Document:

Exhibit 10.21

 

AIRCRAFT
MANAGEMENT AGREEMENT

 

THIS AIRCRAFT MANAGEMENT AGREEMENT (the “Agreement”) is made and entered
into as of this 29th day of December, 2004 (the “Effective Date”),
by and between KRAFT FOODS GLOBAL, INC., a Delaware corporation with a
principal place of business located at Three Lakes Drive, Northfield, IL 60093
(“Kraft”), and ALTRIA CORPORATE SERVICES, INC., a New York corporation with a
principal place of business located at 120 Park Avenue, New York, NY  10017 (“Manager”).

 

WITNESSETH:

 

WHEREAS, Kraft rightfully possesses one (1) Gulfstream Aerospace GIV-SP aircraft and one (1) Gulfstream G300 aircraft (as further described in Exhibit
A, which may be amended from time to time by mutual agreement of the parties to
provide for substitution, replacement, addition or removal of certain aircraft)
(collectively, the “Aircraft”); and

 

WHEREAS, Kraft desires Manager to provide
aircraft management, pilot services, maintenance and other aviation services
(the “Services”) to Kraft to allow Kraft to conduct operations pursuant to
Federal Aviation Regulations (“FARs”) Part 91 under
Kraft’s operational control pursuant to the terms and conditions of this
Agreement; and

 

WHEREAS, Manager has flight department personnel
experienced in the business of managing, operating, maintaining, and scheduling
corporate aircraft and desires to perform these services for Kraft on the terms
and conditions stated herein.

 

NOW
THEREFORE, in
consideration of the promises and the mutual covenants contained herein, and for
good and valuable consideration, Kraft and Manager hereby agree as follows:

 

ARTICLE
ONE

TERM

 

1.1                                 Term.  The term of
this Agreement (the “Term”) shall commence on the Effective Date and shall
remain in effect until such time as it has been terminated as to the Services
in accordance with Article 1.2 below.

 

1.2                                 Termination. 
Either Party may terminate this Agreement without cause by providing one
hundred twenty (120) days’ prior written notice to the other Party or as
otherwise agreed between the Parties hereto.

 

1.3                                 Accounting after Termination. 
Within one hundred twenty (120) days after the termination date, Manager
shall make a full accounting and the parties shall settle all accounts between
them.

 

1.4                                 Redelivery of Aircraft and Records. 
Upon termination of this Agreement, Manager shall redeliver the
Aircraft, along with all Aircraft-specific books and
records to Kraft.

 

 

1.5                                 Termination Assistance Services. 
Manager agrees that, upon termination of this Agreement, and at Kraft’s
expense, Manager will cooperate in good faith with Kraft to provide Kraft (or
its designee) with reasonable assistance to make an orderly transition from
Manager to another supplier of the Services. 
Transition assistance services shall include the following:

(a)                                            Developing a transition plan with
assistance from Kraft or its designee;

(b)                                           Providing training to Kraft personnel or
its designee’s personnel to perform Services; and

(c)                                            Organizing and delivering to Kraft
records and documents necessary to allow continuation of the Services,
including delivering such materials in electronic forms and versions as
requested by Kraft.

 

ARTICLE
TWO

MANAGER’S
OBLIGATIONS

 

2.1                                 Provision of Aircraft Management and
Aviation Services.  Manager hereby agrees to manage the Aircraft
and furnish certain aviation support services described below to Kraft during
the Term.  Such services shall be
provided in accordance with any applicable FARs and
in accordance with Manager’s established procedures with respect to its own
aircraft, as such procedures may be modified from time to time, including but
not limited to the Altria Corporate Services, Inc.
Aviation and Travel Services Policy and Operations Manual (the “Manual”).

 

2.2                                 Pilot and Flight Attendant Services. 
Manager agrees to provide pilot services to Kraft.  Manager agrees to employ and provide a
sufficient number of fully qualified pilots to operate the Aircraft in
accordance with the Manual.  Manager
reserves the right to utilize the services of temporary qualified pilots,
acceptable to both Manager and Kraft, to supplement full-time staff, from time
to time, when deemed necessary by Manager. 
It is agreed that the term “qualified pilot” shall be deemed to refer to
an individual who meets the following minimum requirements:

 

(a)                                  Holds a valid Airline Transport Pilot’s
Certificate with appropriate category, class and type ratings for the Aircraft;

(b)                                 Holds a current first class medical
certificate in accordance with FAR §61.23(a)(1);

(c)                                  Is current with respect to FAR Part 61,
to conduct operations under FAR Part 91;

(d)                                 Is familiar with Manager’s  written policies and procedures;

(e)                                  Has satisfactorily completed a
recommended or approved ground and flight training course for the Aircraft;

(f)                                    Is approved as pilot with respect to the
Aircraft insurance coverage; and

(g)                                 Is approved as a pilot under the Manual.

 

                                                Manager agrees to provide flight
attendant services to Kraft.  Manager
agrees to employ and provide a sufficient number of fully qualified flight
attendants to perform the services in

 

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accordance with the Manual.  Manager reserves the right to utilize the
services of temporary qualified flight attendants, acceptable to both Manager
and Kraft, to supplement full-time staff, from time to time, when deemed
necessary by Manager.

 

In accordance with
the applicable FARs, each flight crew member provided
by Manager will exercise all of his or her duties and responsibilities with the
highest regard for the safety of each flight conducted hereunder.  Kraft specifically agrees that the
pilot-in-command, in his or her sole discretion, may terminate any flight,
refuse to commence any flight, or take any other such action which in the
considered judgment of such pilot in command is necessitated by safety
considerations.  No such action by the
pilot in command shall create or support any liability for loss, injury, damage
or delay to Kraft or any other person. 
Kraft further agrees that Manager shall not be liable for delay or
failure to furnish or return the Aircraft or flight crew pursuant to this
Agreement when such failure is caused by government regulation or authority,
mechanical difficulty, war, civil commotion, strikes or labor disputes, weather
conditions or acts of God or is necessary to adhere to the requirements of the
Manual.

 

2.3                                 Maintenance and Inspections. 
Manager shall be responsible for providing maintenance, preventive
maintenance, and required or otherwise necessary inspections of the
Aircraft.  No period of maintenance, preventive
maintenance or inspection shall be delayed or postponed for the purpose of
scheduling the Aircraft, unless said maintenance or inspection can be safely
conducted at a later time in compliance with all applicable laws and
regulations, and within the sound discretion of the assigned pilot in command
and Manager’s maintenance manager.

 

It is expected by
the parties that Manager will perform pre-flight inspections and maintenance of
the Aircraft, will keep the interior and the exterior of the Aircraft clean,
and will repair discrepancies and perform most scheduled inspections.  Subject to the provisions of Article 3.4
below, it is expected by the parties that Manager or Kraft may subcontract with
outside maintenance providers to perform any additional necessary maintenance
on the Aircraft.

 

Kraft appoints
Manager as its agent for the limited purpose of executing, for and on behalf of
Kraft, any maintenance program and maintenance inspection agreements or any
other agreement as shall be necessary in order for Manager to fulfill its
obligations under this Agreement.  Kraft
agrees to indemnify and hold Manager harmless from and against any claims,
damages, losses or expenses arising pursuant to any such maintenance program
and maintenance inspection agreements, or any other agreement necessary in
order for Manager to fulfill its obligations under this Agreement.

 

2.4                                 Logbooks and Records. 
Manager shall maintain all logbooks and records pertaining to the
Aircraft in accordance with applicable FARs.  Such logbooks and records shall be made
available for examination and copying by Kraft or Kraft’s duly authorized
agents, at Kraft’s reasonable advance request, at the location of such books
and records at Manager’s Flight Operations office in Milwaukee, Wisconsin.  At the termination of this Agreement, Manager
shall deliver such logbooks and records to Kraft.

 

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2.5                                 Additional Duties of Manager. 
In addition to those duties assumed by Manager elsewhere herein, Manager
also agrees to perform the following:

 

(a)                                  Arrange for and coordinate and schedule
use of the Aircraft;

(b)                                 Arrange for aircraft commissary, catering
and rental car, limousine or taxi cab passenger ground transportation, as
requested by Kraft;

(c)                                  Utilize and maintain the airport office
facilities at the Base of Operations (as defined in Article 11.1) in order to
assist the flight crew in the performance of their duties; in order to achieve
scheduling of flights and flight personnel, flight following and communication;
in order to perform routine scheduled and unscheduled maintenance to the
Aircraft; and in order to assist Kraft in the planning and support of Kraft’s
flight operation;

(d)                                 Assist in establishing and maintaining
budgets respecting the Aircraft and provide copies thereof to Kraft;

(e)                                  At Kraft’s request, arrange for backup
aircraft coverage with a commercial certificated air carrier or other provider
operating in accordance with FARs and acceptable to
Manager and Kraft when the Aircraft is unavailable for Kraft’s use due to
scheduled or unscheduled maintenance. 
Manager shall provide Kraft with a copy of its list of acceptable
providers upon request;

(f)                                    Assist Kraft in obtaining and maintaining
such insurance covering the Aircraft and its operation as further described in
Article 5.1 below;

(g)                                 Provide such proof of insurance as
required of Manager pursuant to Article 5.1(g) below; and

(h)                                 Arrange for initial and recurrent
training for each flight crew member, maintenance technician and dispatchers.

 

ARTICLE
THREE

KRAFT’S
OBLIGATIONS

 

3.1                                 Operational Control and Possession,
Command and Control.  It is hereby agreed and acknowledged between
Kraft and Manager that during all phases of flights conducted under this
Agreement, Kraft shall retain and have (i) operational
control of the Aircraft, and (ii) possession, command and control of the
Aircraft.  In addition, Kraft further
acknowledges operational control by exercising Kraft’s authority over
initiating, conducting and terminating each flight.  Kraft chooses not to hire its own pilots but
contract for the pilot services of Manager. 
Although the flight crew is supplied by Manager for Kraft’s flights, the
flight crew is under the exclusive command and control of Kraft in all phases
of those flights and at all times.  Kraft
acknowledges that all of Kraft’s flights are classified as “noncommercial” for
Federal Aviation regulatory purposes and, for Federal excise tax purposes, are
subject to the appropriate federal tax on aviation fuels.  In exercising operational control, Kraft
shall comply with the FARs, insurance requirements
and any pertinent regulations of the United States or any country where the
Aircraft may be operated from time to time. 
Kraft shall operate the Aircraft in accordance with FAR Part 91.

 

3.2                                 Advance Notification.  Kraft shall provide Manager with information
regarding proposed flight schedules as far in advance of any given flight as
possible.  Information that must

 

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be provided to Manager shall be in a format
mutually acceptable to the parties and shall include the following information
for each proposed flight:

 

(a)                      Name of requisitioner;

(b)                     Date requisition prepared;

(c)                      Proposed departure airport;

(d)                     Proposed destination airport;

(e)                      Date and time of flight;

(f)                        The number, names and social security
numbers of anticipated employee passengers and the flight legs on which each
will travel;

(g)                     The number, names, addresses, telephone
numbers and social security numbers of anticipated non-employee passengers and
the flight legs on which each will travel;

(h)                     The nature and extent of any
non-customary luggage and/or cargo, to include firearms and/or hazardous
materials, to be carried;

(i)                         The date and time of a return flight, if
any;

(j)                         Ground transportation requests;

(k)                      Special catering requests; and

(l)                         Any other information concerning the
proposed flight that may be pertinent or required by the other party.

 

Kraft shall ensure
that all passengers meet all applicable requirements of US and foreign customs
during travel aboard the Aircraft.

 

Manager hereby
designates Jim Woolley, telephone (914) 288-3021, as
its contact for aircraft scheduling. 
Manager may change its contact for aircraft scheduling by providing
written notice of such change to Kraft in accordance with Article 11.3 below.

 

Kraft is currently
not a “citizen of the United States” as defined in 49 U.S.C.A. §44102(a), and
is, therefore, required to comply with the Department of Transportation
regulations set forth in 14 C.F.R. Part 375, one effect of which is to prohibit
carriage of candidates in elections where payment for the carriage is
required.  During any time when Kraft is
a “citizen of the United States” as defined in 49 U.S.C.A. §44102(a), with
respect to any persons required by federal or state law to make payment for
such flights, Kraft agrees to comply with FAR 91.321 and to provide Manager
with advance notification and such additional information as may be reasonably
requested by Manager.  

 

3.3                                 Management Fee and Variable Expenses.

 

(a)                                  Kraft shall pay Manager a monthly
management fee in order to reimburse Manager for a ratable portion of the
annual fixed expenses associated with the performance of Manager’s obligations
and duties under this Agreement.  The
initial estimate of the fixed expenses and the monthly management fee is set
forth in Exhibit C attached hereto. 
Fixed expenses described in Exhibit C include among other overhead
expenses salaries, fringe benefits and other payroll costs of the flight crew,
maintenance and other administrative personnel. 
All fixed expenses other than third party expenses (the marked-up
expenses identified on Exhibit C) include a 5% markup.

 

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(b)                                 Kraft shall pay all variable expenses
associated with its use of the Aircraft and operation of the Aircraft under
this Agreement.  The initial estimate of
the variable expenses is set forth in Exhibit D attached hereto.  Kraft shall pay for all maintenance and
repairs at the time that Manager performs such services upon the Aircraft.
Kraft shall also pay for all alterations, modifications, additions or
improvements made pursuant to the terms of Article 7 hereof at the time Manager
performs such services upon the Aircraft. 
Manager shall use all reasonable efforts under the circumstances to
notify Kraft in advance of any maintenance anticipated to cost in excess of one
hundred thousand Dollars ($100,000). 
Such notice may be given verbally notwithstanding the provisions of
Article 11.3 below.

 

3.4                                 Payment of Fixed and Variable Expenses.

 

(a)                                  Kraft shall pay Manager through
inter-company cash transfer the monthly management fee on or before the third
Wednesday of each month during the Term hereof.

 

(b)                                 Manager shall deliver to Kraft, on or
about the 15th day of each month, an invoice for the aggregate
variable expenses incurred for the previous month.  Kraft will pay the amount specified on such
invoice to Manager, through inter-company cash transfer no later than the third
Wednesday of the month following the month that such invoice was sent to Kraft.

 

(c)                                  At the end of each six months during the
term of the Agreement, Manager will review the fixed expenses actually incurred
by Manager (collectively, “Actual Cost”) during the previous six months.  In the event that Manager determines that the
Actual Cost differs from the aggregate fixed expenses set forth on Exhibit C
for that period by more than 2%, Manager will deliver to Kraft documentation
for such Actual Cost and the Parties will adjust the monthly management fee
accordingly, retroactively or prospectively.

 

On or before
November 15 of each calendar year, in connection with the annual review of
services provided to Kraft Foods Inc. and its wholly owned subsidiaries under
the Services Agreement dated as of January 1, 2001, an estimate of the fixed
and variable expenses for the next calendar year will be submitted to the
Controller and Chief Financial Officer (“CFO”) of Kraft Foods Inc. by the
Controller of Altria Group, Inc. on behalf of
Manager, for review and approval. 
Approval by the CFO of Kraft Foods Inc. and the CFO of Altria Group, Inc. will constitute approval by the Manager
and Kraft of the estimate of the fixed and variable expenses for the ensuing
year.  Such estimates once approved shall
be deemed to replace the existing Exhibits C and D to this Agreement and the
monthly management fee for the ensuing year shall be paid in accordance with
such modified Exhibit C.

 

3.5                                 Taxes.  Kraft shall
pay to Manager and Manager shall collect from Kraft and remit to the
appropriate taxing authorities all taxes (including but not limited to federal
excise taxes), fees, assessments, sales tax, personal property tax, license and
registration fees together with all fines and penalties assessed by any taxing
or governmental authority (hereinafter “Taxes”) which relate in any way to the
ownership, use or operation of the Aircraft except for any federal or state
taxes based on Manager’s net income or capital gains or any franchise taxes
imposed on Manager.  Kraft shall
indemnify, defend and hold Manager harmless from Kraft’s

 

6

 

failure to pay the Taxes to Manager in order to
allow Manager to remit the same in a timely manner.

 

3.6                                 Insurance.  Kraft shall
pay all costs and expenses relating to the Aircraft insurance required by
Article 5 below.

 

3.7                                 Facilities and
Equipment.  Kraft shall be
responsible, at its sole cost and expense, to obtain (and subsequently repair
or replace as necessary), hangar space, office space and support equipment for
the Aircraft all to the extent necessary to allow Manager to perform its duties
under this Agreement.  Such space and
equipment shall be provided at the Aircraft’s Base of Operations (as defined in
Article 11.1).  Such space shall include
ramp facilities for the Aircraft, parking facilities for Manager’s employees
and a fuel farm.  Kraft shall be solely
responsible for all claims arising by virtue of the provision or existence of
the items set forth in this Article 3.7.

 

3.8                                 Manual Compliance.  Kraft agrees to abide by and advise its
passengers of all applicable procedures set forth in the Manual.  Manager shall deliver to a representative
designated by Kraft a copy of the Manual and any updates.

 

3.9                                 Training.  Kraft shall provide Manager with reasonable
access to and use of the Aircraft for the purpose of conducting all training
and testing that is necessary for compliance with the FARs
(including, without limitation, proficiency checks, line checks, and type
training and certification).

 

ARTICLE
FOUR

USE OF
FACILITIES & EQUIPMENT

 

4.1                                 Use of Facilities and Equipment. 
Manager hereby grants Kraft usage of such facilities and equipment set
forth in Article 3.7 to the extent owned or controlled by Manager, as well as
all other of Manager’s facilities and equipment at the Base of Operations as
Kraft requires to store, operate and maintain the
Aircraft during the Term.  Kraft hereby
grants Manager usage of such facilities and equipment
set forth in Article 3.7 to the extent owned or controlled by Kraft as well as
all other of Kraft’s facilities and equipment at the Base of Operations as
Manager requires to perform its services relating to the Aircraft during the
Term in accordance with this Agreement.

 

ARTICLE
FIVE

INSURANCE

 

5.1                                 Manager Provided Insurance. 
During the Term until such time as Kraft is no longer majority owned by Altria Group, Inc., Manager hereby agrees to arrange for
and procure, at Kraft’s expense, insurance coverage of the types, in the
amounts, and including the special provisions set forth below, under separate
aviation insurance policies relating to the Aircraft (“Manager’s Policies”).

 

(a)                                  All risk physical damage (hull)
insurance, including war, hijacking and allied perils coverage, with respect to
the Aircraft insuring against any loss, theft or damage to

 

7

 

the Aircraft, and extended coverage with
respect to any engines or parts while removed from the Aircraft, in an amount
equal to the agreed value as listed in Exhibit B hereto, with no
deductible.  Such insurance shall provide
that all losses shall be adjusted with Kraft and be payable to Kraft as owner
of the Aircraft.  Such insurance shall
also contain a waiver of subrogation in favor of Manager.

 

(b)                                 Aircraft liability insurance, including
war, hijacking and allied perils coverage, with respect to the Aircraft
insuring against liability for bodily injury to or death of persons, including
passengers, and damage to or loss of property, in an amount not less than Two
Hundred Million Dollars ($200,000,000) combined limit per occurrence (except
with respect to war risks, hijacking and allied perils coverage, which shall be
subject to a policy sub-limit in an amount not less than Fifty Million Dollars
($50,000,000) combined limit per occurrence and in the annual aggregate for
bodily injury to or death of, and property damage to, third parties).

 

(c)                                  Excess/Umbrella Liability insurance in
excess of the Aviation Liability policy limits set forth above and where applicable
in Exhibit B.  Such Excess/Umbrella
policy will include the provision that the primary Liability policy be
scheduled to such program for full policy limits.

 

(d)                                 Additional coverages
as set forth in Exhibit B hereto.

 

(e)                                  All liability coverages
required by this Article 5.1 (except for clause (c) of such Article) and
Exhibit B hereto shall include the following provisions:

 

(i)                                     such insurance shall be primary without any
right of contribution from any other insurance available to Manager or Kraft;
and

 

(ii)                                  such insurance shall contain a standard
clause as to cross liability or severability of interests among insured parties
providing that the insurance shall operate in all respects as if a separate
policy had been issued covering each party insured except for limits of
liability.

 

(f)                                    All insurance required by this Article
5.1 and Exhibit B hereto shall include the following provisions:

 

(i)                                     such insurance shall cover the operation of
the Aircraft;

 

(ii)                                  such insurance shall name Kraft as the
Named Insured and shall name Manager, its affiliates, successors and assigns
and their respective officers, directors, members, managers, employees, agents
and representatives (the “Manager Additional Insureds”)
as additional insureds;

 

(iii)                               the geographic limits of such insurance
shall be worldwide, except that in the case of war, hijacking and allied perils
coverage, the coverage territory shall be subject to such excluded territories
as is usual in the aviation insurance industry;

 

(iv)                              such insurance shall provide that not less
than thirty (30) calendar days advance written notice (except ten (10) days
written notice for non-payment of

 

8

 

premium and such shorter period as is customarily
available under the war, hijacking and allied perils insurance) shall be given
to Manager and Kraft of cancellation by any party or adverse material change or
reduction in the limits of coverage applicable to Manager or Kraft under the
policies; and

 

(v)                                 such insurance shall contain an invalidation
of interest/breach of warranty clause in favor of Manager Additional Insureds providing that the coverage afforded to such
parties will not be voided or invalidated by any act or neglect of Kraft or any
other insured party.

 

(g)                                 Manager shall provide to Kraft prior to
the first operation of the Aircraft under Manager’s Policies an insurance
certificate reflecting the coverage required by the Agreement and thereafter,
when it becomes available, a copy of the policy showing the applicable coverages.

 

5.2                             Kraft Provided Insurance. 
If at any time during the Term, Kraft is no longer majority owned by Altria Group, Inc., Kraft shall immediately arrange and
procure, at Kraft’s expense, insurance for the Aircraft (“Kraft’s Policies”).  The provisions of Kraft’s Policies shall be
at least as comprehensive and advantageous as the provisions of Manager’s
Policies, including terms, limitations, conditions and exclusions, and shall
provide the specific coverages and provisions
outlined in Articles 5.1(a)-(f) and 5.2(a) and Exhibit B.  Furthermore, Kraft’s Policies shall be issued
by an insurance company reasonably acceptable to Manager.  Upon Kraft’s notice to Manager of
commencement of insurance coverage under Kraft’s insurance, Manager’s
responsibilities under Article 5.1 above shall cease.

 

(a)                                  Kraft shall provide to Manager (with its
notice of commencement of insurance coverage as described in this Article 5.2)
an insurance certificate reflecting the coverage required by this Agreement and
thereafter, when it becomes available, a copy of the policy showing the
applicable coverages. 
The insurance policy shall waive all rights of subrogation against the
Manager Additional Insureds and shall recognize in
writing this Agreement.

 

5.3                                 Manager’s Insurance Obligations. 
During the Term, Manager will maintain in full force and effect, at its
own expense:

 

(a)                                  Workers’ Compensation Coverage that
provides applicable statutory benefits and Employer Liability Coverage in an
amount of not less than Five Hundred Thousand Dollars ($500,000) covering all
employees of Manager.

 

(b)                                 Commercial General Liability insurance,
excluding hangarkeeper’s liability coverage and
including premises liability coverage, in the amount of Five Million Dollars
($5,000,000) per occurrence, and products and completed operations coverage in
the amount of Ten Million Dollars ($10,000,000) per occurrence and in the
aggregate.

 

(c)                                  Fire and extended coverage insurance on
Manager’s personal property, trade fixtures and equipment located in or on the
Base of Operations, in an amount equal to the full replacement value thereof.

 

9

 

(d)                                 “All Risk Property” insurance coverage
for the hangar valued on a “replacement cost” basis during such time as Manager
is providing the facilities described in Article 3.7 above.

 

5.4                                 Kraft’s Insurance Obligations. 
In addition to and notwithstanding Articles 5.1 and 5.2 above, during
the Term, Kraft will maintain in full force and effect, at its own expense:

 

(a)                                  Commercial General Liability insurance,
excluding hangarkeeper’s liability coverage and
including premises liability and environmental coverage, in the amount of Five
Million Dollars ($5,000,000) per occurrence, and products and completed
operations coverage in the amount of Ten Million Dollars ($10,000,000) combined
single limit per occurrence and in the aggregate.

 

(b)                                 Fire and extended coverage insurance on
Kraft’s personal property, trade fixtures and equipment located in or on the
Base of Operations, in an amount equal to the full replacement value thereof.

 

(c)                                  “All Risk Property” insurance coverage
for the hangar valued on a 
“replacement cost” basis during such time as Kraft is providing
the facilities described in Article 3.7 above.

 

5.5                                 Insurance Validity. 
In the event that any insurance on the Aircraft which is required by
this Article 5 is invalidated for any reason, the Aircraft shall not be
operated until such time as all such insurance is again valid and in full force
and effect.

 

ARTICLE
SIX

INDEPENDENT
CONTRACTOR

 

6.1                                 Independent Contractor. 
Manager shall be deemed to be an independent contractor.  Manager shall be free to devote to its other
business such portion of its entire time, energy, efforts and skill, as it sees
fit.  Manager shall have no mandatory
duties, except those which are specifically set out in this Agreement.  Nothing contained in this Agreement shall be
regarded as creating any relationship (employer/employee, joint venture,
partnership) between the parties other than as set forth herein.

 

6.2                                 No Agent Status. 
Except as specifically set forth in Article 2.3, Manager shall never at
any time during the Term become the agent of Kraft and Kraft shall not be
responsible for the acts or omissions of Manager or its agents except as set
forth herein.

 

6.3                                 No Employee Status. 
No employee of Manager will, at any time,
represent himself or herself to be an employee of Kraft.

 

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ARTICLE
SEVEN

ALTERATIONS

 

7.1                             Alterations. 
Manager shall not have the right to alter, modify or make any additions
or improvements to the Aircraft or engines, other than those necessary to
obtain and maintain FAA certification, to maintain the Aircraft in accordance
with the terms hereof or to ensure the Aircraft conforms to Manager’s criteria
and guidelines for aircraft owned and operated by Manager including alterations
to the Aircraft necessary to ensure that the Aircraft are substantially similar
to the aircraft of the same make and model flown by the flight crew for the
Aircraft, without prior written permission from Kraft.  All such alterations, modifications,
additions and improvements as are so made shall become the property of Kraft
and shall be subject to the terms of this Agreement.

