Agent shall confirm to the Pledgor upon request that the
Interests are released from the Pledges and retransfer to the Pledgor any
documents received by the Security Agent or any designee pursuant to Clause
7.1(f) hereof.

8.                                      Undertakings of the Pledgor

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to
notify the Security Agent promptly of any change in the partnership of, or the
capital contributions to, the Company or of any change in the partnership agreement
(Gesellschaftsvertrag) or any
registrations in the commercial register other than with respect to holders of
a statutory power of attorney (Prokura);

(b)                                 to
notify the Security Agent promptly of any event or circumstance other than
interpretation of law which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to
effect promptly any payments to be made to the Company in respect of the
Interests; 

(d)                                 at
its own expense, to execute and do all such assurances, acts and things as the
Security Agent may reasonably require:

 11
 

 

(i)                                     for
perfecting or protecting the security intended to be afforded by this
Agreement; and

(ii)                                  if
the Pledges have become enforceable pursuant to Clause 6.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Agent,

and
in particular to execute all transfers, conveyances, assignments and releases
of that property whether to the Security Agent or to its nominees and give all
notices, orders and directions which the Security Agent may reasonably think
expedient;

(e)                                  at
the Security Agent’s reasonable request, to furnish to the Security Agent such
information concerning the Interests as is available to the Pledgor, to permit
the Security Agent and its designees to inspect, audit and make copies of and
extracts from all records and all other papers in the possession of the Pledgor
which pertain to the Interests on reasonable notice and during normal business
hours, and, upon the reasonable request of the Security Agent, to deliver to
the Security Agent copies of all such records and papers; 

(f)                                    to
refrain from any acts or omissions which might have an adverse effect on the
validity or enforceability of the Pledges or the effect of which results in the
Interests ceasing to exist; and

(g)                                 that
all Future Interests will be fully paid and that there will be no obligation
for a limited partner to make additional contributions. 

8.2                               Pledges over all Interests

The Security Agent may at all times for itself and for
the Pledgees request to hold a pledge over all Interests held by the Pledgor
(and in the case of a merger an equivalent security interest over the interest
in the surviving or, as the case may be, the new company) in accordance with
all terms of this Agreement.

9.                                      Representations and Warranties

The Pledgor represents and warrants to the Pledgees
that:

(a)                                  except
for the limited partner’s interest held by the Second Limited Partner, the
Existing Interest pledged hereunder is the only limited partner’s interest in
the Company in existence at the date hereof;

(b)                                 except
for the requirement of a written approval by all holders of a partnership interest
in the Company which approval has been given, the Pledgor is not subject to any
restriction of any kind with regard to the transfer of, or the granting of a
pledge in, or any other disposal of, any of the Interests;

(c)                                  all
necessary corporate action has been taken to authorise the entry into and
delivery of this Agreement; 

(d)                                 the
Existing Interest is fully paid and there is no obligation for the Pledgor to
make additional contributions;

(e)                                  the
Existing Interest is free from any rights of third parties;

(f)                                    no
third party has any pre-emption rights for interests in the Company; and

 12
 

 

(g)                                 there
is no party (other than the Pledgor) which is entitled to participate in the
profits or revenues of the Company.

10.                               Release of Security

Even prior to the full and complete satisfaction of
all Secured Claims, the Security Agent is obliged to release upon the Pledgor’s
request all or part of the Security insofar as the realisable value of the
Security and any other security given to the Security Agent or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10%.  The Security Agent may, at its discretion,
determine which part of the Security shall be released. 

11.                               Indemnity

11.1                        Liability for Damages

Neither the Security Agent nor the Pledgees shall be
liable for any loss or damage suffered by the Pledgor save in respect of such
loss or damage which is suffered as a result of the gross negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Agent.

11.2                        Indemnification

The Pledgor will indemnify the Security Agent and each
of the Pledgees and keep the Security Agent and each of the Pledgees
indemnified against any losses, actions, claims, expenses, demands and
liabilities which may be incurred by or made against the Security Agent and/or
each of the Pledgees as a result of any breach of the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross negligence (grobe Fahrlässigkeit)
or wilful misconduct (Vorsatz) of the
Pledgees or the Security Agent.

11.3                        This Clause 11 shall survive the termination of this Agreement under
Clause 12 or otherwise.

12.                               Duration and Independance

12.1                        Duration

This Agreement shall remain in full force and effect
until the full and complete satisfaction of the Secured Claims.  None of the Pledges shall cease to exist if
any payments made in satisfaction of the Secured Claims have only temporarily
discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create a continuing security
which means that no change or amendment whatsoever in any Finance Document or
in any document or agreement related to it shall affect the validity of this
Agreement. 

12.3                        Independence

This Agreement is independent from any other security
or guarantee which may have been or will be given to the Security Agent and/or
any of the other Pledgees with respect to any obligation of any of the Obligors
under the Finance Documents. None of such other securities or guarantees shall
prejudice, or shall be prejudiced by, or shall be merged in any way with, this
Agreement.

 13
 

 

13.                               Cost and Expenses

Any notarial fees and expenses incurred in connection
with the execution of this Agreement shall be borne by the Pledgor. The Pledgor
must pay to each Finance Party the amount of all costs and expenses (including
the costs and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               Partial Invalidity;Waiver

14.1                        Invalidity

If any provision of this Agreement or any part thereof
should be or become invalid or unenforceable, this shall not affect the
validity of the remaining provisions hereof. The invalid or unenforceable
provision shall be replaced by that provision which best meets the intent of
the replaced provision.

In particular the Pledges shall not be affected and
shall in any event extend to any and all Interests in the Company even if the
number or nominal value of any of the Existing Interests or the liable capital
of the Company as stated in Clause 2.1 are inaccurate and deviate from the
actual facts.

14.2                        Waiver

(a)                                  The
Pledgor hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No failure to
exercise, nor any delay in exercising, on the part of the Security Agent or the
Pledgees (or any of them), any right or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any right or remedy
prevent any further or other exercise thereof or the exercise of any other
right or remedy. The rights and remedies provided hereunder are cumulative and
not exclusive of any rights or remedies provided by law.

(b)                                 The
Pledgor hereby irrevocably waives any rights which may pass to the Pledgor by
subrogation or otherwise, including but not limited to, any recourse claim
against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Pledges created
hereunder.

15.                               Amendments

Changes and amendments of this Agreement including
this Clause 15 shall be made in writing.

16.                               Notices and their Language

16.1                        Notices

Any notice or other communication under or in
connection with this Agreement to the Pledgor or the Security Agent and/or the
Pledgees shall be in writing and shall be delivered personally, by post or
facsimile and shall be sent to the address or facsimile number of the party,
and for the attention of the individual, set forth in Schedule 1 hereto or such
other address or facsimile number as is notified by that party for this purpose
to the Security Agent from time to time.

16.2                        Language

Unless otherwise agreed from time to time, any notice
or other communication under or in connection with this Agreement shall be in
the English language or, if in any other language,

 14
 

 

accompanied
by a translation into English. In the event of any conflict between the English
text and the text in any other language, the English text shall prevail.

17.                               Applicable Law;Jurisdiction

17.1                        Governing Law

This Agreement shall be governed by and construed in
accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction for all Parties shall be
Frankfurt am Main, Germany. The Security Agent, however, shall also be entitled
to take legal action against the Pledgor before any other competent court of
law having jurisdiction over the Pledgor or any of its assets.

18.                               Notification

The Pledgor and the Pledgees hereby instruct the
undersigned notary public to notify the Company of the Pledges pursuant to, and
in accordance with, § 1280 of the German Civil Code by means of forwarding a
certified copy of this Agreement to the Company by registered mail (return
receipt requested).

 15
 

 

Schedule
1

Addresses
of Notices

	
  To the Pledgor:

  	
  Kabel Deutschland Vertrieb und Service GmbH &
  Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49 89 96010 198

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Security Agent

  and all other Pledgees:

  	
  The
  Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

   

  United Kingdom

  
	
   

  	
   

  
	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 20 7085 4564

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Company:

  	
  Kabel Deutschland Vermögen GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49 89 96010 198

  

 

 16EXHIBIT 10.26

APPENDIX 1 - KG

SECONDARY
INTEREST PLEDGE AGREEMENT

RELATING TO THE INTERESTS IN

KABEL DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS GMBH & CO. KG

DATED 12 MAY 2006

between

KABEL DEUTSCHLAND GMBH

as Pledgor

and

THE ROYAL BANK OF SCOTLAND PLC
as Security Trustee

and

LAW DEBENTURE TRUST COMPANY OF
NEW YORK

as High Yield Notes Trustee

and

THE FINANCE PARTIES

ALLEN & OVERY LLP

Frankfurt am Main

CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Secondary Pledges

  	
   

  	
  6

  
	
  3.

  	
   

  	
  Independent Secondary Pledges

  	
   

  	
  7

  
	
  4.

  	
   

  	
  Security Purpose

  	
   

  	
  7

  
	
  5.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  8

  
	
  6.

  	
   

  	
  Enforcement of Secondary Pledges

  	
   

  	
  8

  
	
  7.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  9

  
	
  8.

  	
   

  	
  Representations and Warranties

  	
   

  	
  10

  
	
  9.

  	
   

  	
  Release of Security

  	
   

  	
  11

  
	
  10.

  	
   

  	
  Indemnity

  	
   

  	
  11

  
	
  11.

  	
   

  	
  Duration and Independence

  	
   

  	
  11

  
	
  12.

  	
   

  	
  Costs and Expenses

  	
   

  	
  12

  
	
  13.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  12

  
	
  14.

  	
   

  	
  Amendments

  	
   

  	
  13

  
	
  15.

  	
   

  	
  Notices and their Language

  	
   

  	
  13

  
	
  16.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  13

  
	
  17.

  	
   

  	
  Notification

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Addresses for notices

  	
   

  	
  14

  
							

 

THIS
SECONDARY INTEREST PLEDGE AGREEMENT (the Agreement) is made
on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht) of Munich under registration
number HRB 145837,

(the Pledgor);

on one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of Scotland and being registered with the Companies
House under registration number SC 090312

(the
Security Trustee);

(3)                                  THE FINANCE PARTIES as defined in Clause 1.1 (Definitions) below;
and

(4)                                  LAW DEBENTURE TRUST COMPANY OF NEW YORK, a limited
purpose trust company organised under the laws of the State of New York, 767
Third Avenue, 31st Floor, New York, NY 10017,

(the
High Yield Notes Trustee);

on
the other side.

The
Security Trustee and the High Yield Notes Trustee are hereinafter referred to
individually as an Original Secondary Pledgee
and together as the Original Secondary
Pledgees.

The
Pledgor and the Secondary Pledgees (as defined below) are hereinafter
collectively referred to as the Parties.

WHEREAS:

(A)                              The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)                                The security
interests given on 1 July 2004 and on 27 July 2004 by, amongst others, the
Pledgor to Deutsche Bank AG London as security trustee and Law Debenture Trust
Company of New York as high yield notes trustee on a second ranking basis have
been released as of the date hereof and shall now be re-taken subject to and in
accordance with the terms of the Priority Agreement (as defined below).

(C)                                According to
the terms of an amendment agreement to the Priority Agreement (as defined
below) Deutsche Bank AG London as former security trustee has resigned and the
new Security Trustee has assumed this position.

 

(D)                               Under the
Priority Agreement (as defined below) the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield Noteholders and/or the High Yield Notes Trustee under the
Finance Documents (each as defined below). 
The High Yield Notes Trustee has acceded to the Priority Agreement by
means of an accession agreement entered into on or about 2 July 2004 by,
amongst others, the Security Trustee and the High Yield Notes Trustee, acting
for itself and on behalf of the High Yield Noteholders (as defined below).

(E)                                 In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung).

Additional High Yield Guarantor means a member
of the Group which becomes a high yield guarantor under the Finance Documents
after the date of their execution.

Approved Additional High Yield Guarantor means any
Additional High Yield Guarantor whose obligations under the Finance Documents
have after the date of their execution been specified by the relevant Finance
Party to be secured by this Agreement.

Business Day means
each day that is not (i) a Saturday or a Sunday or (ii) any other day on which
banking institutions in Luxembourg City, Luxembourg, London, United Kingdom,
Frankfurt am Main, Germany or New York, New York are authorised or required by
law to close.

Company means Kabel Deutschland Vertrieb und
Service Beteiligungs GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the
laws of Germany, having its corporate seat in Unterföhring, Germany, which is
registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht)
of Munich under registration number HRA 84369.

Credit Agreement means the EUR 1,350,000,000 credit
agreement dated on or about 13 March 2006 between, amongst others, the Mandated
Lead Arrangers, the Facility Agent, the Royal Bank of Scotland plc as security
agent, KDVS, KDG and the Original Lenders providing for EUR 1,350,000,000
senior credit facilities and up to EUR 650,000,000 add-on facilities.

Dollar, dollar or $ means the currency of the United States
of America.

Dollar Notes means $ 610,000,000 aggregate principal
amount of 10.625 % dollar-denominated senior notes due 2014 or any other
dollar-denominated notes issued pursuant to and in compliance with the High
Yield Indenture (including but not limited to any dollar-denominated Exchange
Securities).

 

Euro, euro or € means
the single European currency introduced 1st January, 1999.

Euro Notes means Euro 250,000,000 aggregate
principal amount of 10.750 % euro-denominated senior notes due 2014 or any
other euro-denominated notes issued pursuant to and in compliance with the High
Yield Indenture (including but not limited to any euro-denominated Exchange
Securities).

Exchange Securities means the dollar and/or euro
denominated debt securities issued and delivered by KDG in exchange for the
Initial Securities to the holders of transfer restricted securities pursuant to
the High Yield Indenture as contemplated by the High Yield Registration Rights
Agreement.

Event of Default means an event of default under any of
the Finance Documents, which entitles the relevant Finance Parties to declare
that all or part of any amounts outstanding under the relevant Finance
Documents or any of them are immediately due and payable, or payable on demand.

Existing Interest means the interest set forth in
Clause 2.1.

Facility Agent means The Royal Bank of Scotland plc, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of the United Kingdom
and being registered with the Companies House under registration number SC
090312.

Finance Document means:

(a)                                  the High Yield
Notes;

(b)                                 the Exchange
Securities;

(c)                                  the High Yield
Indenture;

(d)                                 each Security
Document;

(e)                                  the Priority
Agreement; or

(f)                                    any other
document designated as such by the Security Trustee and KDG.

Finance Party means each of the Security Trustee, the
High Yield Notes Trustee and any other person becoming a security trustee or a
high yield notes trustee under the High Yield Indenture (together the Finance Parties).

Future Interests means any and all interests in the
Company, other than the Existing Interest, which KDG may acquire in future.

Future Secondary Pledgee means a
Finance Party (other than the Security Trustee and the High Yield Notes
Trustee).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries.

High Yield Guarantor means (i) KDVS
or (ii) an Approved Additional High Yield Guarantor (together the High Yield Guarantors).

 

High Yield Indenture means the indenture dated on or about
2nd July, 2004, made between, amongst others, KDG, KDVS as High Yield
Guarantor, the High Yield Notes Trustee, the Security Trustee and any other
High Yield Guarantor relating to the issue of the High Yield Notes by KDG, and
including any supplemental indenture entered into, amongst others, by KDG with
respect to the High Yield Indenture.

High Yield Notes means the Euro Notes and the Dollar
Notes issued pursuant to the High Yield Indenture.

High Yield Noteholders means each of
the holders of the High Yield Notes.

High Yield Registration Rights Agreement means the
registration rights agreement dated on or about 2nd July, 2004, made between,
amongst others, KDVS, KDG, the High Yield Guarantors and Deutsche Bank AG
London, Morgan Stanley & Co. International Limited, Citigroup Global
Markets Limited, Goldman Sachs International and ABN Amro Bank N.V. relating to
the offer to exchange transfer restricted Initial Securities into a like
aggregate amount of the Exchange Securities or the shelf registration of such
Initial Securities.

Initial Securities means each of the Euro Notes and Dollar
Notes.

Interests means the Existing Interest and the
Future Interests.

Issue Date means each of the date on or about 2nd
July, 2004 and any date thereafter on which High Yield Notes are issued under
the High Yield Indenture (together the Issue
Dates).

KDG means Kabel Deutschland GmbH a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

Kabel Deutschland Verwaltungs GmbH means a
limited liability company (Gesellschaft mit
beschränkter Haftung) organised under the laws of Germany, having
its corporate seat in Unterföhring, Germany, which is registered in the
Commercial Register (Handelsregister)
at the Local Court (Amtsgericht)
of Munich under registration number HRB 145835.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated Lead Arranger means each
of:

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan
plc.

Obligor means KDG or a High Yield Guarantor
(together the Obligors).

 

Original Lender means each of:

(a)                                  The Royal Bank
of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank
AG London;

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Party means each of the Pledgor and the Secondary
Pledgees (together the Parties).

Priority Agreement means the priority agreement dated 29
March 2004 as amended and restated pursuant to a supplemental agreement dated
27 May 2004 and as further amended and restated pursuant to a supplemental
agreement dated 1 July 2004 and as further amended and restated pursuant to a
supplemental agreement dated the date hereof made between, among others, KDG,
KDVS, the Mandated Lead Arrangers, the Original Lenders, the Facility Agent,
the Security Trustee and certain other creditors of the Group.

Priority Pledges has the meaning given to it under
Clause 2.2(c)(ii) below.

Secondary Pledge means a pledge constituted under
Clause 2.2.

Secondary Pledgee means an Original Secondary Pledgee or
a Future Secondary Pledgee (together the Secondary
Pledgees).

Secured Claims means all present and future rights and
claims (Ansprüche) (whether
actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of the Finance Parties against any of the Obligors under
the Finance Documents, each as amended, restated, varied, supplemented, novated
or extended from time to time, including, without limitation, any increase of
principal or interest, in each case together with all costs, charges and
expenses incurred by the Finance Parties in connection with the protection,
preservation or enforcement of their respective rights under the Finance
Documents.

Security means any and all security granted to
secure the Secured Claims.

Security Documents means any mortgages, pledges,
assignments, transfers or other documents creating security for the obligations
of the Obligors under the Finance Documents.

Security Trust Agreement means the
security trust agreement dated on or about the date hereof between, amongst
others, KDG and KDVS as security agents and the Security Trustee.