 

ARTICLE EIGHT

TITLE

 

8.1                                 Title.  Kraft has the
right to operate the Aircraft pursuant to that certain Dry Lease dated as of
December 22, 2004 between Kraft and Kraft Foods Aviation, LLC, the beneficial
owner of the Aircraft, and has full right, power and authority and has secured
all necessary consents to enter into this Agreement with Manager.  It is expressly understood and agreed that
this is a management contract, and that Manager acquires no ownership, title,
property rights or interests in or to the Aircraft and their engines,
accessories and equipment pursuant to this Agreement.

 

ARTICLE
NINE

RISK OF
LOSS OR DAMAGE TO AIRCRAFT

 

9.1                                 Risk of Loss or Damage to Aircraft. 
Risk of loss or damage to the Aircraft shall be borne by Kraft.  If, during the Term, any of the Aircraft is
destroyed, lost or damaged beyond repair, this Agreement shall terminate
immediately, as to such Aircraft, unless otherwise agreed.

 

ARTICLE
TEN

INDEMNIFICATION

 

10.1                           Indemnification. 
Each party to this Agreement hereby indemnifies and holds harmless the
other party and its respective officers, directors, partners, employees,
shareholders and affiliates for any claim, damage, loss or reasonable expense,
including reasonable attorneys’ fees, resulting from bodily injury or property
damage to third parties caused by an occurrence and arising out of the
ownership, maintenance or use of the Aircraft which results from the negligence
or willful misconduct of such indemnifying party (an “Indemnified Loss”),
provided, however, that neither party to this Agreement will be liable for any
Indemnified Loss:

 

(a)                                  to the extent that such loss is covered
by the insurance policies described in Article 5 (the “Policies”), or in the
event the other party fails to maintain the insurance coverages
it is required to maintain pursuant to Article 5, such loss would have been
covered under the required coverages had they been in
effect;

 

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(b)                                 with respect to a loss covered by the
Policies, to the extent that the amount of such loss exceeds the policy limits
required by Article 5;

 

(c)                                  with respect to a loss consisting of
expenses incurred in connection with a loss covered in whole or in part by the
Policies, to the extent that such expenses are not fully covered by the Policies,
or

 

(d)                                 to the extent of the comparative negligence
or willful misconduct of the indemnified party or its officers, directors,
partners, employees, shareholders and affiliates.

 

10.2                           Indemnification by Manager. 
Manager will indemnify Kraft for direct physical damage to the Aircraft
proven to have been caused by Manager’s gross negligence (“Gross Negligence
Aircraft Damage”); provided, however, that Manager will not indemnify Kraft for
any Gross Negligence Aircraft Damage:

 

(a)                                  to the extent that coverage for such damage
is provided by Manager’s Policies required to be maintained by Manager by
Article 5 and Exhibit B;

 

(b)                                 with respect to such damage for which
coverage is provided by Manager’s Policies, to the extent that the amount of
such damage exceeds the agreed insured value specified in Exhibit B;

 

(c)                                  to the extent that coverage for such
damage is provided by Kraft’s Policies required to be maintained by Kraft by
Article 5 and Exhibit B, or in the event Kraft fails to maintain such required
insurance coverages, coverage for such damage would
have been provided under such required coverages had
they been in effect; or

 

(d)                                 with respect to such damage for which
coverage is provided by Kraft’s Policies, to the extent that the amount of such
damage exceeds the agreed insured value specified in Exhibit B.

 

If any Gross
Negligence Aircraft Damage is not covered by Manager’s or Kraft’s Policies
solely because it is less than an applicable deductible amount set forth in
Exhibit B, Manager will indemnify Kraft for the amount of any such damage up to
the amount of such deductible.  Manager
will not indemnify Kraft for any other uninsured damage to the Aircraft.

 

10.3                           LIMITATION OF LIABILITY. 
EACH PARTY ACKNOWLEDGES AND AGREES THAT

 

(a)                                  THE PROCEEDS OF INSURANCE TO WHICH IT IS
ENTITLED;

 

(b)                                 ITS RIGHTS TO INDEMNIFICATION FROM THE
OTHER PARTY UNDER ARTICLE 10.1 (AND IN THE CASE OF KRAFT, ITS RIGHTS TO
INDEMNIFICATION UNDER ARTICLE 10.2) (AND IN THE CASE OF MANAGER, ITS RIGHTS TO
INDEMNIFICATION UNDER ARTICLES 2.3 AND 10.4); AND

 

12

 

(c)                                  ITS RIGHT TO DIRECT DAMAGES ARISING IN
CONTRACT FROM A MATERIAL BREACH OF THE OTHER PARTY’S OBLIGATIONS UNDER THIS
AGREEMENT

 

ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF
THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY.  KRAFT WAIVES ALL RIGHTS OF RECOVERY AGAINST
MANAGER AND MANAGER ADDITIONAL INSUREDS FOR ANY LOSS OR DAMAGE TO THE AIRCRAFT,
EXCEPT AS SET FORTH IN ARTICLE 10.2 ABOVE. 
EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 10.3 AND ARTICLE 10.4,
EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY DAMAGE, LOSS OR EXPENSE ARISING OUT
OF THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED
HEREBY.  IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER
PARTY FOR ANY CLAIMED INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES, OR FOR ANY DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE, REVENUE,
PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, OR DEPRECIATION OR DIMINUTION IN
VALUE OF THE AIRCRAFT, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD
HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

 

10.4                           Failure of Insurance Policies. 
When Kraft’s Policies are utilized, any indemnification provided by
Manager to Kraft, any waiver of any claim and any agreements to be liable for
damages set forth in this Article 10 shall not apply to the extent that Kraft’s
Policies have failed to provide the insurance coverage required by Article 5,
including Exhibit B.  Furthermore, Kraft
agrees to indemnify Manager for any Indemnified Loss resulting from the failure
of Kraft’s Policies to comply with the requirements of Article 5, including
Exhibit B.

 

10.5                           Survival.  The
provisions of this Article 10 will survive the termination or expiration of
this Agreement.

 

ARTICLE
ELEVEN

MISCELLANEOUS
PROVISIONS

 

11.1                           Base of Operations. 
For purposes of this Agreement, the Base of Operations of the Aircraft
shall be Mitchell International Airport (MKE), Milwaukee, Wisconsin.

 

11.2                           Entire Agreement. 
This Agreement constitutes the entire understanding between the parties
as of the Effective Date and supersedes all prior agreements between the
parties which concern the management of or pilot services for the
Aircraft.  Any change, modification or
amendment to this Agreement must be in writing signed by both parties.

 

11.3                           Notices.  Any notice
required or permitted under this Agreement shall be given in writing and shall
be effective for all purposes if hand delivered to the party designated below
or if sent by (a) certified or registered United States mail,  postage prepaid; or (b) by expedited

 

13

 

delivery service,
either commercial or United States Postal Service, with proof of delivery; or
(c) by telecopy (provided that such telecopy is confirmed by expedited delivery
service or by mail in the manner previously described), addressed as follows:

 

	
  If to Manager:

  	
   

  	
  Altria Corporate Services, Inc.

  
	
   

  	
   

  	
  180 Airport Road, Hangar D-2

  
	
   

  	
   

  	
  Westchester County Airport, White Plains

  
	
   

  	
   

  	
  New York, NY 10604

  
	
   

  	
   

  	
  Attn: George Saling

  
	
   

  	
   

  	
  Tel: 914-335-3011

  
	
   

  	
   

  	
  Fax: 914-335-3070

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Kraft:

  	
   

  	
  Kraft Foods Inc.

  
	
   

  	
   

  	
  Three Lakes Drive

  
	
   

  	
   

  	
  Northfield, IL 60093

  
	
   

  	
   

  	
  Attn: Marc S. Firestone

  
	
   

  	
   

  	
  Tel: 847-646-2000

  
	
   

  	
   

  	
  Fax: 847-646-2950

  

 

or to such other address and person as
shall be designated from time to time by Manager or Kraft, as the case may be,
in a written notice to the other in the manner provided for in this
paragraph.  The notice shall be deemed to
have been given at the time of delivery if hand delivered or sent by confirmed
telecopy, or in the case of registered or certified mail, three (3) business
days after deposit in the United States mail, or if by expedited delivery, upon
first attempted delivery on a business day. 
A party receiving notice which does not comply with the technical
requirements for notice under this paragraph may elect to waive any
deficiencies and treat the notice as having been properly given.

 

11.4                           Compliance with Laws. 
Manager and Kraft shall comply with all federal, state and local laws
and executive orders and regulations issued pursuant thereto, including without
limitation, and to the extent applicable to this Agreement, all FARs, to the extent of their obligations under this
Agreement.

 

11.5                           Rights and Remedies. 
Manager and Kraft’s rights and remedies with respect to any of the terms
and conditions of this Agreement shall be cumulative and non-exclusive and
shall be in addition to all other rights and remedies which either party
possesses at law or in equity except as otherwise provided in this Agreement.

 

11.6                           Invalidity.  In the event
that any one or more of the provisions of this Agreement shall be determined to
be invalid, unenforceable or illegal, such invalidity, unenforceability and
illegality shall not affect any other provisions of this Agreement, and the
Agreement shall be construed as if such invalid, unenforceable or illegal
provisions had never been contained herein.

 

11.7                           Force Majeure. 
Exclusive of Kraft’s obligations to pay for the operating expenses and
other expenses associated with the Aircraft, each party shall be relieved of
its obligations

 

14

 

hereunder in the
event and to the extent that the party’s performance is delayed or prevented by
any cause reasonably beyond such party’s control, including but not limited to,
acts of God, public enemies, war, civil disorder, fire, flood, explosion, labor
disputes or strikes, or any acts or order of any governmental authority.

 

11.8                           Waiver.  No delay or
omission in the exercise or enforcement of any right or remedy hereunder by
either party shall be construed as a waiver of such right or remedy.  All remedies, rights, undertakings, obligations
and agreements contained herein shall be cumulative and not mutually exclusive.

 

11.9                           Assignment.  Neither this
Agreement nor any party’s interest herein shall be assignable to any other
party without the consent of the other party. 
This Agreement shall inure to the benefit of and be binding upon the
parties hereto, their heirs, representatives and successors.

 

11.10                     Confidentiality. 
Manager and Kraft shall not disclose to any third party (other than
their respective affiliates) in any manner information regarding the terms of
this Agreement without the non-disclosing party’s prior written consent;
provided, however, that neither party shall be prohibited from making any
disclosures to the extent required by law.

 

11.11                     Review of Records. 
Each party shall permit the other, upon reasonable request, to review
its accounting and other cost records relating to the Aircraft, so the other
party can conduct an audit of such records as that other party reasonably deems
necessary.

 

ARTICLE
TWELVE

APPLICABLE
LAW

 

12.1  Governing Law and Jurisdiction. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.  Without
limiting in any way the jurisdiction of the courts of any state, nation or
province, or Manager’s right to invoke the jurisdiction of such courts, Kraft
hereby consents to the jurisdiction of the courts of the United States of
America and the State of New York in any dispute which arises out of this
Agreement and agrees that service of process shall be sufficient if made on the
Secretary of State of New York with a copy to be sent, by registered mail, to
Kraft at the address set forth in Article 11.3 above.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

 

	
  Manager:

  	
  Kraft:

  
	
  ALTRIA CORPORATE
  SERVICES, INC.

  	
  KRAFT FOODS GLOBAL,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

15Exhibit 10.1

 

EXECUTION VERSION

 

21 December 2004

 

 

£1,550,000,000

 

SENIOR FACILITIES AGREEMENT

 

 

between

 

 

TELEWEST UK LIMITED

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

and, upon its accession,
TELEWEST GLOBAL FINANCE LLC

as Borrowers

 

BARCLAYS CAPITAL

BNP PARIBAS

CITIGROUP GLOBAL MARKETS LIMITED

CREDIT SUISSE FIRST BOSTON

DEUTSCHE BANK AG LONDON

GE CAPITAL STRUCTURED FINANCE GROUP LIMITED

THE ROYAL BANK OF SCOTLAND PLC

as Mandated
Lead Arrangers

 

BARCLAYS BANK PLC

as Facility
Agent and Security Trustee

 

BARCLAYS BANK PLC

as US Paying Agent

 

GE CAPITAL STRUCTURED FINANCE GROUP LIMITED

as Administrative Agent

 

THE ORIGINAL GUARANTORS

 

and

 

THE LENDERS

 

 

5 Old Broad Street

London EC2N 1DW

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
  1.2

  	
  Accounting
  Expressions

  	
   

  
	
   

  	
  1.3

  	
  Construction

  	
   

  
	
   

  	
  1.4

  	
  Currency

  	
   

  
	
   

  	
  1.5

  	
  Statutes

  	
   

  
	
   

  	
  1.6

  	
  Time

  	
   

  
	
   

  	
  1.7

  	
  References
  to Agreements

  	
   

  
	
   

  	
  1.8

  	
  Documentary
  Credits

  	
   

  
	
   

  	
  1.9

  	
  Principal
  Intercreditor Deed

  	
   

  
	
  2.

  	
  THE
  FACILITIES

  	
   

  
	
   

  	
  2.1

  	
  The
  Facilities

  	
   

  
	
   

  	
  2.2

  	
  Purpose

  	
   

  
	
   

  	
  2.3

  	
  Several
  Obligations

  	
   

  
	
   

  	
  2.4

  	
  Several
  Rights

  	
   

  
	
  3.

  	
  CONDITIONS

  	
   

  
	
   

  	
  3.1

  	
  Conditions
  Precedent

  	
   

  
	
   

  	
  3.2

  	
  General
  Conditions Subsequent

  	
   

  
	
  4.

  	
  UTILISATION

  	
   

  
	
   

  	
  4.1

  	
  Conditions to
  Utilisation

  	
   

  
	
   

  	
  4.2

  	
  Lenders’
  Participations

  	
   

  
	
  5.

  	
  DOCUMENTARY
  CREDITS

  	
   

  
	
   

  	
  5.1

  	
  Issue
  of Documentary Credits

  	
   

  
	
   

  	
  5.2

  	
  Renewal
  of Documentary Credits

  	
   

  
	
   

  	
  5.3

  	
  Immediately
  Payable

  	
   

  
	
   

  	
  5.4

  	
  Claims under
  a Documentary Credit

  	
   

  
	
   

  	
  5.5

  	
  Documentary Credit Indemnities

  	
   

  
	
   

  	
  5.6

  	
  Rights
  of Contribution

  	
   

  
	
   

  	
  5.7

  	
  Role of
  the L/C Bank

  	
   

  
	
   

  	
  5.8

  	
  Exclusion of
  Liability

  	
   

  
	
   

  	
  5.9

  	
  Credit
  Appraisal by the Indemnifying Lenders

  	
   

  
	
   

  	
  5.10

  	
  Appointment
  and Change of L/C Bank

  	
   

  
	
  6.

  	
  ANCILLARY
  FACILITIES

  	
   

  
	
   

  	
  6.1

  	
  Utilisation
  of Ancillary Facilities

  	
   

  
	
   

  	
  6.2

  	
  Operation
  of Ancillary Facilities

  	
   

  
	
   

  	
  6.3

  	
  Ancillary
  Facility Default

  	
   

  
	
  7.

  	
  REPAYMENT
  OF REVOLVING FACILITY OUTSTANDINGS

  	
   

  
	
   

  	
  7.1

  	
  Repayment
  of Revolving Facility Advances

  	
   

  
	
   

  	
  7.2

  	
  Rollover
  Advances

  	
   

  
	
   

  	
  7.3

  	
  Cash Collateralisation of Documentary
  Credits

  	
   

  
	
   

  	
  7.4

  	
  Cleandown

  	
   

  
	
  8.

  	
  REPAYMENT OF TERM FACILITY OUTSTANDINGS

  	
   

  
	
   

  	
  8.1

  	
  Repayment of A Facility Outstandings

  	
   

  
	
   

  	
  8.2

  	
  Repayment of B Facility Outstandings

  	
   

  
	
   

  	
  8.3

  	
  Repayment of C Facility Outstandings

  	
   

  
	
   

  	
  8.4

  	
  No
  Reborrowing of Term Facility Advances

  	
   

  
	
  9.

  	
  CANCELLATION

  	
   

  
	
   

  	
  9.1

  	
  Voluntary Cancellation

  	
   

  
	
   

  	
  9.2

  	
  Notice
  of Cancellation

  	
   

  
	
   

  	
  9.3

  	
  Cancellation of Available
  Commitments

  	
   

  

 

i

 

	
  10.

  	
  VOLUNTARY
  PREPAYMENT

  	
   

  
	
   

  	
  10.1

  	
  Voluntary
  Prepayment

  	
   

  
	
   

  	
  10.2

  	
  Right
  of Prepayment and Cancellation in relation to a single Lender

  	
   

  
	
   

  	
  10.3

  	
  Application of Repayments

  	
   

  
	
   

  	
  10.4

  	
  Release from Obligation to make
  Advances

  	
   

  
	
   

  	
  10.5

  	
  Notice
  of Repayment

  	
   

  
	
   

  	
  10.6

  	
  Restrictions on Repayment

  	
   

  
	
   

  	
  10.7

  	
  Cancellation upon Repayment

  	
   

  
	
  11.

  	
  MANDATORY PREPAYMENT AND CANCELLATION

  	
   

  
	
   

  	
  11.1

  	
  Change
  of Control

  	
   

  
	
   

  	
  11.2

  	
  Repayment from Net Proceeds of
  Disposals and Insurance Recoveries

  	
   

  
	
   

  	
  11.3

  	
  Blocked
  Accounts

  	
   

  
	
   

  	
  11.4

  	
  Repayment from Excess Cash Flow

  	
   

  
	
   

  	
  11.5

  	
  Repayment from Debt Proceeds

  	
   

  
	
   

  	
  11.6

  	
  Repayment from Equity Proceeds

  	
   

  
	
  12.

  	
  INTEREST ON REVOLVING FACILITY
  ADVANCES

  	
   

  
	
   

  	
  12.1

  	
  Interest Payment Date for Revolving
  Facility Advances

  	
   

  
	
   

  	
  12.2

  	
  Interest Rate for Revolving
  Facility Advances

  	
   

  
	
   

  	
  12.3

  	
  Margin Ratchet for Revolving
  Facility Advances

  	
   

  
	
  13.

  	
  INTEREST ON TERM FACILITY ADVANCES

  	
   

  
	
   

  	
  13.1

  	
  Interest Periods for Term Facility
  Advances

  	
   

  
	
   

  	
  13.2

  	
  Duration

  	
   

  
	
   

  	
  13.3

  	
  Consolidation of Term Facility
  Advances

  	
   

  
	
   

  	
  13.4

  	
  Division of Term Facility Advances

  	
   

  
	
   

  	
  13.5

  	
  Payment of Interest for Term
  Facility Advances

  	
   

  
	
   

  	
  13.6

  	
  Interest
  Rate for Term Facility Advances

  	
   

  
	
   

  	
  13.7

  	
  Margin
  Ratchet for A Facility Advances and B Facility Advances

  	
   

  
	
   

  	
  13.8

  	
  Notification

  	
   

  
	
  14.

  	
  MARKET DISRUPTION AND ALTERNATIVE
  INTEREST RATES

  	
   

  
	
   

  	
  14.1

  	
  Market
  Disruption

  	
   

  
	
   

  	
  14.2

  	
  Substitute Interest Period or
  Term and Interest Rate

  	
   

  
	
   

  	
  14.3

  	
  Alternative
  Rate

  	
   

  
	
  15.

  	
  COMMISSIONS
  AND FEES

  	
   

  
	
   

  	
  15.1

  	
  Commitment
  Fees

  	
   

  
	
   

  	
  15.2

  	
  Arrangement and Underwriting Fee

  	
   

  
	
   

  	
  15.3

  	
  Agency Fee

  	
   

  
	
   

  	
  15.4

  	
  Documentary
  Credit Fee

  	
   

  
	
   

  	
  15.5

  	
  L/C Bank Fee

  	
   

  
	
  16.

  	
  TAXES

  	
   

  
	
   

  	
  16.1

  	
  Tax Gross-up

  	
   

  
	
   

  	
  16.2

  	
  Tax Indemnity

  	
   

  
	
   

  	
  16.3

  	
  Tax Credit

  	
   

  
	
  17.

  	
  INCREASED
  COSTS

  	
   

  
	
   

  	
  17.1

  	
  Increased
  Costs

  	
   

  
	
   

  	
  17.2

  	
  Increased Costs Claims

  	
   

  
	
   

  	
  17.3

  	
  Exceptions

  	
   

  
	
  18.

  	
  ILLEGALITY

  	
   

  
	
  19.

  	
  MITIGATION

  	
   

  
	
   

  	
  19.1

  	
  Mitigation

  	
   

  
	
   

  	
  19.2

  	
  Limitation of Liability

  	
   

  
	
  20.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  1.1

  	
  Due
  Organisation

  	
   

  
	
   

  	
  20.2

  	
  No
  Deduction

  	
   

  
	
   

  	
  20.3

  	
  Claims Pari Passu

  	
   

  
	
   

  	
  20.4

  	
  No Immunity

  	
   

  

 

ii

 

	
   

  	
  20.5

  	
  Governing Law and Judgments

  	
   

  
	
   

  	
  20.6

  	
  All
  Actions Taken

  	
   

  
	
   

  	
  20.7

  	
  No Filing or Stamp Taxes

  	
   

  
	
   

  	
  20.8

  	
  Binding Obligations

  	
   

  
	
   

  	
  20.9

  	
  No
  Winding-up

  	
   

  
	
   

  	
  20.10

  	
  No
  Event of Default

  	
   

  
	
   

  	
  20.11

  	
  No Material Proceedings

  	
   

  
	
   

  	
  20.12

  	
  Original Financial Statements

  	
   

  
	
   

  	
  20.13

  	
  No Material Adverse Change

  	
   

  
	
   

  	
  20.14

  	
  No Undisclosed Liabilities

  	
   

  
	
   

  	
  20.15

  	
  Accuracy of Information

  	
   

  
	
   

  	
  20.16

  	
  Indebtedness and Encumbrances

  	
   

  
	
   

  	
  20.17

  	
  Execution of Finance Documents

  	
   

  
	
   

  	
  20.18

  	
  Structure

  	
   

  
	
   

  	
  20.19

  	
  Environmental
  Matters

  	
   

  
	
   

  	
  20.20

  	
  Necessary Authorisations

  	
   

  
	
   

  	
  20.21

  	
  Intellectual Property

  	
   

  
	
   

  	
  20.22

  	
  Ownership
  of Assets

  	
   

  
	
   

  	
  20.23

  	
  Payment
  of Taxes

  	
   

  
	
   

  	
  20.24

  	
  Pension
  Plans

  	
   

  
	
   

  	
  20.25

  	
  Security

  	
   

  
	
   

  	
  20.26

  	
  Investment Company Act

  	
   

  
	
   

  	
  20.27

  	
  Public Utility Holding Company
  Act

  	
   

  
	
   

  	
  20.28

  	
  Insurance

  	
   

  
	
   

  	
  20.29

  	
  Centre of Main
  Interests

  	
   

  
	
   

  	
  20.30

  	
  Broadcasting Act
  1990

  	
   

  
	
   

  	
  20.31

  	
  Telecommunications,
  Cable and Broadcasting Laws

  	
   

  
	
   

  	
  20.32

  	
  Liabilities of
  Telewest UK

  	
   

  
	
   

  	
  20.33

  	
  US Patriot Act

  	
   

  
	
   

  	
  20.34

  	
  Compliance with
  ERISA

  	
   

  
	
   

  	
  20.35

  	
  Liabilities of
  the US Borrower

  	
   

  
	
   

  	
  20.36

  	
  Repetition

  	
   

  
	
  21.

  	
  FINANCIAL INFORMATION

  	
   

  
	
   

  	
  21.1

  	
  Financial
  Statements

  	
   

  
	
   

  	
  21.2

  	
  Budget

  	
   

  
	
   

  	
  21.3

  	
  Other Information

  	
   

  
	
   

  	
  21.4

  	
  Compliance
  Certificates

  	
   

  
	
   

  	
  21.5

  	
  Change in
  Accounting Practices

  	
   

  
	
   

  	
  21.6

  	
  Notifications

  	
   

  
	
   

  	
  21.7

  	
  Role of the
  Administrative Agent

  	
   

  
	
  22.

  	
  FINANCIAL CONDITION

  	
   

  
	
   

  	
  22.1

  	
  Ratios

  	
   

  
	
   

  	
  22.2

  	
  Permitted Capital
  Expenditure

  	
   

  
	
   

  	
  22.3

  	
  Currency
  calculations

  	
   

  
	
   

  	
  22.4

  	
  Pro Forma
  Calculations

  	
   

  
	
  23.

  	
  POSITIVE UNDERTAKINGS

  	
   

  
	
   

  	
  23.1

  	
  Application of
  Advances

  	
   

  
	
   

  	
  23.2

  	
  Financial
  Assistance and Fraudulent Conveyance

  	
   

  
	
   

  	
  23.3

  	
  Necessary
  Authorisations

  	
   

  
	
   

  	
  23.4

  	
  Compliance with
  Applicable Laws

  	
   

  
	
   

  	
  23.5

  	
  Insurance

  	
   

  
	
   

  	
  23.6

  	
  Intellectual
  Property

  	
   

  
	
   

  	
  23.7

  	
  Ranking of Claims

  	
   

  
	
   

  	
  23.8

  	
  Pay Taxes

  	
   

  
	
   

  	
  23.9

  	
  Hedging

  	
   

  

 

iii

 

	
   

  	
  23.10

  	
  Pension Plans

  	
   

  
	
   

  	
  23.11

  	
  Environmental
  Matters

  	
   

  
	
   

  	
  23.12

  	
  Further
  Assurance

  	
   

  
	
   

  	
  23.13

  	
  Assets

  	
   

  
	
   

  	
  23.14

  	
  Centre of Main
  Interests

  	
   

  
	
   

  	
  23.15

  	
  Group Structure
  Chart

  	
   

  
	
   

  	
  23.16

  	
  Contributions to
  the TCN Group

  	
   

  
	
   

  	
  23.17

  	
  “Know your
  client” checks

  	
   

  
	
   

  	
  23.18

  	
  Change in
  Auditors

  	
   

  
	
   

  	
  23.19

  	
  Notice of
  Integrated Merger Event

  	
   

  
	
   

  	
  23.20

  	
  ERISA

  	
   

  
	
   

  	
  23.21

  	
  Telewest UK

  	
   

  
	
  24.

  	
  NEGATIVE UNDERTAKINGS

  	
   

  
	
   

  	
  24.1

  	
  Undertakings with
  respect to the Flextech Group

  	
   

  
	
   

  	
  24.2

  	
  Negative Pledge

  	
   

  
	
   

  	
  24.3

  	
  Loans and
  Guarantees

  	
   

  
	
   

  	
  24.4

  	
  Financial
  Indebtedness

  	
   

  
	
   

  	
  24.5

  	
  Dividends,
  Distributions and Share Capital

  	
   

  
	
   

  	
  24.6

  	
  Disposals

  	
   

  
	
   

  	
  24.7

  	
  Change of Business

  	
   

  
	
   

  	
  24.8

  	
  Mergers

  	
   

  
	
   

  	
  24.9

  	
  Joint Ventures

  	
   

  
	
   

  	
  24.10

  	
  Transactions with
  Affiliates

  	
   

  
	
   

  	
  24.11

  	
  Change in
  Financial Year

  	
   

  
	
   

  	
  24.12

  	
  Limitations on
  Hedging

  	
   

  
	
   

  	
  24.13

  	
  Acquisitions and
  Investments

  	
   

  
	
   

  	
  24.14

  	
  No Restrictions
  on Payments

  	
   

  
	
   

  	
  24.15

  	
  Telewest UK
  Covenants

  	
   

  
	
   

  	
  24.16

  	
  Following
  Integrated Merger Event

  	
   

  
	
   

  	
  24.17

  	
  US Borrower

  	
   

  
	
  25.

  	
  ACCESSION; US
  BORROWER; ACCEDING GUARANTORS

  	
   

  
	
   

  	
  25.1

  	
  The US Borrower

  	
   

  
	
   

  	
  25.2

  	
  Acceding
  Guarantors

  	
   

  
	
   

  	
  25.3

  	
  Assumption of
  Rights and Obligations

  	
   

  
	
  26.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
  26.1

  	
  Events of Default

  	
   

  
	
   

  	
  26.2

  	
  Non-Payment

  	
   

  
	
   

  	
  26.3

  	
  Covenants

  	
   

  
	
   

  	
  26.4

  	
  Other Obligations

  	
   

  
	
   

  	
  26.5

  	
  Misrepresentation

  	
   

  
	
   

  	
  26.6

  	
  Cross Default

  	
   

  
	
   

  	
  26.7

  	
  Insolvency

  	
   

  
	
   

  	
  26.8

  	
  Winding-up

  	
   

  
	
   

  	
  26.9

  	
  Execution or
  Distress

  	
   

  
	
   

  	
  26.10

  	
  Similar Events

  	
   

  
	
   

  	
  26.11

  	
  Repudiation

  	
   

  
	
   

  	
  26.12

  	
  Illegality

  	
   

  
	
   

  	
  26.13

  	
  Intercreditor
  Default

  	
   

  
	
   

  	
  26.14

  	
  Revocation of
  Necessary Authorisations

  	
   

  
	
   

  	
  26.15

  	
  Material Adverse
  Effect

  	
   

  
	
   

  	
  26.16

  	
  Resignation of
  Auditors

  	
   

  
	
   

  	
  26.17

  	
  Material
  Proceedings

  	
   

  
	
   

  	
  26.18

  	
  Acceleration

  	
   

  
	
   

  	
  26.19

  	
  Repayment on
  Demand

  	
   

  

 

iv

 

	
  27.

  	
  DEFAULT INTEREST

  	
   

  
	
   

  	
  27.1

  	
  Consequences of
  Non-Payment

  	
   

  
	
   

  	
  27.2

  	
  Default Rate

  	
   

  
	
   

  	
  27.3

  	
  Maturity of
  Default Interest

  	
   

  
	
   

  	
  27.4

  	
  Construction of
  Unpaid Sum

  	
   

  
	
  28.

  	
  GUARANTEE AND INDEMNITY

  	
   

  
	
   

  	
  28.1

  	
  Guarantee

  	
   

  
	
   

  	
  28.2

  	
  Indemnity

  	
   

  
	
   

  	
  28.3

  	
  Continuing and
  Independent Obligations

  	
   

  
	
   

  	
  28.4

  	
  Avoidance of
  Payments

  	
   

  
	
   

  	
  28.5

  	
  Immediate Recourse

  	
   

  
	
   

  	
  28.6

  	
  Waiver of Defences

  	
   

  
	
   

  	
  28.7

  	
  No Competition

  	
   

  
	
   

  	
  28.8

  	
  Appropriation

  	
   

  
	
   

  	
  28.9

  	
  Limitation of
  Liabilities of United States Guarantors

  	
   

  
	
   

  	
  28.10

  	
  Droit de Discussion / Droit de Division

  	
   

  
	
  29.

  	
  AGENTS

  	
   

  
	
   

  	
  29.1

  	
  Appointment of the
  Agents

  	
   

  
	
   

  	
  29.2

  	
  Duties of the
  Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  29.3

  	
  Role of the
  Mandated Lead Arrangers and Administrative Agent

  	
   

  
	
   

  	
  29.4

  	
  No Fiduciary Duties

  	
   

  
	
   

  	
  29.5

  	
  Business with the
  Group

  	
   

  
	
   

  	
  29.6

  	
  Discretion of the
  Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  29.7

  	
  Instructing
  Group’s Instructions

  	
   

  
	
   

  	
  29.8

  	
  No Responsibility

  	
   

  
	
   

  	
  29.9

  	
  Exclusion of
  Liability

  	
   

  
	
   

  	
  29.10

  	
  Lender’s
  Indemnity

  	
   

  
	
   

  	
  29.11

  	
  Resignation

  	
   

  
	
   

  	
  29.12

  	
  Confidentiality

  	
   

  
	
   

  	
  29.13

  	
  Facility Office

  	
   

  
	
   

  	
  29.14

  	
  Lenders’
  Associated Costs Details

  	
   

  
	
   

  	
  29.15

  	
  Credit Appraisal
  by the Lenders

  	
   

  
	
   

  	
  29.16

  	
  Deduction from
  Amounts Payable by the Agents

  	
   

  
	
   

  	
  29.17

  	
  Obligors’ Agent

  	
   

  
	
   

  	
  29.18

  	
  Co-operation with
  the Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  29.19

  	
  “Know your
  client” checks

  	
   

  
	
   

  	
  29.20

  	
  Facility Agent’s
  Management Time

  	
   

  
	
  30.

  	
  TCN’S INDEMNITIES

  	
   

  
	
   

  	
  30.1

  	
  General Indemnities

  	
   

  
	
   

  	
  30.2

  	
  Break Costs

  	
   

  
	
  31.

  	
  CURRENCY OF
  ACCOUNT

  	
   

  
	
   

  	
  31.1

  	
  Currency

  	
   

  
	
   

  	
  31.2

  	
  Currency Indemnity

  	
   

  
	
  32.

  	
  PAYMENTS

  	
   

  
	
   

  	
  32.1

  	
  Payment to the
  Facility Agent and the US Paying Agent

  	
   

  
	
   

  	
  32.2

  	
  Same Day Funds

  	
   

  
	
   

  	
  32.3

  	
  Clear Payments

  	
   

  
	
   

  	
  32.4

  	
  Partial Payments

  	
   

  
	
   

  	
  32.5

  	
  Indemnity

  	
   

  
	
   

  	
  32.6

  	
  Notification of
  Payment

  	
   

  
	
   

  	
  32.7

  	
  Business Days

  	
   

  
	
  33.

  	
  SET-OFF

  	
   

  
	
   

  	
  33.1

  	
  Right to Set-off

  	
   

  
	
   

  	
  33.2

  	
  No Obligation

  	
   

  

 

v

 

	
  34.

  	
  SHARING AMONG THE
  FINANCE PARTIES

  	
   

  
	
   

  	
  34.1

  	
  Payments to
  Finance Parties

  	
   

  
	
   

  	
  34.2

  	
  Redistribution of
  Payments

  	
   

  
	
   

  	
  34.3

  	
  Recovering Finance
  Party’s Rights

  	
   

  
	
   

  	
  34.4

  	
  Reversal of
  Redistribution

  	
   

  
	
   

  	
  34.5

  	
  Exceptions

  	
   

  
	
  35.

  	
  CALCULATIONS AND ACCOUNTS

  	
   

  
	
   

  	
  35.1

  	
  Day Count
  Convention

  	
   

  
	
   

  	
  35.2

  	
  Reference Banks

  	
   

  
	
   

  	
  35.3

  	
  Maintain Accounts

  	
   

  
	
   

  	
  35.4

  	
  Control Accounts

  	
   

  
	
   

  	
  35.5

  	
  Prima Facie
  Evidence

  	
   

  
	
   

  	
  35.6

  	
  Certificate of
  Finance Party

  	
   

  
	
   

  	
  35.7

  	
  Certificate of the
  Facility Agent

  	
   

  
	
   

  	
  35.8

  	
  Certificate of L/C
  Bank

  	
   

  
	
  36.

  	
  ASSIGNMENTS AND TRANSFERS

  	
   

  
	
   

  	
  36.1

  	
  Successors and
  Assignees

  	
   

  
	
   

  	
  36.2

  	
  Assignment or Transfers
  by Obligors

  	
   

  
	
   

  	
  36.3

  	
  Assignments or
  Transfers by Lenders

  	
   

  
	
   

  	
  36.4

  	
  Assignments

  	
   

  
	
   

  	
  36.5

  	
  Transfer Deed

  	
   

  
	
   

  	
  36.6

  	
  Transfer Fee

  	
   

  
	
   

  	
  36.7

  	
  Disclosure of
  Information

  	
   

  
	
   

  	
  36.8

  	
  No Increased
  Obligations

  	
   

  
	
   

  	
  36.9

  	
  Notification

  	
   

  
	
  37.

  	
  COSTS AND EXPENSES

  	
   

  
	
   

  	
  37.1

  	
  Transaction Costs

  	
   

  
	
   

  	
  37.2

  	
  Preservation and
  Enforcement Costs

  	
   

  
	
   

  	
  37.3

  	
  Stamp Taxes

  	
   

  
	
   

  	
  37.4

  	
  Amendments,
  Consents and Waivers

  	
   

  
	
   

  	
  37.5

  	
  Lenders’ Indemnity

  	
   

  
	
   

  	
  37.6

  	
  Value Added Tax

  	
   

  
	
  38.

  	
  REMEDIES AND WAIVERS

  	
   

  
	
  39.

  	
  NOTICES AND
  DELIVERY OF INFORMATION

  	
   

  
	
   

  	
  39.1

  	
  Writing

  	
   

  
	
   

  	
  39.2

  	
  Giving of Notice

  	
   

  
	
   

  	
  39.3

  	
  Use of
  Websites/E-mail

  	
   

  
	
   

  	
  39.4

  	
  Electronic
  Communication

  	
   

  
	
   

  	
  39.5

  	
  Certificates of
  Officers

  	
   

  
	
  40.

  	
  ENGLISH LANGUAGE

  	
   

  
	
  41.

  	
  PARTIAL
  INVALIDITY

  	
   

  
	
  42.

  	
  AMENDMENTS

  	
   

  
	
   

  	
  42.1

  	
  Amendments

  	
   

  
	
   

  	
  42.2

  	
  Consent

  	
   

  
	
   

  	
  42.3

  	
  Technical
  Amendments

  	
   

  
	
   

  	
  42.4

  	
  Guarantees and
  Security

  	
   

  
	
   

  	
  42.5

  	
  Release of
  Guarantees and Security

  	
   

  
	
   

  	
  42.6

  	
  Amendments
  affecting the Facility Agent

  	
   

  
	
   

  	
  42.7

  	
  Amendments to the
  Pari Passu Intercreditor Agreement

  	
   

  
	
   

  	
  42.8

  	
  Deemed Consent

  	
   

  
	
  43.

  	
  THIRD PARTY RIGHTS

  	
   

  
	
  44.

  	
  COUNTERPARTS

  	
   

  
	
  45.

  	
  GOVERNING LAW

  	
   

  
	
   

  	
  45.1

  	
  Governing Law of
  Agreement

  	
   

  
	
   

  	
  45.2

  	
  Governing Law of
  Claims Against US Borrower

  	
   

  

 

vi

 

	
  46.

  	
  JURISDICTION

  	
   

  
	
   

  	
  46.1

  	
  Courts

  	
   

  
	
   

  	
  46.2

  	
  Waiver

  	
   

  
	
   

  	
  46.3

  	
  Service of Process

  	
   

  
	
   

  	
  46.4

  	
  Proceedings in
  Other Jurisdictions

  	
   

  
	
   

  	
  46.5

  	
  General Consent

  	
   

  
	
   

  	
  46.6

  	
  Waiver of Immunity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  1

  	
   

  
	
   

  	
  PART 1 - LENDERS AND COMMITMENTS

  	
   

  
	
   

  	
  PART 2 - UK NON-BANK LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  2 THE ORIGINAL GUARANTORS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  3 FORM OF DEED OF TRANSFER AND ACCESSION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  4

  	
   

  
	
   

  	
  PART 1 - CONDITIONS PRECEDENT TO FIRST UTILISATION

  	
   

  
	
   

  	
  PART 2 - FORM OF CERTIFICATE OF OBLIGOR

  	
   

  
	
   

  	
  PART 3 - INITIAL SECURITY DOCUMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE
  5

  	
   

  
	
   

  	
  PART 1 - FORM OF UTILISATION REQUEST (ADVANCES)

  	
   

  
	
   

  	
  PART
  2 - FORM OF UTILISATION REQUEST (DOCUMENTARY
  CREDITS)

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  6 ASSOCIATED COSTS RATE

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  7

  	
   

  
	
   

  	
  PART 1 - FORM OF ACCESSION NOTICE

  	
   

  
	
   

  	
  PART 2 - ACCESSION DOCUMENTS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  8

  	
   

  
	
   

  	
  PART 1 - FORM OF QUARTERLY COMPLIANCE CERTIFICATE

  	
   

  
	
   

  	
  PART
  2 - FORM OF COMPLIANCE CERTIFICATE FOLLOWING
  INTEGRATED MERGER EVENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  9

  	
   

  
	
   

  	
  PART
  1 - MEMBERS OF THE TCN GROUP

  	
   

  
	
   

  	
  PART 2 - MEMBERS OF THE FLEXTECH GROUP

  	
   

  
	
   

  	
  PART 3 - EXCLUDED SUBSIDIARIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  10

  	
   

  
	
   

  	
  PART 1 - EXISTING ENCUMBRANCES

  	
   

  
	
   

  	
  PART 2 - EXISTING LOANS

  	
   

  
	
   

  	
  PART 3 - EXISTING FINANCIAL INDEBTEDNESS

  	
   

  
	
   

  	
  PART 4 - EXISTING PERFORMANCE BONDS

  	
   

  
	
   

  	
  PART 5 - EXISTING LOAN STOCK

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  11 FORM OF L/C BANK ACCESSION CERTIFICATE

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  12 FORM OF DOCUMENTARY CREDIT

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  13 PRO FORMA PARI PASSU INTERCREDITOR AGREEMENT

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  14 HEDGING AGREEMENTS

  	
   

  

 

vii

 

	
  SCHEDULE
  15 VENDOR FINANCING ARRANGEMENTS

  	
   

  
	
   

  	
  Type of
  Vendor Financing

  	
   

  
			

 

viii

 

THIS AGREEMENT is dated 21 December 2004 and made between:

 

(1)           TELEWEST COMMUNICATIONS
NETWORKS LIMITED
(company registration number 3071086, whose registered office is at Export
House, Cawsey Way, Woking, Surrey, GU21 6QX, “TCN”);

 

(2)           TELEWEST UK LIMITED
(company
registration number 04925679, whose registered office is at Export House,
Cawsey Way, Woking, Surrey, GU21 6QX, “Telewest
UK”);

 

(3)           BARCLAYS CAPITAL,
BNP PARIBAS, CITIGROUP GLOBAL MARKETS LIMITED, CREDIT SUISSE FIRST BOSTON, DEUTSCHE BANK AG LONDON,
GE CAPITAL STRUCTURED FINANCE GROUP LIMITED and THE ROYAL BANK OF SCOTLAND PLC (together,
the “Mandated Lead Arrangers”);

 

(4)           BARCLAYS BANK PLC (as agent for and on behalf of the
Finance Parties, the “Facility Agent”);

 

(5)           BARCLAYS BANK PLC (as United States paying agent for
and on behalf of the Finance Parties (the “US
Paying Agent”));

 

(7)           BARCLAYS BANK PLC (as security trustee for and on
behalf of the Finance Parties, the “Security
Trustee”);

 

(8)           GE CAPITAL
STRUCTURED FINANCE GROUP LIMITED (as administrative agent for the Lenders under the B Facility and the C
Facility, the “Administrative Agent”);

 

(9)           THE LENDERS (as defined below); and

 

(10)         THE ORIGINAL
GUARANTORS (as
defined below).

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

In this Agreement the following terms have the meanings set out below.

 

“95% Security Test” means
the requirement that, save as otherwise provided in Clause 23.12 (Further Assurance), members of the TCN
Group generating not less than 95% of the Consolidated Annualised TCN Group Net
Operating Cash Flow are originally party to or have acceded as Guarantors to
this Agreement as tested by reference to (subject to the provisions of
paragraph (b) of the definition of “Merger Event Conditions”) each set of
quarterly financial information relating to the TCN Group delivered to the
Facility Agent pursuant to Clause 21.1 (Financial
Statements).

 

“Acceding Guarantor” means
any member of the TCN Group (or immediately prior to the effective date of the
Integrated Merger Event, any member of the Target Group) which has complied
with the requirements of Clause 25.1 (Acceding Guarantors).

 

“Acceleration Date” means
the date on which notice has been served under Clause 26.18 (Acceleration).

 

“Acceptable Hedging Agreement”
means a Hedging Agreement entered into on the terms of the International Swaps
& Derivatives Association Inc. 1992 or 2002 Master Agreement
(Multicurrency-Cross Border) under which:

 

(a)           if the 1992 Master Agreement is
used, “Second Method” and “Market Quotation” are specified as the payment
method applicable; and

 

1

 

(b)           the governing Law is English or New
York Law.

 

“Accession Notice” means a
duly completed notice of accession in the form of Part 1 of Schedule 7 (Form of Accession Notice).

 

“Act” means the Companies
Act 1985 (as amended).

 

“Advance” means, save as
otherwise provided in this Agreement, a Revolving Facility Advance, an A
Facility Advance, a B Facility Advance or a C Facility Advance, as the context
may require.

 

“A Facility” means the term
loan facility granted to TCN pursuant to Clause 2.1(b) (The
Facilities).

 

“A Facility Advance” means
an advance (as from time to time reduced by repayment) made or to be made by
the Lenders under the A Facility or arising in respect of the A Facility under
Clause 13.3 (Consolidation of Term Facility Advances)
or under Clause 13.4 (Division of Term Facility
Advances).

 

“A Facility Commitment”
means, in relation to a Lender at any time, and save as otherwise provided in
this Agreement, the amount set opposite its name in the relevant column of Part
1 of Schedule 1 (Lenders and Commitments) or as
specified in the Transfer Deed pursuant to which such Lender becomes a party to
this Agreement.

 

“A Facility Margin” means,
in relation to A Facility Advances, and subject to Clause 13.7 (Margin Ratchet for A Facility Advances and B Facility Advances),
2.25% per annum.

 

“A Facility Outstandings”
means, at any time, the aggregate principal amount of the A Facility Advances
outstanding under this Agreement.

 

“Affiliate” means, in
relation to a person, any other person directly or indirectly controlling,
controlled by or under direct or indirect common control with that person, and
for these purposes “control” shall be construed so as to mean the ownership,
either directly or indirectly and legally or beneficially, of more than 50% of
the issued share capital of a company or the ability to control, either
directly or indirectly, the affairs or the composition of the board of
directors (or equivalent of it) of a company and “controlling”, “controlled by”
and “under common control with” shall be construed accordingly.

 

“Agents” means the Facility
Agent, the US Paying Agent and the Administrative Agent, and “Agent” means any of them.

 

“Ancillary Facility” means
any:

 

(a)           overdraft, automated payment, cheque
drawing or other current account facility;

 

(b)           forward foreign exchange facility;

 

(c)           derivatives facility;

 

(d)           guarantee, bond issuance,
documentary or stand-by letter of credit facility;

 

(e)           performance bond facility; and/or

 

(f)            such other facility or financial
accommodation as may be required in connection with the business of the TCN
Group and which is agreed in writing between TCN and the relevant Ancillary
Facility Lender.

 

2

 

“Ancillary Facility Commitment”
means, in relation to an Ancillary Facility Lender at any time, and save as
otherwise provided in this Agreement, the maximum Sterling Amount to be made
available under an Ancillary Facility granted by it, to the extent not
cancelled or reduced or transferred pursuant to the terms of such Ancillary
Facility or under this Agreement.

 

“Ancillary Facility Documents”
means the documents and other instruments pursuant to which an Ancillary
Facility is made available and the Ancillary Facility Outstandings under it are
evidenced.

 

“Ancillary Facility Lender”
means any Lender which has notified the Facility Agent that it has agreed to
its nomination in a Conversion Notice to be an Ancillary Facility Lender in
respect of an Ancillary Facility granted pursuant to the terms of this
Agreement.

 

“Ancillary Facility Outstandings”
means (without double counting), at any time with respect to an Ancillary
Facility Lender and each Ancillary Facility provided by it, the aggregate of:

 

(a)           all amounts of principal then
outstanding under any overdraft, automated payment, cheque drawing or other
current account facility (determined in accordance with the applicable terms)
as at such time; and

 

(b)           in respect of any other facility or
financial accommodation, such other amount as fairly represents the aggregate
potential exposure of that Ancillary Facility Lender with respect to it under
its Ancillary Facility, as reasonably determined by that Ancillary Facility
Lender from time to time in accordance with its usual banking practices for
facilities or accommodation of the relevant type (including without limitation,
the calculation of exposure under any derivatives facility by reference to the
mark-to-market valuation of such transaction at the relevant time).

 

“Ancillary Facility Termination Date”
has the meaning given to such term in paragraph (h) of Clause 6.1 (Utilisation of Ancillary Facilities).

 

“Anti-Terrorism Laws” mean:

 

(a)           Executive Order No. 13224 of September 23, 2001
- Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten To Commit, or Support Terrorism (the “Executive Order”);

 

(b)           the Uniting and Strengthening of America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56 (commonly known as the USA Patriot Act); and

 

(c)           the Money Laundering Control Act of 1986, Public Law 99-570.

 

“Applicable Margin” means
the prevailing A Facility Margin, the B Facility Margin, the C Facility Margin
or the Revolving Facility Margin, as the context may require at the relevant
time.

 

“Associated Costs Rate”
means, in relation to any Advance or Unpaid Sum, the rate determined in
accordance with Schedule 6 (Associated Costs Rate).

 

“Authorisation” means an
authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration.

 

“Available A Facility Commitment”
means, in relation to a Lender, at any time and save as otherwise provided in
this Agreement, its A Facility Commitment at such time, adjusted to take
account of any cancellation or reduction of, or any transfer by such Lender or
any transfer to it of, any

 

3

 

A Facility Commitment, in each case, pursuant to the terms of this
Agreement, provided always that such amount shall not be less than zero.

 

“Available Ancillary Facility
Commitment” means, in relation to an Ancillary Facility Lender and
an Ancillary Facility granted by it at any time, and save as otherwise provided
in this Agreement or in the applicable Ancillary Facility Documents, its
Ancillary Facility Commitment at such time, less the Sterling Amount of the
relevant Ancillary Facility Outstandings at such time, provided always that
such amount shall not be less than zero.

 

“Available B Facility Commitment”
means, in relation to a Lender, a particular Borrower and a particular currency
at any time and save as otherwise provided in this Agreement, its B Facility
Commitment in relation to that Borrower and that currency at such time,
adjusted to take account of (a) any cancellation or reduction of, or any transfer
by such Lender or any transfer to it of, any B Facility Commitment in respect
of the particular Borrower and currency, in each case, pursuant to the terms of
this Agreement; and (b) in the case of a proposed Advance, the amount of its
share of any other B Facility Advance which, pursuant to any other Utilisation
Request, is to be made to that Borrower in that currency on or before the
proposed Utilisation Date, provided always that such amount shall not be less
than zero.

 

“Available C Facility Commitment”
means, in relation to a Lender, a particular Borrower and a particular currency
at any time and save as otherwise provided in this Agreement, its C Facility
Commitment in relation to that Borrower and that currency at such time,
adjusted to take account of (a) any cancellation or reduction of, or any
transfer by such Lender or any transfer to it of, any C Facility Commitment in
respect of the particular Borrower and currency, in each case, pursuant to the
terms of this Agreement; and (b) in the case of a proposed Advance, the amount
of its share of any other C Facility Advance which, pursuant to any other
Utilisation Request, is to be made to that Borrower in that currency on or
before the proposed Utilisation Date, provided always that such amount shall not
be less than zero.

 

“Available Commitment”
means, in relation to a Lender, the aggregate amount of its Available Revolving
Facility Commitment, its Available Ancillary Facility Commitment and its
Available Term Facility Commitments or, in the context of a particular
Facility, its Available A Facility Commitment, its Available B Facility
Commitment, its Available C Facility Commitment, its Available Revolving
Facility Commitment or its Available Ancillary Facility Commitment, as the
context may require.

 

“Available Facility” means,
in relation to a Facility, at any time, the aggregate amount of the Available
Commitments in respect of that Facility at that time.

 

“Available Revolving Facility”
means, at any time, the aggregate amount of the Available Revolving Facility
Commitments.