Subsidiary means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control for this purpose means the power to
direct the management and the policies of the entity whether through the
ownership of voting capital, by contract or otherwise; or

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

 

1.2                               Construction

(a)           In this Agreement, unless the
contrary intention appears, a reference to:

(i)                                     the Security
Trustee means the Security Trustee acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as
contemplated in § 121 (1) BGB.

(b)           Where the context so admits, the
singular includes the plural and vice versa.

(c)                                  The headings
in this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference
in this Agreement to a defined document is a reference to that defined document
as amended, restated, novated or supplemented from time to time.

(e)                                  Whenever in
this Agreement reference is made to the Security Trustee such reference shall
be deemed to be a reference to the Security Trustee acting as trustee for and
on behalf of the Secondary Pledgees, unless otherwise provided herein.

(f)                                    References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      SECONDARY PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The Pledgor is
the only limited partner (Kommanditist)
of the Company as of the date of this Agreement.

(b)                                 The Company’s
sole general partner (Komplementär)
is Kabel Deutschland Vertrieb und Service Beteiligungs Verwaltungs GmbH which
does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the
capital interest in the Company (the Existing
Interest).  Its capital
interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liable
capital amounts to EUR 1,000 (Euro one thousand).

(d)                                 The Existing
Interest is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2                               Constitution of Secondary Pledges

(a)                                  The Pledgor
hereby pledges the Interests to each Original Secondary Pledgee and to each
Future Secondary Pledgee for their rateable interest as Security.

(b)                                 Each of the
Original Secondary Pledgees hereby accepts each of the Secondary Pledges.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter ohne Vertretungsmacht).  Each Future Secondary Pledgee will ratify
such acceptance for itself by executing an accession agreement to the Security
Trust Agreement, thereby becoming a Secondary Pledgee.  All Parties hereto confirm

 

that
the validity of any of the Secondary Pledges constituted hereunder shall not be
affected by the Security Trustee acting as proxy without power of attorney for
each Future Secondary Pledgee.

(c)                                  The Parties
herewith acknowledge that

(i)                                     the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the
Interests in the Company;

(ii)                                  the pledges
constituted between, amongst others, the Pledgor and Royal Bank of Scotland plc
as security agent relating to the Interests in the Company pursuant to an
interest pledge agreement as of the date hereof but prior to the execution of
this Agreement (the Priority Pledges)
have priority over the Secondary Pledges created under this Agreement; and

(iii)                               the
enforcement of this Secondary Pledge shall be made in accordance with the
provisions of the Priority Agreement.

3.                                      INDEPENDENT SECONDARY PLEDGES

The
validity and effect of each of the Secondary Pledges shall be independent from
the validity and the effect of any of (i) the other Secondary Pledges created
hereunder and (ii) the Priority Pledges and is in addition, and without any
prejudice, to any other Security which any and all of the Secondary Pledgees
may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.                                      SECURITY PURPOSE

The
Secondary Pledges are constituted in order to secure the prompt and complete
satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The
Pledge constituted by this Agreement includes the present and future rights of
the Pledgor to receive

(a)                                  dividends, if
any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of the
Pledgor of the Company (Abfindungsanspruch
bei Ausscheiden), the surplus in
case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in cash in respect of the Interests
until the requirements for enforcement referred to under Clause 7 below are met
and unless the Facility Agent has notified the Pledgor that according to the
Credit Agreement any dividend payments

 

in
respect of the Interests are no longer permitted to be made to the Pledgor, in
which case the payments are to be made to the Security Trustee.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Interests remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 8.1 below.  The Pledgor shall at all times until the full
and complete satisfaction of all Secured Claims or the release of the Secondary
Pledges be required, in exercising its voting rights, to act in good faith to
ensure that the Secondary Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Secondary Pledgees or the security purpose as described in Clause 4 hereof
or defeat, impair or circumvent the rights of the Secondary Pledgees hereunder
in each case in any respect.

6.3                               Information by the Pledgor

The
Pledgor shall inform the Secondary Pledgees promptly of all other actions
concerning the Company which might adversely affect the security interest of
the Secondary Pledgees.  In particular,
the Pledgor shall notify the Secondary Pledgees forthwith of any partners’
meeting at which a resolution is intended to be adopted which could be expected
to have an adverse effect upon the Secondary Pledges.  In any event the Secondary Pledgees shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary partners’ meeting setting forth the
agenda (to the extent it relates to such resolution) and all applications and
decisions to be taken and the minutes of any such partners’ meeting (in each
case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF SECONDARY PLEDGES

7.1                               Secondary Pledgees’ Rights

(a)                                  If (i) an
Event of Default has occurred, (ii) the requirements set forth in §§ 1204 et
seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of
Default has not been remedied within 5 (five) Business Days following the
receipt of a notification in accordance with Clause 7.1(b), the Secondary
Pledgees may enforce any of the Secondary Pledges (or any part thereof),
through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other
way permitted under German law, in all cases notwithstanding § 1277 of the
German Civil Code without any enforceable judgement or other instrument (vollstreckbarer Titel).

(b)                                 The Security
Trustee shall notify the Pledgor of the intention to realise any of the
Secondary Pledges over the Interests not less than 5 (five) Business Days
before the date on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the event
of a realisation by way of public auction 5 (five) Business Days prior written
notice of the place and time of any such public auction shall be
sufficient.  The public auction may be
held at any place in Germany which will be determined by the Security Trustee.

 

(c)                                  If the
Security Trustee should seek to enforce any of the Secondary Pledges pursuant
to, and in accordance with Clause 7.1(a) above, the Pledgor shall, at its own
expense, render forthwith all assistance necessary in order to facilitate the
prompt sale of the Interests or any part thereof and/or the exercise by the
Security Trustee of any other right the Secondary Pledgees may have under
German law.

(d)                                 The Secondary
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims.  The Secondary Pledgees
shall at all times until the full and complete satisfaction of all the Secured
Claims in exercising their rights under this Agreement take into consideration
the legitimate interests of the Pledgor.

(e)                                  In derogation
of § 1225 of the German Civil Code, in the event of enforcement of any of the
Secondary Pledges, no rights of the Secondary Pledgees shall pass to the
Pledgor by subrogation or otherwise unless and until all of the Secured Claims
have been satisfied and discharged in full. 
Until then, the Security Trustee shall be entitled to treat all
enforcement proceeds as additional collateral for the Secured Claims,
notwithstanding its right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Secondary Pledges (or part thereof) shall be transferred to the Pledgor at
the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Interests may be
applied by the Security Trustee in satisfaction in whole or in part of the
Secured Claims notwithstanding the Secondary Pledgees’ right to treat such
payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds
resulting from the enforcement of any of the Secondary Pledges shall be applied
by the Security Trustee towards the satisfaction of the Secured Claims, subject
to, and in accordance with, the relevant provisions of the Priority Agreement.

(b)                                 The Security
Trustee may determine which part of the Security, if applicable, shall be used
to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Trustee
shall confirm to the Pledgor upon request that the Interests are released from
the Secondary Pledges and retransfer to the Pledgor any documents received by
the Security Trustee or any designee pursuant to Clause 8.1(e) hereof.

 

8.                                      UNDERTAKINGS
OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to notify the Security Trustee promptly of
any change in the partnership of, or the capital contributions to, the Company
or of any change in the partnership agreement (Gesellschaftsvertrag)
or any registrations in the commercial register other than with respect to
holders of a statutory power of attorney (Prokura);

(b)                                 to notify the Security Trustee promptly of
any event or circumstance other than interpretation of law which affects or is
reasonably likely to affect the validity or enforceability of the security
interest granted hereunder;

(c)                                  to effect promptly any payments to be made to
the Company in respect of the Interests;

(d)                                 at its own expense, to execute and do all
such assurances, acts and things as the Security Trustee may reasonably
require:

(i)                                     for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)                                  if the Secondary Pledges have become
enforceable pursuant to Clause 7.1, for facilitating the realisation of
all or any part of the Interests which are subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Security
Trustee,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Trustee or to its nominees and give all notices, orders and
directions which the Security Trustee may reasonably think expedient;

(e)                                  at the Security Trustee’s reasonable request,
to furnish to the Security Trustee such information concerning the Interests as
is available to the Pledgor to permit the Security Trustee and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Interests on
reasonable notice and during normal business hours, and, upon the reasonable
request of the Security Trustee, to deliver to the Security Trustee copies of
all such records and papers;

(f)                                    to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Secondary
Pledges or the effect of which results in the Interests ceasing to exist; and

(g)                                 that all Future Interests will be fully paid
and that there will be no obligation for a limited partner to make additional
contributions.

8.2                               Secondary Pledges over all
Interests

The Security Trustee may at
all times for itself and for the Secondary Pledgees request to hold a pledge
over all Interests held by the Pledgor (and in the case of a merger an
equivalent security interest over the interest in the surviving or, as the case
may be, the new company) in accordance with all terms of this Agreement.

9.                                      REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Secondary Pledgees that:

 

(a)                                  the Existing Interest pledged hereunder is
the only limited partner’s interest in the Company in existence at the date
hereof;

(b)                                 the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Interests;

(c)                                  all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

(d)                                 the Existing Interest is fully paid and there
is no obligation for the Pledgor to make additional contributions; and

(e)                                  (i)            the
Existing Interest is, except for the Priority Pledges securing any payment
obligations of the obligors under the Credit Agreement, free from any rights of
third parties;

(ii)                                  no third party has any pre-emption rights for
interests in the Company; and

(iii)                               there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.                               RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Trustee is obliged to
release upon the Pledgor`s request all or part of the Security insofar as the
realisable value of the Security given to the Security Trustee or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Trustee
nor the Secondary Pledgees shall be liable for any loss or damage suffered by
the Pledgor save in respect of such loss or damage which is suffered as a
result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Trustee or of any of the Secondary
Pledgees.

11.2                        Indemnification

The Pledgor will indemnify
the Security Trustee and each of the Secondary Pledgees and keep the Security
Trustee and each of the Secondary Pledgees indemnified against any losses,
actions, claims, expenses, demands and liabilities which may be incurred by or
made against the Security Trustee and/or each of the Secondary Pledgees as a
result of any breach by the Pledgor of any of its obligations or undertakings
contained herein except to the extent that such losses, actions, claims,
expenses, demands or liabilities have resulted from the gross negligence (grobe Fahrlässigkeit) or wilful
misconduct (Vorsatz) of any of
the Secondary Pledgees or the Security Trustee.

 

11.3                        This Clause 11 (Indemnity) shall survive the
termination of this Agreement under Clause 12.1 or otherwise.

12.                               DURATION
AND INDEPENDENCE

12.1                        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Secondary
Pledges shall cease to exist if any payments made in satisfaction of the
Secured Claims have only temporarily discharged the Secured Claims.

12.2                        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it or the
replacement of the Security Trustee or of the High Yield Notes Trustee or any
transfer of the Notes shall affect the validity of this Agreement.

12.3                        Independence

This Agreement is independent
from any other security or guarantee which may have been or will be given to
the Security Trustee and/or any of the other Secondary Pledgees with respect to
any obligation of any of the Obligors under the Finance Documents.  None of such other securities or guarantees
shall prejudice, or shall be prejudiced by, or shall be merged in any way with,
this Agreement.

13.                               COSTS
AND EXPENSES

Any notarial fees and expenses incurred in
connection with the execution of this Agreement shall be borne by the Pledgor.  The Pledgor must pay to each Finance Party
the amount of all costs and expenses (including the costs and expenses of legal
advisers) incurred by it in connection with the enforcement of, or the
preservation of any rights under, any Finance Document.

14.                               PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced
provision.

In particular, the Secondary
Pledges shall not be affected and shall in any event extend to any and all
Interests in the Company even if the number or nominal value of any of the
Existing Interests or the liable capital of the Company as stated in
Clause 2.1 are inaccurate and deviate from the actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of

 

the Security Trustee or the
Secondary Pledgees (or any of them), any right or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right or
remedy prevent any further or other exercise thereof or the exercise of any
other right or remedy.  The rights and
remedies provided hereunder are cumulative and not exclusive of any rights or
remedies provided by law.

(b)                                 The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Secondary Pledges created hereunder.

15.                               AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.                               NOTICES
AND THEIR LANGUAGE

16.1                        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Trustee and/or the Secondary Pledgees shall be in writing and shall be
delivered personally, by post or facsimile and shall be sent to the address or
facsimile number of the party, and for the attention of the individual, set
forth in Schedule 1 hereto or such other address or facsimile number as is
notified by that party for this purpose to the Security Trustee from time to
time.

16.2                        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

17.                               APPLICABLE
LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the
Secondary Pledgees hereby instruct and authorise the undersigned notary public
to notify the Company of the Secondary Pledges pursuant to, and in accordance
with, §  1280 of the German Civil Code by means of forwarding a certified
copy of this Agreement to the Company by registered mail (return receipt
requested) and by fax.

 

SCHEDULE 1

ADDRESSES
FOR NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland GmbH

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
  To the Security
  Trustee and all other Secondary Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated

  Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vertrieb und

  Service Beteiligungs GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 

APPENDIX 2 - KG

SECONDARY INTEREST PLEDGE AGREEMENT

RELATING
TO THE INTERESTS IN

KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG 

DATED 12 MAY 2006

between

KABEL DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS GMBH
& CO. KG

as Pledgor

and

THE ROYAL BANK OF SCOTLAND PLC as Security Trustee

and

LAW DEBENTURE TRUST COMPANY OF NEW YORK

as High Yield Notes Trustee

and

THE FINANCE PARTIES

ALLEN &
OVERY LLP

Frankfurt am Main

 

CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clause

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Secondary Pledges

  	
   

  	
  6

  
	
  3.

  	
   

  	
  Independent Secondary Pledges

  	
   

  	
  7

  
	
  4.

  	
   

  	
  Security Purpose

  	
   

  	
  7

  
	
  5.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  8

  
	
  6.

  	
   

  	
  Enforcement of Secondary Pledges

  	
   

  	
  8

  
	
  7.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Representations and Warranties

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Release of Security

  	
   

  	
  11

  
	
  10.

  	
   

  	
  Indemnity

  	
   

  	
  11

  
	
  11.

  	
   

  	
  Duration and Independence

  	
   

  	
  12

  
	
  12.

  	
   

  	
  Costs and Expenses

  	
   

  	
  12

  
	
  13.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  12

  
	
  14.

  	
   

  	
  Amendments

  	
   

  	
  13

  
	
  15.

  	
   

  	
  Notices and their Language

  	
   

  	
  13

  
	
  16.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  13

  
	
  17.

  	
   

  	
  Notification

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Addresses for notices

  	
   

  	
  15

  

 

 

THIS SECONDARY INTEREST
PLEDGE AGREEMENT (the Agreement) is
made on 12 May 2006

BETWEEN:

(1)                                  KABEL
DEUTSCHLAND VERTRIEB UND SERVICE BETEILIGUNGS GMBH & CO. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of Germany, having its corporate seat in Unterföhring, Germany,
which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84369

(the
Pledgor);

on
one side;

(2)                                  THE ROYAL
BANK OF SCOTLAND PLC, a public limited company, having its registered
office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated
under the laws of Scotland and being registered with the Companies House under
registration number SC 090312

(the
Security Trustee);

(3)                                  THE
FINANCE PARTIES as defined in Clause 1.1 (Definitions) below; and

(4)                                  LAW
DEBENTURE TRUST COMPANY OF NEW YORK, a limited purpose trust
company organised under the laws of the State of New York, 767 Third Avenue,
31st Floor, New York, NY 10017

(the
High Yield Notes Trustee);

on
the other side.

The
Security Trustee and the High Yield Notes Trustee are hereinafter referred to
individually as an Original Secondary Pledgee
and together as the Original Secondary
Pledgees.

The
Pledgor and the Secondary Pledgees (as defined below) are hereinafter
collectively referred to as the Parties.

WHEREAS:

(A)                              The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)                                The security
interests given on 1 July 2004 and on 27 July 2004 by, amongst others, the
Pledgor to Deutsche Bank AG London as security trustee and Law Debenture Trust
Company of New York as high yield notes trustee on a second ranking basis have
been released as of the date hereof and shall now be re-taken subject to and in
accordance with the terms of the Priority Agreement (as defined below).

(C)                                According to the
terms of an amendment agreement to the Priority Agreement (as defined below)
Deutsche Bank AG London as former security trustee has resigned and the new
Security Trustee has assumed this position.

 

(D)                               Under the
Priority Agreement (as defined below) the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield Noteholders and/or the High Yield Notes Trustee under the
Finance Documents (each as defined below). 
The High Yield Notes Trustee has acceded to the Priority Agreement by
means of an accession agreement entered into on or about 2 July 2004 by,
amongst others, the Security Trustee and the High Yield Notes Trustee, acting
for itself and on behalf of the High Yield Noteholders (as defined below).

(E)                                 In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting
Principles means accounting principles, policies, standards,
bases and practices which, as at the date of the Credit Agreement, are in
accordance with the German generally accepted accounting principles (Grundsätze ordnungsgemäßer Buchführung und Bilanzierung).

Additional
High Yield Guarantor means a member of the Group which becomes a
high yield guarantor under the Finance Documents after the date of their
execution.

Approved
Additional High Yield Guarantor means any Additional High
Yield Guarantor whose obligations under the Finance Documents have after the
date of their execution been specified by the relevant Finance Party to be
secured by this Agreement.

Business Day means each day that is not (i) a Saturday or a Sunday or
(ii) any other day on which banking institutions in Luxembourg City,
Luxembourg, London, United Kingdom, Frankfurt am Main, Germany or New York, New
York are authorised or required by law to close.

Company means Kabel
Deutschland Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902.

Credit
Agreement means the EUR 1,350,000,000 credit agreement dated on
or about 13 March 2006 between, amongst others, the Mandated Lead Arrangers,
the Facility Agent, the Royal Bank of Scotland plc as security agent, KDVS, KDG
and the Original Lenders providing for EUR 1,350,000,000 senior credit
facilities and up to EUR 650,000,000 add-on facilities.

Dollar,
dollar or $ means the currency of the United States of America.

Dollar
Notes means $ 610,000,000 aggregate principal amount of 10.625 %
dollar-denominated senior notes due 2014 or any other dollar-denominated notes
issued pursuant to and in compliance with the High Yield Indenture (including
but not limited to any dollar-denominated Exchange Securities).

 

Euro, euro or € means the single European currency introduced 1st
January, 1999.

Euro
Notes means Euro 250,000,000 aggregate principal amount of 10.750 %
euro-denominated senior notes due 2014 or any other euro-denominated notes
issued pursuant to and in compliance with the High Yield Indenture (including
but not limited to any euro-denominated Exchange Securities).