 

“Available Revolving Facility
Commitment” means, in relation to a Lender, at any time and save as
otherwise provided in this Agreement, its Revolving Facility Commitment at such
time, less the Sterling Amount of its share of the Revolving Facility
Outstandings, adjusted to take account of:

 

(a)           any cancellation or reduction of, or
any transfer by such Lender or any transfer to it of, any Revolving Facility
Commitment, in each case, pursuant to the terms of this Agreement; and

 

(b)           in the case of any proposed
Utilisation, the Sterling Amount of its share of (i) such Revolving Facility
Advance and/or Documentary Credit which pursuant to any other Utilisation
Request is to be made, or as the case may be, issued, and (ii) any Revolving
Facility Advance and/or Documentary Credit which is due to be repaid or expire
(as the case may be), in each case, on or before the proposed Utilisation Date,

 

provided always that such
amount shall not be less than zero.

 

4

 

“Available Term Facility Commitment”
means, in relation to a Lender, the aggregate amount of its Available A
Facility Commitment, its Available B Facility Commitment and its Available C
Facility Commitment.

 

“Barclays Intercreditor Agreement”
means the intercreditor deed to be entered into on or about the date hereof
between Yorkshire Cable Communications Limited, Sheffield Cable Communications
Limited, Yorkshire Cable Properties Limited, Cable London Limited, Barclays
Bank PLC and the Security Trustee.

 

“BBA LIBOR” means in
relation to a currency other than Euro, the British Bankers’ Association
Interest Settlement Rate for the relevant currency and specified period.

 

“B Facility” means the term
loan facility granted to the Borrowers pursuant to Clause 2.1(c) (The Facilities).

 

“B Facility Advance” means
an advance (as from time to time reduced by repayment) made or to be made by
the Lenders under the B Facility or arising in respect of the B Facility under
Clause 13.3 (Consolidation of Term Facility Advances)
or under Clause 13.4 (Division of Term Facility
Advances).

 

“B Facility Commitment”
means, in relation to a Lender, a particular Borrower and a particular currency
at any time, and save as otherwise provided in this Agreement, (a) in the case
of a Lender specified in Part 1 of Schedule 1 (Lenders and
Commitments), the relevant proportion (as specified by the Facility
Agent pursuant to Clause 2.1(e) (The
Facilities)) of the amount set out opposite its name in the relevant
column of Part 1 of Schedule 1 (Lenders and Commitments)
or (b) in the case of all other Lenders, as specified in the Transfer Deed
pursuant to which such Lender becomes a party to this Agreement.

 

“B Facility Margin” means,
in relation to B Facility Advances denominated in (a) Euro, 2.375% per annum,
(b) Dollars, 2.25% per annum and (c) Sterling, 2.50% per annum subject in each
case to Clause 13.7 (Margin Ratchet for A
Facility Advances and B Facility Advances).

 

“B Facility Outstandings”
means, at any time, the aggregate principal amount of the B Facility Advances
outstanding under this Agreement.

 

“Beneficiary” means the
beneficiary in respect of a Documentary Credit.

 

“Blocked Account” means
each interest bearing account maintained with Barclays Bank PLC (or such other
bank as the Facility Agent may determine) in the name of TCN for the purposes
of Clause 11.3 (Blocked Accounts) which is
secured in favour of the Security Trustee pursuant to the Security Documents,
or as otherwise required by the terms of this Agreement.

 

“Borrowers” means TCN and
upon its accession in accordance with Clause 25.1 (The US Borrower) the US Borrower, and “Borrower” means either of them as the
context requires.

 

“Break Costs” means the
amount (if any) by which:

 

(a)           the interest (excluding the
Applicable Margin) which a Lender should have received for the period from the
date of receipt of all or any part of its participation in an Advance or Unpaid
Sum to the last day of the current Interest Period or Term in respect of that
Advance or Unpaid Sum, had the amount so received been paid on the last day of
that Interest Period or Term;

 

exceeds:

 

5

 

(b)           the amount which that Lender would
be able to obtain by placing an amount equal to the principal amount of such
Advance or Unpaid Sum received or recovered by it on deposit with a leading
bank in the Relevant Interbank Market for a period starting on the Business Day
following such receipt or recovery and ending on the last day of the current
Interest Period or Term.

 

“Budget” means in respect
of any financial year the budget for such financial year and projections for
the first Financial Quarter thereof in the form and including the information
required to be delivered by TCN to the Facility Agent pursuant to Clause 21.2 (Budget).

 

“Business Day” means a day
(other than a Saturday or Sunday) on which (a) banks generally are open for
business in London and (b) if such reference relates to a date for the payment
or purchase of any sum denominated in:

 

(a)           Euro (A) is a TARGET Day and (B) is
a day on which banks generally are open for business in the financial centre
selected by the Facility Agent for receipt of payments in Euro; or

 

(b)           in a currency other than Euro, banks
generally are open for business in the principal financial centre of the
country of such currency.

 

“C Facility” means the term
loan facility granted to the Borrowers pursuant to Clause 2.1(d) (The Facilities).

 

“C Facility Advance” means
an advance (as from time to time reduced by repayment) made or to be made by
the Lenders under the C Facility or arising in respect of the C Facility under
Clause 13.3 (Consolidation of Term Facility
Advances) or under Clause 13.4 (Division
of Term Facility Advances).

 

“C Facility Commitment”
means, in relation to a Lender, a particular Borrower and a particular currency
at any time, and save as otherwise provided in this Agreement, (a) in the case
of a Lender specified in Part 1 of Schedule 1 (Lenders and
Commitments), the relevant proportion (as specified by the Facility
Agent pursuant to Clause 2.1(e) (The
Facilities)) of the amount set out opposite its name in the relevant
column of Part 1 of Schedule 1 (Lenders and Commitments)
or (b) in the case of all other Lenders, as specified in the Transfer Deed
pursuant to which such Lender becomes a party to this Agreement.

 

“C Facility Margin” means,
in relation to C Facility Advances denominated in (a) Euro, 2.875%, (b)
Dollars, 2.75% and (c) Sterling, 3.00% per annum.

 

“C Facility Outstandings”
means, at any time, the aggregate principal amount of the C Facility Advances
outstanding under this Agreement.

 

“Capital
Expenditure” means, in respect of any period, the aggregate amount
of all fixed asset additions of the TCN Group in accordance with GAAP during
such period less any reclassification of finance or capital leases that has not
resulted in a cash flow during the period; provided that for the purposes of
calculating compliance with Clause 22.2 (Permitted
Capital Expenditure), the following shall be excluded:

 

(a)           any such expenditure on the replacement or
restoration of assets to the extent paid for by any insurance award or
condemnation award with respect to the assets being replaced or restored;

 

(b)           any such expenditure for acquisitions,
investments or Joint Ventures that are not prohibited by Clause 24.9 (Joint Ventures) or 24.13 (Acquisitions and Investments); and

 

6

 

(c)           any such expenditure made with
Equity Proceeds or the Net Proceeds of any Financial Indebtedness in accordance
with Clauses 11.5 (Repayment from Debt
Proceeds) and 11.6 (Repayment
from Equity Proceeds) respectively which are contributed to the TCN
Group in accordance with Clause 23.16 (Contributions
to the TCN Group),

 

and provided further that for the purposes of paragraph (b)(i) of the
definition of Consolidated TCN Group Cash Flow as used in Clause 22.1 (Ratios), Capital Expenditures shall also
exclude the aggregate amount of all Capital Expenditures for the relevant
period in excess of the cash portion thereof as set out in the cash flow
statement of the TCN Group for the period in question, calculated in accordance
with GAAP.

 

“Capital Expenditure Allowance” means,
in respect of any period, the figure opposite that period in the table set out
in paragraph (b) of Clause 22.2 (Permitted
Capital Expenditure).

 

“Cash” means at any time:

 

(a)           all Cash Equivalent Investments; and

 

(b)           cash (in cleared balances) denominated in
Sterling (or any other currency freely convertible into Sterling) and credited
to an account with an Eligible Deposit Bank and to which the relevant account
holder is alone beneficially entitled and for so long as:

 

(i)            such cash is repayable on demand (including any
cash held on time deposit which is capable of being broken and the balance
received on same day notice provided that any such cash shall only be taken
into account net of any penalties or costs which would be incurred in breaking
the relevant time deposit) and repayment of such cash is not contingent on the prior
discharge of any other Indebtedness of any person whatsoever or on the
satisfaction of any other condition; or

 

(ii)           such cash has been deposited with an Eligible
Deposit Bank as security for any performance bond, guarantee, standby letter of
credit or similar facility the contingent liabilities relating to such having
been included in the calculation of Consolidated Total Debt or Consolidated
Total Group Debt, as applicable.

 

“Cash Equivalent Investment”
means:

 

(a)           securities
which are freely negotiable and marketable:

 

(i)            which
mature not more that 12 months from the date of acquisition; and

 

(ii)           which are
rated at least AA by Standard & Poor’s or Aa2 by Moody’s;

 

(b)           certificates of deposit, floating
rate notes, acceptances issued by and deposit and current accounts of and time
deposits with banks which have permission to carry on the regulated activity of
accepting deposits under the Financial Services & Markets Act 2000 or are
authorised by building societies under the Building Securities Act 1986 or cash
funds managed by any reputable financial institution so long as such bank or
building society’s or cash fund senior long term debt immediately prior to the
making of such investment is not rated less than A by Standard and Poor’s and
not less that A2 by Moody’s; and

 

(c)           commercial
paper rated at least A-2 by Standard & Poor’s and P-2 by Moody’s with a
maturity of not more than 12 months.

 

“Centre of Main Interests”
has the meaning given to it in Article 3(1) of Council Regulation (EC) NO
1346/2000 of 29 May 2000 on Insolvency Proceedings.

 

7

 

“Change in Tax Law” means
the introduction, implementation, repeal, withdrawal or change in, or in the
interpretation, administration or application of any Law relating to taxation
(a) in the case of a participation in an Advance by a Lender named in Part 1 of
Schedule 1 (Lenders and Commitments)
after the date of this Agreement, or (b) in the case of a participation in an
Advance by any other Lender, after the date on which such Lender becomes a
party to this Agreement in accordance with the provisions of Clause 36 (Assignments and Transfers).

 

“Change of
Control” means:

 

(a)           any “person” or “group” (as such terms are used
in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) of related persons but
excluding any employee benefit plan of such Person or its Subsidiaries, and any
Person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan, excluding any Permitted Holder or group of
Permitted Holders, becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for the purposes of this
paragraph (a) such person or group shall be deemed to have “beneficial
ownership” of all shares that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of more than 30% of the Voting Stock (excluding
any such interest represented by preferred stock of such Person or any debt
instrument issued by such Person, in each case which is not Voting Stock or
exchangeable or convertible into Voting Stock) of the Ultimate Parent (for the
purposes of this paragraph (a), such person shall be deemed to beneficially own
any Voting Stock of any entity held by any other entity (the “parent entity”),
if such person is the beneficial owner (as defined in this paragraph (a)),
directly or indirectly, of more than 50% of the voting power of the Voting
Stock of such parent entity); or

 

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

 

provided that it shall not constitute a Change of Control under
paragraph (a) above in the event that the Ultimate Parent becomes a
wholly-owned Subsidiary of a Holding Company and the stockholders of such
Holding Company are substantially the same as the stockholders of the Ultimate
Parent prior to such acquisition.

 

“Closing Date” means the
date on which the first Utilisation is made pursuant to and in accordance with
the terms of this Agreement, which shall not be later than 31 January 2005.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time, and the regulations
promulgated and rulings issued under it. 
Section references to the Code are to the Code, as in effect at the date
of this Agreement and any subsequent provisions of the Code, amendatory of it,
supplemental to it or substituted therefor.

 

“Commitment” means, in
relation to a Lender, its A Facility Commitment, its B Facility Commitment, its
C Facility Commitment, its Revolving Facility Commitment and/or its Ancillary
Facility Commitment, as the context may require.

 

“Compliance Certificate”
means:

 

8

 

(a)           in the case of a Compliance Certificate
required to be delivered under paragraph (a) of Clause 21.4 (Compliance Certificates), a certificate
substantially in the form set out in Part 1 of Schedule 8 (Form of
Quarterly Compliance Certificate); or

 

(b)           in the case of a Compliance Certificate
required to be delivered under paragraph (b) of Clause 21.4 (Compliance Certificates), a certificate
substantially in the form set out in Part 2 of Schedule 8 (Form of
Compliance Certificate following Integrated Merger Event),

 

or in each case, such other similar form as the
Facility Agent shall agree with TCN.

 

“Confirmation
Date” has the meaning given to it in paragraph (k) of Clause 16.1 (Tax Gross-up).

 

“Consolidated Annualised TCN Group Net Operating
Cash Flow” means, as at the end of any Semi-Annual Period, two times
the Consolidated TCN Group Net Operating Cash Flow for such Semi-Annual Period.

 

“Consolidated Debt Service” means, in
respect of any period, the aggregate of:

 

(a)           the Total Interest Charges in respect of such
period; and

 

(b)           save to the extent immediately reborrowed, the
aggregate of all scheduled payments (for the avoidance of doubt, excluding
voluntary and mandatory prepayments) in such period of principal, capital or
nominal amounts in respect of Consolidated Total Debt.

 

“Consolidated Group Net Borrowings”
means, at any time, the Consolidated Total Group Debt at such time less Cash,
credited to any account in the name of the Ultimate Parent, Telewest UK or any
member of the TCN Group.

 

“Consolidated Group Net Operating Cash
Flow” means, in respect of any period, the aggregate of:

 

(a)           Net Income of the Ultimate Parent,
Telewest UK and the TCN Group (the “Limited
Group” for the purposes of this definition only) for such period,
plus (or minus as the case may be) (only to the extent used in arriving at Net
Income of the Limited Group for such period):

 

(i)            non-cash gains or losses, whether
extraordinary, recurring or otherwise and non-cash expenses (excluding any such
non-cash expense to the extent that it represents amortisation of a prepaid
cash expense that was paid in a prior period or an accrual of, or a reserve
for, cash expenses in any future period) and non-cash expenses for compensation
relating to the granting of options and restricted stock, sale of stock and
similar arrangements;

 

(ii)           taxes or benefits in respect of taxes;

 

(iii)         foreign currency translation differences;

 

(iv)          other non-operating gains, losses and expenses,
including (i) costs attributable to redundancies (other than outsourcing
costs), (ii) costs of, and accounting for, financial instruments, (iii) gains
and losses on disposals of fixed assets and/or investments and (iv) costs
attributable to the disposal of obsolete or surplus properties no longer
required for the purposes of the Limited Group’s business of up to £35,000,000
in aggregate during the period commencing on the Closing Date and ending on 31
December 2005;

 

(v)            interest expense, including, without
limitation, amortisation of debt issuance cost and debt discount, and other
periodic fees, commissions and charges in respect of

 

9

 

Financial Indebtedness, net of the aggregate amount of
any interest income (other than interest income in respect of loan stock issued
by a Joint Venture) remaining after giving effect to any taxes paid or payable
in respect of such income;

 

(vi)          depreciation and amortisation;

 

(vii)         extraordinary items;

 

(viii)        (A) the fees payable to the Lenders pursuant to
the Fees Letter and (B) all fees paid or payable by any member of the Limited
Group (on its own behalf or on behalf of Telewest) to its professional advisers
or the professional advisers to the Lenders, the lenders under the Existing
Credit Facility or to other stakeholders in Telewest and its current or former
subsidiaries and associated partnerships in relation to the restructuring,
readjustment, rescheduling and/or reorganisation of the share capital of
Telewest and/or the restructuring, readjustment, rescheduling, reorganisation
or refinancing of any Financial Indebtedness of Telewest which took place in
connection with the financial restructuring of Telewest;

 

(ix)          at the election of TCN, cash charges resulting
from any third party professional, advisory, legal and accounting fees and
out-of-pocket expenses reasonably incurred in connection with, an acquisition
or investment, any financing, any Disposal or any Merger Event (in any such
case, whether completed or not); provided that (A) the aggregate amount added
back in respect of such fees and expenses in connection with a Merger Event
shall not exceed £5,000,000, and the aggregate amount added back in respect of
such fees and expenses in connection with a Flextech Disposal shall not exceed
£5,000,000 (or to the extent the aggregate of such fees and expenses in either
case does exceed £5,000,000, any amount above such limit, provided that a
corresponding amount shall be deducted from any availability under, at TCN’s
option, either or both of the baskets set out in paragraph (x) below) and (B)
in connection with any other transactions contemplated under this sub-paragraph
(ix), the aggregate amount added back in respect of such fees and expenses
shall not exceed £12,000,000;

 

(x)           cash charges resulting from severance, integration
and other adjustments made as a result of:

 

(A)          a Flextech Disposal, up to £7,500,000 in
aggregate (where such charges have been certified by a duly authorised officer
of TCN as being directly attributable to such Flextech Disposal); and

 

(B)          a Merger Event, but only to the extent that
such charges do not exceed (when aggregated with such equivalent charges of the
Target Group) £125,000,000 in the First Period and £75,000,000 in the Second
Period where the term “First Period”
means the period (1) commencing on the later of (x) four months prior to the
closing of the Merger Event and (y) the public announcement by the Ultimate
Parent, Telewest UK, TCN or any other member of the TCN Group that the parties
to the Merger Event have signed a merger agreement (or similar agreement) (or
in the case of a Merger Event governed by the Takeover Code of the United
Kingdom, that there is a firm intention to effect a Merger Event), and ending
on (2) the date which is twelve months after the closing of the Merger Event,
and the term “Second Period” means
the twelve month period after such First Period (in each case, where such
charges have been certified by a duly authorised officer of TCN as being
directly attributable to the Merger Event);

 

10

 

(xi)          any cash costs incurred by any member of the
Limited Group during such period (if any) and payable to any third party in
relation to any scheme of arrangement, restructuring, recapitalisation,
bankruptcy or insolvency proceeding, capital raising or debt restructuring
which was initiated prior to the date of this Agreement; and

 

(xii)         any amounts arising in respect of cumulative
changes in GAAP since the date of this Agreement,

 

minus (only to the extent used in arriving at Net Income
of the Limited Group for such period);

 

(b)           Excluded Group Net Operating Cash
Flow for that period (excluding for these purposes the Ultimate Parent and
Telewest UK).

 

“Consolidated Net Borrowings” means, at
any time, the Consolidated Total Debt at such time less Cash, credited to any
account in the name of a member of the TCN Group, subject to a maximum
aggregate deduction equal to the sum of £200,000,000 (or its equivalent in
other currencies).

 

“Consolidated Senior Debt” means, at any
time (without double counting), the aggregate principal, capital or nominal
amounts (including any Total Interest Charges capitalised as principal) of
Financial Indebtedness of any member of the TCN Group incurred on a senior
unsubordinated basis but excluding Financial Indebtedness (i) of any member of
the TCN Group to another member of the TCN Group or the Target Group, (ii)
under the Second Lien Facility or any Second Lien Refinancing or (iii) under
any Subordinated Funding, in each case to the extent not prohibited under this
Agreement.

 

“Consolidated TCN Group Cash Flow” means, in respect of any period,
Consolidated TCN Group Net Operating Cash Flow for that period after:

 

(a)           adding back:

 

(i)            any decrease in the amount of
Working Capital of the TCN Group at the end of such period compared against the
Working Capital of the TCN Group at the start of such period;

 

(ii)           all cash extraordinary or
non-recurring gains during that period to the extent not included in
Consolidated TCN Group Net Operating Cash Flow;

 

(iii)         any amount received in cash in that
period by members of the TCN Group in respect of income and related taxes; and

 

(iv)          at the option of TCN, any amount
paid during the period paid in relation to video on demand of up to £30 million
per annum where the TCN Group has received a contribution in accordance with
Clause 23.16 (Contributions to the TCN Group)
equal to such amount;

 

(b)           deducting:

 

(i)            the actual Capital Expenditure of
members of the TCN Group during such period;

 

(ii)           any increase in the amount of
Working Capital of the TCN Group at the end of such period compared against the
Working Capital of the TCN Group at the start of that period;

 

(iii)         any amount paid in cash in that
period by any member of the TCN Group in respect of income and other taxes;

 

11

 

(iv)          all cash extraordinary or
non-recurring losses during that period to the extent not included in
Consolidated TCN Group Net Operating Cash Flow;

 

(v)            (A) any amount paid in cash in that
period in respect of the items added to Net Income in the determination of
Consolidated TCN Group Net Operating Cash Flow for such period under paragraphs
(a), (iv), (v), (viii), (ix), (x) and (xi) of the definition therof, (B) any
amounts paid in cash in respect of payments made or paid during such period by
any member of the TCN Group to any person who is not a member of the TCN Group,
in respect of costs and expenses in connection with transactions contemplated
by any raising of Telewest Global Debt, by the Finance Documents, the Second
Lien Finance Documents and by the Existing Credit Facility and (C) any cash
costs incurred during the relevant period in relation to any scheme of
arrangement, restructuring, recapitalisation, bankruptcy or insolvency
proceeding, capital raising or debt restructuring which was initiated prior to
the date of this Agreement; and

 

(vi)          any amount paid in cash (to the
extent not taken into account under paragraph (a)(xii) of the definition of
Consolidated TCN Group Net Operating Cash Flow) other than amounts paid by way
of loan or credit to members of the Flextech Group permitted under paragraph
(d)(iv) or (v) of Clause 24.3 (Loans and
Guarantees)) in that period in respect of dividends, distributions,
loans, investments (other than acquisitions) or other similar payments made or
paid during such period by any member of the TCN Group to any person who is not
a member of the TCN Group and any cash charges falling under sub-paragraph
(a)(ix) of “Consolidated TCN Group Net Operating Cash Flow” which have been
added back for the purposes of calculating such definition;

 

provided that in no event shall amounts constituting Consolidated Debt Service
be deducted from Consolidated TCN Group Cash Flow, and no amount shall be
included or excluded more than once and provided  further that,
for the avoidance of doubt, in calculating Consolidated TCN Group Cash Flow for
the purposes of Clause 11.4 (Repayment from
Excess Cash Flow), Net Proceeds (including, without limitation, Net
Proceeds arising from any Flextech Disposal), any gains or losses arising as a
result of a Flextech Disposal or Merger Event and the proceeds of any
Subordinated Funding shall be excluded.

 

“Consolidated TCN Group Net Operating Cash Flow”
means, in respect of any period, the aggregate of:

 

(a)           Net Income of the TCN Group for such period,
plus (or minus as the case may be) (only to the extent used in arriving at Net
Income of the TCN Group for such period):

 

(i)            non-cash gains or losses, whether
extraordinary, recurring or otherwise and non-cash expenses (excluding any such
non-cash expense to the extent that it represents amortisation of a prepaid
cash expense that was paid in a prior period or an accrual of, or a reserve
for, cash expenses in any future period) and non-cash expenses for compensation
relating to the granting of options and restricted stock, sale of stock and
similar arrangements;

 

(ii)           taxes or benefits in respect of taxes;

 

(iii)         foreign currency translation differences;

 

(iv)          other non-operating gains, losses and expenses,
including (A) costs attributable to redundancies (other than outsourcing
costs), (B) costs of, and accounting for, financial instruments, (C) gains and
losses on disposals of fixed assets and/or investments and (D) costs
attributable to the disposal of obsolete or surplus properties no longer
required for the purposes of the TCN Group’s business of up to

 

12

 

£35,000,000 in aggregate during the period commencing
on the Closing Date and ending on 31 December 2005;

 

(v)            interest expense, including, without
limitation, amortisation of debt issuance cost and debt discount, and other
periodic fees, commissions and charges in respect of Financial Indebtedness,
net of the aggregate amount of any interest income (other than interest income
in respect of loan stock issued by a Joint Venture) remaining after giving
effect to any taxes paid or payable in respect of such income;

 

(vi)          depreciation and amortisation;

 

(vii)         extraordinary items;

 

(viii)        (A) the fees payable to the Lenders pursuant to
the Fees Letter and (B) all fees paid or payable by any member of the TCN Group
(on its own behalf or on behalf of Telewest) to its professional advisers or
the professional advisers to the Lenders, the lenders under the Existing Credit
Facility or to other stakeholders in Telewest and its current or former
subsidiaries and associated partnerships in relation to the restructuring,
readjustment, rescheduling and/or reorganisation of the share capital of
Telewest and/or the restructuring, readjustment, rescheduling, reorganisation
or refinancing of any Financial Indebtedness of Telewest which took place in
connection with the financial restructuring of Telewest;

 

(ix)          at the election of TCN, cash charges resulting
from any third party professional, advisory, legal and accounting fees and
out-of-pocket expenses reasonably incurred in connection with, an acquisition
or investment, any financing, any Disposal or any Merger Event (in any such
case, whether completed or not); provided that (A) the aggregate amount
added back in respect of such fees and expenses in connection with a Merger
Event shall not exceed £5,000,000, and the aggregate amount added back in
respect of such fees and expenses in connection with a Flextech Disposal shall
not exceed £5,000,000 (or to the extent the aggregate of such fees and expenses
in either case does exceed £5,000,000, any amount above such limit, provided
that a corresponding amount shall be deducted from any availability under, at
TCN’s option, either or both of the baskets set out in paragraph (x) below) and
(B) in connection with any other transactions contemplated under this
sub-paragraph (ix), the aggregate amount added back in respect of such fees and
expenses shall not exceed £12,000,000;

 

(x)           cash charges resulting from
severance, integration and other adjustments made as a result of:

 

(A)          a Flextech Disposal up to £7,500,000
in aggregate (where such charges have been certified by a duly authorised
officer of TCN as being directly attributable to such Flextech Disposal); and

 

(B)          a Merger
Event, but only to the extent that such charges do not exceed (when aggregated
with any such equivalent charges of the Target Group) £125,000,000 in the First
Period and £75,000,000 in the Second Period where the term “First Period” means the period (1)
commencing on the later of (x) four months prior to the closing of the Merger
Event and (y) the public announcement by the Ultimate Parent, Telewest UK or
any other member of the TCN Group that the parties to the Merger Event have
signed a merger agreement (or similar agreement) (or in the case of a Merger
Event governed by the Takeover Code of the United Kingdom, that there is a firm
intention to effect a Merger Event), and ending on (2) the date which is twelve
months

 

13

 

after the closing of the
Merger Event, and the term “Second Period”
means the twelve month period after such First Period (in each case, where such
charges have been certified by a duly authorised officer of TCN as being directly
attributable to the Merger Event);

 

(xi)          any cash costs incurred by any member of the
TCN Group during such period (if any) and payable to any third party in
relation to any scheme of arrangement, restructuring, recapitalisation,
bankruptcy or insolvency proceeding, capital raising or debt restructuring
which was initiated prior to the date of this Agreement;

 

(xii)         any amounts arising in respect of Permitted
Payments made to the Ultimate Parent or Telewest UK in accordance with
paragraph (a)(ii) of the definition Permitted Payments; and

 

(xiii)       any amounts arising in respect of cumulative
changes in GAAP since the date of this Agreement;

 

minus (only to the extent used in arriving at Net
Income of the TCN Group for such period)

 

(b)           Excluded Group Net Operating Cash
Flow for that period.

 

“Consolidated Total Debt” means, at any
time (without double counting):

 

(a)           the aggregate principal, capital or nominal
amounts of Financial Indebtedness (including any Total Interest Charges
capitalised as principal) of any member of the TCN Group (including, without
limitation, Financial Indebtedness arising under or pursuant to the Finance
Documents and the Second Lien Finance Documents); plus

 

(b)           the aggregate principal, capital or nominal
amounts of Financial Indebtedness (including any Total Interest Charges
capitalised as principal) of any member of the Group to the extent it is
Serviceable Non-TCN Group Debt;

 

excluding any Financial Indebtedness of any member of the
TCN Group to another member of the TCN Group or under any Subordinated Funding,
in each case, to the extent not prohibited under this Agreement.

 

“Consolidated Total Group Debt” means,
at any time (without double counting):

 

(a)           the aggregate principal, capital or nominal
amounts of Financial Indebtedness (including any Total Interest Charges
capitalised as principal) of the Ultimate Parent, Telewest UK and any member of
the TCN Group (including, without limitation, Financial Indebtedness arising
under or pursuant to the Finance Documents and the Second Lien Finance
Documents); plus

 

(b)           the aggregate principal, capital or nominal
amounts of Financial Indebtedness (including any Total Interest Charges
capitalised as principal) of any member of the Group to the extent it is
Serviceable Non-TCN Group Debt;

 

excluding any Financial Indebtedness of the Ultimate
Parent, Telewest UK or any member of the Group to Ultimate Parent, Telewest UK
or another member of the Group or under any Subordinated Funding, in each case,
to the extent not prohibited under this Agreement.

 

“Content” means any rights
to broadcast, transmit, distribute or otherwise make available for viewing,
exhibition or reception (whether in analogue or digital format and whether as a
channel or an internet service, a teletext-type service, an interactive
service, or an enhanced television service or any part of any of the foregoing,
or on a pay-per-view basis, or near video-on-demand, or video-on-

 

14

 

demand basis or otherwise) any
one or more of audio and/or visual images, audio content, or interactive
content (including hyperlinks, re-purposed web-site content, database content
plus associated templates, formatting information and other data including any
interactive applications or functionality), text, data, graphics, or other
content, by means of any means of distribution, transmission or delivery system
or technology (whether now known or hereafter invented).

 

“Conversion Notice” has the
meaning given to such term in paragraph (a) of Clause 6.1 (Utilisation
of Ancillary Facilities).

 

“Core Group” means TCN and
its Subsidiaries other than the Flextech Group.

 

“Core Obligor Group” means
the TCN Group Obligors other than the Ultimate Parent, Telewest UK and the members
of the Flextech Group.

 

“Cost” means in relation to
the provision of Intra-Group Services or management services, the cost
estimated in good faith by the relevant member of the TCN Group to have been
incurred by that member of the TCN Group in the provision of such Intra-Group
Services or management services (as the case may be), including, without
limitation, a proportion of any material employment, property, information
technology, administration, utilities, transport, materials or other costs directly
attributable to the provision thereof.

 

“Currency Hedging Agreements”
means one or more Hedging Agreements consisting of foreign exchange contracts,
currency swap agreements or other similar agreements or arrangements designed
to manage fluctuations in currency values.

 

“Current Assets” means, in respect of
any person or group, the aggregate of trade and other receivables (net of
allowances for doubtful debts), prepayments and all other current assets of
such person or group maturing within twelve months from the date of
computation, as required to be accounted for as current assets under GAAP but
excluding cash and Cash Equivalent Investments.

 

“Current Liabilities” means, in respect
of any person or group, the aggregate of all liabilities (including accounts
payable, accruals and provisions) of such person or group falling due within
twelve months from the date of computation and required to be accounted for as
current liabilities under GAAP but excluding Financial Indebtedness of such
person or group falling due within such period and any interest on such
Financial Indebtedness due in such period.

 

“Default” means an Event of
Default or any event or circumstance which (with the expiry of a grace period,
the giving of notice, the making of any determination under any of the Finance
Documents or any combination of any of the foregoing) would be an Event of
Default provided that in relation to any event which is subject to a
materiality threshold or condition before such event would constitute an Event
of Default, such default shall not constitute a Default until such materiality
threshold or condition has been satisfied.

 

“Derivatives Termination Value”
means, at any date and in respect of any one or more Hedging Agreements, after
taking into account the effect of any legally enforceable netting agreements
relating to such Hedging Agreements, (i) for any date on or after the date such
Hedging Agreements have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (ii) for any date prior to
the date referenced in clause (i), the amount(s) determined as the
mark-to-market value(s) for such Hedging Agreements, as determined based upon
one or more mid-market or other readily available quotations provided by any recognised
dealer in such Hedging Agreements (which may include any Finance Party).

 

“Disposal” means any sale, transfer, lease, surrender or
other disposal by any member of the TCN Group of any shares in any of its
Subsidiaries or all or any part of its revenues, assets, other shares, business
or undertakings other than in the ordinary course of business or trade.

 

15

 

“Documentary Credit” means
a letter of credit, bank guarantee, indemnity, performance bond or other
documentary credit issued or to be issued by an L/C Bank pursuant to Clause 4.1
(Conditions to Utilisation).

 

“Dormant Subsidiary” means,
at any time, with respect to any company, any Subsidiary of such company which
is “dormant” as defined in section 249AA of the Act (or the equivalent under
the laws of the jurisdiction of incorporation of the relevant company).

 

“Double Taxation Treaty”
means in relation to a payment of interest on an Advance made to any Borrower,
any convention or agreement between the government of the United Kingdom and
any other government for the avoidance of double taxation with respect to taxes
on income and capital gains which makes provision for exemption from tax
imposed by the United Kingdom on interest.

 

“Effective Date” has the
meaning given to such term in paragraph (a) of Clause 6.1 (Utilisation
of Ancillary Facilities).

 

“Eligible Deposit Bank” means any bank
or financial institution which has a short term rating of at least A1 granted
by Standard & Poor’s or P1 granted by Moody’s.

 

“EMU” means Economic and
Monetary Union as contemplated in the Treaty on European Union.

 

“EMU Legislation” means
legislative measures of the European Union for the introduction of, changeover
to or operation of the Euro in one or more member states, being in part
legislative measures to implement the third stage of EMU.

 

“Encumbrance” means:

 

(a)           a mortgage, charge, pledge, lien,
encumbrance or other security interest securing any obligation of any person;

 

(b)           any arrangement under which money or
claims to, or the benefit of, a bank or other account may be applied, set-off
or made subject to a combination of accounts so as to effect payment of sums
owed or payable to any person; or

 

(c)           any other type of agreement or
preferential arrangement (including title transfer and retention arrangements)
having a similar effect.

 

“Environment” means living
organisms including the ecological systems of which they form part and the
following media:

 

(a)           air (including air within natural or
man-made structures, whether above or below ground);

 

(b)           water (including territorial,
coastal and inland waters, water under or within land and water in drains and
sewers); and

 

(c)           land (including land under water).

 

“Environmental Claim” means
any administrative, regulatory or judicial action, suit, demand, demand letter,
claim, notice of non-compliance or violation, investigation, proceeding,
consent order or consent agreement relating to any Environmental Law or
Environmental Licence.

 

“Environmental Law” means all
laws and regulations of any relevant jurisdiction which:

 

(a)           have as a purpose or effect the
protection of, and/or prevention of harm or damage to, the Environment;

 

16

(b)                                  provide remedies or compensation for harm
or damage to the Environment; or

 

(c)                                  relate to Hazardous Substances or health
or safety matters.

 

“Environmental Licence”
means any Authorisations required at any time under Environmental Law.

 

“Equity Equivalent Funding”
means a loan made to, or any Financial Indebtedness
owed by, any person where the Financial Indebtedness incurred thereby:

 

(a)                                  may not be repaid at any time prior to
the repayment in full of all Outstandings;

 

(b)                                  carries no interest or carries
interest which is payable only on non-cash pay terms or following repayment in
full of all Outstandings and cancellation of all Available Commitments; and

 

(c)                                  is either (i) structurally and
contractually subordinated to the Facilities or (ii) contractually subordinated
to the Facilities, in each case, pursuant to the Principal Intercreditor Deed.

 

“Equity Proceeds” means the
cash proceeds raised by the Ultimate Parent, Telewest UK or any member of the
TCN Group by way of public equity securities offerings in the international or
domestic equity capital markets (after deducting all reasonable fees,
commissions, costs and expenses incurred by the Ultimate Parent, Telewest UK or
any member of the TCN Group in connection with such raising) and which do not constitute
Net Proceeds of Financial Indebtedness described in paragraph (c) of the
definition of Net Proceeds.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and the rulings issued under it.  Section references to ERISA are to ERISA as
in effect on the date of this Agreement.

 

“ERISA Affiliate” means, in
relation to a member of the TCN Group, each person (as defined in section 3(9)
of ERISA) which together with that member of the TCN Group would be deemed to
be a “single employer” within the meaning of section 414(b), (c), (m) or (o) of
the Code.

 

“EURIBOR” means, in
relation to any amount to be advanced to or owed by an Obligor under this
Agreement in Euro on which interest for a given period is to accrue:

 

(a)                                  the rate per annum for deposits in
Euro which appears on the Relevant Page for such period at or about 11.00 am
(Brussels time) on the Quotation Date for such period; or

 

(b)                                  if no such rate is displayed and the
Facility Agent shall not have selected an alternative service on which such
rate is displayed as contemplated by the definition of “Relevant Page”, the
arithmetic mean (rounded upwards, if not already such a multiple, to 5 decimal
places) of the rates (as notified to the Facility Agent) at which each of the
Reference Banks was offering to prime banks in the European Interbank Market
deposits in Euro for such period at or about 11.00 am (Brussels time) on the
Quotation Date for such period.

 

“European Interbank Market”
means the interbank market for Euro operating in Participating Member States.

 

“Event of Default” means
any of the events or circumstances described as such in Clause 26 (Events of Default).

 

“Excess Cash Flow” means in
relation to any financial year of TCN, (i) Consolidated TCN Group Cash Flow
less (ii) the sum of (A) Consolidated Debt Service for such financial year plus
(B) the aggregate amount of all payments or prepayments of principal, whether
voluntary or mandatory, of

 

17

 

Consolidated Total Debt made in such financial year (other than
voluntary prepayments applied in repayment of the Second Lien Facility in
accordance with paragraphs (i), (ii) and (iii) of the proviso to Clause 2.4 of
the Principal Intercreditor Deed), provided that no such amounts prepaid
and used in the calculation under this paragraph (ii)(B) shall be available for
reborrowing; and provided  further that for the purposes of the
calculation set forth in this definition, no amount shall be included or
excluded more than once.

 

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

 

“Excluded Group” means each
member of the Group which is not a member of the TCN Group, including, without
limitation, the Excluded Subsidiaries.

 

“Excluded Group Net Operating Cash
Flow” means, in respect of any period, segment profit or loss (or
net income or loss, as applicable) attributable to the Excluded Group for that
period adding back (or deducting as the case may be) (to the extent used in
arriving at segment profit or loss (or net income or loss, as applicable))
non-cash items relating to the Excluded Group and any cumulative changes in
GAAP since the date of this Agreement.

 

“Excluded Subsidiary”
means:

 

(a)                                  the Subsidiaries of TCN listed in Part
3 of Schedule 9 (Excluded Subsidiaries);

 

(b)                                  any Subsidiary of TCN or, following
an Integrated Merger Event, a Subsidiary of the Target Group which is a Dormant
Subsidiary and which (i) has assets (save for loans existing on the date of
this Agreement owed to it by other members of the TCN Group) with an aggregate
value of £10,000 or less; and (ii) is not a Guarantor;

 

(c)                                  any Subsidiary of TCN or, following an
Integrated Merger Event, a Subsidiary of the Target Group which is a Project
Company;

 

(d)                                  any member of the Flextech Group; and

 

(e)                                  following an Integrated Merger Event, any
Excluded Target Group Member,

 

provided that any Excluded Subsidiary 
may, at the election of TCN, upon not less than 10 Business Days’ prior
written notice to the Facility Agent and, in the case of a member of the
Flextech Group, with the prior consent of an Instructing Group, cease to be an
Excluded Subsidiary and become a member of the TCN Group.

 

“Excluded Target Group Member”
means any member of the Target Group that is not a Target Group Obligor and has
not been designated by TCN as a member of the TCN Group.

 

“Existing Credit Facility”
means the loan agreement dated 16 March 2001 among TCN, the Lead Arrangers
party thereto, CIBC World Markets PLC, as Agent, Existing Security Trustee and
New Security Trustee, and the Lenders party thereto (each as defined therein),
as amended and restated effective 14 July 2004 and as further amended,
supplemented or otherwise modified prior to the Closing Date.

 

“Existing Encumbrance”
means any Encumbrance existing at the date of this Agreement, details of which
are set out in Part 1 of Schedule 10 (Existing Encumbrances).

 

“Existing Financial Indebtedness”
means the Financial Indebtedness existing at the Closing Date, details of which
are set out in Part 3 of Schedule 10 (Existing Financial
Indebtedness).

 

“Existing Hedge Counterparties”
has the meaning given to it in the Principal Intercreditor Deed.

 

18

 

“Existing Hedge Agreements”
has the meaning given to it in the Principal Intercreditor Deed.

 

“Existing Lease Parties”
means Lloyds (Nimrod) Specialist Finance Limited, Leckhampton Finance Limited
(formerly known as Robert Fleming Leasing (Number 4) Limited) and Lombard
Commercial Limited as lessors, The Cable Corporation Limited and The Yorkshire
Cable Group Limited as lessees and Lloyds TSB Leasing Limited as agent for the
lessors.

 

“Existing Loan Stock” means
the loan stock and redeemable preference shares identified in Part 5 of
Schedule 10 (Existing Loan Stock).

 

“Existing Loans” means the
loans granted by members of the TCN Group existing at the date of this
Agreement, details of which are set out in Part 2 of Schedule 10 (Existing Loans).

 

“Existing Performance Bonds”
means each of the performance bonds or similar obligations existing as at the
Closing Date, details of which are set out in Part 4 of Schedule 10 (Existing Performance Bonds).

 

“Expiry Date” means, in
relation to any Documentary Credit issued under this Agreement, the date stated
in it to be its expiry date or the latest date on which demand may be made
under it being a date falling on or prior to the Final Maturity Date in respect
of the Revolving Facility.

 

“Facilities” means the Term
Facilities, the Revolving Facility, any Ancillary Facility and any Documentary
Credit granted to the Borrowers under this Agreement, and “Facility” means any of them, as the context
may require.

 

“Facility Agent’s Spot Rate of
Exchange” means, in relation to two currencies, the Facility Agent’s
spot rate of exchange for the purchase of the first-mentioned currency with the
second-mentioned currency in the London foreign exchange market at or about 11
a.m. on a particular day.

 

“Facility Office” means the
office notified by a Lender to the Facility Agent in writing on or before the
date it becomes a Lender (or, following that date, (i) by not less than five
Business Days’ written notice) as the office through which it will perform its
obligations under this Agreement where the office is situated in Financial
Action Task Force countries, or (ii) with the prior written consent of the
Facility Agent, an office through which it will perform its obligations under
this Agreement situated in non-Financial Action Task Force countries.

 

“Fee Letters” means the fee
letters referred to in Clauses 15.2 (Arrangement and
Underwriting Fee), 15.3 (Agency Fee) and
15.5 (L/C Bank Fee).

 

“Final Maturity Date”
means:

 

(a)                                  in respect of the Revolving
Facility, 30 June 2011;

 

(b)                                  in respect of the A Facility,  30 June 2011;

 

(c)                                  in respect of the B Facility, the
date falling 96 months after the date of this Agreement; and

 

(d)                                  in respect of the C Facility, the day
which is 108 months after the date of this Agreement.

 

“Finance Documents” means:

 

(a)                                  this Agreement, any Documentary Credits,
any Accession Notices and any Transfer Deeds;

 

(b)                                  the Fee Letters;

 

(c)                                  any Ancillary Facility Documents;

 

19

 

(d)                                  the Security Documents;

 

(e)                                  the Principal Intercreditor Deed;

 

(f)                                    each TGD Intercreditor Agreement;

 

(g)                                 following an Integrated Merger Event, the
Pari Passu Intercreditor Agreement;

 

(h)                                 any Hedging Agreements entered into
with one or more Hedge Counterparties pursuant to Clause 23.9 (Hedging);

 

(i)                                    the Barclays Intercreditor Agreement;

 

(j)                                    any other intercreditor agreement
entered into by any of the parties hereto, as envisaged by any other Finance
Document;

 

(k)                                any other agreement or document
entered into or executed by a member of the TCN Group pursuant to any of the
foregoing documents; and

 

(l)                                    any other agreement or document
designated a “Finance Document” in
writing by the Facility Agent and TCN.

 

“Finance Lease” means a lease treated as
a capital or finance lease pursuant to applicable accounting standards
(including at the date of this Agreement, Statement of Standard Accounting
Practice 21).

 

“Finance Parties” means the
Facility Agent, the US Paying Agent, the Administrative Agent, the Mandated
Lead Arrangers, the Security Trustee, the Lenders and each Hedge Counterparty
and “Finance Party” means any of
them.

 

“Financial Action Task Force”
means the Financial Action Task Force on Money Laundering, an
inter-governmental body, the purpose of which is the development and promotion
of policies, at both national and international levels, to combat money
laundering.

 

“Financial Indebtedness”
means, without double counting, any Indebtedness for or in respect of:

 

(a)                                  moneys borrowed;

 

(b)                                  any amount raised by acceptance under
any acceptance credit facility;

 

(c)                                  any amount raised pursuant to any
note purchase facility or the issue of bonds, notes, debentures, loan stock or
any similar instrument (for the avoidance of doubt excluding any loan notes or
similar instruments issued solely by way of consideration for the acquisition
of assets in order to defer capital gains or equivalent taxes where such loan
notes or similar instruments are not issued for the purpose of raising
finance);

 

(d)                                  the principal portion of any liability
in respect of any lease or hire purchase contract which would, in accordance
with applicable GAAP, be treated as a finance or capital lease;

 

(e)                                  receivables sold or discounted
(other than any receivables to the extent they are sold on a non-recourse
basis, including, without limitation, pursuant to any securitisation programme
or receivables factoring transaction referred to in paragraph (g) of Clause
24.6 (Disposals));

 

(f)                                    the amount of any liability in
respect of any purchase price for assets or services the payment of which is deferred
for a period in excess of 150 days in order to raise finance or to finance the
acquisition of those assets or services;

 

20

 

(g)                                 any amount raised under any other
transaction (including any forward sale or purchase agreement) required to be
accounted for as Indebtedness in accordance with GAAP;

 

(h)                                 any amount raised pursuant to any
issue of shares which are expressed to be redeemable in cash (other than
redeemable shares in respect of which the redemption is prohibited until after
repayment in full of all Outstandings under the Facilities);

 

(i)                                    guarantees, bonds, standby letters of credit
of other instruments issued in connection with the performance of contracts to
the extent that the same are treated as borrowings in accordance with GAAP;

 

(j)                                    the Derivatives Termination Value in
respect of Currency Hedging Agreements;

 

(k)                                any counter-indemnity obligation in
respect of a guarantee, indemnity, bond, standby or documentary letter of
credit or any other instrument issued by a bank or other financial institution;
or

 

(l)                                    the amount of any liability in respect
of any guarantee or indemnity for any Financial Indebtedness of another Person
referred to in paragraphs (a) to (k) above.

 

“Financial Officer” means
the Chief Financial Officer, the Group Treasurer or the Group Financial
Controller, in each case, of TCN or of the TCN Group, or any similar officer of
TCN or of the TCN Group.

 

“Financial Quarter” means the period
commencing on the day immediately following any Quarter Date, and ending on the
next succeeding Quarter Date.

 

“Flextech Assets”  means cash or assets generated by or
attributable to one or more members of the Flextech Group, provided always that
cash or other assets lent or contributed by any member of the Core Group shall
not constitute cash or assets so generated or attributable.

 

“Flextech Disposal” means
any sale, transfer, demerger, contribution, distribution, spin-off or other
disposal of any or all of the members and/or assets of the Flextech Group.

 

“Flextech Group” means each
of the companies listed in Part 2 of Schedule 9 (Members of the Flextech Group), for so long as they remain a
member of the Group and have not, at the option of TCN, been designated as
members of the TCN Group together with any other persons acquired, organised or
otherwise invested in, directly or indirectly, by any current or future member
of such group, together with their respective successor and assigns in
accordance with any relevant provisions of this Agreement.

 

“Foreign Pension Plan”
means any plan, fund (including, without limitation, any superannuation fund)
or other similar program established or maintained outside the United States of
America by any member of the Group for the benefit of employees of any member
of the Group residing outside the United States of America, which plan, fund or
other similar program provides, or results in, retirement income, a deferral of
income in contemplation of retirement or payments to be made upon termination
of employment, and which plan is not subject to ERISA or the Code.

 

“GAAP” means, in relation
to the preparation of the Original Financial Statements, accounting principles
generally accepted in the United Kingdom and otherwise, accounting principles
generally accepted in the United States of America.

 

“Group” means the Ultimate
Parent and its Subsidiaries from time to time including, following a Merger
Event, each member of the Target Group (for as long as it remains a Subsidiary
of the Group).

 

21

 

“Group Structure Chart”
means the group structure chart delivered to the Facility Agent pursuant to
paragraph 6 of Part 1 of Schedule 4 (Conditions Precedent to
First Utilisation) or any updated group structure chart which is
delivered to the Facility Agent pursuant to Clause 23.15 (Group
Structure Chart) from time to time.

 

“Guaranteed Parent Debt” means any Telewest Global Debt in
respect of which any TCN Group Obligor incurs Financial Indebtedness pursuant
to a guarantee of such Financial Indebtedness.

 

“Guarantors” means the
Original Guarantors, upon its accession hereto pursuant to Clause 25.1 (The US Borrower), the US Borrower, and any
Acceding Guarantors and “Guarantor”
means any one of them as the context requires, provided that in either case,
such person has not been released from its rights and obligations as a
Guarantor hereunder pursuant to Clause 42.5 (Release
of Guarantees or Security).

 

“Hazardous Substance” means
any waste, pollutant, contaminant or other substance (including any liquid,
solid, gas, ion, living organism or noise) that may be harmful to human health
or other life or the Environment.

 

“Hedge Counterparty” means
each Lender or Second Lien Lender or Affiliate thereof which is a party to a
Hedging Agreement entered into for the purposes of Clause 23.9 (Hedging) and “Hedge
Counterparties” means all such Lenders or Affiliates.

 

“Hedging Agreement” means
any agreement in respect of an interest rate swap, currency swap, forward
foreign exchange transaction, cap, floor, collar or option transaction or any
other treasury transaction or any combination of it or any other transaction
entered into in connection with protection against or benefit from fluctuation
in any rate or price.

 

“Holding Company” of a company
means a company of which the first-mentioned company is a Subsidiary.

 

“Increased Cost” means:

 

(a)                                  any reduction in the rate of return
from a Facility or on a Finance Party’s (or an Affiliate’s) overall capital;

 

(b)                                  any additional or increased cost; or

 

(c)                                  any reduction of any amount due and
payable under any Finance Document,

 

which is incurred or suffered by a Finance Party or
any of its Affiliates to the extent that it is attributable to that Finance
Party having agreed to make available its Commitment or having funded or
performed its obligations under any Finance Document.

 

“Indebtedness” means any
obligation (whether incurred as principal or as surety) for the payment or
repayment of money, whether present or future, actual or contingent (including
interest and other charges relating to it).

 

“Indemnifying Lender” has
the meaning set out in Clause 5.1(b) (Issue of Documentary
Credits).

 

“Information Memorandum”
means the information memorandum dated November 2004 approved by TCN concerning
the Ultimate Parent, Telewest UK and the TCN Group which, at the request of TCN
and on its behalf, was prepared in relation to the Facilities and the Second
Lien Facility and the business, assets, financial condition and prospects of
the Group and which was made available by the Mandated Lead Arrangers to
selected banks and other institutions for the purpose of syndication of the
Facilities and the Second Lien Facility.

 

22

 

“Initial Security Documents”
means the documents listed in Part 3 of Schedule 4 (Initial
Security Documents).

 

“Instructing Group” means:

 

(a)                                  before any Utilisation of the
Facilities under this Agreement, a Lender or group of Lenders whose Available
Commitments amount in aggregate to more than 66 2/3% of the Available
Facilities; and

 

(b)                                  thereafter, a Lender or group of
Lenders to whom in aggregate more than 66 2/3% of the aggregate amount of the
Outstandings are (or if there are no Outstandings at such time, immediately
prior to their repayment, were then) owed,

 

in each case calculated taking account of those
Lenders who have actually given their instructions and those who, not having
done so, are deemed to have done so pursuant to Clause 42.8 (Deemed Consent).

 

“Integrated Merger Event”
means the designation by TCN of an Integrated Merger Event and the notification
to the Facility Agent pursuant to Clause 23.19 (Notice of Integrated Merger Event) (subject to satisfaction
of the Merger Event Conditions) of the proposed effective date of such Integrated
Merger Event, the purpose of which is to enable TCN to better integrate the
businesses of the TCN Group and the businesses of the Target Group.

 

“Integrated Merger Projected Debt Coverage Ratio”
means the ratio of (a) the projected Consolidated TCN Group Cash Flow for the
12 month period commencing on the relevant date of determination to (b)
projected Consolidated Debt Service of the TCN Group for such period,
calculated on a pro forma basis adjusted to give effect to the Integrated
Merger Event.