Exchange
Securities means the dollar and/or euro denominated debt
securities issued and delivered by KDG in exchange for the Initial Securities
to the holders of transfer restricted securities pursuant to the High Yield
Indenture as contemplated by the High Yield Registration Rights Agreement.

Event of
Default means an event of default under any of the Finance
Documents, which entitles the relevant Finance Parties to declare that all or
part of any amounts outstanding under the relevant Finance Documents or any of
them are immediately due and payable, or payable on demand.

Existing
Interest means the interest set forth in Clause 2.1.

Facility
Agent means The Royal Bank of Scotland plc, a public limited company, having
its registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of the United Kingdom and being registered with the
Companies House under registration number SC 090312.

Finance
Document means:

(a)                                  the High Yield Notes;

(b)                                 the Exchange Securities;

(c)                                  the High Yield Indenture;

(d)                                 each Security Document;

(e)                                  the Priority Agreement; or

(f)                                    any other document designated
as such by the Security Trustee and KDG.

Finance
Party means each of the Security Trustee, the High Yield Notes Trustee and any
other person becoming a security trustee or a high yield notes trustee under
the High Yield Indenture (together the Finance Parties).

Future
Interests means any and all interests in the Company, other than
the Existing Interest, which KDG may acquire in future.

Future
Secondary Pledgee means a Finance Party (other than the Security
Trustee and the High Yield Notes Trustee).

Germany means the
Federal Republic of Germany.

Group means KDG and its
Subsidiaries.

High
Yield Guarantor means (i) KDVS or (ii) an Approved Additional High
Yield Guarantor (together the High Yield Guarantors).

 

High Yield Indenture means the
indenture dated on or about 2nd July, 2004, made between, amongst others, KDG,
KDVS as High Yield Guarantor, the High Yield Notes Trustee, the Security
Trustee and any other High Yield Guarantor relating to the issue of the High
Yield Notes by KDG, and including any supplemental indenture entered into,
amongst others, by KDG with respect to the High Yield Indenture.

High
Yield Notes means the Euro Notes and the Dollar Notes issued
pursuant to the High Yield Indenture.

High
Yield Noteholders means each of the holders of the High Yield Notes.

High
Yield Registration Rights Agreement means the registration rights
agreement dated on or about 2nd July, 2004, made between, amongst others, KDVS,
KDG, the High Yield Guarantors and Deutsche Bank AG London, Morgan Stanley
& Co. International Limited, Citigroup Global Markets Limited, Goldman
Sachs International and ABN Amro Bank N.V. relating to the offer to exchange
transfer restricted Initial Securities into a like aggregate amount of the
Exchange Securities or the shelf registration of such Initial Securities.

Initial
Securities means each of the Euro Notes and Dollar Notes.

Interests
means the Existing Interest and the Future Interests.

Issue
Date means each of the date on or about 2nd July, 2004 and any date
thereafter on which High Yield Notes are issued under the High Yield Indenture
(together the Issue Dates).

KDG means Kabel
Deutschland GmbH a limited liability company (Gesellschaft
mit beschränkter Haftung) incorporated under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

Kabel
Deutschland Verwaltungs GmbH means a limited liability
company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRB 145835.

KDVS means Kabel
Deutschland Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) incorporated under the laws of
Germany, having its corporate seat in Unterföhring (Landkreis München),
Germany, which is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated
Lead Arranger means each of:

(a)                                  The Royal Bank of Scotland
plc;

(b)                                 Deutsche Bank AG London;

(c)                                  Goldman Sachs International;
and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a
High Yield Guarantor (together the Obligors).

 

Original Lender means each of:

(a)                                  The Royal Bank of Scotland
plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG London;

(c)                                  JPMorgan Chase Bank, N.A.; and

(d)                                 Goldman Sachs Credit Partners
L.P.

Party means each of
the Pledgor and the Secondary Pledgees (together the Parties).

Priority
Agreement means the priority agreement dated 29 March 2004 as
amended and restated pursuant to a supplemental agreement dated 27 May 2004 and as
further amended and restated pursuant to a supplemental agreement dated 1 July
2004 and as further amended and restated pursuant to a supplemental agreement
dated the date hereof made between, among others, KDG, KDVS, the Mandated Lead
Arrangers, the Original Lenders, the Facility Agent, the Security Trustee and
certain other creditors of the Group.

Priority
Pledges has the meaning given to it under Clause 2.2(c)(ii) below.

Secondary
Pledge means a pledge constituted under Clause 2.2.

Secondary
Pledgee means an Original Secondary Pledgee or a Future Secondary Pledgee
(together the Secondary Pledgees).

Second
Limited Partner means Kabel Deutschland GmbH, a limited liability
company (Gesellschaft mit beschränkter Haftung)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht)
of Munich under registration number HRB 145837,

Secured
Claims means all present and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties in connection with the
protection, preservation or enforcement of their respective rights under the
Finance Documents.

Security means any and all
security granted to secure the Secured Claims.

Security
Documents means any mortgages, pledges, assignments, transfers
or other documents creating security for the obligations of the Obligors under
the Finance Documents.

Security Trust Agreement means the security trust agreement dated on or about the date hereof
between, amongst others, KDG and KDVS as security agents and the Security
Trustee.

Subsidiary
means any of:

(a)                                  an entity of which a person
has direct or indirect control or owns directly or indirectly more than 50% of
the voting capital or similar right of ownership, and control
for this purpose means the power to direct the management and the policies of
the entity whether through the ownership of voting capital, by contract or
otherwise; or

 

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

1.2                               Construction

(a)           In this Agreement, unless the
contrary intention appears, a reference to:

(i)                                     the Security
Trustee means the Security Trustee acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as contemplated in § 121
(1) BGB.

(b)           Where the context so admits,
the singular includes the plural and vice versa.

(c)                                  The headings in this Agreement
are for convenience only and are to be ignored in construing this Agreement.

(d)                                 Any reference in this
Agreement to a defined document is a reference to that defined document as
amended, restated, novated or supplemented from time to time.

(e)                                  Whenever in this Agreement
reference is made to the Security Trustee such reference shall be deemed to be
a reference to the Security Trustee acting as trustee for and on behalf of the
Secondary Pledgees, unless otherwise provided herein.

(f)                                    References to parties herein
shall also be deemed to include references to their respective successors,
transferees and assignees.

2.                                      SECONDARY PLEDGES

2.1                               Pledged Limited
Partner’s Interest

(a)                                  The Pledgor and
the Second Limited Partner are the only limited partners (Kommanditisten)
of the Company as of the date of this Agreement.

(b)                                 The Company’s
sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor holds
a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 0% of the capital interest in
the Company (the Existing Interest) but its liability
capital (Haftsumme) amounts to EUR 1,000 (in
words: Euro one thousand).  The Second
Limited Partner holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft) representing 100% of the capital interest in
the Company.  Its capital interest (Kapitalanteil) currently amounts to EUR 1,500 (in words:
Euro one thousand and five hundred) and its liability capital (Haftsumme) amounts to EUR 1,000 (in words: Euro one
thousand).

(d)                                 The Existing
Interest is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2                               Constitution of
Secondary Pledges

(a)                                  The Pledgor
hereby pledges the Interests to each Original Secondary Pledgee and to each
Future Secondary Pledgee for their rateable interest as Security.

 

(b)                                 Each of the
Original Secondary Pledgees hereby accepts each of the Secondary Pledges.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter
ohne Vertretungsmacht).  Each
Future Secondary Pledgee will ratify such acceptance for itself by executing an
accession agreement to the Security Trust Agreement, thereby becoming a
Secondary Pledgee.  All Parties hereto
confirm that the validity of any of the Secondary Pledges constituted hereunder
shall not be affected by the Security Trustee acting as proxy without power of
attorney for each Future Secondary Pledgee.

(c)                                  The Parties
herewith acknowledge that

(i)                                     the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the
Interests in the Company;

(ii)                                  the pledges
constituted between, amongst others, the Pledgor and Royal Bank of Scotland plc
as security agent relating to the Interests in the Company pursuant to an
interest pledge agreement as of the date hereof but prior to the execution of
this Agreement (the Priority Pledges)
have priority over the Secondary Pledges created under this Agreement; and

(iii)                               the enforcement
of this Secondary Pledge shall be made in accordance with the provisions of the
Priority Agreement.

3.                                      INDEPENDENT SECONDARY PLEDGES

The
validity and effect of each of the Secondary Pledges shall be independent from
the validity and the effect of any of (i) the other Secondary Pledges created
hereunder and (ii) the Priority Pledges and is in addition, and without any
prejudice, to any other Security which any and all of the Secondary Pledgees
may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.                                      SECURITY PURPOSE

The
Secondary Pledges are constituted in order to secure the prompt and complete
satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the
Pledge

The
Pledge constituted by this Agreement includes the present and future rights of
the Pledgor to receive

(a)                                  dividends, if
any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of the Pledgor of the Company (Abfindungsanspruch  bei Ausscheiden),
the surplus in case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

 

5.2                               Entitlement to
Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in cash in respect of the Interests
until the requirements for enforcement referred to under Clause 7 below are met
and unless the Facility Agent has notified the Pledgor that according to the Credit
Agreement any dividend payments in respect of the Interests are no longer
permitted to be made to the Pledgor, in which case the payments are to be made
to the Security Trustee.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Interests remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 8.1 below.  The Pledgor shall at all times until the full
and complete satisfaction of all Secured Claims or the release of the Secondary
Pledges be required, in exercising its voting rights, to act in good faith to
ensure that the Secondary Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Secondary Pledgees or the security purpose as described in Clause 4 hereof
or defeat, impair or circumvent the rights of the Secondary Pledgees hereunder
in each case in any respect.

6.3                               Information by
the Pledgor

The
Pledgor shall inform the Secondary Pledgees promptly of all other actions
concerning the Company which might adversely affect the security interest of
the Secondary Pledgees.  In particular,
the Pledgor shall notify the Secondary Pledgees forthwith of any partners’
meeting at which a resolution is intended to be adopted which could be expected
to have an adverse effect upon the Secondary Pledges.  In any event the Secondary Pledgees shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary partners’ meeting setting forth the
agenda (to the extent it relates to such resolution) and all applications and
decisions to be taken and the minutes of any such partners’ meeting (in each
case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF SECONDARY PLEDGES

7.1                               Secondary
Pledgees’ Rights

(a)                                  If (i) an Event
of Default has occurred, (ii) the requirements set forth in §§ 1204 et seq. of
the German Civil Code (Bürgerliches Gesetzbuch)
with regard to the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Secondary Pledgees may enforce any of the Secondary Pledges (or any part
thereof), through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other way permitted
under German law, in all cases notwithstanding § 1277 of the German Civil Code
without any enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Trustee shall notify the Pledgor of the intention to realise any of the
Secondary Pledges over the Interests not less than 5 (five) Business Days
before the

 

date
on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient.  The public auction may be
held at any place in Germany which will be determined by the Security Trustee.

(c)                                  If the Security
Trustee should seek to enforce any of the Secondary Pledges pursuant to, and in
accordance with Clause 7.1(a) above, the Pledgor shall, at its own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Interests or any part thereof and/or the exercise by the Security
Trustee of any other right the Secondary Pledgees may have under German law.

(d)                                 The Secondary
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims.  The Secondary Pledgees
shall at all times until the full and complete satisfaction of all the Secured
Claims in exercising their rights under this Agreement take into consideration
the legitimate interests of the Pledgor.

(e)                                  In derogation of
§ 1225 of the German Civil Code, in the event of enforcement of any of the
Secondary Pledges, no rights of the Secondary Pledgees shall pass to the
Pledgor by subrogation or otherwise unless and until all of the Secured Claims
have been satisfied and discharged in full. 
Until then, the Security Trustee shall be entitled to treat all enforcement
proceeds as additional collateral for the Secured Claims, notwithstanding its
right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Secondary Pledges (or part thereof) shall be transferred to the Pledgor at
the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Interests may be
applied by the Security Trustee in satisfaction in whole or in part of the
Secured Claims notwithstanding the Secondary Pledgees’ right to treat such
payments as additional collateral.

7.3                               Application of
Proceeds

(a)                                  The proceeds
resulting from the enforcement of any of the Secondary Pledges shall be applied
by the Security Trustee towards the satisfaction of the Secured Claims, subject
to, and in accordance with, the relevant provisions of the Priority Agreement.

(b)                                 The Security
Trustee may determine which part of the Security, if applicable, shall be used
to satisfy the Secured Claims.

7.4                               Release of
Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Trustee
shall confirm to the Pledgor upon request that the Interests are released from
the Secondary Pledges and retransfer to the Pledgor any documents received by
the Security Trustee or any designee pursuant to Clause 8.1(e) hereof.

 

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The
Pledgor undertakes

(a)                                  to notify the
Security Trustee promptly of any change in the partnership of, or the capital
contributions to, the Company or of any change in the partnership agreement (Gesellschaftsvertrag) or any registrations in the commercial
register other than with respect to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the
Security Trustee promptly of any event or circumstance other than
interpretation of law which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to effect
promptly any payments to be made to the Company in respect of the Interests;

(d)                                 at its own
expense, to execute and do all such assurances, acts and things as the Security
Trustee may reasonably require:

(i)                                     for perfecting or
protecting the security intended to be afforded by this Agreement; and

(ii)                                  if the Secondary
Pledges have become enforceable pursuant to Clause 7.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Trustee,

and
in particular to execute all transfers, conveyances, assignments and releases
of that property whether to the Security Trustee or to its nominees and give
all notices, orders and directions which the Security Trustee may reasonably
think expedient;

(e)                                  at the Security
Trustee’s reasonable request, to furnish to the Security Trustee such
information concerning the Interests as is available to the Pledgor to permit
the Security Trustee and its designees to inspect, audit and make copies of and
extracts from all records and all other papers in the possession of the Pledgor
which pertain to the Interests on reasonable notice and during normal business
hours, and, upon the reasonable request of the Security Trustee, to deliver to
the Security Trustee copies of all such records and papers;

(f)                                    to refrain from
any acts or omissions which might have an adverse effect on the validity or
enforceability of the Secondary Pledges or the effect of which results in the
Interests ceasing to exist; and

(g)                                 that all Future
Interests will be fully paid and that there will be no obligation for a limited
partner to make additional contributions.

8.2                               Secondary Pledges
over all Interests

The
Security Trustee may at all times for itself and for the Secondary Pledgees
request to hold a pledge over all Interests held by the Pledgor (and in the case
of a merger an equivalent security interest over the interest in the surviving
or, as the case may be, the new company) in accordance with all terms of this
Agreement.

 

9.             REPRESENTATIONS
AND WARRANTIES

The
Pledgor represents and warrants to the Secondary Pledgees that:

(a)                                  except for the
limited partner’s interest held by the Second Limited Partner, the Existing
Interest pledged hereunder is the only limited partner’s interest in the
Company in existence at the date hereof;

(b)                                 with the
exception of the requirement of a written approval by all holders of a
partnership interest in the Company which approval has been given, the Pledgor
is not subject to any restriction of any kind with regard to the transfer of,
or the granting of a pledge in, or any other disposal of, the Interests;

(c)                                  all necessary
corporate action has been taken to authorise the entry into and delivery of
this Agreement;

(d)                                 the Existing
Interest is fully paid and there is no obligation for the Pledgor to make
additional contributions; and

(e)                                  (i)            the Existing Interest is,
except for the Priority Pledges securing any payment obligations of the
obligors under the Credit Agreement, free from any rights of third parties;

(ii)                                  no third party
has any pre-emption rights for interests in the Company; and

(iii)                               there is no party
(other than the Pledgor) which is entitled to participate in the profits or
revenues of the Company.

10.                               RELEASE OF SECURITY

Even
prior to the full and complete satisfaction of all Secured Claims, the Security
Trustee is obliged to release upon the Pledgor`s request all or part of the
Security insofar as the realisable value of the Security given to the Security
Trustee or the other Finance Parties with respect to the Secured Claims
exceeds, not only temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for
Damages

Neither
the Security Trustee nor the Secondary Pledgees shall be liable for any loss or
damage suffered by the Pledgor save in respect of such loss or damage which is
suffered as a result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz)
of the Security Trustee or of any of the Secondary Pledgees.

11.2                        Indemnification

The
Pledgor will indemnify the Security Trustee and each of the Secondary Pledgees
and keep the Security Trustee and each of the Secondary Pledgees indemnified
against any losses, actions, claims, expenses, demands and liabilities which may
be incurred by or made against the Security Trustee and/or each of the
Secondary Pledgees as a result of any breach by the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross

 

negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) of any of the Secondary Pledgees or the Security
Trustee.

11.3                        This
Clause 11 (Indemnity) shall survive the termination of this Agreement under
Clause 12.1 or otherwise.

12.                               DURATION AND INDEPENDENCE

12.1                        Duration

This
Agreement shall remain in full force and effect until the full and complete
satisfaction of the Secured Claims.  None
of the Secondary Pledges shall cease to exist if any payments made in
satisfaction of the Secured Claims have only temporarily discharged the Secured
Claims.

12.2                        Continuing
Security

This
Agreement shall create a continuing security which means that no change or
amendment whatsoever in any Finance Document or in any document or agreement
related to it or the replacement of the Security Trustee or of the High Yield
Notes Trustee or any transfer of the Notes shall affect the validity of this
Agreement.

12.3                        Independence

This
Agreement is independent from any other security or guarantee which may have
been or will be given to the Security Trustee and/or any of the other Secondary
Pledgees with respect to any obligation of any of the Obligors under the
Finance Documents.  None of such other
securities or guarantees shall prejudice, or shall be prejudiced by, or shall
be merged in any way with, this Agreement.

13.                               COSTS AND EXPENSES

Any notarial fees and expenses
incurred in connection with the execution of this Agreement shall be borne by
the Pledgor.  The Pledgor must pay to
each Finance Party the amount of all costs and expenses (including the costs
and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL INVALIDITY; WAIVER

14.1                        Invalidity

If
any provision of this Agreement or any part thereof should be or become invalid
or unenforceable, this shall not affect the validity of the remaining
provisions hereof.  The invalid or
unenforceable provision shall be replaced by that provision which best meets
the intent of the replaced provision.

In
particular, the Secondary Pledges shall not be affected and shall in any event
extend to any and all Interests in the Company even if the number or nominal
value of any of the Existing Interests or the liable capital of the Company as
stated in Clause 2.1 are inaccurate and deviate from the actual facts.

 

14.2                        Waiver

(a)                                  The Pledgor
hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or
remedy.  The rights and remedies provided
hereunder are cumulative and not exclusive of any rights or remedies provided
by law.

(b)                                 The Pledgor
hereby irrevocably waives any rights which may pass to the Pledgor by
subrogation or otherwise, including but not limited to, any recourse claim
against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Secondary Pledges
created hereunder.

15.                               AMENDMENTS

Changes
and amendments of this Agreement including this Clause 15 shall be made in
writing.

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

Any
notice or other communication under or in connection with this Agreement to the
Pledgor or the Security Trustee and/or the Secondary Pledgees shall be in
writing and shall be delivered personally, by post or facsimile and shall be
sent to the address or facsimile number of the party, and for the attention of
the individual, set forth in Schedule 1 hereto or such other address or
facsimile number as is notified by that party for this purpose to the Security
Trustee from time to time.

16.2                        Language

Unless
otherwise agreed from time to time, any notice or other communication under or
in connection with this Agreement shall be in the English language or, if in
any other language, accompanied by a translation into English.  In the event of any conflict between the
English text and the text in any other language, the English text shall
prevail.

17.                               APPLICABLE LAW; JURISDICTION

17.1                        Governing Law

This
Agreement shall be governed by and construed in accordance with the laws of
Germany.

17.2                        Jurisdiction

The
place of jurisdiction for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

 

18.                               NOTIFICATION

The
Pledgor and the Secondary Pledgees hereby instruct and authorise the
undersigned notary public to notify the Company of the Secondary Pledges
pursuant to, and in accordance with, §  1280 of the German Civil Code by
means of forwarding a certified copy of this Agreement to the Company by
registered mail (return receipt requested) and by fax.

 

SCHEDULE
1

ADDRESSES
FOR NOTICES

	
  

  To the Pledgor:

  	
  Kabel Deutschland Vertrieb und

  Service Beteiligungs GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49-89 96010 198

  
	
   

  	
   

  
	
  E-mail:

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The Royal Bank of Scotland plc

  
	
  To the Security
  Trustee and all other Secondary Pledgees:

  	
  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  
	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Company:

  	
  Kabel Deutschland Vertrieb und

  Service GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  
	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  
	
  Fax:

  	
  +49- 89 96010 198

  
	
   

  	
   

  
	
  E-mail:

  	
  paul.thomason@kabeldeutschland.de

  

 

 

APPENDIX 3 - KG

SECONDARY INTEREST PLEDGE
AGREEMENT

RELATING TO THE INTERESTS IN

KABEL
DEUTSCHLAND VERMÖGEN BETEILIGUNGS GMBH & CO. KG 

DATED 12 MAY 2006

between

KABEL DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO.
KG

as Pledgor

and

THE ROYAL BANK OF SCOTLAND PLC
as Security Trustee

and

LAW DEBENTURE TRUST COMPANY OF
NEW YORK

as High Yield Notes Trustee

and

THE FINANCE PARTIES

ALLEN & OVERY LLP

Frankfurt am Main

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Secondary Pledges

  	
   

  	
  6

  
	
  3.

  	
   

  	
  Independent Secondary Pledges

  	
   

  	
  7

  
	
  4.

  	
   

  	
  Security Purpose

  	
   

  	
  7

  
	
  5.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  7

  
	
  6.

  	
   

  	
  Enforcement of Secondary Pledges

  	
   

  	
  8

  
	
  7.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  9

  
	
  8.

  	
   

  	
  Representations and Warranties

  	
   

  	
  10

  
	
  9.

  	
   

  	
  Release of Security

  	
   

  	
  11

  
	
  10.

  	
   

  	
  Indemnity

  	
   

  	
  11

  
	
  11.

  	
   

  	
  Duration and Independence

  	
   

  	
  11

  
	
  12.

  	
   

  	
  Costs and Expenses

  	
   

  	
  12

  
	
  13.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  12

  
	
  14.

  	
   

  	
  Amendments

  	
   

  	
  13

  
	
  15.

  	
   

  	
  Notices and their Language

  	
   

  	
  13

  
	
  16.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  13

  
	
  17.

  	
   

  	
  Notification

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Addresses for notices

  	
   

  	
  14

  

 

 

THIS SECONDARY INTEREST PLEDGE AGREEMENT
(the Agreement) is made on 12 May 2006

BETWEEN:

(1)                                  KABEL
DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of the Federal Republic of Germany, having its corporate seat in
Unterföhring (Landkreis München), Federal Republic of Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902

(the Pledgor);

on one side;

(2)                                  THE ROYAL
BANK OF SCOTLAND PLC, a public limited company, having its registered
office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated
under the laws of Scotland and being registered with the Companies House under
registration number SC 090312

(the Security Trustee);

(3)                                  THE
FINANCE PARTIES as defined in Clause 1.1 (Definitions) below; and

(4)                                  LAW
DEBENTURE TRUST COMPANY OF NEW YORK, a limited purpose trust
company organised under the laws of the State of New York, 767 Third Avenue,
31st Floor, New York, NY 10017

(the High Yield Notes Trustee);

on the other side.

The Security Trustee and the High Yield Notes Trustee are hereinafter
referred to individually as an Original Secondary Pledgee
and together as the Original Secondary Pledgees.

The Pledgor and the Secondary Pledgees (as defined below) are
hereinafter collectively referred to as the Parties.

WHEREAS:

(A)                              The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)                                The security
interests given on 1 July 2004 and on 27 July 2004 by, amongst others, the
Pledgor to Deutsche Bank AG London as security trustee and Law Debenture Trust
Company of New York as high yield notes trustee on a second ranking basis have
been released as of the date hereof and shall now be re-taken subject to and in
accordance with the terms of the Priority Agreement (as defined below).

(C)                                According to the
terms of an amendment agreement to the Priority Agreement (as defined below)
Deutsche Bank AG London as former security trustee has resigned and the new
Security Trustee has assumed this position.

 

(D)                               Under the
Priority Agreement (as defined below) the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield Noteholders and/or the High Yield Notes Trustee under the
Finance Documents (each as defined below). 
The High Yield Notes Trustee has acceded to the Priority Agreement by
means of an accession agreement entered into on or about 2 July 2004 by,
amongst others, the Security Trustee and the High Yield Notes Trustee, acting
for itself and on behalf of the High Yield Noteholders (as defined below).

(E)                                 In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In this Agreement:

Accounting Principles means accounting principles,
policies, standards, bases and practices which, as at the date of the Credit
Agreement, are in accordance with the German generally accepted accounting
principles (Grundsätze ordnungsgemäßer Buchführung und
Bilanzierung).

Additional High Yield Guarantor means a member of the Group which
becomes a high yield guarantor under the Finance Documents after the date of
their execution.

Approved Additional High Yield Guarantor means any Additional High
Yield Guarantor whose obligations under the Finance Documents have after the
date of their execution been specified by the relevant Finance Party to be
secured by this Agreement.

Business Day means each
day that is not (i) a Saturday or a Sunday or (ii) any other day on which
banking institutions in Luxembourg City, Luxembourg, London, United Kingdom,
Frankfurt am Main, Germany or New York, New York are authorised or required by
law to close.

Company means Kabel Deutschland Vermögen Beteiligungs GmbH
& Co. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht)
of Munich under registration number HRA 84471.

Credit Agreement means the EUR 1,350,000,000 credit agreement
dated on or about 13 March 2006 between, amongst others, the Mandated Lead
Arrangers, the Facility Agent, the Royal Bank of Scotland plc as security
agent, KDVS, KDG and the Original Lenders providing for EUR 1,350,000,000
senior credit facilities and up to EUR 650,000,000 add-on facilities.

Dollar, dollar or $ means the currency of the
United States of America.

Dollar Notes means $ 610,000,000 aggregate principal amount of
10.625 % dollar-denominated senior notes due 2014 or any other dollar-denominated
notes issued pursuant to and in compliance with the High Yield Indenture
(including but not limited to any dollar-denominated Exchange Securities).

 

Euro, euro or € means the
single European currency introduced 1st January, 1999.

Euro Notes means Euro 250,000,000 aggregate principal amount of
10.750 % euro-denominated senior notes due 2014 or any other euro-denominated
notes issued pursuant to and in compliance with the High Yield Indenture
(including but not limited to any euro-denominated Exchange Securities).

Exchange Securities means the dollar and/or euro
denominated debt securities issued and delivered by KDG in exchange for the
Initial Securities to the holders of transfer restricted securities pursuant to
the High Yield Indenture as contemplated by the High Yield Registration Rights
Agreement.

Event of Default means an event of default under any of the
Finance Documents, which entitles the relevant Finance Parties to declare that
all or part of any amounts outstanding under the relevant Finance Documents or
any of them are immediately due and payable, or payable on demand.

Existing Interest means the interest set forth
in Clause 2.1.

Facility Agent means The Royal Bank of Scotland plc, a public
limited company, having its registered office at: 36 St. Andrew Square, EH2 2YB
Edinburgh, Scotland, incorporated under the laws of the United Kingdom and
being registered with the Companies House under registration number SC 090312.

Finance Document means:

(a)                                  the High Yield
Notes;

(b)                                 the Exchange
Securities;

(c)                                  the High Yield
Indenture;

(d)                                 each Security
Document;

(e)                                  the Priority
Agreement; or

(f)                                    any other
document designated as such by the Security Trustee and KDG.

Finance Party means each of the Security Trustee, the High
Yield Notes Trustee and any other person becoming a security trustee or a high
yield notes trustee under the High Yield Indenture (together the Finance Parties).

Future Interests means any and all interests in the Company,
other than the Existing Interest, which KDG may acquire in future.

Future Secondary Pledgee means a Finance Party (other
than the Security Trustee and the High Yield Notes Trustee).

Germany means the Federal Republic of Germany.

Group means KDG and its Subsidiaries.

High Yield Guarantor means (i) KDVS or (ii) an
Approved Additional High Yield Guarantor (together the High Yield
Guarantors).

 

High Yield Indenture means the indenture dated on
or about 2nd  July, 2004, made between,
amongst others, KDG, KDVS as High Yield Guarantor, the High Yield Notes
Trustee, the Security Trustee and any other High Yield Guarantor relating to
the issue of the High Yield Notes by KDG, and including any supplemental
indenture entered into, amongst others, by KDG with respect to the High Yield
Indenture.

High Yield Notes means the Euro Notes and the Dollar Notes
issued pursuant to the High Yield Indenture.

High Yield Noteholders means each of the holders of
the High Yield Notes.

High Yield Registration Rights Agreement means the registration rights
agreement dated on or about 2nd July, 2004, made between, amongst others, KDVS,
KDG, the High Yield Guarantors and Deutsche Bank AG London, Morgan Stanley
& Co. International Limited, Citigroup Global Markets Limited, Goldman
Sachs International and ABN Amro Bank N.V. relating to the offer to exchange
transfer restricted Initial Securities into a like aggregate amount of the
Exchange Securities or the shelf registration of such Initial Securities.

Initial Securities means each of the Euro Notes
and Dollar Notes.

Interests means the Existing Interest and the Future Interests.

Issue Date means each of the date on or about 2nd July, 2004 and
any date thereafter on which High Yield Notes are issued under the High Yield
Indenture (together the Issue Dates).

KDG means Kabel Deutschland GmbH a limited liability
company (Gesellschaft mit beschränkter Haftung) incorporated
under the laws of Germany, having its corporate seat in Unterföhring (Landkreis
München), Germany, which is registered in the commercial register
(Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service GmbH
& Co. KG, a limited partnership (Kommanditgesellschaft)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated Lead Arranger means each of:

(a)                                  The Royal Bank of
Scotland plc;

(b)                                 Deutsche Bank AG
London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a High Yield Guarantor (together the Obligors).

Original Lender means each of:

(a)                                  The Royal Bank of
Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG
London;

 

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Party means each of the Pledgor and the Secondary Pledgees
(together the Parties).

Priority Agreement means the priority agreement
dated 29 March 2004 as amended and restated pursuant to a supplemental
agreement dated 27 May 2004 and as further amended and restated
pursuant to a supplemental agreement dated 1 July 2004 and as further amended
and restated pursuant to a supplemental agreement dated the date hereof made
between, among others, KDG, KDVS, the Mandated Lead Arrangers, the Original
Lenders, the Facility Agent, the Security Trustee and certain other creditors
of the Group.

Priority Pledges has the meaning given to it under Clause
2.2(c)(ii) below.

Secondary Pledge means a pledge constituted under
Clause 2.2.

Secondary Pledgee means an Original Secondary Pledgee or a
Future Secondary Pledgee (together the Secondary Pledgees).Secured Claims means all present and future rights and
claims (Ansprüche) (whether actual or contingent
and whether owed jointly or severally or in any other capacity whatsoever) of
the Finance Parties against any of the Obligors under the Finance Documents,
each as amended, restated, varied, supplemented, novated or extended from time
to time, including, without limitation, any increase of principal or interest,
in each case together with all costs, charges and expenses incurred by the
Finance Parties in connection with the protection, preservation or enforcement
of their respective rights under the Finance Documents.

Security means any and all security granted to secure the
Secured Claims.

Security Documents means any mortgages, pledges,
assignments, transfers or other documents creating security for the obligations
of the Obligors under the Finance Documents.

Security
Trust Agreement means the security trust
agreement dated on or about the date hereof between, amongst others, KDG and
KDVS as security agents and the Security Trustee.

Subsidiary means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control for this purpose means the power to direct the
management and the policies of the entity whether through the ownership of
voting capital, by contract or otherwise; or

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

1.2                               Construction

(a)           In this
Agreement, unless the contrary intention appears, a reference to:

(i)                                     the Security
Trustee means the Security Trustee acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as contemplated in § 121
(1) BGB.

 

(b)           Where the context
so admits, the singular includes the plural and vice versa.

(c)                                  The headings in
this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference in
this Agreement to a defined document is a reference to that defined document as
amended, restated, novated or supplemented from time to time.

(e)                                  Whenever in this
Agreement reference is made to the Security Trustee such reference shall be deemed
to be a reference to the Security Trustee acting as trustee for and on behalf
of the Secondary Pledgees, unless otherwise provided herein.

(f)                                    References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      SECONDARY PLEDGES

2.1                               Pledged Limited Partner’s
Interest

(a)                                  The Pledgor is
the only limited partner (Kommanditist)
of the Company as of the date of this Agreement.

(b)                                 The Company’s
sole general partner (Komplementär)
is Kabel Deutschland Vermögen Beteiligungs Verwaltungs GmbH which does not hold
any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor holds
a limited partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 100% of the capital interest in the Company (the Existing Interest). 
Its capital interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liability
capital (Haftsumme) amounts to EUR 1,000 (in
words: Euro one thousand).

(d)                                 The Existing
Interest is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2                               Constitution of Secondary
Pledges

(a)                                  The Pledgor
hereby pledges the Interests to each Original Secondary Pledgee and to each
Future Secondary Pledgee for their rateable interest as Security.

(b)                                 Each of the
Original Secondary Pledgees hereby accepts each of the Secondary Pledges.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter
ohne Vertretungsmacht).  Each
Future Secondary Pledgee will ratify such acceptance for itself by executing an
accession agreement to the Security Trust Agreement, thereby becoming a
Secondary Pledgee.  All Parties hereto
confirm that the validity of any of the Secondary Pledges constituted hereunder
shall not be affected by the Security Trustee acting as proxy without power of
attorney for each Future Secondary Pledgee.

(c)                                  The Parties
herewith acknowledge that

(i)                                     the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the
Interests in the Company;

 

(ii)                                  the pledges
constituted between, amongst others, the Pledgor and Royal Bank of Scotland plc
as security agent relating to the Interests in the Company pursuant to an
interest pledge agreement as of the date hereof but prior to the execution of
this Agreement (the Priority Pledges)
have priority over the Secondary Pledges created under this Agreement; and

(iii)                               the enforcement
of this Secondary Pledge shall be made in accordance with the provisions of the
Priority Agreement.

3.                                      INDEPENDENT SECONDARY PLEDGES

The validity and effect of each of the Secondary Pledges shall be
independent from the validity and the effect of any of (i) the other Secondary
Pledges created hereunder and (ii) the Priority Pledges and is in addition, and
without any prejudice, to any other Security which any and all of the Secondary
Pledgees may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.                                      SECURITY PURPOSE

The Secondary Pledges are constituted in order to secure the prompt and
complete satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The Pledge constituted by this Agreement includes the present and future
rights of the Pledgor to receive

(a)                                  dividends, if
any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of the Pledgor of the Company (Abfindungsanspruch  bei Ausscheiden),
the surplus in case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

5.2                               Entitlement to Receive
Dividend Payments

Notwithstanding that the dividends are pledged hereunder, the Pledgor
shall be entitled to receive and retain all dividend payments in cash in
respect of the Interests until the requirements for enforcement referred to
under Clause 7 below are met and unless the Facility Agent has notified the
Pledgor that according to the Credit Agreement any dividend payments in respect
of the Interests are no longer permitted to be made to the Pledgor, in which
case the payments are to be made to the Security Trustee.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The voting rights resulting from the Interests remain with the
Pledgor.  This shall, however, not affect
the obligations of the Pledgor under Clause 8.1 below.  The Pledgor shall at all

 

times until the full and complete satisfaction of all Secured Claims or
the release of the Secondary Pledges be required, in exercising its voting
rights, to act in good faith to ensure that the Secondary Pledges are not in
any way adversely affected.

6.2                               Impairment

The Pledgor shall not take, or participate in, any action which impairs,
or which would for any other reason be inconsistent with, the security interest
of the Secondary Pledgees or the security purpose as described in Clause 4
hereof or defeat, impair or circumvent the rights of the Secondary Pledgees
hereunder in each case in any respect.

6.3                               Information by the Pledgor

The Pledgor shall inform the Secondary Pledgees promptly of all other
actions concerning the Company which might adversely affect the security
interest of the Secondary Pledgees.  In
particular, the Pledgor shall notify the Secondary Pledgees forthwith of any
partners’ meeting at which a resolution is intended to be adopted which could
be expected to have an adverse effect upon the Secondary Pledges.  In any event the Secondary Pledgees shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary partners’ meeting setting forth the
agenda (to the extent it relates to such resolution) and all applications and
decisions to be taken and the minutes of any such partners’ meeting (in each
case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF SECONDARY PLEDGES

7.1                               Secondary Pledgees’ Rights

(a)                                  If (i) an Event
of Default has occurred, (ii) the requirements set forth in §§ 1204 et seq. of
the German Civil Code (Bürgerliches Gesetzbuch)
with regard to the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Secondary Pledgees may enforce any of the Secondary Pledges (or any part
thereof), through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other way permitted
under German law, in all cases notwithstanding § 1277 of the German Civil Code
without any enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Trustee shall notify the Pledgor of the intention to realise any of the
Secondary Pledges over the Interests not less than 5 (five) Business Days
before the date on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient.  The public auction may be
held at any place in Germany which will be determined by the Security Trustee.