 

“Integrated Merger Senior Leverage Ratio”
means the ratio of (i) the aggregate of (A) Consolidated Senior Debt (as at
close of business on the proposed effective date of the Integrated Merger
Event) of the TCN Group (as constituted immediately prior to the proposed
effective date of the Integrated Merger Event) plus (without double counting)
(B) Pro Forma Target Group Senior Debt, to (ii) the aggregate of (A)
Consolidated TCN Group Net Operating Cash Flow plus  (B) Target Group Net Operating Cash Flow, in each case,
calculated on an annualised basis for each Semi-Annual Period ended on the most
recent Quarter Date for each of the TCN Group or the Target Group (as
applicable) prior to the proposed effective date of the Integrated Merger
Event.

 

“Integrated Merger Trailing Debt Coverage Ratio”
means the ratio of (i) the aggregate of (A) Consolidated TCN Group Cash Flow
calculated on an annualised basis for the Semi-Annual Period ending on the most
recent Quarter Date for the TCN Group immediately prior to the proposed
effective date of the Integrated Merger Event plus (B) Target Group Cash Flow
calculated on an annualised basis for the Semi-Annual Period ending on the most
recent Quarter Date for the Target Group immediately prior to the proposed
effective date of the Integrated Merger Event to (ii) (A) Consolidated Debt
Service of the TCN Group adjusted on a pro forma basis to include any Total
Interest Charges payable by the TCN Group (as constituted immediately prior to
the Integrated Merger Event) with respect to Financial Indebtedness of such TCN
Group as at the close of business on the proposed effective date of the
Integrated Merger Event for such Semi-Annual Period (calculated on an
annualised basis) of the TCN Group plus  (without  double counting) (B) Pro Forma Debt Service
of Target.

 

“Intellectual Property Rights”
means any patent, trade mark, service mark, registered design, trade name or
copyright or any license to use any of the same.

 

“Interest Period” means,
save as otherwise provided in this Agreement, any of those periods mentioned in
Clause 13.1 (Interest Periods for Term Facility Advances).

 

23

 

“Interest Rate Agreements” means one or
more Hedging Agreements consisting of interest rate protection agreements
(including, without limitation, interest rate swaps, caps, floors, captions,
collars and similar arrangements) and/or other similar agreements or
arrangements designed to manage fluctuations in interest rates, including
cross-currency swap arrangements designed primarily to manage any such
fluctuations.

 

“Intra-Group Services”
means, as between one or more members of the TCN Group and one or more members
of the Flextech Group:

 

(a)                                  the sale of programming or other Content
by any such member(s) of the Flextech Group to one or more members of the TCN
Group;

 

(b)                                  the lease or sublease of office space,
other premises or equipment by one or more members of the TCN Group to one or
more members of the Flextech Group or by one or more members of the Flextech
Group to one or more members of the TCN Group;

 

(c)                                  the provision or receipt of other
services, facilities or other arrangements (in each case not constituting
Financial Indebtedness) in the ordinary course of business, including, without
limitation, the employment of personnel, provision of employee healthcare or
other benefits, acting as agent to buy equipment, other assets or services or
to trade with residential or business customers, the provision of audit,
accounting, banking, IT, telephony, office, administrative, compliance, payroll
or other similar services; or

 

(d)                                  the extension, in the ordinary course
of business and on terms no less favourable to the relevant member of the TCN
Group than arms’ length terms, by or to any member of the TCN Group to or by
any such member of the Flextech Group of trade credit not constituting
Financial Indebtedness in relation to the provision or receipt of Intra-Group
Services referred to in paragraphs (a), (b) or  (c) above,

 

in the case of paragraphs (a) to (c) inclusive, provided that (i) any
consideration receivable by the relevant member of the TCN Group in respect of
any such Intra-Group Services provided by it is no less than Cost and (ii) any
consideration payable by the relevant member of the TCN Group in respect of any
such Intra-Group Services received by it is no more than fair market value.

 

“Jersey Obligors” means
each of the companies identified as such in Schedule 2 (Original Guarantors).

 

“Joint Venture” means any
joint venture, partnership or similar arrangement between any member of the TCN
Group and any other person which is not a member of the TCN Group.

 

“Joint Venture Group” means
any Joint Venture and its Subsidiaries.

 

“Law” means:

 

(a)                                  common or customary law;

 

(b)                                  any constitution, decree, judgment,
legislation, order, ordinance, regulation, statute, treaty or other legislative
measure in any jurisdiction; and

 

(c)                                  any directive, regulation, practice,
requirement which has the force of law and which is issued by any governmental
body, agency or department or any central bank or other fiscal, monetary,
regulatory, self-regulatory or other authority or agency.

 

“L/C Bank” means The Royal
Bank of Scotland plc and any other Lender in each case which has been appointed
as L/C Bank in accordance with Clause 5.10 (Appointment and Change of
L/C Bank)

 

24

 

and which has not resigned in accordance with
paragraph (c) of Clause 5.10 (Appointment and Change of
L/C Bank).

 

“L/C Bank Accession Certificate”
means a duly completed accession certificate in the form set out in Schedule 11
(Form of L/C Bank Accession Certificate).

 

“L/C Proportion” means, in
relation to a Lender in respect of any Documentary Credit and save as otherwise
provided in this Agreement, the proportion (expressed as a percentage) borne by
such Lender’s Available Revolving Facility Commitment to the Available
Revolving Facility immediately prior to the issue of such Documentary Credit.

 

“Legal Opinions” means any
of the legal opinions referred to in paragraph 8 of Part 1 to Schedule 4 (Conditions Precedent to First Utilisation)
and paragraph 2 of Part 2 to Schedule 7 (Accession
Documents) required to be delivered pursuant to Clause 3.1 (Conditions Precedent) and Clause 25 (Accession:  US Borrower; Guarantors), respectively.

 

“Lender” means a person (including each
L/C Bank and each Ancillary Facility Lender) which:

 

(a)                                  is named in Part 1 of Schedule 1 (Lenders and Commitments); or

 

(b)                                  has become a party to this Agreement in
accordance with the provisions of Clause 36 (Assignments
and Transfers),

 

which in each case has not ceased to be a party to
this Agreement in accordance with the terms of this Agreement.

 

“LIBOR” means, in relation
to any amount to be advanced to or owed by an Obligor under this Agreement in a
currency (other than Euro) on which interest for a given period is to accrue:

 

(a)                                  the rate per annum which appears on
the Relevant Page for such period at or about 11.00 am on the Quotation
Date for such period; or

 

(b)                                  if no such rate is displayed and the
Facility Agent shall not have selected an alternative service on which such
rate is displayed as contemplated by the definition of “Relevant Page”, the
arithmetic mean (rounded upwards, if not already such a multiple, to the
nearest 5 decimal places) of the rates (as notified to the Facility Agent) at
which each of the Reference Banks was offering to prime banks in the London
interbank market deposits in the relevant currency for such period at or about
11.00 am on the Quotation Date for such period.

 

“Long Range Plan” means the
long range business plan for the TCN Group as approved by the board of
directors of the Ultimate Parent on 8 September 2004.

 

“Marketable Securities”
means any security which is listed on any publicly recognised stock exchange
which is rated at least AA by Standard & Poor’s or Aa2 by Moody’s and which
has, or is issued by a company which has, a capitalisation of not less than £1
billion (or its equivalent in other currencies) as at the time such Marketable
Securities are acquired by any member of the TCN Group by way of consideration
for any disposal permitted under Clause 24.6 (Disposals).

 

“Material Adverse Effect”
means a material adverse change in:

 

(a)                                  the financial condition, assets or
business of the Obligors (taken as a whole); or

 

(b)                                  the ability of any Obligor to perform
and comply with its payment or other material obligations under any Finance
Document (taking into account the resources available to such

 

25

 

TCN Group Obligor from any other member of the TCN Group or the Flextech
Group (while it remains a member of the Group)).

 

“Material Subsidiary”
means, at any time, a member of the TCN Group whose contribution to
Consolidated Annualised TCN Group Net Operating Cash Flow (on a consolidated
basis if it has Subsidiaries) represents at least 5% of the Consolidated
Annualised TCN Group Net Operating Cash Flow.

 

“Member State” means a
member of the European Community.

 

“Merger Event” means:

 

(a)                                  the merger, amalgamation or
consolidation of the Ultimate Parent, or any Holding Company or wholly-owned
Subsidiary of the Ultimate Parent, with a Target or any Holding Company or
wholly-owned Subsidiary of a Target which results in the Group and the Target
Group forming one and the same group of companies;

 

(b)                                  the acquisition by the Ultimate
Parent, or any Holding Company or wholly-owned Subsidiary of the Ultimate
Parent, of the total issued share capital of, a Target or any Holding Company
or wholly-owned Subsidiary of a Target and which results in all or
substantially all of the assets and business of the Target Group being acquired
by, and forming a part of, the Group; or

 

(c)                                  the acquisition by a Target or any
Holding Company or wholly-owned Subsidiary of the Target of the total issued
share capital of, the Ultimate Parent, or any Holding Company or wholly-owned
Subsidiary of the Ultimate Parent and which results in all or substantially all
of the assets and business of the Group being acquired by, and forming a part
of, the Target Group,

 

and which TCN designates by written notice to the
Facility Agent as the “Merger Event” for the purposes of this Agreement,
provided that only one such designation may be permitted during the term of the
Facilities.

 

“Merger Event Conditions”
means, in relation to an Integrated Merger Event:

 

(a)                                  either:

 

(i)                                    TCN shall have satisfied each of the
Merger Event Integration Tests as at close of business on the effective date of
the Integrated Merger Event; or

 

(ii)                                the prior consent of an Instructing
Group shall have been obtained to such Integrated Merger Event;

 

(b)                                  save as permitted pursuant to the
proviso to Clause 23.12 (Further Assurance),
such members of the Target Group who are to become members of the TCN Group
upon the Integrated Merger Event shall have acceded to this Agreement as
Acceding Guarantors pursuant to Clause 25.1 (Acceding
Guarantors), as are necessary to ensure that immediately following
the Integrated Merger Event, the 95% Security Test would be satisfied, where the
95% Security Test is calculated by reference to the aggregate of (i)
Consolidated TCN Group Net Operating Cash Flow for the Financial Quarter ending
on the most recent Quarter Date prior to the effective date of the Integrated
Merger Event and (ii) Target Group Net Operating Cash Flow for the most recent
Financial Quarter ending on the date prior to the effective date of the
Integrated Merger Event for which the most recent quarterly financial
information is available for the Target Group; and

 

26

 

(c)                                  the Security Trustee is granted
first ranking security interests over (i) all or substantially all of the
assets and undertakings of each Target Group Obligor (other than any asset
which the security trustee or security agent in respect of the Target Group
Financial Indebtedness or Target Group Refinancing Indebtedness has agreed may
be excluded from the corresponding security documents granted or to be granted
in respect of the Target Group Financial Indebtedness and/or Target Group
Refinancing Indebtedness and which is in existence on and following the
effective date of the Integrated Merger Event, or which the Security Trustee
agrees may be excluded from such security (provided that the Security Trustee
shall not agree to exclude any asset of a Target Group Obligor from such
security where the net book value of such asset exceeds £3,000,000 (or its
equivalent in other currencies) without the prior consent of an Instructing
Group (not to be unreasonably withheld or delayed)) on terms substantially
similar to the relevant Security Documents executed by members of the TCN Group
prior to such Integrated Merger Event; and (ii) all of the issued share capital
of each Target Group Obligor from the prospective shareholders of such Target
Group Obligor after the Integrated Merger Event, in each case, for the purposes
of securing the guarantees given by each such Target Group Obligor under
paragraph (b) above.

 

“Merger Event Integration Tests”
means:

 

(a)                                  the aggregate principal amount of
any Target Group Financial Indebtedness and any Target Group Refinancing
Indebtedness (without double counting) incurred on a senior secured basis  (excluding, for the avoidance of doubt, any
second lien Financial Indebtedness) and ranking pari passu with the obligations under this Agreement does
not exceed £2,425,000,000 (or its equivalent in other currencies);

 

(b)                                  there is no decrease in the credit
ratings of the Facilities and the Second Lien Facility assigned by Standard and
Poor’s and Moody’s to such debt (if any) immediately prior to the Integrated
Merger Event and there is no change in outlook for such credit ratings;

 

(c)                                  the Integrated Merger Senior Leverage
Ratio does not exceed 2.95:1;

 

(d)         (i)                                           the Integrated Merger Trailing Debt
Coverage Ratio shall not be less than the ratio set out in the table below
opposite the Quarter Date immediately prior to the proposed effective date of
the Integrated Merger Event; and

 

(ii)                                the Integrated Merger Projected Debt
Coverage Ratio as at (A) the Quarter Date falling at the end of the first full
Financial Quarter after the effective date of the Integrated Merger Event, and
(B) as at each subsequent Quarter Date thereafter, shall be projected in the
combined business plan of the TCN Group and Target Group to not be less than
the ratio set forth in the table below opposite such Quarter Date, in each
case, calculated on a rolling twelve month basis, provided that in respect of
each Quarter Date falling at the end of each of the first three full Financial
Quarters from the effective date of the Integrated Merger Event, such
calculations shall be made on an annualised basis for the period between the
Quarter Date at the beginning of the first full Financial Quarter arising after
the Integrated Merger Event and ending on such Quarter Date;

 

27

 

	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  
	
  30 September 2004

  	
   

  	
  1.42

  	
  x 

  	
  31 March
  2008

  	
   

  	
  1.45

  	
  x 

  
	
  31 December 2004

  	
   

  	
  1.54

  	
  x

  	
  30 June 2008

  	
   

  	
  1.51

  	
  x 

  
	
  31 March 2005

  	
   

  	
  1.52

  	
  x 

  	
  30 September
  2008

  	
   

  	
  1.34

  	
  x 

  
	
  30 June 2005

  	
   

  	
  1.55

  	
  x 

  	
  31 December
  2008

  	
   

  	
  1.37

  	
  x 

  
	
  30 September 2005

  	
   

  	
  1.51

  	
  x 

  	
  31 March
  2009

  	
   

  	
  1.37

  	
  x 

  
	
  31 December 2005

  	
   

  	
  1.53

  	
  x 

  	
  30 June 2009

  	
   

  	
  1.40

  	
  x 

  
	
  31 March 2006

  	
   

  	
  1.46

  	
  x 

  	
  30 September
  2009

  	
   

  	
  1.50

  	
  x 

  
	
  30 June 2006

  	
   

  	
  1.51

  	
  x 

  	
  31 December
  2009

  	
   

  	
  1.54

  	
  x 

  
	
  30 September 2006

  	
   

  	
  1.43

  	
  x 

  	
  31 March
  2010

  	
   

  	
  1.57

  	
  x 

  
	
  31 December 2006

  	
   

  	
  1.50

  	
  x 

  	
  30 June 2010

  	
   

  	
  1.61

  	
  x 

  
	
  31 March 2007

  	
   

  	
  1.42

  	
  x 

  	
  30 September
  2010

  	
   

  	
  1.65

  	
  x 

  
	
  30 June 2007

  	
   

  	
  1.47

  	
  x 

  	
  31 December
  2010

  	
   

  	
  1.69

  	
  x 

  
	
  30 September 2007

  	
   

  	
  1.43

  	
  x 

  	
  31 March
  2011 and thereafter

  	
   

  	
  1.72

  	
  x 

  
	
  31 December 2007

  	
   

  	
  1.48

  	
  x 

  	
   

  	
   

  	
   

  	
   

  

 

(e)                                  subject to paragraph (f) below, the
ratio of (i) the aggregate of (A) projected Consolidated Net Borrowings as of
the close of business on the proposed effective date of the Integrated Merger
Event plus (without double
counting)  (B) Pro Forma Target
Group Debt (provided that for the purposes of calculating the aggregate figure
for this sub-paragraph (i), if the aggregate of the Cash balances deducted from
Consolidated Total Debt in arriving at Consolidated Net Borrowings is less than
£200,000,000 (or its equivalent in other currencies), an amount of cash and the
value of any Cash Equivalent Investments held by the Target Group may be
deducted from Pro Forma Target Group Debt, provided further that in no event
may the aggregate of all such amounts deducted for the purposes of this
sub-paragraph (i) exceed £200,000,000 (or its equivalent in other currencies)),
to (ii) the aggregate of (A)
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on the Quarter Date of the TCN Group immediately prior to the
proposed effective date of the Integrated Merger Event and (B) Target Group Net
Operating Cash Flow calculated on an annualised basis for the Semi-Annual
Period ending on the Quarter Date for the Target Group immediately prior to the
proposed effective date of the Integrated Merger Event shall not be more than X
(where X has the value indicated opposite the Quarter Date immediately prior to
the proposed effective date of the Integrated Merger Event in the table set out
in paragraph (d) to Clause 22.1 (Ratios)
under the caption “Consolidated Net Borrowings to Consolidated Annualised TCN
Group Net Operating Cash Flow”);

 

(f)                                    if:

 

(i)                                    TCN has designated any Target Group
Acquisition Indebtedness to be serviced from the TCN Group pursuant to a
written notice delivered to the Facility Agent prior to the proposed effective
date of the Integrated Merger Event; and/or

 

(ii)                                (A) the amount of Target Group
Interim Indebtedness plus Target Group Financial Indebtedness included for the
purposes of the Merger Event Integration Tests exceeds the amount of Target
Group Financial Indebtedness as of the date of the Unintegrated Merger Event;
and (B) during the period between the effective date of the

 

28

 

Unintegrated Merger Event and the proposed effective
date of the Integrated Merger Event, the Target Group has entered into or made
acquisitions of businesses or investments in joint ventures outside the
ordinary course of business (in each case excluding businesses or joint
ventures acquired from or entered into with any other member of the Group and
excluding acquisitions of assets made in exchange for similar assets) or paid
any dividends or distributions to any member of the Group other than to another
member of the Target Group or to a member of the TCN Group where the
consideration paid, the investments contractually committed and the dividends
and distributions paid in aggregate exceed £250,000,000 (or its equivalent in
other currencies),

 

then the provisions of paragraph (e) above shall not apply and in
replacement thereof, the ratio of (i) the aggregate of (A) projected
Consolidated Net Borrowings, as of the close of business on the proposed
effective date of the Integrated Merger Event, calculated on a pro forma basis
to include the aggregate principal amount of Target Group Acquisition
Indebtedness to be serviced from the TCN Group plus
(without double counting) (B) Pro Forma Target Group Debt (provided
that  for the purposes of calculating the
aggregate figure for this sub-paragraph (i), if the aggregate of the Cash
balances deducted from Consolidated Total Debt in arriving at Consolidated Net
Borrowings is less than £200,000,000 (or its equivalent in other currencies),
an amount of cash and the value of any Cash Equivalent Investments held by the
Target Group may be deducted from Pro Forma Target Group Debt, provided further
that in no event may the aggregate of all such amounts deducted for the
purposes of this sub-paragraph (i) exceed £200,000,000 (or its equivalent in
other currencies)) to (ii) the aggregate of (A) Consolidated Annualised TCN
Group Net Operating Cash Flow for the Semi-Annual Period ending on the Quarter
Date of the TCN Group immediately prior to the proposed effective date of the
Integrated Merger Event and (B) Target Group Net Operating Cash Flow calculated
on an annualised basis for the Semi-Annual Period ending on the Quarter Date for
the Target Group immediately prior to the proposed effective date of the
Integrated Merger Event, shall not be more than the ratio which is the higher
of the following ratios:

 

(x)                                  the ratio set forth in the table below
opposite the Quarter Date immediately prior to the proposed effective date of
the Integrated Merger Event; and

 

	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  
	
  30 September 2004

  	
   

  	
  4.05

  	
  x 

  	
  31 December
  2007

  	
   

  	
  2.46

  	
  x 

  
	
  31 December 2004

  	
   

  	
  3.60

  	
  x 

  	
  31 March
  2008

  	
   

  	
  2.30

  	
  x 

  
	
  31 March 2005

  	
   

  	
  3.49

  	
  x 

  	
  30 June 2008

  	
   

  	
  2.27

  	
  x 

  
	
  30 June 2005

  	
   

  	
  3.45

  	
  x 

  	
  30 September
  2008

  	
   

  	
  2.10

  	
  x 

  
	
  30 September 2005

  	
   

  	
  3.42

  	
  x 

  	
  31 December
  2008

  	
   

  	
  2.08

  	
  x 

  
	
  31 December 2005

  	
   

  	
  3.37

  	
  x 

  	
  31 March
  2009

  	
   

  	
  1.92

  	
  x 

  
	
  31 March 2006

  	
   

  	
  3.21

  	
  x 

  	
  30 June 2009

  	
   

  	
  1.88

  	
  x 

  
	
  30 June 2006

  	
   

  	
  3.12

  	
  x 

  	
  30 September
  2009

  	
   

  	
  1.76

  	
  x 

  
	
  30 September 2006

  	
   

  	
  2.96

  	
  x 

  	
  31 December
  2009

  	
   

  	
  1.75

  	
  x 

  
	
  31 December 2006

  	
   

  	
  2.90

  	
  x 

  	
  31 March
  2010

  	
   

  	
  1.61

  	
  x 

  
	
  31 March 2007

  	
   

  	
  2.73

  	
  x 

  	
  30 June 2010

  	
   

  	
  1.59

  	
  x 

  
	
  30 June 2007

  	
   

  	
  2.66

  	
  x 

  	
  30 September
  2010

  	
   

  	
  1.47

  	
  x 

  
	
  30 September 2007

  	
   

  	
  2.51

  	
  x 

  	
  31 December 2010

  	
   

  	
  1.47

  	
  x 

  
	
   

  	
   

  	
   

  	
   

  	
  31 March
  2011 and thereafter

  	
   

  	
  1.34

  	
  x 

  

 

29

 

(y)                                  the actual ratio of Consolidated Net
Borrowings to Consolidated TCN Group Net Operating Cash Flow for the Quarter
Date immediately prior to the proposed effective date of the Integrated Merger
Event calculated with respect to the TCN Group only (without including any
members of the Target Group) and in the manner set forth in paragraph (a) of
Clause 22.1 (Ratios), provided
that the ratio in this paragraph (y) shall in no event be higher than X (where
X has the value indicated opposite the Quarter Date immediately prior to the
proposed effective date of the Integrated Merger Event, in the table set out in
paragraph (d) of Clause 22.1 (Ratios)
under the caption “Consolidated Net Borrowings to Consolidated Annualised TCN
Group Net Operating Cash Flow”) and

 

(g)                                 the ratio of (i) (A) Consolidated
Annualised TCN Group Net Operating Cash Flow for the  Semi-Annual Period ending on the Quarter Date
of the TCN Group immediately prior to the proposed effective  date of the Integrated Merger Event plus (B) Target Group Net Operating Cash
Flow calculated on an annualised basis for the 
Semi-Annual Period ending on the Quarter Date of the Target Group
immediately prior to the proposed effective date of the Integrated Merger
Event, to (ii) (A) Total Interest
Charges calculated on an annualised basis for such Semi-Annual Period relating
to the TCN Group (as constituted immediately prior to the effective date of the
Integrated Merger Event) plus
(without double counting) (B) Pro Forma Target Group Total Interest Charges,
calculated on an annualised basis for such Semi-Annual Period relating to the
Target Group, shall be not less than Y (where Y has the value indicated
opposite the Quarter Date immediately prior to the proposed effective date of
the Integrated Merger Event in the table set out in paragraph (d) to Clause
22.1 (Ratios) under the caption “Consolidated
Annualised TCN Net Operating Cash Flow to Total Interest Charges”)),

 

provided that:

 

(i)                                    no Target Group Financial
Indebtedness or Target Group Refinancing Indebtedness which is to be repaid by
close of business on the proposed effective date of the Integrated Merger Event
(or any amounts of Total Interest Charges payable thereon) shall be taken into
account in assessing compliance with any of the tests set out in this
definition; and

 

(ii)                                for the purposes of assessing
satisfaction with the Merger Event Integration Tests and the Merger Event
Conditions, the calculations relating to the trailing Target Group Cash Flow
and Target Group Net Operating Cash Flow shall be by reference to the financial
information for Target Group for the relevant period and shall reflect the
accounting policies, practices and procedures of the Target Group then in
effect.

 

“Moody’s” means Moody’s
Investor Services, Inc. or any successor thereof.

 

30

 

“Multiemployer Plan” shall
mean any multiemployer plan as defined in Section 4001(a)(3)
of ERISA, which is maintained or contributed to by (or to which there is an
obligation to contribute of) any member of the Group or an ERISA Affiliate, and
each such plan for the five year period immediately following the latest date
on which any member of the Group or an ERISA Affiliate maintained, contributed
to or had an obligation to contribute to such plan.

 

“Necessary Authorisations” means all Authorisations (including Environmental Licences
and any Authorisations issued pursuant to or any deemed Authorisations under
any Statutory Requirements) of any person including any government or other
regulatory authority required by applicable Law to enable it to:

 

(a)                                  lawfully enter into and perform its
obligations under the Finance Documents to which it is party;

 

(b)                                  ensure the legality, validity,
enforceability or admissibility in evidence in England and, if different, its
jurisdiction of incorporation or establishment, of such Finance Documents to
which it is party; and

 

(c)                                  carry on its business from time to time.

 

“Net Income” means, in
respect of any period and any Person, the net profit (or loss) after taxes of
that Person for that period as determined in accordance with GAAP, excluding
any adjustments to such net profit (or loss) relating to the application of
fresh start accounting principles and including any profits (or losses)
attributable to the interest of the TCN Group in any undertaking (as defined in
Section 259 Companies Act 1985) which is not a subsidiary undertaking (as
defined in Section 258 Companies Act 1985) of the Ultimate Parent for the
relevant period.

 

“Net Proceeds” means:

 

(a)                                  any cash proceeds received by any
member of the TCN Group (including, when received, any cash proceeds received
by way of deferred instalment of purchase price or from the sale of Cash
Equivalent Investments or Marketable Securities acquired by any member of the
TCN Group in consideration for any Disposal as contemplated under Clause 24.6 (Disposals)) in connection with any
Disposal after deducting:

 

(i)                                    all taxes paid or reasonably estimated
by TCN to be payable as a result of that Disposal;

 

(ii)                                in the case of a Disposal effected
by a member of the TCN Group other than TCN, such provision as is reasonable
for all costs and taxes (after taking into account all available credits,
deductions and allowances) incurred by the TCN Group to a person other than a
member of the TCN Group and fairly attributable to up-streaming the cash
proceeds to TCN or making any distribution in connection with such proceeds to
enable them to reach TCN.