(c)                                  If the Security
Trustee should seek to enforce any of the Secondary Pledges pursuant to, and in
accordance with Clause 7.1(a) above, the Pledgor shall, at its own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Interests or any part thereof and/or the exercise by the Security Trustee
of any other right the Secondary Pledgees may have under German law.

(d)                                 The Secondary
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims.  The Secondary Pledgees
shall at all times until the full and complete

 

satisfaction of all the Secured Claims in exercising their rights under
this Agreement take into consideration the legitimate interests of the Pledgor.

(e)                                  In derogation of
§ 1225 of the German Civil Code, in the event of enforcement of any of the
Secondary Pledges, no rights of the Secondary Pledgees shall pass to the
Pledgor by subrogation or otherwise unless and until all of the Secured Claims
have been satisfied and discharged in full. 
Until then, the Security Trustee shall be entitled to treat all enforcement
proceeds as additional collateral for the Secured Claims, notwithstanding its
right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Secondary Pledges (or part thereof) shall be transferred to the Pledgor at
the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided that the requirements for enforcement referred to under Clause
7.1(a) above are met, all payments based on ancillary rights attributed to the
Interests may be applied by the Security Trustee in satisfaction in whole or in
part of the Secured Claims notwithstanding the Secondary Pledgees’ right to
treat such payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds
resulting from the enforcement of any of the Secondary Pledges shall be applied
by the Security Trustee towards the satisfaction of the Secured Claims, subject
to, and in accordance with, the relevant provisions of the Priority Agreement.

(b)                                 The Security
Trustee may determine which part of the Security, if applicable, shall be used
to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon the full and complete satisfaction of all Secured Claims the
Security Trustee shall confirm to the Pledgor upon request that the Interests
are released from the Secondary Pledges and retransfer to the Pledgor any
documents received by the Security Trustee or any designee pursuant to Clause
8.1(e) hereof.

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The Pledgor undertakes

(a)                                  to notify the
Security Trustee promptly of any change in the partnership of, or the capital
contributions to, the Company or of any change in the partnership agreement (Gesellschaftsvertrag) or any registrations in the commercial
register other than with respect to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the
Security Trustee promptly of any event or circumstance other than
interpretation of law which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

 

(c)                                  to effect promptly any payments to be made to
the Company in respect of the Interests;

(d)                                 at its own expense, to execute and do all
such assurances, acts and things as the Security Trustee may reasonably
require:

(i)                                     for perfecting or protecting the security
intended to be afforded by this Agreement; and

(ii)                                  if the Secondary Pledges have become
enforceable pursuant to Clause 7.1, for facilitating the realisation of
all or any part of the Interests which are subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Security
Trustee,

and in particular to execute
all transfers, conveyances, assignments and releases of that property whether
to the Security Trustee or to its nominees and give all notices, orders and
directions which the Security Trustee may reasonably think expedient;

(e)                                  at the Security Trustee’s reasonable request,
to furnish to the Security Trustee such information concerning the Interests as
is available to the Pledgor to permit the Security Trustee and its designees to
inspect, audit and make copies of and extracts from all records and all other
papers in the possession of the Pledgor which pertain to the Interests on
reasonable notice and during normal business hours, and, upon the reasonable request
of the Security Trustee, to deliver to the Security Trustee copies of all such
records and papers;

(f)                                    to refrain from any acts or omissions which
might have an adverse effect on the validity or enforceability of the Secondary
Pledges or the effect of which results in the Interests ceasing to exist; and

(g)                                 that all Future Interests will be fully paid
and that there will be no obligation for a limited partner to make additional
contributions.

8.2                               Secondary Pledges over all
Interests

The Security Trustee may at
all times for itself and for the Secondary Pledgees request to hold a pledge
over all Interests held by the Pledgor (and in the case of a merger an
equivalent security interest over the interest in the surviving or, as the case
may be, the new company) in accordance with all terms of this Agreement.

9.                                      REPRESENTATIONS
AND WARRANTIES

The Pledgor represents and
warrants to the Secondary Pledgees that:

(a)                                  the Existing Interest pledged hereunder is
the only limited partner’s interest in the Company in existence at the date
hereof;

(b)                                 the Pledgor is not subject to any restriction
of any kind with regard to the transfer of, or the granting of a pledge in, or
any other disposal of, the Interests;

(c)                                  all necessary corporate action has been taken
to authorise the entry into and delivery of this Agreement;

 

(d)                                 the Existing Interest is fully paid and there
is no obligation for the Pledgor to make additional contributions; and

(e)                                  (i)                                     the Existing Interest is, except for the
Priority Pledges securing any payment obligations of the obligors under the
Credit Agreement, free from any rights of third parties;

(ii)                                  no third party has any pre-emption rights for
interests in the Company; and

(iii)                               there is no party (other than the Pledgor)
which is entitled to participate in the profits or revenues of the Company.

10.                               RELEASE
OF SECURITY

Even prior to the full and
complete satisfaction of all Secured Claims, the Security Trustee is obliged to
release upon the Pledgor`s request all or part of the Security insofar as the
realisable value of the Security given to the Security Trustee or the other
Finance Parties with respect to the Secured Claims exceeds, not only
temporarily, the Secured Claims by more than 10%.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for Damages

Neither the Security Trustee
nor the Secondary Pledgees shall be liable for any loss or damage suffered by
the Pledgor save in respect of such loss or damage which is suffered as a
result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz) of the Security Trustee or of any of the Secondary
Pledgees.

11.2                        Indemnification

The Pledgor will indemnify
the Security Trustee and each of the Secondary Pledgees and keep the Security
Trustee and each of the Secondary Pledgees indemnified against any losses,
actions, claims, expenses, demands and liabilities which may be incurred by or
made against the Security Trustee and/or each of the Secondary Pledgees as a
result of any breach by the Pledgor of any of its obligations or undertakings
contained herein except to the extent that such losses, actions, claims,
expenses, demands or liabilities have resulted from the gross negligence (grobe Fahrlässigkeit) or wilful
misconduct (Vorsatz) of any of
the Secondary Pledgees or the Security Trustee.

11.3                        This Clause 11 (Indemnity) shall survive the
termination of this Agreement under Clause 12.1 or otherwise.

12.                               DURATION
AND INDEPENDENCE

12.1                        Duration

This Agreement shall remain
in full force and effect until the full and complete satisfaction of the
Secured Claims.  None of the Secondary
Pledges shall cease to exist if any payments made in satisfaction of the Secured
Claims have only temporarily discharged the Secured Claims.

 

12.2                        Continuing Security

This Agreement shall create
a continuing security which means that no change or amendment whatsoever in any
Finance Document or in any document or agreement related to it or the
replacement of the Security Trustee or of the High Yield Notes Trustee or any
transfer of the Notes shall affect the validity of this Agreement.

12.3                        Independence

This Agreement is
independent from any other security or guarantee which may have been or will be
given to the Security Trustee and/or any of the other Secondary Pledgees with
respect to any obligation of any of the Obligors under the Finance
Documents.  None of such other securities
or guarantees shall prejudice, or shall be prejudiced by, or shall be merged in
any way with, this Agreement.

13.                               COSTS
AND EXPENSES

Any notarial fees and expenses incurred in
connection with the execution of this Agreement shall be borne by the
Pledgor.  The Pledgor must pay to each
Finance Party the amount of all costs and expenses (including the costs and
expenses of legal advisers) incurred by it in connection with the enforcement
of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL
INVALIDITY; WAIVER

14.1                        Invalidity

If any provision of this
Agreement or any part thereof should be or become invalid or unenforceable,
this shall not affect the validity of the remaining provisions hereof.  The invalid or unenforceable provision shall
be replaced by that provision which best meets the intent of the replaced provision.

In particular, the Secondary
Pledges shall not be affected and shall in any event extend to any and all
Interests in the Company even if the number or nominal value of any of the
Existing Interests or the liable capital of the Company as stated in Clause 2.1
are inaccurate and deviate from the actual facts.

14.2                        Waiver

(a)                                  The Pledgor hereby waives its rights of
revocation (Anfechtbarkeit) and
set-off (Aufrechenbarkeit) it may
have pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or
remedy.  The rights and remedies provided
hereunder are cumulative and not exclusive of any rights or remedies provided
by law.

(b)                                 The Pledgor hereby irrevocably waives any
rights which may pass to the Pledgor by subrogation or otherwise, including but
not limited to, any recourse claim against any Obligor (Verzicht auf Rückgriffsansprüche) which it
may obtain (i) in the event that the Pledgor repays any debt of any other
Obligor under any of the Finance Documents, or (ii) in the event of enforcement
of any of the Secondary Pledges created hereunder.

 

15.                               AMENDMENTS

Changes and amendments of
this Agreement including this Clause 15 shall be made in writing.

16.                               NOTICES
AND THEIR LANGUAGE

16.1                        Notices

Any notice or other
communication under or in connection with this Agreement to the Pledgor or the
Security Trustee and/or the Secondary Pledgees shall be in writing and shall be
delivered personally, by post or facsimile and shall be sent to the address or
facsimile number of the party, and for the attention of the individual, set
forth in Schedule 1 hereto or such other address or facsimile number as is
notified by that party for this purpose to the Security Trustee from time to
time.

16.2                        Language

Unless otherwise agreed from
time to time, any notice or other communication under or in connection with
this Agreement shall be in the English language or, if in any other language,
accompanied by a translation into English. 
In the event of any conflict between the English text and the text in
any other language, the English text shall prevail.

17.                               APPLICABLE
LAW; JURISDICTION

17.1                        Governing Law

This Agreement shall be
governed by and construed in accordance with the laws of Germany.

17.2                        Jurisdiction

The place of jurisdiction
for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

18.                               NOTIFICATION

The Pledgor and the
Secondary Pledgees hereby instruct and authorise the undersigned notary public
to notify the Company of the Secondary Pledges pursuant to, and in accordance
with, §  1280 of the German Civil Code by means of forwarding a certified
copy of this Agreement to the Company by registered mail (return receipt
requested) and by fax.

 

SCHEDULE 1

ADDRESSES
FOR NOTICES

	
  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und

  Service GmbH & Co. KG

  Betastraße 6-8 85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
  

  To the Security Trustee and all other Secondary Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated

  Loans Agency

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
  

  To the Company:

  	
   

  	
  Kabel Deutschland Vermögen

  Beteiligungs GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 

APPENDIX 4 - KG

SECONDARY
INTEREST PLEDGE AGREEMENT

RELATING TO
THE INTERESTS IN

KABEL DEUTSCHLAND VERMÖGEN GMBH & CO. KG

DATED 12 MAY 2006

between

KABEL
DEUTSCHLAND VERMÖGEN BETEILIGUNGS GMBH & CO. KG

as Pledgor

 

and

THE ROYAL BANK OF SCOTLAND PLC as Security Trustee

and

LAW DEBENTURE TRUST COMPANY OF NEW YORK

as High Yield Notes Trustee

and

THE FINANCE PARTIES

 

ALLEN &
OVERY LLP

Frankfurt am Main

 

CONTENTS

	
  Clause

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Secondary Pledges

  	
   

  	
  6

  
	
  3.

  	
   

  	
  Independent Secondary Pledges

  	
   

  	
  7

  
	
  4.

  	
   

  	
  Security Purpose

  	
   

  	
  7

  
	
  5.

  	
   

  	
  Exercise of Voting Rights

  	
   

  	
  8

  
	
  6.

  	
   

  	
  Enforcement of Secondary Pledges

  	
   

  	
  8

  
	
  7.

  	
   

  	
  Undertakings of the Pledgor

  	
   

  	
  10

  
	
  8.

  	
   

  	
  Representations and Warranties

  	
   

  	
  11

  
	
  9.

  	
   

  	
  Release of Security

  	
   

  	
  11

  
	
  10.

  	
   

  	
  Indemnity

  	
   

  	
  11

  
	
  11.

  	
   

  	
  Duration and Independence

  	
   

  	
  12

  
	
  12.

  	
   

  	
  Costs and Expenses

  	
   

  	
  12

  
	
  13.

  	
   

  	
  Partial Invalidity; Waiver

  	
   

  	
  12

  
	
  14.

  	
   

  	
  Amendments

  	
   

  	
  13

  
	
  15.

  	
   

  	
  Notices and their Language

  	
   

  	
  13

  
	
  16.

  	
   

  	
  Applicable Law; Jurisdiction

  	
   

  	
  13

  
	
  17.

  	
   

  	
  Notification

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Addresses for notices

  	
   

  	
  15

  
							

 

THIS
SECONDARY INTEREST PLEDGE AGREEMENT (the Agreement) is made
on 12 May 2006

BETWEEN:

(1)                                  KABEL DEUTSCHLAND VERMÖGEN
BETEILIGUNGS GMBH & CO. KG,
a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the Commercial Register (Handelsregister) at the Local Court (Amtsgericht) of Munich under registration
number HRA 84471

(the Pledgor);

on one side;

(2)                                  THE ROYAL BANK OF SCOTLAND PLC, a public limited company, having its
registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of Scotland and being registered with the Companies
House under registration number SC 090312

(the
Security Trustee);

(3)                                  THE FINANCE PARTIES as defined in Clause 1.1 (Definitions) below;
and

(4)                                  LAW DEBENTURE TRUST COMPANY OF NEW YORK, a limited
purpose trust company organised under the laws of the State of New York, 767
Third Avenue, 31st Floor, New York, NY 10017

(the
High Yield Notes Trustee);

on
the other side.

The
Security Trustee and the High Yield Notes Trustee are hereinafter referred to
individually as an Original Secondary Pledgee
and together as the Original Secondary
Pledgees.

The
Pledgor and the Secondary Pledgees (as defined below) are hereinafter
collectively referred to as the Parties.

WHEREAS:

(A)                              The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)                                The security
interests given on 1 July 2004 and on 27 July 2004 by, amongst others, the
Pledgor to Deutsche Bank AG London as security trustee and Law Debenture Trust
Company of New York as high yield notes trustee on a second ranking basis have
been released as of the date hereof and shall now be re-taken subject to and in
accordance with the terms of the Priority Agreement (as defined below).

 

(C)                                According to
the terms of an amendment agreement to the Priority Agreement (as defined
below) Deutsche Bank AG London as former security trustee has resigned and the
new Security Trustee has assumed this position.

(D)                               Under the
Priority Agreement (as defined below) the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield Noteholders and/or the High Yield Notes Trustee under the
Finance Documents (each as defined below). 
The High Yield Notes Trustee has acceded to the Priority Agreement by
means of an accession agreement entered into on or about 2 July 2004 by,
amongst others, the Security Trustee and the High Yield Notes Trustee, acting
for itself and on behalf of the High Yield Noteholders (as defined below).

(E)                                 In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting Principles means
accounting principles, policies, standards, bases and practices which, as at
the date of the Credit Agreement, are in accordance with the German generally
accepted accounting principles (Grundsätze
ordnungsgemäßer Buchführung und Bilanzierung).

Additional High Yield Guarantor means a member
of the Group which becomes a high yield guarantor under the Finance Documents
after the date of their execution.

Approved Additional High Yield Guarantor means any
Additional High Yield Guarantor whose obligations under the Finance Documents
have after the date of their execution been specified by the relevant Finance
Party to be secured by this Agreement.

Business Day means
each day that is not (i) a Saturday or a Sunday or (ii) any other day on which
banking institutions in Luxembourg City, Luxembourg, London, United Kingdom,
Frankfurt am Main, Germany or New York, New York are authorised or required by
law to close.

Company means Kabel Deutschland Vermögen GmbH
& Co. KG, a limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring
(Landkreis München), Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 84511.

Credit Agreement means the EUR 1,350,000,000 credit
agreement dated on or about 13 March 2006 between, amongst others, the Mandated
Lead Arrangers, the Facility Agent, the Royal Bank of Scotland plc as security
agent, KDVS, KDG and the Original Lenders providing for EUR 1,350,000,000
senior credit facilities and up to EUR 650,000,000 add-on facilities.

Dollar, dollar or $ means the currency of the United States
of America.

 

Dollar Notes means $ 610,000,000 aggregate principal
amount of 10.625 % dollar-denominated senior notes due 2014 or any other
dollar-denominated notes issued pursuant to and in compliance with the High
Yield Indenture (including but not limited to any dollar-denominated Exchange
Securities).

Euro, euro or € means
the single European currency introduced 1st January, 1999.

Euro Notes means Euro 250,000,000 aggregate
principal amount of 10.750 % euro-denominated senior notes due 2014 or any
other euro-denominated notes issued pursuant to and in compliance with the High
Yield Indenture (including but not limited to any euro-denominated Exchange
Securities).

Exchange Securities means the dollar and/or euro
denominated debt securities issued and delivered by KDG in exchange for the
Initial Securities to the holders of transfer restricted securities pursuant to
the High Yield Indenture as contemplated by the High Yield Registration Rights
Agreement.

Event of Default means an event of default under any of
the Finance Documents, which entitles the relevant Finance Parties to declare
that all or part of any amounts outstanding under the relevant Finance
Documents or any of them are immediately due and payable, or payable on demand.

Existing Interest means the interest set forth in
Clause 2.1.

Facility Agent means The Royal Bank of Scotland plc, a
public limited company, having its registered office at: 36 St. Andrew Square,
EH2 2YB Edinburgh, Scotland, incorporated under the laws of the United Kingdom
and being registered with the Companies House under registration number SC
090312.

Finance Document means:

(a)                                  the High Yield
Notes;

(b)                                 the Exchange
Securities;

(c)                                  the High Yield
Indenture;

(d)                                 each Security
Document;

(e)                                  the Priority
Agreement; or

(f)                                    any other
document designated as such by the Security Trustee and KDG.

Finance Party means each of the Security Trustee, the
High Yield Notes Trustee and any other person becoming a security trustee or a
high yield notes trustee under the High Yield Indenture (together the Finance Parties).

Future Interests means any and all interests in the
Company, other than the Existing Interest, which KDG may acquire in future.

Future Secondary Pledgee means a
Finance Party (other than the Security Trustee and the High Yield Notes
Trustee).

Germany means the Federal Republic of Germany.

 

Group means KDG and its Subsidiaries.

High Yield Guarantor means (i) KDVS
or (ii) an Approved Additional High Yield Guarantor (together the High Yield Guarantors).

High Yield Indenture means the indenture dated on or about
2nd  July, 2004, made between, amongst
others, KDG, KDVS as High Yield Guarantor, the High Yield Notes Trustee, the
Security Trustee and any other High Yield Guarantor relating to the issue of
the High Yield Notes by KDG, and including any supplemental indenture entered
into, amongst others, by KDG with respect to the High Yield Indenture.

High Yield Notes means the Euro Notes and the Dollar
Notes issued pursuant to the High Yield Indenture.

High Yield Noteholders means each of
the holders of the High Yield Notes.

High Yield Registration Rights Agreement means the
registration rights agreement dated on or about 2nd July, 2004, made between,
amongst others, KDVS, KDG, the High Yield Guarantors and Deutsche Bank AG
London, Morgan Stanley & Co. International Limited, Citigroup Global
Markets Limited, Goldman Sachs International and ABN Amro Bank N.V. relating to
the offer to exchange transfer restricted Initial Securities into a like
aggregate amount of the Exchange Securities or the shelf registration of such
Initial Securities.

Initial Securities means each of the Euro Notes and Dollar
Notes.

Interests means the Existing Interest and the
Future Interests.

Issue Date means each of the date on or about 2nd
July, 2004 and any date thereafter on which High Yield Notes are issued under
the High Yield Indenture (together the Issue
Dates).

KDG means Kabel Deutschland GmbH a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated under the laws of Germany, having
its corporate seat in Unterföhring (Landkreis München), Germany, which is
registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

KDVS means Kabel Deutschland Vertrieb und Service
GmbH & Co. KG, a limited partnership (Kommanditgesellschaft)
incorporated under the laws of Germany, having its corporate seat in
Unterföhring (Landkreis München), Germany, which is registered in the
commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated Lead Arranger means each
of:

(a)                                  The Royal Bank
of Scotland plc;

(b)                                 Deutsche Bank
AG London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan
plc.

Obligor means KDG or a High Yield Guarantor
(together the Obligors).

 

Original Lender means each of:

(a)                                  The Royal Bank
of Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank
AG London;

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Party means each of the Pledgor and the Secondary
Pledgees (together the Parties).

Priority Agreement means the priority agreement dated 29
March 2004 as amended and restated pursuant to a supplemental agreement dated
27 May 2004 and as further amended and restated pursuant to a supplemental
agreement dated 1 July 2004 and as further amended and restated pursuant to a
supplemental agreement dated the date hereof made between, among others, KDG,
KDVS, the Mandated Lead Arrangers, the Original Lenders, the Facility Agent,
the Security Trustee and certain other creditors of the Group.

Priority Pledges has the meaning given to it under
Clause 2.2(c)(ii) below.

Secondary Pledge means a pledge constituted under
Clause 2.2.

Secondary Pledgee means an Original Secondary Pledgee or
a Future Secondary Pledgee (together the Secondary
Pledgees).

Second Limited Partner means Kabel
Deutschland Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the
laws of Germany, having its corporate seat in Unterföhring (Landkreis München),
Germany, which is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich under registration
number HRA 83902.

Secured Claims means all present and future rights and
claims (Ansprüche) (whether
actual or contingent and whether owed jointly or severally or in any other
capacity whatsoever) of the Finance Parties against any of the Obligors under
the Finance Documents, each as amended, restated, varied, supplemented, novated
or extended from time to time, including, without limitation, any increase of
principal or interest, in each case together with all costs, charges and
expenses incurred by the Finance Parties in connection with the protection,
preservation or enforcement of their respective rights under the Finance
Documents.

Security means any and all security granted to
secure the Secured Claims.

Security Documents means any mortgages, pledges,
assignments, transfers or other documents creating security for the obligations
of the Obligors under the Finance Documents.

Security Trust Agreement means the
security trust agreement dated on or about the date hereof between, amongst
others, KDG and KDVS as security agents and the Security Trustee.

Subsidiary means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control for this purpose means the power to
direct the management and the policies of the entity whether through the
ownership of voting capital, by contract or otherwise; or

 

(b)                                 an entity
consolidated for the purpose of the financial statements of any person pursuant
to the Accounting Principles.

1.2                               Construction

(a)           In this Agreement, unless the
contrary intention appears, a reference to:

(i)                                     the Security
Trustee means the Security Trustee acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as
contemplated in § 121 (1) BGB.

(b)           Where the context so admits, the
singular includes the plural and vice versa.

(c)                                  The headings
in this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference
in this Agreement to a defined document is a reference to that defined document
as amended, restated, novated or supplemented from time to time.

(e)                                  Whenever in
this Agreement reference is made to the Security Trustee such reference shall
be deemed to be a reference to the Security Trustee acting as trustee for and
on behalf of the Secondary Pledgees, unless otherwise provided herein.

(f)                                    References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      SECONDARY PLEDGES

2.1                               Pledged Limited Partner’s Interest

(a)                                  The Pledgor
and the Second Limited Partner are the only limited partners (Kommanditisten) of the Company as of the
date of this Agreement.

(b)                                 The Company’s
sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor
holds a limited partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 0% of the capital interest in the Company (the Existing Interest) but its liability
capital (Haftsumme) amounts to
EUR 1,000 (in words: Euro one thousand).  The Second Limited Partner holds a limited
partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 100% of the capital interest in the Company.  Its capital interest (Kapitalanteil) currently amounts to EUR
1,000 (in words: Euro one thousand) and its liability capital (Haftsumme) amounts to EUR 1,000 (in words:
Euro one thousand).

(d)                                 The Existing
Interest is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2                               Constitution of Secondary Pledges

(a)                                  The Pledgor
hereby pledges the Interests to each Original Secondary Pledgee and to each
Future Secondary Pledgee for their rateable interest as Security.

 

(b)                                 Each of the
Original Secondary Pledgees hereby accepts each of the Secondary Pledges.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter ohne Vertretungsmacht).  Each Future Secondary Pledgee will ratify
such acceptance for itself by executing an accession agreement to the Security
Trust Agreement, thereby becoming a Secondary Pledgee.  All Parties hereto confirm that the validity
of any of the Secondary Pledges constituted hereunder shall not be affected by
the Security Trustee acting as proxy without power of attorney for each Future
Secondary Pledgee.

(c)                                  The Parties
herewith acknowledge that

(i)                                     the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the
Interests in the Company;

(ii)                                  the pledges constituted
between, amongst others, the Pledgor and Royal Bank of Scotland plc as security
agent relating to the Interests in the Company pursuant to an interest pledge
agreement as of the date hereof but prior to the execution of this Agreement
(the Priority Pledges) have
priority over the Secondary Pledges created under this Agreement; and

(iii)                               the
enforcement of this Secondary Pledge shall be made in accordance with the
provisions of the Priority Agreement.

3.                                      INDEPENDENT SECONDARY PLEDGES

The
validity and effect of each of the Secondary Pledges shall be independent from
the validity and the effect of any of (i) the other Secondary Pledges created
hereunder and (ii) the Priority Pledges and is in addition, and without any
prejudice, to any other Security which any and all of the Secondary Pledgees
may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.                                      SECURITY PURPOSE

The
Secondary Pledges are constituted in order to secure the prompt and complete
satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the Pledge

The
Pledge constituted by this Agreement includes the present and future rights of
the Pledgor to receive

(a)                                  dividends, if
any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or
withdrawal (Austritt) of the
Pledgor of the Company (Abfindungsanspruch
bei Ausscheiden), the surplus in
case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

 

5.2                               Entitlement to Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in cash in respect of the Interests
until the requirements for enforcement referred to under Clause 7 below are met
and unless the Facility Agent has notified the Pledgor that according to the
Credit Agreement any dividend payments in respect of the Interests are no
longer permitted to be made to the Pledgor, in which case the payments are to
be made to the Security Trustee.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Interests remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 8.1 below.  The Pledgor shall at all times until the full
and complete satisfaction of all Secured Claims or the release of the Secondary
Pledges be required, in exercising its voting rights, to act in good faith to
ensure that the Secondary Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Secondary Pledgees or the security purpose as described in Clause 4 hereof
or defeat, impair or circumvent the rights of the Secondary Pledgees hereunder
in each case in any respect.

6.3                               Information by the Pledgor

The
Pledgor shall inform the Secondary Pledgees promptly of all other actions
concerning the Company which might adversely affect the security interest of
the Secondary Pledgees.  In particular,
the Pledgor shall notify the Secondary Pledgees forthwith of any partners’
meeting at which a resolution is intended to be adopted which could be expected
to have an adverse effect upon the Secondary Pledges.  In any event the Secondary Pledgees shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary partners’ meeting setting forth the
agenda (to the extent it relates to such resolution) and all applications and
decisions to be taken and the minutes of any such partners’ meeting (in each
case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF SECONDARY PLEDGES

7.1                               Secondary Pledgees’ Rights

(a)                                  If (i) an
Event of Default has occurred, (ii) the requirements set forth in §§ 1204 et
seq. of the German Civil Code (Bürgerliches
Gesetzbuch) with regard to the enforcement of pledges are met (Pfandreife), and (iii) the Event of
Default has not been remedied within 5 (five) Business Days following the
receipt of a notification in accordance with Clause 7.1(b), the Secondary
Pledgees may enforce any of the Secondary Pledges (or any part thereof), through
the Security Trustee by way of public auction (öffentliche
Versteigerung) or in any other way permitted under German law, in
all cases notwithstanding § 1277 of the German Civil Code without any
enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Trustee shall notify the Pledgor of the intention to realise any of the
Secondary Pledges over the Interests not less than 5 (five) Business Days
before the

 

date
on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be
sufficient.  The public auction may be
held at any place in Germany which will be determined by the Security Trustee.

(c)                                  If the
Security Trustee should seek to enforce any of the Secondary Pledges pursuant
to, and in accordance with Clause 7.1(a) above, the Pledgor shall, at its own
expense, render forthwith all assistance necessary in order to facilitate the
prompt sale of the Interests or any part thereof and/or the exercise by the
Security Trustee of any other right the Secondary Pledgees may have under
German law.

(d)                                 The Secondary
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims.  The Secondary Pledgees
shall at all times until the full and complete satisfaction of all the Secured
Claims in exercising their rights under this Agreement take into consideration
the legitimate interests of the Pledgor.

(e)                                  In derogation
of § 1225 of the German Civil Code, in the event of enforcement of any of the
Secondary Pledges, no rights of the Secondary Pledgees shall pass to the
Pledgor by subrogation or otherwise unless and until all of the Secured Claims
have been satisfied and discharged in full. 
Until then, the Security Trustee shall be entitled to treat all
enforcement proceeds as additional collateral for the Secured Claims,
notwithstanding its right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Secondary Pledges (or part thereof) shall be transferred to the Pledgor at
the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Interests may be
applied by the Security Trustee in satisfaction in whole or in part of the
Secured Claims notwithstanding the Secondary Pledgees’ right to treat such
payments as additional collateral.

7.3                               Application of Proceeds

(a)                                  The proceeds
resulting from the enforcement of any of the Secondary Pledges shall be applied
by the Security Trustee towards the satisfaction of the Secured Claims, subject
to, and in accordance with, the relevant provisions of the Priority Agreement.

(b)                                 The Security
Trustee may determine which part of the Security, if applicable, shall be used
to satisfy the Secured Claims.

7.4                               Release of Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Trustee
shall confirm to the Pledgor upon request that the Interests are released from
the Secondary Pledges and retransfer to the Pledgor any documents received by
the Security Trustee or any designee pursuant to Clause 8.1(e) hereof.

 

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The
Pledgor undertakes

(a)                                  to notify the
Security Trustee promptly of any change in the partnership of, or the capital
contributions to, the Company or of any change in the partnership agreement (Gesellschaftsvertrag) or any registrations in the commercial
register other than with respect to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the
Security Trustee promptly of any event or circumstance other than
interpretation of law which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to effect
promptly any payments to be made to the Company in respect of the Interests;

(d)                                 at its own
expense, to execute and do all such assurances, acts and things as the Security
Trustee may reasonably require:

(i)                                     for perfecting or
protecting the security intended to be afforded by this Agreement; and

(ii)                                  if the Secondary
Pledges have become enforceable pursuant to Clause 7.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Trustee,

and
in particular to execute all transfers, conveyances, assignments and releases
of that property whether to the Security Trustee or to its nominees and give
all notices, orders and directions which the Security Trustee may reasonably
think expedient;

(e)                                  at the Security
Trustee’s reasonable request, to furnish to the Security Trustee such
information concerning the Interests as is available to the Pledgor to permit
the Security Trustee and its designees to inspect, audit and make copies of and
extracts from all records and all other papers in the possession of the Pledgor
which pertain to the Interests on reasonable notice and during normal business
hours, and, upon the reasonable request of the Security Trustee, to deliver to
the Security Trustee copies of all such records and papers;

(f)                                    to refrain from
any acts or omissions which might have an adverse effect on the validity or
enforceability of the Secondary Pledges or the effect of which results in the
Interests ceasing to exist; and

(g)                                 that all Future
Interests will be fully paid and that there will be no obligation for a limited
partner to make additional contributions.

8.2                               Secondary Pledges
over all Interests

The
Security Trustee may at all times for itself and for the Secondary Pledgees
request to hold a pledge over all Interests held by the Pledgor (and in the case
of a merger an equivalent security interest over the interest in the surviving
or, as the case may be, the new company) in accordance with all terms of this
Agreement.

 

9.                                      REPRESENTATIONS AND WARRANTIES

The
Pledgor represents and warrants to the Secondary Pledgees that:

(a)                                  except for the
limited partner’s interest held by the Second Limited Partner, the Existing
Interest pledged hereunder is the only limited partner’s interest in the
Company in existence at the date hereof;

(b)                                 with the
exception of the requirement of a written approval by all holders of a
partnership interest in the Company which approval has been given, the Pledgor
is not subject to any restriction of any kind with regard to the transfer of,
or the granting of a pledge in, or any other disposal of, the Interests;

(c)                                  all necessary
corporate action has been taken to authorise the entry into and delivery of
this Agreement;

(d)                                 the Existing
Interest is fully paid and there is no obligation for the Pledgor to make
additional contributions; and

(e)                                  (i)                                     the Existing
Interest is, except for the Priority Pledges securing any payment obligations
of the obligors under the Credit Agreement, free from any rights of third
parties;

(ii)                                  no third party
has any pre-emption rights for interests in the Company; and

(iii)                               there is no party
(other than the Pledgor) which is entitled to participate in the profits or
revenues of the Company.

10.                               RELEASE OF SECURITY

Even
prior to the full and complete satisfaction of all Secured Claims, the Security
Trustee is obliged to release upon the Pledgor`s request all or part of the
Security insofar as the realisable value of the Security given to the Security
Trustee or the other Finance Parties with respect to the Secured Claims
exceeds, not only temporarily, the Secured Claims by more than 10 %. The
Security Trustee may, at its discretion, determine which part of the Security
shall be released.

11.                               INDEMNITY

11.1                        Liability for
Damages

Neither
the Security Trustee nor the Secondary Pledgees shall be liable for any loss or
damage suffered by the Pledgor save in respect of such loss or damage which is
suffered as a result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz)
of the Security Trustee or of any of the Secondary Pledgees.

11.2                        Indemnification

The
Pledgor will indemnify the Security Trustee and each of the Secondary Pledgees
and keep the Security Trustee and each of the Secondary Pledgees indemnified
against any losses, actions, claims, expenses, demands and liabilities which may
be incurred by or made against the Security Trustee and/or each of the
Secondary Pledgees as a result of any breach by the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross 

 

negligence (grobe Fahrlässigkeit) or wilful misconduct (Vorsatz) of any of the Secondary Pledgees or the Security
Trustee.

11.3                        This
Clause 11 (Indemnity) shall survive the termination of this Agreement under
Clause 12.1 or otherwise.

12.                               DURATION AND INDEPENDENCE

12.1                        Duration

This
Agreement shall remain in full force and effect until the full and complete
satisfaction of the Secured Claims. None of the Secondary Pledges shall cease
to exist if any payments made in satisfaction of the Secured Claims have only
temporarily discharged the Secured Claims.

12.2                        Continuing
Security

This
Agreement shall create a continuing security which means that no change or
amendment whatsoever in any Finance Document or in any document or agreement
related to it or the replacement of the Security Trustee or of the High Yield
Notes Trustee or any transfer of the Notes shall affect the validity of this
Agreement.

12.3                        Independence

This
Agreement is independent from any other security or guarantee which may have
been or will be given to the Security Trustee and/or any of the other Secondary
Pledgees with respect to any obligation of any of the Obligors under the
Finance Documents. None of such other securities or guarantees shall prejudice,
or shall be prejudiced by, or shall be merged in any way with, this Agreement.

13.                               COSTS AND EXPENSES

Any notarial fees and expenses
incurred in connection with the execution of this Agreement shall be borne by
the Pledgor. The Pledgor must pay to each Finance Party the amount of all costs
and expenses (including the costs and expenses of legal advisers) incurred by
it in connection with the enforcement of, or the preservation of any rights
under, any Finance Document.

14.                               PARTIAL INVALIDITY; WAIVER

14.1                        Invalidity

If
any provision of this Agreement or any part thereof should be or become invalid
or unenforceable, this shall not affect the validity of the remaining
provisions hereof. The invalid or unenforceable provision shall be replaced by
that provision which best meets the intent of the replaced provision.

In
particular, the Secondary Pledges shall not be affected and shall in any event
extend to any and all Interests in the Company even if the number or nominal
value of any of the Existing Interests or the liable capital of the Company as
stated in Clause 2.1 are inaccurate and deviate from the actual facts.

 

14.2                        Waiver

(a)                                  The Pledgor
hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code. No failure to
exercise, nor any delay in exercising, on the part of the Security Trustee or
the Secondary Pledgees (or any of them), any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right or remedy prevent any further or other exercise thereof or the exercise
of any other right or remedy. The rights and remedies provided hereunder are
cumulative and not exclusive of any rights or remedies provided by law.