 

(iii)                            all reasonable fees, commissions,
costs and expenses incurred by any member of the TCN Group in arranging or
effecting that Disposal, including, without limitation, any amount required to
be paid by any member of the TCN Group to any proprietor of any intellectual
property rights (including intellectual property licences) related to the
assets disposed of where such payment is on arms length terms and is required
to enable such intellectual property rights to be transferred with such assets
to the extent necessary to facilitate the applicable Disposal;

 

(iv)                               any cash proceeds which are to be
applied towards discharging any Encumbrance over such asset; and

 

31

 

(v)                                   in the case of a Disposal of a
non-wholly-owned Subsidiary or Joint Venture, to the extent received by any
member of the TCN Group, any cash proceeds attributable to any interest in such
Subsidiary or Joint Venture owned by any person other than a member of the TCN
Group;

 

(b)                                  the cash proceeds received by any
member of the TCN Group of any claim for loss or destruction of or damage to
the property of a member of the TCN Group under any insurance policy after
deducting any such proceeds relating to the third party claims which are
applied towards meeting such claims and any reasonable costs incurred in
recovering the same; and

 

(c)                                  the cash proceeds received in
respect of any Financial Indebtedness raised by the Ultimate Parent, Telewest
UK or any member of the TCN Group (after deducting all reasonable fees,
commissions, costs and expenses incurred by the Ultimate Parent, Telewest UK or
any member of the TCN Group in connection with such raising).

 

“NTL Credit Facility” means
the £2,425,000,000 senior facilities agreement dated as of 13 April 2004 among
NTL Incorporated, NTL Investment Holdings Limited, Credit Suisse First Boston
as facility agent and trustee, GE Capital Structured Finance Group Limited as
administrative agent, the mandated lead arrangers named therein and the banks
and other lending institutions from time to time party thereto, as the same may
be amended, supplemented, amended and restated or otherwise modified from time
to time.

 

“Obligors” means the
Borrowers, the Original Guarantors and any Acceding Guarantors (including,
following an Integrated Merger Event, the Target Group Obligors) and “Obligor” means any of them.

 

“Obligors’ Agent” means TCN
in its capacity as agent for the Obligors, pursuant to Clause 29.17 (Obligors’ Agent).

 

“OFCOM” means the UK Office
of Communications;

 

“Original Financial Statements”
means the audited consolidated financial statements of the TCN Group for the
financial year ended 31 December 2003.

 

“Original Guarantor” means
each of Telewest UK, TCN and the companies and partnerships listed in Schedule
2 (The  Original
Guarantors).

“Original Obligors” means
TCN and the Original Guarantors.

 

“Outstanding L/C Amount”
means:

 

(a)                                  each sum paid or payable by an L/C
Bank to a Beneficiary pursuant to the terms of a Documentary Credit; and

 

(b)                                  all liabilities, costs (including,
without limitation, any costs incurred in funding any amount  which falls due from an L/C Bank under a
Documentary Credit), claims, losses and expenses which an L/C Bank (or any of the
Indemnifying Lenders) incurs or sustains in connection with a Documentary
Credit,

 

in each case which has not been reimbursed or in
respect of which cash cover has not been provided by or on behalf of TCN.

 

“Outstandings” means, at
any time, the Term Facility Outstandings, the Revolving Facility Outstandings
and any Ancillary Facility Outstandings.

 

“Parent Intercompany Debt”
means any Indebtedness owed by any member of the TCN Group to Telewest UK or
the Ultimate Parent from time to time or any convertible unsecured loan stock
issued

 

32

 

by any member of the TCN Group to Telewest UK or
the Ultimate Parent and which is subordinated to the Facilities pursuant to the
terms of the Principal Intercreditor Deed.

 

“Pari Passu Intercreditor Agreement”
means (a) the intercreditor deed to be dated on or about the effective date of
an Integrated Merger Event, entered into between certain of the Obligors,
certain members of the Target Group, certain of the Finance Parties and certain
other parties for the purpose of allowing, upon and following an Integrated
Merger Event, up to £2,425,000,000 (or its equivalent in other currencies) in
aggregate principal amount of the Target Group Financial Indebtedness and any
Target Group Refinancing Indebtedness, in each case to be incurred on a senior
secured basis ranking pari passu with
all amounts outstanding under the Facilities, the form of which is set out in
Schedule 13 (Pro Forma Pari Passu
Intercreditor Agreement) or (b) to the extent that any Post Merger
Target Group Refinancing occurs to refinance any of the Target Group Financial
Indebtedness and/or Target Group Refinancing Indebtedness referred to in
paragraph (a) in a manner which is not prohibited by this Agreement, the
intercreditor deed entered into on substantially similar terms to the
intercreditor  agreement referred to in
paragraph (a) in connection with such Post Merger Target Group Refinancing.

 

“Participating Member State”
means any member of the European Community that at the relevant time has adopted
the Euro as its lawful currency in accordance with legislation of the European
Community relating to Economic and Monetary Union.

 

“Partnership Obligors”
means each of the partnerships identified as such in Schedule 2 (Original Guarantors).

 

“PBGC” means the Pension
Benefit Guaranty Corporation established pursuant to section 4002 of ERISA, or
any successor to it.

 

“Permitted Auditors” means
any of Pricewaterhouse Coopers, Ernst & Young, Deloitte & Touche or
KPMG or any of their respective successors or any other internationally
recognised firm of accountants.

 

“Permitted Capital Expenditure”
has the meaning ascribed to it in Clause 22.2 (Permitted
Capital Expenditure).

 

“Permitted Holders” shall
mean any person who, together with any of its Affiliates, is the “beneficial
owner” (as defined in Rule 13d-3 and 13d-5 under the Exchange Act) of 5% or
more of the outstanding Voting Stock of the Ultimate Parent on the date of this
Agreement and any Affiliates of such person from time to time.

 

“Permitted Payments” means:

 

(a)                                  the payment of any dividend, payment,
loan or other distribution, or the repayment of a loan or the redemption of
loan stock or redeemable equity:

 

(i)                                    to implement any part of a Flextech
Disposal; or

 

(ii)                                made, at any time, to fund the
payment of expenses (including taxes and the buy back of stock from employees)
by any member of the Group the aggregate amount of such payments, prior to an
Integrated Merger Event, being no greater than £20,000,000 per annum (or its equivalent in other currencies), or
following an Integrated Merger Event, being no greater than £50,000,000 per annum (or its equivalent in
other currencies), of which no more than £2,000,000 per annum (or its
equivalent in other currencies) may be incurred in the buy back of stock from
employees; or

 

33

 

(iii)                            made at any time, to any Person, from
Flextech Assets (including proceeds from a Flextech Disposal); or

 

(b)                                  the payment of any dividend,
payment, loan or other distribution, or the repayment of a loan, or the
redemption of loan stock or redeemable equity, in each case, which is required
in order to facilitate the making of payments by any member of the Group
required pursuant to:

 

(i)                                    the terms of the Finance Documents;

 

(ii)                                the terms of any agreements for
Financial Indebtedness which constitutes Serviceable Non-TCN Group Debt;

 

(iii)                            the terms of the Second Lien Finance
Documents and any Second Lien Refinancing (or in each case, any guarantee of
the obligations thereunder), to the extent such payment is permitted by the
terms of the Principal Intercreditor Deed, other than any payments in relation
to any fees, costs, expenses, commissions or other payments required to be made
in respect of any amendment, consent or waiver in respect of the Second Lien
Finance Documents or any such Second Lien Refinancing (or any guarantee of the
obligations thereunder);

 

(iv)                               any Hedging Agreement entered into
by a member of the Group relating to currency or interest rate hedging of
Financial Indebtedness referred to in sub-paragraphs (i), (ii) and (iii) above
and which is not entered into for investment or speculative purposes;

 

(v)                                   the terms of the TCN Notes; or

 

(vi)                               the terms of any Subordinated
Funding within the meaning of paragraphs (a), (b), (c), (e)(i) or (e)(iii) of
the definition thereof, to the extent required to facilitate any Permitted
Payments allowed under sub-paragraphs (i) to (v) above,

 

where, in the case of sub-paragraphs (i)
to (v), the payment under the relevant Indebtedness or obligation referred to
therein has fallen due or will fall due within five Business Days of such
Permitted Payment being made.

 

“Plan” means any pension
plan as defined in section 3(2) of ERISA, which (i) is maintained or
contributed to by (or to which there is an obligation to contribute by) any
member of the Group or an ERISA Affiliate, and each such plan for the 5 year
period immediately following the latest date on which any member of the Group
or an ERISA Affiliate maintained, contributed to or had an obligation to
contribute to such plan and (ii) is subject to ERISA, but excluding any
Multiemployer Plan.

 

“Post Merger Target Group Refinancing”
means any Financial Indebtedness incurred at any time after an Integrated
Merger Event (other than Target Group Refinancing Indebtedness), for the
purposes of refinancing any Target Group Financial Indebtedness or any Target
Group Refinancing Indebtedness, including any Financial Indebtedness incurred
for the purpose of the payment of all principal, interest, fees, expenses,
commissions, make-whole and any other contractual premium payable which is not
inconsistent with standard market practice, in respect of such refinancing and
any reasonable fees, costs and expenses incurred in connection with such refinancing,
and in respect of which the following terms will apply:

 

(a)                                  the final maturity date or redemption
of such refinancing occurs after the scheduled final maturity date or
redemption date of the Target Group Financial Indebtedness or the Target Group
Refinancing Indebtedness being refinanced;

 

34

 

(b)                                  the average life of the Post Merger
Target Group Refinancing is not less than the remaining average life of the
Target Group Financial Indebtedness or the Target Group Refinancing
Indebtedness being refinanced at the time of such refinancing;

 

(c)                                  taking into account any hedging
arrangements for the principal and interest on the Post Merger Target Group
Refinancing, the interest rate per annum payable in cash on the Post Merger
Target Group Refinancing or in the case of a floating rate loan, the applicable
margin, shall not exceed the interest payable in cash, or as the case may be,
the applicable margin, on the Target Group Financial Indebtedness or any Target
Group Refinancing Indebtedness which is being refinanced; and

 

(d)                                  such Post Merger Target Group
Refinancing is raised by (i) any member of the TCN Group provided that such
Post Merger Target Group Refinancing is not (in the reasonable opinion of the
Facility Agent having taken legal advice from counsel where appropriate) raised
at a level which is structurally superior to the level at which the Target
Group Financial Indebtedness or Target Group Refinancing Indebtedness being
refinanced was raised or (ii) any other member of the Group which is not a
member of the TCN Group.

 

“Principal Intercreditor Deed”
means the intercreditor deed dated on or about the Closing Date between the
Obligors, the Finance Parties, the Second Lien Finance Parties, the Existing Hedge
Counterparties, the Existing Lease Parties certain other members of the Group
and others as the same may be amended, varied, supplemented, novated or
restated from time to time.

 

“Pro Forma
Debt Service of Target” means the aggregate of:

 

(a)                                  Pro Forma Target Group Total
Interest Charges in respect of the Semi-Annual Period ending on the Quarter
Date immediately prior to the Integrated Merger Event; and

 

(b)                                 save to the extent projected to be
immediately reborrowed, all projected scheduled payments of principal, capital
or nominal amounts in respect of Pro Forma Target Group Debt which fall due
during the twelve month period after the effective date of the Integrated
Merger Event divided by two but excluding, for the avoidance of doubt, any
amounts prepaid on the effective date of the Integrated Merger Event.

 

“Pro Forma Target Group Debt” means
(without double counting) the projected aggregate principal, capital or nominal
amount (including any Total Interest Charges capitalised as principal) of
Target Group Financial Indebtedness and Target Group Refinancing Indebtedness
which in each case, will remain owing by any member of the Target Group as at
the close of business on the proposed effective date of the Integrated Merger
Event excluding any Financial
Indebtedness owed by any member of the Target Group to another member of the
Target Group or the TCN Group and any Subordinated Funding (as defined herein
or as it relates to the Target in any relevant agreement with respect to Target
Group Financial Indebtedness) (for the purposes of this definition, “Target Group” excludes any member
of the Target Group that is not a Target Group Obligor and any other member of
the Target Group which has not been designated as a member of the TCN Group).

 

“Pro Forma Target Group Senior Debt”
means (without double counting) the projected aggregate principal, capital or
nominal amount (including any Total Interest Charges capitalised as principal)
of Target Group Financial Indebtedness and Target Group Refinancing Indebtedness
incurred on a senior unsubordinated basis which, in each case, will remain
owing by any member of the Target Group as at the close of business of the
proposed effective date of the Integrated Merger Event but excluding any Financial Indebtedness owed by
any member of the Target Group to another member of the Target Group or the TCN
Group and any Subordinated Funding (as
defined herein or as it relates to the Target in any relevant agreement with
respect to Target Group Financial Indebtedness) (for the purposes of
this definition, “Target Group” excludes any member of the Target Group that is
not a

 

35

 

Target Group Obligor and any other member of the
Target Group which has not been designated as a member of the TCN Group).

 

“Pro Forma Target Group Total Interest Charges”
means, in respect of any period, the aggregate amount of Total Interest Charges
(but excluding for the avoidance of doubt, any fees payable or amortised during
such period) which would have accrued during that period on the Pro Forma
Target Group Debt as at the close of business on the proposed effective date of
the Integrated Merger Event, at the rates of interest and commitment commission
which would have applied to Pro Forma Target Group Debt but deducting any Total
Interest Charges which would have been receivable by any member of the Target
Group during such period (for the purposes of this definition, “Target Group”
excludes any member of the Target Group that is not a Target Group Obligor and
any other member of the Target Group which has not been designated as a member
of the TCN Group).

 

“Project Company” means a
Subsidiary of a company (or a person in which such company has an interest)
which has a special purpose and whose creditors have no recourse to any member
of the TCN Group in respect of Financial Indebtedness of that Subsidiary or
person, as the case may be, or any of such Subsidiary’s or person’s
Subsidiaries (other than recourse to such member of the TCN Group who had
granted an Encumbrance over its shares or other interests in such Project
Company beneficially owned by it provided that such recourse is limited to an
enforcement of such an Encumbrance).

 

“Proportion” in relation to
a Lender, means:

 

(a)                                  in relation to an Advance to be made
under this Agreement, the proportion borne by such Lender’s Available
Commitment in respect of the relevant Facility, the relevant Borrower and the
relevant currency to the relevant Available Facility;

 

(b)                                  in relation to an Advance or Advances
outstanding under this Agreement, the proportion borne by such Lender’s share
of the Sterling Amount of such Advance or Advances to the total Sterling Amount
thereof;

 

(c)                                  if paragraph (a) does not apply and
there are no Outstandings, the proportion borne by the aggregate of such Lender’s
Available Commitments to the Available Facilities (or if the Available
Facilities are then zero, by its Available Commitments to the Available
Facilities immediately prior to their reduction to zero); and

 

(d)                                  if paragraph (b) does not apply and
there are any Outstandings, the proportion borne by such Lender’s share of the
Sterling Amount of the Outstandings to the Sterling Amount of all the
Outstandings for the time being.

 

“Protected Party” means a
Finance Party or any Affiliate of a Finance Party which is or will be, subject
to any Tax Liability in relation to any amount payable under or in relation to
a Finance Document.

 

“Qualifying Lender” means a
Lender which is either:

 

(a)                                  a UK Bank Lender;

 

(b)                                  a UK Treaty Lender; or

 

(c)                                  a UK Non-Bank Lender.

 

“Quarter Date” means (i) in relation to
the TCN Group, each of 31 March, 30 June, 30 September and 31 December in each
year and (ii) in relation to the Target Group for any period prior to an

 

36

 

Integrated Merger Event, each of the quarter dates in the financial year
of the Target Group as at which quarterly financial information is prepared for
the Target Group.

 

“Quotation Date” means, in
relation to any currency and any period for which an interest rate is to be
determined:

 

(a)                                  if the relevant currency is Sterling,
the first day of that period;

 

(b)                                  if the relevant currency is Euro, 2
TARGET Days before the first day of that period; or

 

(c)                                  in relation to any other currency, 2
Business Days before the first day of that period,

 

provided that if market practice differs in the Relevant Interbank
Market for a currency, the Quotation Date for that currency will be determined
by the Facility Agent in accordance with market practice in the Relevant
Interbank Market (and if quotations would normally be given by leading banks in
the Relevant Interbank Market on more than one day, the Quotation Date will be
the last of those days).

 

“Reference Banks” means the
principal London offices of Barclays Bank PLC, The Royal Bank of Scotland plc
and Citibank, N.A. or such other bank or banks as may be appointed as such by
the Facility Agent after consultation with TCN.

 

“Relevant Interbank Market”
means, in relation to Euro, the European Interbank Market and in relation to
any other currency, the London interbank market therefor.

 

“Relevant Page” means the
page of the Reuters or Telerate screen on which is displayed in relation to
LIBOR, BBA LIBOR for the relevant currency, or, in relation to EURIBOR, the
European offered rates for Euro, or, if such page or service shall cease to be
available, such other page or service which displays the London interbank
offered rates for the relevant currency as the Facility Agent, after
consultation with the Lenders and TCN, shall select.

 

“Renewal Request” means, in
relation to a Documentary Credit, a Utilisation
Request therefor, in respect of which the proposed Utilisation Date stated in
it is the Expiry Date of an existing Documentary Credit and the proposed
Sterling Amount is the same or less than the Sterling Amount of that existing
Documentary Credit.

 

“Repayment Date” means:

 

(a)                                  in relation to any Revolving Facility
Advance, the last day of its Term; and

 

(b)                                  in respect of the Term Facility
Outstandings, each of the dates specified in Clause 8 (Repayment of
Term Facility Outstandings) as an A Facility Repayment Date, a B
Facility Repayment Date or a C Facility Repayment Date (as applicable) in
respect of the relevant Term Facility Outstandings,

 

provided that if any such day is not a Business Day in the relevant
jurisdiction for payment, the Repayment Date will be the next succeeding
Business Day in the then current calendar month (if there is one) or the
preceding Business Day (if there is not).

 

“Repayment Instalment”
means, in respect of the Term Facility Outstandings, the amounts required to be
paid by way of repayment on each of the dates specified in Clause 8 (Repayment of Term Facility Outstandings) as an A Facility
Repayment Instalment, a B Facility Repayment Instalment or a C Facility
Repayment Instalment (as applicable).

 

“Repeating Representations”
means the representations and warranties set out in Clauses 20.1 (Due Organisation), 20.4 (No Immunity),
20.5 (Governing Law and Judgments),
20.6 (All Actions Taken),

 

37

 

20.8 (Binding Obligations),
20.10 (No Event of Default),
20.17 (Execution of Finance Documents), 20.26 (Investment
Company Act), 20.27 (Public Utility Holding
Company Act), 20.33 (U.S. Patriot
Act), 20.34 (Compliance with
ERISA) and 20.35 (Liabilities of
the US Borrower).

 

“Reportable Event” means an
event described in section 4043(c) of ERISA with respect to a Plan that is
subject to Title IV of ERISA other than those in respect of which the 30-day
notice period is waived under subsection .22, .23, .25, .27 or .28 of PBGC
Regulation section 4043.

 

“Reservations” means:

 

(a)                                  the principle that equitable
remedies are remedies which may be granted or refused at the discretion of the
court, the limitation of enforcement by laws relating to bankruptcy,
insolvency, liquidation, reorganisation, court schemes, moratoria,
administration and other laws generally affecting the rights of creditors, the
time barring of claims under any applicable law, the possibility that an
undertaking to assume liability for or to indemnify against non-payment of any
stamp duty or other tax may be void, defences of set-off or counterclaim and
similar principles;

 

(b)                                  anything analogous to any of the matters set
out in paragraph (a) above under any laws of any applicable jurisdiction;

 

(c)                                  the reservations in or anything
disclosed by any of the Legal Opinions;

 

(d)                                  any circumstance arising through a
failure to obtain any consent from the lenders under the Existing Credit
Facility to (i) the execution of the Finance Documents or the Second Lien
Finance Documents, (ii) the exercise of any rights or the performance of any
obligations under the Finance Documents or the Second Lien Finance Documents or
(iii) any other matter contemplated by the Finance Documents or the Second Lien
Finance Documents; and

 

(e)                                  any circumstance arising through a
failure to obtain any consent from any lessor, licensor or other counterparty
whose consent is required to the grant of any Security over any lease, licence
or other agreement or contract on or before the execution of a Security
Document.

 

“Restricted Party” means
any person listed in the Annex to the Executive Order referred to in the
definition of “Anti-Terrorism Laws” or on the “Specially Designated Nationals
and Blocked Persons” list maintained by the Office of Foreign Assets Control of
the United States Department of the Treasury;

 

“Revolving Facility” means
the revolving loan facility (including any Ancillary Facility and the Documentary
Credit facility) granted to TCN pursuant to Clause 2.1(a) (The
Facilities).

 

“Revolving Facility Advance”
means an advance (including a Rollover Advance) as from time to time reduced by
repayment made or to be made by the Lenders under the Revolving Facility (but
excluding for the purposes of this definition, any utilisation of the Revolving
Facility by way of Ancillary Facility or Documentary Credit).

 

“Revolving Facility Commitment”
means, in relation to a Lender at any time, and save as otherwise provided in
this Agreement, the amount set opposite its name in the relevant column of
Schedule 1 (Lenders and Commitments) or as specified
in the Transfer Deed pursuant to which such Lender becomes a party to this
Agreement less the Ancillary Facility Commitment (if any) of such Lender.

 

“Revolving Facility Margin”
means, in relation to Revolving Facility Advances and subject to Clause 12.3 (Margin Ratchet for Revolving Facility Advances), 2.25% per
annum.

 

38

 

“Revolving Facility Outstandings”
means, at any time, the aggregate outstanding amount of each Revolving Facility
Advance and of each Outstanding L/C Amount.

 

“Rollover Advance” means a
Rollover Advance as defined in Clause 7.2 (Rollover Advances).

 

“Scottish Obligors” means
each of the companies identified as such in Schedule 2 (Original Guarantors).

 

“Second Lien Agent” means
Barclays Bank PLC as agent under the Second Lien Facility Agreement.

 

“Second Lien Facility”
means the £250,000,000 second lien term loan facility made available to the
Borrowers under the Second Lien Facility Agreement.

 

“Second Lien Facility Agreement”
means second lien facility agreement dated as at the date of this Agreement and
made between the Second Lien Agent, the Security Trustee, the Second Lien
Lenders, the Mandated Lead Arrangers (as defined therein) and the Borrower.

 

“Second Lien Finance Documents”
means the Finance Documents (as defined in the Second Lien Facility Agreement).

 

“Second Lien Finance Parties”
means the Second Lien Agent and the Second Lien Lenders.

 

“Second Lien Lenders” means
each of the parties identified as lenders in the Second Lien Facility
Agreement.

 

“Second Lien Refinancing”
means any Financial Indebtedness incurred for the purposes of refinancing all
or a portion of the Second Lien Facility including any Financial Indebtedness
incurred for the purpose of the payment of principal, interest, fees, expenses,
commissions, make-whole and any other contractual premium payable under the
Second Lien Facility and any reasonable fees, costs and expenses incurred in
connection with such refinancing, in respect of which the following terms
apply:

 

(a)                                  the final maturity date or
redemption date of such refinancing (including without limitation, the payment
of any accreting principal in respect of any make-whole premium payable on any
notes issued at a discount) occurs on or after the scheduled redemption date in
respect of the Second Lien Facility;

 

(b)                                  the average life of the Second Lien
Refinancing is no shorter than the remaining average life of the Second Lien
Facility, as at the time of such refinancing;

 

(c)                                  the Financial Indebtedness
constituted by (or, in the case of pari passu Financial Indebtedness, any
Encumbrance securing) any Second Lien Refinancing is contractually subordinated
to the Senior Facilities on terms no less favourable to the Senior Lenders than
the Second Lien Facility;

 

(d)                                  any security granted in connection
with such refinancing shall be over no assets other than those the subject of
the Security and not materially more favourable to the beneficiaries thereof
taken as a whole than the security granted in respect of the Second Lien
Facility; and

 

(e)                                  immediately upon completion of such
refinancing, TCN is able to show compliance with the financial covenants set
out in paragraphs (b) and (c) of Clause 22.1 (Ratios)
calculated on a pro forma basis for each of the twelve month periods
immediately preceding and following the date of such refinancing.

 

39

 

“Security” means the
Encumbrances created or purported to be created pursuant to the Security
Documents.

 

“Security Documents” means:

 

(a)                                  each of the Initial Security Documents;

 

(b)                                  any security documents required to be
delivered by an Acceding Guarantor pursuant to Clause 25.1 (Acceding Guarantors);

 

(c)                                  in relation to any Integrated Merger
Event, any security documents granted in favour of the Security Trustee by any
member of the Target Group pursuant to the Merger Event Conditions;

 

(d)                                  any other document executed at any
time by any member of the Group conferring or evidencing any Encumbrance for or
in respect of any of the obligations of the Obligors under this Agreement
whether or not specifically required by this Agreement; and

 

(e)                                  any other document executed at any time
pursuant to Clause 23.12 (Further Assurance)
or any similar covenant in any of the Security Documents referred to in
paragraph (a) to (d) above.

 

“Semi-Annual Period”
means each period of six months ending on a Quarter Date.