(b)                                 The Pledgor
hereby irrevocably waives any rights which may pass to the Pledgor by
subrogation or otherwise, including but not limited to, any recourse claim
against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Secondary Pledges
created hereunder.

15.                               AMENDMENTS

Changes
and amendments of this Agreement including this Clause 15 shall be made in
writing.

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

Any
notice or other communication under or in connection with this Agreement to the
Pledgor or the Security Trustee and/or the Secondary Pledgees shall be in
writing and shall be delivered personally, by post or facsimile and shall be
sent to the address or facsimile number of the party, and for the attention of
the individual, set forth in Schedule 1 hereto or such other address or
facsimile number as is notified by that party for this purpose to the Security
Trustee from time to time.

16.2                        Language

Unless
otherwise agreed from time to time, any notice or other communication under or
in connection with this Agreement shall be in the English language or, if in
any other language, accompanied by a translation into English. In the event of
any conflict between the English text and the text in any other language, the
English text shall prevail.

17.                               APPLICABLE LAW; JURISDICTION

17.1                        Governing Law

This
Agreement shall be governed by and construed in accordance with the laws of
Germany.

17.2                        Jurisdiction

The
place of jurisdiction for all Parties shall be Frankfurt am Main, Germany. The
Security Trustee, however, shall also be entitled to take legal action against
the Pledgor before any other competent court of law having jurisdiction over
the Pledgor or any of its assets.

 

18.                               NOTIFICATION

The
Pledgor and the Secondary Pledgees hereby instruct and authorise the
undersigned notary public to notify the Company of the Secondary Pledges
pursuant to, and in accordance with, §  1280 of the German Civil Code by
means of forwarding a certified copy of this Agreement to the Company by
registered mail (return receipt requested) and by fax.

 

SCHEDULE
1

ADDRESSES
FOR NOTICES

	
  To the Pledgor:

  	
  Kabel Vermögen Beteiligungs GmbH 

  & Co. KG 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
   

  	
  E-mail:

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Security
  Trustee 

  and all other Secondary 

  Pledgees:

  	
  The Royal Bank of Scotland plc 

  Level 7 

  135 Bishopsgate 

  London EC2M 3UR 

  United Kingdom

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  
	
   

  	
   

  
	
  To the Company:

  	
  Kabel Deutschland Vermögen GmbH 

  & Co. KG 

  Betastraße 6-8 

  85774 Unterföhring 

  Germany

  
	
   

  	
   

  
	
   

  	
  Att.:

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
   

  	
  Fax:

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
   

  	
  E-mail:

  	
  paul.thomason@kabeldeutschland.de

  

 

 

	
  APPENDIX 5 - KG

  
	
   

  
	
   

  
	
  SECONDARY
  INTEREST PLEDGE AGREEMENT 

  RELATING TO THE INTERESTS IN 

  KABEL DEUTSCHLAND VERMÖGEN GMBH & CO. KG

  
	
   

  
	
   

  
	
  DATED
  12 MAY 2006

  
	
   

  
	
   

  
	
  between

  
	
   

  
	
   

  
	
  KABEL
  DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG

  
	
  as Pledgor

  
	
   

  
	
   

  
	
  and

  
	
   

  
	
   

  
	
  THE
  ROYAL BANK OF SCOTLAND PLC as Security Trustee

  
	
   

  
	
   

  
	
  and

  
	
   

  
	
   

  
	
  LAW
  DEBENTURE TRUST COMPANY OF NEW YORK

  
	
   

  
	
  as High
  Yield Notes Trustee

  
	
   

  
	
   

  
	
  and

  
	
   

  
	
   

  
	
  THE
  FINANCE PARTIES

  
	
   

  
	
   

  
	
   

  
	
  ALLEN
  & OVERY LLP

  
	
  Frankfurt
  am Main

  

 

  
  
 

 

CONTENTS

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
  2

  
	
  2.

  	
  Secondary Pledges

  	
  6

  
	
  3.

  	
  Independent Secondary Pledges

  	
  7

  
	
  4.

  	
  Security Purpose

  	
  7

  
	
  5.

  	
  Exercise of Voting Rights

  	
  8

  
	
  6.

  	
  Enforcement of Secondary Pledges

  	
  8

  
	
  7.

  	
  Undertakings of the Pledgor

  	
  9

  
	
  8.

  	
  Representations and Warranties

  	
  10

  
	
  9.

  	
  Release of Security

  	
  11

  
	
  10.

  	
  Indemnity

  	
  11

  
	
  11.

  	
  Duration and Independence

  	
  11

  
	
  12.

  	
  Costs and Expenses

  	
  12

  
	
  13.

  	
  Partial Invalidity; Waiver

  	
  12

  
	
  14.

  	
  Amendments

  	
  13

  
	
  15.

  	
  Notices and their Language

  	
  13

  
	
  16.

  	
  Applicable Law; Jurisdiction

  	
  13

  
	
  17.

  	
  Notification

  	
  13

  
	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Addresses for notices

  	
  15

  
				

 

  
  

 

THIS SECONDARY INTEREST
PLEDGE AGREEMENT (the Agreement) is
made on 12 May 2006

BETWEEN:

(1)                                  KABEL
DEUTSCHLAND VERTRIEB UND SERVICE GMBH & CO. KG, a limited
partnership (Kommanditgesellschaft) organised
under the laws of the Federal Republic of Germany, having its corporate seat in
Unterföhring (Landkreis München), Federal Republic of Germany, which is
registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 83902

(the
Pledgor);

on
one side;

(2)                                  THE ROYAL
BANK OF SCOTLAND PLC, a public limited company, having its registered
office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland, incorporated
under the laws of Scotland and being registered with the Companies House under
registration number SC 090312

(the
Security Trustee);

(3)                                  THE
FINANCE PARTIES as defined in Clause 1.1 (Definitions) below; and

(4)                                  LAW
DEBENTURE TRUST COMPANY OF NEW YORK, a limited purpose trust
company organised under the laws of the State of New York, 767 Third Avenue,
31st Floor, New York, NY 10017

(the
High Yield Notes Trustee);

on
the other side.

The
Security Trustee and the High Yield Notes Trustee are hereinafter referred to
individually as an Original Secondary Pledgee
and together as the Original Secondary
Pledgees.

The
Pledgor and the Secondary Pledgees (as defined below) are hereinafter
collectively referred to as the Parties.

WHEREAS:

(A)                              The Pledgor
issued the High Yield Notes (as defined below) pursuant to the High Yield
Indenture (as defined below) on the Issue Dates (as defined below).

(B)                                The security
interests given on 1 July 2004 and on 27 July 2004 by, amongst others, the
Pledgor to Deutsche Bank AG London as security trustee and Law Debenture Trust
Company of New York as high yield notes trustee on a second ranking basis have
been released as of the date hereof and shall now be re-taken subject to and in
accordance with the terms of the Priority Agreement (as defined below).

(C)                                According to the
terms of an amendment agreement to the Priority Agreement (as defined below)
Deutsche Bank AG London as former security trustee has resigned and the new
Security Trustee has assumed this position.

 1
 

 

(D)                               Under the
Priority Agreement (as defined below) the Security Trustee is the joint and
several creditor of each and every payment obligation of the Obligors towards
the High Yield Noteholders and/or the High Yield Notes Trustee under the
Finance Documents (each as defined below). 
The High Yield Notes Trustee has acceded to the Priority Agreement by means
of an accession agreement entered into on or about 2 July 2004 by, amongst
others, the Security Trustee and the High Yield Notes Trustee, acting for
itself and on behalf of the High Yield Noteholders (as defined below).

(E)                                 In connection
with the issue of the High Yield Notes under the High Yield Indenture the
Pledgor is entering into this Agreement.

IT IS AGREED as follows:

1.                                      INTERPRETATION

1.1                               Definitions

In
this Agreement:

Accounting
Principles means accounting principles, policies, standards,
bases and practices which, as at the date of the Credit Agreement, are in
accordance with the German generally accepted accounting principles (Grundsätze ordnungsgemäßer Buchführung und Bilanzierung).

Additional
High Yield Guarantor means a member of the Group which becomes a
high yield guarantor under the Finance Documents after the date of their
execution.

Approved
Additional High Yield Guarantor means any Additional High
Yield Guarantor whose obligations under the Finance Documents have after the
date of their execution been specified by the relevant Finance Party to be
secured by this Agreement.

Business Day means each day that is not (i) a Saturday or a Sunday or
(ii) any other day on which banking institutions in Luxembourg City,
Luxembourg, London, United Kingdom, Frankfurt am Main, Germany or New York, New
York are authorised or required by law to close.

Company means Kabel
Deutschland Vermögen GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) organised under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht) of
Munich under registration number HRA 84511.

Credit
Agreement means the EUR 1,350,000,000 credit agreement dated on
or about 13 March 2006 between, amongst others, the Mandated Lead Arrangers,
the Facility Agent, the Royal Bank of Scotland plc as security agent, KDVS, KDG
and the Original Lenders providing for EUR 1,350,000,000 senior credit facilities
and up to EUR 650,000,000 add-on facilities.

Dollar,
dollar or $ means the currency of the United States of America.

Dollar
Notes means $ 610,000,000 aggregate principal amount of 10.625 %
dollar-denominated senior notes due 2014 or any other dollar-denominated notes
issued pursuant to and in compliance with the High Yield Indenture (including
but not limited to any dollar-denominated Exchange Securities).

 2
 

 

Euro,
euro or € means the single European currency
introduced 1st January, 1999.

Euro
Notes means Euro 250,000,000 aggregate principal amount of 10.750 %
euro-denominated senior notes due 2014 or any other euro-denominated notes
issued pursuant to and in compliance with the High Yield Indenture (including
but not limited to any euro-denominated Exchange Securities).

Exchange
Securities means the dollar and/or euro denominated debt
securities issued and delivered by KDG in exchange for the Initial Securities
to the holders of transfer restricted securities pursuant to the High Yield
Indenture as contemplated by the High Yield Registration Rights Agreement.

Event of
Default means an event of default under any of the Finance
Documents, which entitles the relevant Finance Parties to declare that all or
part of any amounts outstanding under the relevant Finance Documents or any of
them are immediately due and payable, or payable on demand.

Existing
Interest means the interest set forth in Clause 2.1.

Facility
Agent means The Royal Bank of Scotland plc, a public limited company, having
its registered office at: 36 St. Andrew Square, EH2 2YB Edinburgh, Scotland,
incorporated under the laws of the United Kingdom and being registered with the
Companies House under registration number SC 090312.

Finance
Document means:

(a)                                  the High Yield
Notes;

(b)                                 the Exchange
Securities;

(c)                                  the High Yield
Indenture;

(d)                                 each Security
Document;

(e)                                  the Priority
Agreement; or

(f)                                    any other
document designated as such by the Security Trustee and KDG.

Finance
Party means each of the Security Trustee, the High Yield Notes Trustee and any
other person becoming a security trustee or a high yield notes trustee under
the High Yield Indenture (together the Finance Parties).

Future
Interests means any and all interests in the Company, other than
the Existing Interest, which KDG may acquire in future.

Future
Secondary Pledgee means a Finance Party (other than the Security
Trustee and the High Yield Notes Trustee).

Germany means the
Federal Republic of Germany.

Group means KDG and its
Subsidiaries.

High
Yield Guarantor means (i) KDVS or (ii) an Approved Additional High
Yield Guarantor (together the High Yield Guarantors).

 3
 

 

High
Yield Indenture means the indenture dated on or about 2nd  July, 2004, made between, amongst others,
KDG, KDVS as High Yield Guarantor, the High Yield Notes Trustee, the Security
Trustee and any other High Yield Guarantor relating to the issue of the High
Yield Notes by KDG, and including any supplemental indenture entered into,
amongst others, by KDG with respect to the High Yield Indenture.

High
Yield Notes means the Euro Notes and the Dollar Notes issued
pursuant to the High Yield Indenture.

High
Yield Noteholders means each of the holders of the High Yield Notes.

High
Yield Registration Rights Agreement means the registration rights
agreement dated on or about 2nd July, 2004, made between, amongst others, KDVS,
KDG, the High Yield Guarantors and Deutsche Bank AG London, Morgan Stanley
& Co. International Limited, Citigroup Global Markets Limited, Goldman
Sachs International and ABN Amro Bank N.V. relating to the offer to exchange
transfer restricted Initial Securities into a like aggregate amount of the
Exchange Securities or the shelf registration of such Initial Securities.

Initial
Securities means each of the Euro Notes and Dollar Notes.

Interests
means the Existing Interest and the Future Interests.

Issue
Date means each of the date on or about 2nd July, 2004 and any date
thereafter on which High Yield Notes are issued under the High Yield Indenture
(together the Issue Dates).

KDG means Kabel
Deutschland GmbH a limited liability company (Gesellschaft
mit beschränkter Haftung) incorporated under the laws of Germany,
having its corporate seat in Unterföhring (Landkreis München), Germany, which
is registered in the commercial register (Handelsregister) at the local court
(Amtsgericht) of Munich under registration number HRB 145837.

KDVS means Kabel
Deutschland Vertrieb und Service GmbH & Co. KG, a limited partnership (Kommanditgesellschaft) incorporated under the laws of
Germany, having its corporate seat in Unterföhring (Landkreis München),
Germany, which is registered in the commercial register (Handelsregister)
at the local court (Amtsgericht)
of Munich under registration number HRA 83902.

Mandated
Lead Arranger means each of:

(a)                                  The Royal Bank of
Scotland plc;

(b)                                 Deutsche Bank AG
London;

(c)                                  Goldman Sachs
International; and

(d)                                 J.P. Morgan plc.

Obligor means KDG or a
High Yield Guarantor (together the Obligors).

Original
Lender means each of:

(a)                                  The Royal Bank of
Scotland plc, Niederlassung Frankfurt;

(b)                                 Deutsche Bank AG
London;

 4
 

 

(c)                                  JPMorgan Chase
Bank, N.A.; and

(d)                                 Goldman Sachs
Credit Partners L.P.

Party means each of
the Pledgor and the Secondary Pledgees (together the Parties).

Priority
Agreement means the priority agreement dated 29 March 2004 as
amended and restated pursuant to a supplemental agreement dated 27 May 2004 and as
further amended and restated pursuant to a supplemental agreement dated 1 July
2004 and as further amended and restated pursuant to a supplemental agreement
dated the date hereof made between, among others, KDG, KDVS, the Mandated Lead
Arrangers, the Original Lenders, the Facility Agent, the Security Trustee and
certain other creditors of the Group.

Priority Pledges has the meaning
given to it under Clause 2.2(c)(ii) below.

Secondary
Pledge means a pledge constituted under Clause 2.2.

Secondary
Pledgee means an Original Secondary Pledgee or a Future Secondary Pledgee
(together the Secondary Pledgees).

Second Limited
Partner means Kabel Deutschland Vermögen Beteiligungs GmbH & Co. KG, a
limited partnership (Kommanditgesellschaft)
organised under the laws of Germany, having its corporate seat in Unterföhring,
Germany, which is registered in the Commercial Register (Handelsregister)
at the Local Court (Amtsgericht) of
Munich under registration number HRA 84471.

Secured
Claims means all present and future rights and claims (Ansprüche)
(whether actual or contingent and whether owed jointly or severally or in any
other capacity whatsoever) of the Finance Parties against any of the Obligors
under the Finance Documents, each as amended, restated, varied, supplemented,
novated or extended from time to time, including, without limitation, any
increase of principal or interest, in each case together with all costs,
charges and expenses incurred by the Finance Parties in connection with the
protection, preservation or enforcement of their respective rights under the
Finance Documents.

Security means any and all
security granted to secure the Secured Claims.

Security
Documents means any mortgages, pledges, assignments, transfers
or other documents creating security for the obligations of the Obligors under
the Finance Documents.

Security Trust Agreement means the security trust agreement dated on or about the date hereof
between, amongst others, KDG and KDVS as security agents and the Security
Trustee.

Subsidiary
means any of:

(a)                                  an entity of
which a person has direct or indirect control or owns directly or indirectly
more than 50% of the voting capital or similar right of ownership, and control for this purpose means the power to direct the
management and the policies of the entity whether through the ownership of
voting capital, by contract or otherwise; or

(b)                                 an entity consolidated
for the purpose of the financial statements of any person pursuant to the
Accounting Principles.

 5
 

 

1.2                               Construction

(a)                                  In this
Agreement, unless the contrary intention appears, a reference to:

(i)                                     the Security
Trustee means the Security Trustee acting as agent for and on behalf of the
Pledgees unless otherwise provided herein; and

(ii)                                  promptly means
promptly (unverzüglich) as contemplated in § 121
(1) BGB.

(b)                                 Where the context
so admits, the singular includes the plural and vice versa.

(c)                                  The headings in
this Agreement are for convenience only and are to be ignored in construing
this Agreement.

(d)                                 Any reference in
this Agreement to a defined document is a reference to that defined document as
amended, restated, novated or supplemented from time to time.

(e)                                  Whenever in this
Agreement reference is made to the Security Trustee such reference shall be
deemed to be a reference to the Security Trustee acting as trustee for and on
behalf of the Secondary Pledgees, unless otherwise provided herein.

(f)                                    References to
parties herein shall also be deemed to include references to their respective
successors, transferees and assignees.

2.                                      SECONDARY PLEDGES

2.1                               Pledged Limited
Partner’s Interest

(a)                                  The Pledgor and
the Second Limited Partner are the only limited partners (Kommanditisten)
of the Company as of the date of this Agreement.

(b)                                 The Company’s
sole general partner (Komplementär)
is Kabel Deutschland Verwaltungs GmbH which does not hold any interest (Kapitalanteil) in the Company.

(c)                                  The Pledgor holds
a limited partner’s interest (Kommanditanteil/Mitgliedschaft)
representing 100% of the capital interest in the Company (the Existing Interest). 
Its capital interest (Kapitalanteil)
currently amounts to EUR 1,000 (in words: Euro one thousand) and its liability
capital (Haftsumme) amounts to EUR 1,000 (in words: Euro one thousand).  The Second Limited Partner does not have any
capital interest (Kapitalanteil) in the Company but
its liability capital (Haftsumme)
amounts to EUR 1,000 (in words: Euro one thousand).

(d)                                 The Existing
Interest is fully paid up.  There is no
obligation for the Pledgor to make any additional contributions.

2.2                               Constitution of
Secondary Pledges

(a)                                  The Pledgor
hereby pledges the Interests to each Original Secondary Pledgee and to each
Future Secondary Pledgee for their rateable interest as Security.

(b)                                 Each of the
Original Secondary Pledgees hereby accepts each of the Secondary Pledges.  In addition, the Security Trustee accepts
each of the Secondary Pledges for and on behalf of each Future Secondary
Pledgee hereunder as proxy without power of attorney (Vertreter
ohne Vertretungsmacht).  Each
Future Secondary Pledgee will

 6
 

 

ratify
such acceptance for itself by executing an accession agreement to the Security
Trust Agreement, thereby becoming a Secondary Pledgee.  All Parties hereto confirm that the validity
of any of the Secondary Pledges constituted hereunder shall not be affected by
the Security Trustee acting as proxy without power of attorney for each Future
Secondary Pledgee.

(c)                                  The Parties
herewith acknowledge that

(i)                                     the Secondary
Pledge under this Agreement constitutes a second ranking pledge over the
Interests in the Company;

(ii)                                  the pledges
constituted between, amongst others, the Pledgor and Royal Bank of Scotland plc
as security agent relating to the Interests in the Company pursuant to an
interest pledge agreement as of the date hereof but prior to the execution of
this Agreement (the Priority Pledges)
have priority over the Secondary Pledges created under this Agreement; and

(iii)                               the enforcement
of this Secondary Pledge shall be made in accordance with the provisions of the
Priority Agreement.

3.                                      INDEPENDENT SECONDARY PLEDGES

The
validity and effect of each of the Secondary Pledges shall be independent from
the validity and the effect of any of (i) the other Secondary Pledges created
hereunder and (ii) the Priority Pledges and is in addition, and without any
prejudice, to any other Security which any and all of the Secondary Pledgees
may now or hereafter hold in respect of the Secured Claims.  Each of the Secondary Pledges to each of the
Secondary Pledgees shall be separate and individual second ranking
pledges.  Each of the Secondary Pledges
shall rank pari passu to each other Secondary Pledge created hereunder.

4.                                      SECURITY PURPOSE

The
Secondary Pledges are constituted in order to secure the prompt and complete
satisfaction of any and all Secured Claims.

5.                                      DIVIDENDS

5.1                               Extent of the
Pledge

The
Pledge constituted by this Agreement includes the present and future rights of
the Pledgor to receive

(a)                                  dividends, if
any, payable on any of the Interests; and

(b)                                 liquidation
proceeds, consideration for redemption (Einziehungsentgelt),
repaid capital in case of a capital decrease, any compensation in case of
termination (Kündigung) or withdrawal (Austritt) of the Pledgor of the Company (Abfindungsanspruch  bei Ausscheiden),
the surplus in case of surrender (Preisgabe) and
all other pecuniary claims associated with any of the Interests.

5.2                               Entitlement to
Receive Dividend Payments

Notwithstanding
that the dividends are pledged hereunder, the Pledgor shall be entitled to
receive and retain all dividend payments in cash in respect of the Interests
until the

 7
 

 

requirements
for enforcement referred to under Clause 7 below are met and unless the
Facility Agent has notified the Pledgor that according to the Credit Agreement
any dividend payments in respect of the Interests are no longer permitted to be
made to the Pledgor, in which case the payments are to be made to the Security
Trustee.

6.                                      EXERCISE OF VOTING RIGHTS

6.1                               Voting Rights

The
voting rights resulting from the Interests remain with the Pledgor.  This shall, however, not affect the
obligations of the Pledgor under Clause 8.1 below.  The Pledgor shall at all times until the full
and complete satisfaction of all Secured Claims or the release of the Secondary
Pledges be required, in exercising its voting rights, to act in good faith to
ensure that the Secondary Pledges are not in any way adversely affected.

6.2                               Impairment

The
Pledgor shall not take, or participate in, any action which impairs, or which
would for any other reason be inconsistent with, the security interest of the
Secondary Pledgees or the security purpose as described in Clause 4 hereof
or defeat, impair or circumvent the rights of the Secondary Pledgees hereunder
in each case in any respect.

6.3                               Information by
the Pledgor

The
Pledgor shall inform the Secondary Pledgees promptly of all other actions
concerning the Company which might adversely affect the security interest of
the Secondary Pledgees.  In particular,
the Pledgor shall notify the Secondary Pledgees forthwith of any partners’
meeting at which a resolution is intended to be adopted which could be expected
to have an adverse effect upon the Secondary Pledges.  In any event the Secondary Pledgees shall
promptly receive, as soon as they are available, a copy of the convocation
notice for such ordinary or extraordinary partners’ meeting setting forth the
agenda (to the extent it relates to such resolution) and all applications and
decisions to be taken and the minutes of any such partners’ meeting (in each
case to the extent they relate to such resolution).

7.                                      ENFORCEMENT OF SECONDARY PLEDGES

7.1                               Secondary
Pledgees’ Rights

(a)                                  If (i) an Event of
Default has occurred, (ii) the requirements set forth in §§ 1204 et seq. of the
German Civil Code (Bürgerliches Gesetzbuch)
with regard to the enforcement of pledges are met (Pfandreife),
and (iii) the Event of Default has not been remedied within 5 (five) Business
Days following the receipt of a notification in accordance with Clause 7.1(b),
the Secondary Pledgees may enforce any of the Secondary Pledges (or any part
thereof), through the Security Trustee by way of public auction (öffentliche Versteigerung) or in any other way permitted
under German law, in all cases notwithstanding § 1277 of the German Civil Code
without any enforceable judgement or other instrument (vollstreckbarer
Titel).

(b)                                 The Security
Trustee shall notify the Pledgor of the intention to realise any of the
Secondary Pledges over the Interests not less than 5 (five) Business Days
before the date on which the respective Pledge is intended to be realised.  The Pledgor expressly agrees that in the
event of a realisation by way of public auction 5 (five) Business Days prior
written notice of the place and time of any such public auction shall be 

 8
 

 

sufficient.  The public auction may be held at any place
in Germany which will be determined by the Security Trustee.

(c)                                  If the Security
Trustee should seek to enforce any of the Secondary Pledges pursuant to, and in
accordance with Clause 7.1(a) above, the Pledgor shall, at its own expense,
render forthwith all assistance necessary in order to facilitate the prompt
sale of the Interests or any part thereof and/or the exercise by the Security
Trustee of any other right the Secondary Pledgees may have under German law.

(d)                                 The Secondary
Pledges will be realised to the extent necessary to discharge in full the
Secured Claims.  The Secondary Pledgees
shall at all times until the full and complete satisfaction of all the Secured
Claims in exercising their rights under this Agreement take into consideration
the legitimate interests of the Pledgor.

(e)                                  In derogation of
§ 1225 of the German Civil Code, in the event of enforcement of any of the
Secondary Pledges, no rights of the Secondary Pledgees shall pass to the
Pledgor by subrogation or otherwise unless and until all of the Secured Claims
have been satisfied and discharged in full. 
Until then, the Security Trustee shall be entitled to treat all
enforcement proceeds as additional collateral for the Secured Claims,
notwithstanding its right to seek satisfaction from such proceeds at any time.

(f)                                    After the
complete unconditional, irrevocable and full payment and discharge of all
Secured Claims any remaining proceeds resulting from the enforcement of any of
the Secondary Pledges (or part thereof) shall be transferred to the Pledgor at
the cost and expense of the Pledgor.

7.2                               Ancillary Rights

Provided
that the requirements for enforcement referred to under Clause 7.1(a) above are
met, all payments based on ancillary rights attributed to the Interests may be
applied by the Security Trustee in satisfaction in whole or in part of the
Secured Claims notwithstanding the Secondary Pledgees’ right to treat such
payments as additional collateral.

7.3                               Application of
Proceeds

(a)                                  The proceeds
resulting from the enforcement of any of the Secondary Pledges shall be applied
by the Security Trustee towards the satisfaction of the Secured Claims, subject
to, and in accordance with, the relevant provisions of the Priority Agreement.

(b)                                 The Security
Trustee may determine which part of the Security, if applicable, shall be used
to satisfy the Secured Claims.

7.4                               Release of
Pledged Rights

Upon
the full and complete satisfaction of all Secured Claims the Security Trustee
shall confirm to the Pledgor upon request that the Interests are released from
the Secondary Pledges and retransfer to the Pledgor any documents received by
the Security Trustee or any designee pursuant to Clause 8.1(e) hereof.

 9

 

8.                                      UNDERTAKINGS OF THE PLEDGOR

8.1                               Undertakings

The
Pledgor undertakes

(a)                                  to notify the
Security Trustee promptly of any change in the partnership of, or the capital
contributions to, the Company or of any change in the partnership agreement (Gesellschaftsvertrag) or any registrations in the commercial
register other than with respect to holders of a statutory power of attorney (Prokura);

(b)                                 to notify the
Security Trustee promptly of any event or circumstance other than
interpretation of law which affects or is reasonably likely to affect the
validity or enforceability of the security interest granted hereunder;

(c)                                  to effect
promptly any payments to be made to the Company in respect of the Interests;

(d)                                 at its own
expense, to execute and do all such assurances, acts and things as the Security
Trustee may reasonably require:

(i)                                     for perfecting or
protecting the security intended to be afforded by this Agreement; and

(ii)                                  if the Secondary
Pledges have become enforceable pursuant to Clause 7.1, for facilitating
the realisation of all or any part of the Interests which are subject to this
Agreement and the exercise of all powers, authorities and discretions vested in
the Security Trustee,

and
in particular to execute all transfers, conveyances, assignments and releases
of that property whether to the Security Trustee or to its nominees and give
all notices, orders and directions which the Security Trustee may reasonably
think expedient;

(e)                                  at the Security
Trustee’s reasonable request, to furnish to the Security Trustee such
information concerning the Interests as is available to the Pledgor to permit
the Security Trustee and its designees to inspect, audit and make copies of and
extracts from all records and all other papers in the possession of the Pledgor
which pertain to the Interests on reasonable notice and during normal business
hours, and, upon the reasonable request of the Security Trustee, to deliver to
the Security Trustee copies of all such records and papers;

(f)                                    to refrain from
any acts or omissions which might have an adverse effect on the validity or
enforceability of the Secondary Pledges or the effect of which results in the
Interests ceasing to exist; and

(g)                                 that all Future
Interests will be fully paid and that there will be no obligation for a limited
partner to make additional contributions.

8.2                               Secondary Pledges
over all Interests

The
Security Trustee may at all times for itself and for the Secondary Pledgees
request to hold a pledge over all Interests held by the Pledgor (and in the
case of a merger an equivalent security interest over the interest in the
surviving or, as the case may be, the new company) in accordance with all terms
of this Agreement.

 10
 

 

9.                                      REPRESENTATIONS AND WARRANTIES

The
Pledgor represents and warrants to the Secondary Pledgees that:

(a)                                  except for the
limited partner’s interest held by the Second Limited Partner, the Existing
Interest pledged hereunder is the only limited partner’s interest in the
Company in existence at the date hereof;

(b)                                 with the
exception of the requirement of a written approval by all holders of a
partnership interest in the Company which approval has been given, the Pledgor
is not subject to any restriction of any kind with regard to the transfer of,
or the granting of a pledge in, or any other disposal of, the Interests;

(c)                                  all necessary
corporate action has been taken to authorise the entry into and delivery of
this Agreement;

(d)                                 the Existing
Interest is fully paid and there is no obligation for the Pledgor to make
additional contributions; and

(e)                                  (i)                                     the Existing
Interest is, except for the Priority Pledges securing any payment obligations
of the obligors under the Credit Agreement, free from any rights of third
parties;

(ii)                                  no third party
has any pre-emption rights for interests in the Company; and

(iii)                               there is no party
(other than the Pledgor) which is entitled to participate in the profits or
revenues of the Company.

10.                               RELEASE OF SECURITY

Even
prior to the full and complete satisfaction of all Secured Claims, the Security
Trustee is obliged to release upon the Pledgor`s request all or part of the
Security insofar as the realisable value of the Security given to the Security
Trustee or the other Finance Parties with respect to the Secured Claims
exceeds, not only temporarily, the Secured Claims by more than 10 %.  The Security Trustee may, at its discretion,
determine which part of the Security shall be released.

11.                               INDEMNITY

11.1                        Liability for
Damages

Neither
the Security Trustee nor the Secondary Pledgees shall be liable for any loss or
damage suffered by the Pledgor save in respect of such loss or damage which is
suffered as a result of the gross negligence (grobe
Fahrlässigkeit) or wilful misconduct (Vorsatz)
of the Security Trustee or of any of the Secondary Pledgees.

11.2                        Indemnification

The
Pledgor will indemnify the Security Trustee and each of the Secondary Pledgees
and keep the Security Trustee and each of the Secondary Pledgees indemnified
against any losses, actions, claims, expenses, demands and liabilities which
may be incurred by or made against the Security Trustee and/or each of the
Secondary Pledgees as a result of any breach by the Pledgor of any of its
obligations or undertakings contained herein except to the extent that such
losses, actions, claims, expenses, demands or liabilities have resulted from
the gross

 11
 

 

negligence
(grobe Fahrlässigkeit) or wilful
misconduct (Vorsatz) of any of the Secondary
Pledgees or the Security Trustee.

11.3                        This
Clause 11 (Indemnity) shall survive the termination of this Agreement under
Clause 12.1 or otherwise.

12.                               DURATION AND INDEPENDENCE

12.1                        Duration

This
Agreement shall remain in full force and effect until the full and complete
satisfaction of the Secured Claims.  None
of the Secondary Pledges shall cease to exist if any payments made in
satisfaction of the Secured Claims have only temporarily discharged the Secured
Claims.

12.2                        Continuing
Security

This
Agreement shall create a continuing security which means that no change or
amendment whatsoever in any Finance Document or in any document or agreement
related to it or the replacement of the Security Trustee or of the High Yield
Notes Trustee or any transfer of the Notes shall affect the validity of this
Agreement.

12.3                        Independence

This
Agreement is independent from any other security or guarantee which may have
been or will be given to the Security Trustee and/or any of the other Secondary
Pledgees with respect to any obligation of any of the Obligors under the
Finance Documents.  None of such other
securities or guarantees shall prejudice, or shall be prejudiced by, or shall
be merged in any way with, this Agreement.

13.                               COSTS AND EXPENSES

Any notarial fees and expenses
incurred in connection with the execution of this Agreement shall be borne by
the Pledgor.  The Pledgor must pay to
each Finance Party the amount of all costs and expenses (including the costs
and expenses of legal advisers) incurred by it in connection with the
enforcement of, or the preservation of any rights under, any Finance Document.

14.                               PARTIAL INVALIDITY; WAIVER

14.1                        Invalidity

If
any provision of this Agreement or any part thereof should be or become invalid
or unenforceable, this shall not affect the validity of the remaining
provisions hereof.  The invalid or
unenforceable provision shall be replaced by that provision which best meets
the intent of the replaced provision.

In
particular, the Secondary Pledges shall not be affected and shall in any event
extend to any and all Interests in the Company even if the number or nominal
value of any of the Existing Interests or the liable capital of the Company as
stated in Clause 2.1 are inaccurate and deviate from the actual facts.

 12
 

 

14.2                        Waiver

(a)                                  The Pledgor
hereby waives its rights of revocation (Anfechtbarkeit)
and set-off (Aufrechenbarkeit) it may have
pursuant to §§ 1211 and 770(1) and (2) of the German Civil Code.  No failure to exercise, nor any delay in
exercising, on the part of the Security Trustee or the Secondary Pledgees (or
any of them), any right or remedy hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any right or remedy prevent any
further or other exercise thereof or the exercise of any other right or
remedy.  The rights and remedies provided
hereunder are cumulative and not exclusive of any rights or remedies provided
by law.

(b)                                 The Pledgor
hereby irrevocably waives any rights which may pass to the Pledgor by
subrogation or otherwise, including but not limited to, any recourse claim
against any Obligor (Verzicht auf
Rückgriffsansprüche) which it may obtain (i) in the event that the
Pledgor repays any debt of any other Obligor under any of the Finance
Documents, or (ii) in the event of enforcement of any of the Secondary Pledges
created hereunder.

15.                               AMENDMENTS

Changes
and amendments of this Agreement including this Clause 15 shall be made in
writing.

16.                               NOTICES AND THEIR LANGUAGE

16.1                        Notices

Any
notice or other communication under or in connection with this Agreement to the
Pledgor or the Security Trustee and/or the Secondary Pledgees shall be in
writing and shall be delivered personally, by post or facsimile and shall be
sent to the address or facsimile number of the party, and for the attention of
the individual, set forth in Schedule 1 hereto or such other address or facsimile
number as is notified by that party for this purpose to the Security Trustee
from time to time.

16.2                        Language

Unless
otherwise agreed from time to time, any notice or other communication under or
in connection with this Agreement shall be in the English language or, if in
any other language, accompanied by a translation into English.  In the event of any conflict between the
English text and the text in any other language, the English text shall
prevail.

17.                               APPLICABLE LAW; JURISDICTION

17.1                        Governing Law

This
Agreement shall be governed by and construed in accordance with the laws of
Germany.

17.2                        Jurisdiction

The
place of jurisdiction for all Parties shall be Frankfurt am Main, Germany.  The Security Trustee, however, shall also be
entitled to take legal action against the Pledgor before any other competent
court of law having jurisdiction over the Pledgor or any of its assets.

 13
 

 

18.                               NOTIFICATION

The
Pledgor and the Secondary Pledgees hereby instruct and authorise the
undersigned notary public to notify the Company of the Secondary Pledges
pursuant to, and in accordance with, §  1280 of the German Civil Code by
means of forwarding a certified copy of this Agreement to the Company by
registered mail (return receipt requested) and by fax.

 14
 

 

SCHEDULE 1

ADDRESSES
FOR NOTICES

	
  

  To the Pledgor:

  	
   

  	
  Kabel Deutschland Vertrieb und

  Service GmbH & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49-89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  To the Security Trustee

  and all other Secondary

  Pledgees:

  	
   

  	
  The Royal Bank of Scotland plc

  Level 7

  135 Bishopsgate

  London EC2M 3UR

  United Kingdom

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Mark Harrison, Director, Syndicated Loans Agency

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 70854564

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To the Company:

  	
   

  	
  Kabel Deutschland Vermögen GmbH

  & Co. KG

  Betastraße 6-8

  85774 Unterföhring

  Germany

  
	
   

  	
   

  	
   

  
	
  Att.:

  	
   

  	
  Paul Thomason

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49- 89 96010 198

  
	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
  paul.thomason@kabeldeutschland.de

  

 

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]