 

“Serviceable
Non-TCN Group Debt” means:

 

(a)                                  Financial Indebtedness arising under
any Guaranteed Parent Debt;

 

(b)                                  upon the occurrence of an Integrated
Merger Event, and subject to satisfaction of the test set out in paragraph (f)
of the definition of “Merger Event Integration Tests”, any Target Group
Acquisition Indebtedness and at any time thereafter, any Target Group
Acquisition Refinancing Indebtedness which, in any case, TCN has designated as
Serviceable Non-TCN Group Debt by notice in writing to the Facility Agent
delivered not less than 5 Business Days’ prior to the Integrated Merger Event
or the incurrence of the Target Group Acquisition Refinancing Indebtedness, as
the case may be;

 

(c)                                  upon the occurrence of a Merger
Event, or if later, at the time such Financial Indebtedness was incurred, any
Target Group Financial Indebtedness and any Target Group Refinancing
Indebtedness which TCN has designated as Serviceable Non-TCN Group Debt by
notice in writing to the Facility Agent delivered not less than 5 Business Days’
prior to the Merger Event or the incurrence of such Financial Indebtedness, as
the case may be;

 

(d)                                  upon or at any time after an
Integrated Merger Event, any Post Merger Target Group Refinancing which TCN has
designated as Serviceable Non-TCN Group Debt by notice in writing to the
Facility Agent delivered not less than 5 Business Days’ prior to the incurrence
of such Post Merger Target Group Refinancing; and

 

(e)                                  any Telewest Global Debt not
described in paragraphs (a) to (d) above where TCN has provided not less than 5
Business Days’ prior written notice to the Facility Agent designating such
Financial Indebtedness as Serviceable Non-TCN Group Debt,

 

in the case of paragraphs (b), (c) and (d), to the extent only of the
principal amounts so designated at the relevant time and provided that any
Serviceable Non-TCN Group Debt, other than Serviceable Non-TCN Group Debt
consisting of Guaranteed Parent Debt which thereafter ceases to constitute
Guaranteed Parent Debt, shall thereafter at all times remain Serviceable
Non-TCN Group Debt.

 

40

 

“Standard & Poor’s”
means Standard & Poor’s Ratings Group or any successor thereof.

 

“Statutory Requirements”
means any applicable provision or requirement of any Act of Parliament
(including without limitation, the Communications Act 2003 and the Broadcasting
Acts 1990 and 1996) or any instrument, rule or order made under any Act of
Parliament or any regulation or by-law of any local or other competent authority
or any statutory undertaking or statutory company which has jurisdiction in
relation to the carrying out, use, occupation, operation of the properties or
the businesses of any member of the TCN Group carried out thereon.

 

“Sterling Amount” means at
any time:

 

(a)                                  in relation to an Advance
denominated in Sterling, the amount thereof, and in relation to any other
Advance, the Sterling equivalent of the amount specified in the Utilisation
Request (as at the date thereof) for that Advance, in each case, as adjusted,
if necessary, in accordance with the terms of this Agreement and to reflect any
repayment, consolidation or division of that Advance;

 

(b)                                  in relation to a Documentary Credit,
the Outstanding L/C Amount in relation to it at such time;

 

(c)                                  in relation to any Ancillary
Facility granted by a Lender, the amount of its Revolving Facility Commitment
converted to provide its Ancillary Facility Commitment as at the time of such
conversion; and

 

(d)                                  in relation to any Outstandings, the
aggregate of the Sterling Amounts (calculated in accordance with paragraphs
(a), (b) and (c) above) of each outstanding Advance and/or Outstanding L/C
Amount, made under the relevant Facility or Facilities (as the case may be)
and/or in relation to Ancillary Facility Outstandings, (i) if such Outstandings
are denominated in Sterling, the aggregate amount of it at such time and (ii)
if such Outstandings are not denominated in Sterling, the Sterling equivalent
of the aggregate amount of it at such time.

 

“Subordinated Funding” means
any loan made to any TCN Group Obligor by any member of the Group that is not a
TCN Group Obligor or by any member of the Flextech Group, which:

 

(a)                                  constitutes Parent Intercompany Debt;

 

(b)                                  arises under any intercompany loan
agreements or any convertible unsecured loan stock or redeemable preference
shares issued by a TCN Group Obligor;

 

(c)                                  is an intercompany loan existing as
at the date of this Agreement (including any inter-company loan the benefit of
which has, at any time after the date of this Agreement, been assigned to any
other member of the Group where such assignment is not otherwise prohibited by
this Agreement);

 

(d)                                  constitutes Equity Equivalent Funding; or

 

(e)                                  in circumstances where, upon and
following an Integrated Merger Event, the members of the Target Group do not
constitute Subsidiaries of TCN:

 

(i)                                    constitutes a loan made by a member of the
Group which is not a TCN Group Obligor to a Target Group Obligor which exists
as at the effective date of the Integrated Merger Event;

 

(ii)                                constitutes Equity Equivalent Funding; or

 

41

(iii)         is made by a member of the Group (other than a
TCN Group Obligor) which is a direct parent of any TCN Group Obligor to the
Target and which may or may not thereafter be contributed into or invested in
the Target Group,

 

provided that, in the case of paragraphs (b), (c), (d) and (e), the
relevant debtor and creditor are party to the Principal Intercreditor Deed as
an Intergroup Debtor or Intergroup Creditor (as such terms are defined in the
Principal Intercreditor Deed), respectively, or such other subordination
arrangements as may be satisfactory to the Facility Agent, acting reasonably.

 

“Subscriber” means any
person who has entered into an agreement (which has not expired or been
terminated) with a TCN Group Obligor to be provided with services by a TCN
Group Obligor through the operation of telecommunications and television
systems operated by the TCN Group in accordance with applicable
Telecommunications, Cable and Broadcasting Laws (including any part of such
system and all modifications, substitutions, replacements, renewals and
extensions made to such systems).

 

“Subsidiary” of a person
means (a) any company or entity directly or indirectly controlled by such
person (for which purpose “control” means either ownership of more than 50 per
cent. of the voting share capital (or equivalent right of ownership) of such
company or entity or power to direct its policies and management whether by
contract or otherwise or the right to receive more than 50 per cent. of any
distributions (of whatever nature) made in respect of the share capital or
other ownership interests of such company or entity) and (b) (for the purpose
only of the preparation of the financial statements to be prepared pursuant to
Clause 21.1 (Financial Statements)
and the undertakings in Clause 22 (Financial
Condition) a company that is consolidated with such person in
accordance with GAAP.

 

“Supplement” means the
Supplement to the Information Memorandum dated 20 December 2004.

 

“Successful Syndication”
has the meaning given to it in the Fee Letter referred to in Clause 15.2 (Arrangement and Underwriting Fee).

 

“Syndication Date” means
the date specified by the Mandated Lead Arrangers (and notified to the Facility
Agent and TCN) as the day on which Successful Syndication has occurred.

 

“Target” means a person
whose principal area of business is substantially the business of the TCN Group
(or any part of it) and whose operations are based predominantly in the United
Kingdom.

 

“TARGET Day” means any day
on which the Trans-European Automated Real-time Gross Settlement Express
Transfer payment system is open for the settlement of payments in Euro.

 

“Target Group” means the
Target (or to the extent applicable, any Holding Company of the Target) and its
Subsidiaries as at the date on which the Merger Event has or is deemed to have
occurred and thereafter shall mean, the Target (or to the extent applicable,
any Holding Company of the Target) and its Subsidiaries from time to time.

 

“Target Group Acquisition Indebtedness”
means any Financial Indebtedness raised by any member of the Group (other than
a member of the TCN Group) the proceeds of which have been or are to be used to
finance the acquisition of the Target Group and any reasonable fees, costs and
expenses incurred in relation to the same.

 

“Target Group Acquisition Refinancing
Indebtedness” means any Financial Indebtedness incurred by any
member of the Group (other than a member of the TCN Group) to refinance all or
any part of the Target Group Acquisition Indebtedness, including any Financial
Indebtedness incurred for the purpose of the payment of all principal,
interest, fees, expenses, commissions, make-whole and any other contractual
premium payable in respect thereof, in respect of such refinancing and any

 

42

 

reasonable fees, costs and expenses incurred in
connection with such refinancing, and in respect of which the following terms
apply:

 

(a)           the final maturity date or redemption of such
refinancing occurs after the scheduled final maturity date or redemption date
of the Target Group Acquisition Indebtedness being refinanced;

 

(b)           the average life of the Target Group Acquisition
Refinancing Indebtedness is not shorter than the remaining average life of the
Target Group Acquisition Indebtedness being refinanced at the time of such
refinancing;

 

(c)           taking into account any hedging arrangements
for the principal and interest on the Target Group Acquisition Refinancing
Indebtedness, the interest rate per annum payable in cash, or in the case of a
floating rate loan, the applicable margin, on such Target Group Acquisition Refinancing  Indebtedness
shall not exceed the interest payable in cash, or as the case may be, the
applicable margin, on Target Group Acquisition Indebtedness which is being refinanced;
and

 

(d)           such Target Group Acquisition Refinancing
Indebtedness is structurally subordinated to the Facilities.

 

“Target Group Capital Expenditure”
means, in respect of any period, the aggregate amount of all expenditures of
the Target Group on property, plant and equipment, excluding for the purposes
of paragraph (b)(i) of the definition of Target Group
Cash Flow:

 

(a)           any such expenditure on the replacement or
restoration of assets to the extent paid for by any insurance award or
condemnation award with respect to the assets being replaced or restored;

 

(b)           any such capital expenditure for
acquisitions, investments or joint ventures; and

 

(c)           any such capital expenditure made with proceeds of
Financial Indebtedness, equity proceeds or proceeds of any asset disposition.

 

“Target Group Cash Flow” means, in
respect of any period, Target Group Net Operating Cash Flow for that period
after:

 

(a)           adding back:

 

(i)            any decrease in the amount of Working Capital of
the Target Group at the end of such period compared against the Working Capital
of the Target Group at the start of such period;

 

(ii)           all cash extraordinary or non-recurring gains
during that period to the extent not included in Target Group Net Operating
Cash Flow; and

 

(iii)         any amount received in cash in that period by
members of the Target Group (other than by or in respect of any Excluded Target
Group Member) in respect of income and related taxes;

 

(b)           deducting:

 

(i)            the actual Target Group Capital Expenditure of
members of the Target Group (other than by or in relation to the business of
any Excluded Target Group Member) during such period;

 

43

 

(ii)           any increase in the amount of Working Capital of
the Target Group at the end of such period compared against the Working Capital
of the Target Group at the start of that period;

 

(iii)         any amount paid in cash in that period by any
member of the Target Group (other than by or in relation to the business of any
Excluded Target Group Member) in respect of income and related taxes

 

(iv)          all cash extraordinary or non-recurring losses
during that period to the extent not included in Target Group Net Operating
Cash Flow; and

 

(v)            any amount paid in cash in that period in
respect of dividends, distributions, loans, investments or other similar
payments made or paid during such period by any member of the Target Group
(other than any Excluded Target Group Member) to any person who is not a member
of the Target Group and any cash charges falling under sub-paragraph (h) of “Target
Group Net Operating Cash Flow” which have been added back for the purposes of
calculating such definition,

 

provided that (A) in no event shall amounts constituting Target Group
Debt Service be deducted from Target Group Cash Flow, (B) no amount shall be
included or excluded more than once and (C) in the event the Target is NTL
Incorporated or any of its Subsidiaries, “Target Group Cash Flow” shall have
the meaning set forth for “Bank Group Cash Flow” in the NTL Credit Facility.

 

“Target Group Consolidated Revenues”
means, in respect of any period, the consolidated revenues for the Target Group
for that period as evidenced by the financial statements of the Target Group
for such period.

 

“Target Group Debt Service”
means, in respect of any period, the aggregate of:

 

(a)           the Total Interest Charges in respect
of such period; and

 

(b)           save to the extent immediately reborrowed, the aggregate of all
scheduled payments in such period of principal, capital or nominal amounts in
respect of Target Group Financial Indebtedness or Target Group Refinancing
Indebtedness;

 

provided that, in the event the Target is NTL
Incorporated or any of its Subsidiaries, “Target Group Debt Service” shall have
the meaning set forth for “Consolidated Debt Service” in the NTL Credit
Facility.

 

“Target Group Financial Indebtedness”
means:

 

(a)           Financial Indebtedness of the Target
Group existing as at the date on which a Merger Event has or is deemed to have
occurred to the extent not incurred in contemplation of the Merger Event; and

 

(b)           Financial Indebtedness constituting
Target Group Interim Indebtedness,

 

but excluding any Financial Indebtedness owed by
one member of the Target Group to another member of the Target Group and
following an Integrated Merger Event, any Financial Indebtedness owed by one
member of the Target Group to a member of the TCN Group, any Financial
Indebtedness constituted by guarantees of the Facilities and any Subordinated
Funding.

 

“Target Group Interim Indebtedness”
means Financial Indebtedness incurred by the Target Group between the effective
date of an Unintegrated Merger Event and the effective date of an Integrated
Merger Event.

 

44

 

“Target Group Net Operating Cash Flow”
means, in respect of any period, the Net Income for such period of the Target
Group (excluding for this purpose any Excluded Target Group Member), determined
in accordance with GAAP as then in effect and adding back (or deducting, as the
case may be) (only to the extent used in arriving at Net Income of the Target
Group):

 

(a)           non-cash gains or losses, whether extraordinary, recurring or otherwise
(excluding however any non-cash charge to the extent that it represents
amortisation of a prepaid expense that was paid in a prior period or an accrual
of, or a reserve for, cash charges or expenses in any future period), and
including without limitation non-cash expenses for compensation relating to the
granting of options and restricted stock, sale of stock and similar arrangements;

 

(b)           taxes or benefits in respect of taxes;

 

(c)           foreign currency transaction gains and
losses and foreign currency translation differences;

 

(d)           other non-operating gains and losses, including the
costs of, and accounting for, financial instruments and gains and losses on
disposals of fixed assets;

 

(e)           interest expense and interest income including, without
limitation, amortisation of debt issuance cost and debt discount;

 

(f)            depreciation and amortisation;

 

(g)           extraordinary items;

 

(h)           at the election of TCN, cash charges resulting from any third party
professional, advisory, legal and accounting fees and out-of-pocket expenses
reasonably incurred in connection with, an acquisition or investment, any
financing, any disposal, any separation of any part of parts of its business
anticipated under the Target Facility Agreement (as defined in the Principal
Intercreditor Deed) (a “Target Separation”)
or any Merger Event (in any such case, whether completed or not) provided that
(i) in connection with a Merger Event or Target Separation, the aggregate
amount added back in respect of such fees and expenses shall not exceed
£10,000,000 (or to the extent the aggregate of such fees and expenses do exceed
£10,000,000, any amount above such limit provided that a corresponding amount
shall be deducted from any availability under, at TCN’s option, either or both
of the baskets set out in paragraph (i) below) and (ii) in connection with any
other transactions contemplated under this sub-paragraph (h), the aggregate
amount added back in respect of such fees and expenses shall not exceed
£20,000,000;

 

(i)            cash charges resulting from severance,
integration and other adjustments made as a result of:

 

(i)            Target Separation (or any part of a Target Separation) up to £15,000,000
in aggregate (where such charges have been certified by a duly authorised
officer of the Target as being directly attributable to a Target Separation);
and

 

(ii)           a Merger Event, but only to the extent that
such charges do not exceed £125,000,000 in the First Period and £75,000,000 in
the Second Period where the term “First Period” means the period (A) commencing
on the later of (1) four months prior to the closing of the Merger Event and
(2) the public announcement by the Ultimate Parent, Telewest UK or any other
member of the TCN Group that the parties to the Merger Event have signed a
merger agreement (or similar agreement) (or in the case of a Merger Event
governed by the Takeover Code of the United Kingdom, that there is a firm
intention to effect a Merger Event), and ending on (B) the date which is twelve
months after the closing of the Merger Event, and the term “Second Period”
means the twelve month period after such First Period (in each case, where such
charges

 

45

 

have been certified by a duly authorised
officer of the Target as being directly attributable to the Merger Event);

 

(j)            any cash costs incurred by the Target Group during such period (if any)
and payable to any third party in relation to any scheme of arrangement,
restructuring or recapitalisation which was initiated prior to the date of this
Agreement; and

 

(k)           cumulative changes in GAAP as at the date of this
Agreement;

 

provided that, in the event the Target is NTL
Incorporated or any of its Subsidiaries, “Target Group Net Operating Cash Flow”
shall have the meaning set forth for “Bank Group Covenant Profit” in the NTL
Credit Facility.

 

“Target Group Obligors”
means any member of the Target Group that becomes an Obligor under this
Agreement, pursuant to the provisions of Clause 25.1 (Acceding
Guarantors).

 

“Target Group Refinancing Indebtedness”
means any Financial Indebtedness incurred at any time prior to an Integrated
Merger Event by any member of the Group other than a member of the TCN Group or
upon or immediately following an Integrated Merger Event, incurred by any
member of the Group (other than any member of the TCN Group which was also a
member of the TCN Group immediately prior to the Integrated Merger Event), in
each case, to refinance all or any part of the Target Group Financial
Indebtedness, including any Financial Indebtedness incurred for the purpose of
the payment of all principal, interest, fees, expenses, commissions, make-whole
and any other contractual premium payable in respect thereof, in respect of
such Target Group Financial Indebtedness and any fees, costs and expenses
incurred in connection with such refinancing.

 

“Tax Credit” means a credit
against, relief or remission for, or repayment of, any tax.

 

“Tax Deduction” means a
deduction or withholding for or on account of tax from a payment made or to be
made under a Finance Document.

 

“Taxes Act” means the
Income and Corporation Taxes Act 1988.

 

“Tax Liability” has the
meaning set out in paragraph (e) of Clause 16.2 (Tax
Indemnity).

 

“Tax Payment” means the
increase in any payment made by an Obligor to a Finance Party under paragraph
(c) of Clause 16.1 (Tax Gross-up) or
any amount payable under paragraph (d) of Clause 16.1 (Tax Gross-up)
or under Clause 16.2 (Tax Indemnity).

 

“TCN  Eurobond” means one or more listed notes
issued by TCN to the US Borrower after the date hereof in exchange for and
satisfaction of the TCN Short Term Notes, as the same may be  amended, supplemented, restated, increased,
replaced or otherwise modified from time to time as permitted under this
Agreement.

 

“TCN Group” means TCN and
its direct and indirect Subsidiaries and associated partnerships but (a)
excluding the Excluded Subsidiaries and (b) following an Integrated Merger
Event including each Target Group Obligor and each other person which was a
Subsidiary or Holding Company of the Target immediately prior to the Integrated
Merger Event which is designated as a member of the TCN Group by TCN pursuant
to Clause 23.19 (Notice of Integrated Merger
Event) or by notice to the Facility Agent from time to time and for
so long as such company is a member of the Group.

 

“TCN Group Consolidated Revenues”
means, in respect of any period, the consolidated revenues for the TCN Group
for that period as evidenced by the financial information provided in respect
of that period pursuant to Clause 21.1 (Financial
Statements).

 

46

 

“TCN Group Obligor” means
a member of the TCN Group that is an Obligor hereunder.

 

“TCN Notes” means the TCN
Short Term Notes or the TCN Eurobond as applicable.

 

“TCN Short Term Notes”
means the notes in the initial aggregate amount of £[-]
and $[-] to be issued by TCN to the US Borrower on the date of first
Utilisation hereunder.

 

“Telecommunications, Cable and
Broadcasting Laws” means the Telecommunications Act 1984, the Cable
and Broadcasting Act 1984, the Broadcasting Act 1990 (together with the
Broadcasting Act 1996), the Communications Act 2003 and all other laws,
statutes, regulations and judgments relating to broadcasting or
telecommunications or cable television or broadcasting applicable to any member
of the TCN Group, and/or the business carried on by, any member of the TCN
Group (for the avoidance of doubt, not including laws, statutes, regulations or
judgments relating solely to consumer credit, data protection or intellectual
property).

 

“Telewest” means Telewest Communications
plc (company registration number 2983307).

 

“Telewest Global Debt” means any
Financial Indebtedness of the Ultimate Parent or one or more of its
Subsidiaries (other than a member of the TCN Group).

 

“Term” means:

 

(a)           in relation to a Revolving Facility
Advance, the period for which such Advance is borrowed as specified in the
relevant Utilisation Request; and

 

(b)           in relation to any Documentary Credit,
the period from the date of its issue until its Expiry Date.

 

“Term Facilities” means the
A Facility, the B Facility, and the C Facility and “Term Facility” means any of them, as the context may require.

 

“Term Facility Advance”
means any A Facility Advance, a B Facility Advance or C Facility Advance and “Term Facility Advances” shall be construed
accordingly.

 

“Term Facility Outstandings”
means, at any time, the aggregate of the A Facility Outstandings, the B
Facility Outstandings and the C Facility Outstandings at such time.

 

“Termination Date” means:

 

(a)           in relation to the Revolving
Facility, the date which is 30 days prior to the Final Maturity Date in respect
of the Revolving Facility;

 

(b)           in relation to each Term Facility,
the date falling 30 days after the date of this Agreement; and

 

(c)           in relation to each Ancillary Facility
the date which is specified as such in the applicable Ancillary Facility
Documents provided such date shall not be later than the Termination Date in
respect of the Revolving Facility.

 

“TGD Intercreditor Agreement”
means, to the extent any Guaranteed Parent Debt is issued, one or more
intercreditor deeds between certain of the Obligors, the Finance Parties and
the indenture trustee or other representative of the lenders in respect of such
Guaranteed Parent Debt, as the same may be amended, supplemented, novated or
restated from time to time.

 

“Total Interest Charges”
means, in relation to any period, (A) the total amount (without duplication) of
(i) all interest, amounts in the nature of interest and commitment,
non-utilisation and other periodic fees and commissions accruing in respect of
Financial Indebtedness (including in respect of

 

47

 

obligations under finance or capital leases or hire purchase payments
but excluding amortisation of underwriting, arrangement and similar upfront
fees and debt issuance costs) paid or payable by the TCN Group during such
period plus (ii) net cash amounts paid or payable by the TCN Group (or minus
net cash amounts received or receivable by the TCN Group), as the case may be,
under Interest Rate Agreements, in each case in respect of such period plus
(iii) discounts suffered and repayment premiums payable by the TCN Group in
respect of Financial Indebtedness during such period, in each case to the
extent applicable GAAP requires that such discounts and premiums be treated as
or in like manner to interest plus (iv) discount fees and acceptance fees payable
by the TCN Group or deducted in respect of any Financial Indebtedness of the
TCN Group (including all fees payable in connection with any Documentary
Credit, any other letters of credit or guarantees and any Ancillary Facility)
plus (v) any cash amounts paid or payable by the TCN Group in respect of such
period in the form of Permitted Payments the proceeds of which are intended to
enable the recipient thereof to fund the payment of amounts owed by such
recipient in respect of items of the type described in clauses (i) through (iv)
above plus (vi) any other costs, expenses and deductions of the like effect
minus (B) all interest received by the TCN Group in respect of cash on deposit
with banks or financial institutions, in each case during such period, in the
case of each of clauses (i) to (vi) above, excluding any adjustments to such
amounts relating to the application of fresh start accounting principles.

 

“Transfer Agreement” means
the agreement dated 12 July 2004 between Telewest Communications plc, Telewest
UK and the Ultimate Parent pursuant to which substantially all of the assets of
Telewest Communications plc (including the entire issued share capital of TCN)
were transferred to Telewest UK.

 

“Transfer Date” means, in
relation to any Transfer Deed, the effective date of such transfer as specified
in such Transfer Deed.

 

“Transfer Deed” means a
duly completed deed of transfer and accession substantially in the form set out
in Schedule 3 (Form of Deed of Transfer and Accession)
which has been executed as a deed by a Lender and a Transferee whereby such
Lender seeks to transfer to such Transferee all or a part of such Lender’s
rights, benefits and obligations under this Agreement as contemplated in Clause
36 (Assignments and Transfers) and such Transferee
agrees to accept such transfer and to be bound by this Agreement and to accede
to the Principal Intercreditor Deed and, if applicable, the Pari Passu
Intercreditor Agreement.

 

“Transferee” means a bank
or other institution to which a Lender seeks to transfer all or part of its
rights, benefits and obligations under this Agreement pursuant to and in
accordance with Clause 36 (Assignments and Transfers).

 

“UK Bank Lender” means, in
relation to a payment of interest on a participation in an Advance, a Lender
which is beneficially entitled to and within the charge to United Kingdom
corporation tax as regards that payment and (a) if the participation in that
Advance was made by it, is a Lender which is a “bank” (as defined for the
purposes of section 349 of the Taxes Act in section 840A of the Taxes Act) or
(b) if the participation in that Advance was made by a different person, such
person was a “bank” (as defined for the purposes of section 349 of the Taxes
Act in section 840A of the Taxes Act) at the time that Advance was made.

 

“UK Non-Bank Lender” means,
in relation to a payment of interest on an Advance:

 

(a)           a Lender which is beneficially
entitled to the income in respect of which that payment is made and is a UK
Resident company (the first condition set out in section 349B of the Taxes
Act); or

 

(b)           a Lender which satisfies one of the
other conditions set out in section 349B of the Taxes Act,

 

48

 

where the Board of the Inland Revenue has not given
a direction under section 349C of the Taxes Act which relates to that payment
of interest.

 

“UK Resident” means a
person who is resident in the United Kingdom for the purposes of the Taxes Act
and “non-UK Resident” shall be
construed accordingly.

 

“UK Treaty Lender” means in
relation to a payment of interest on an Advance, a Lender which is entitled to
claim full relief from liability to taxation otherwise imposed by the United
Kingdom (in relation to that Lender’s participation in Advances made to TCN) on
interest under a Double Taxation Treaty and which does not carry on business in
the United Kingdom through a permanent establishment with which that Lender’s
participation in that Advance is effectively connected and, in relation to any
payment of interest on any Advance made by that Lender, TCN has received
notification in writing from the Board of the Inland Revenue authorising it to
pay interest on such Advances without any Tax Deduction.

 

“Ultimate Parent” means Telewest Global,
Inc., incorporated in the State of Delaware, United States of America, whose
registered office is at 1209 Orange Street, Wilmington, Delaware 19801, United
States of America and references to the Ultimate Parent shall include (save in
the case of the definitions of Change of Control and Permitted Holders) any
company which, after the date hereof, becomes a Holding Company of Telewest
Global, Inc. and, following a Merger Event pursuant to which the Ultimate
Parent is amalgamated, consolidated or merged into a member of the Target Group,
the relevant surviving entity.

 

“Unfunded Current Liability”
means, in relation to any Plan, the amount, if any, by which the value of the
accumulated plan benefits under that Plan determined on a plan termination
basis in accordance with actuarial assumptions at such time consistent with
those prescribed by the PBGC for purposes of section 4044 of ERISA, exceeds the
fair market value of all plan assets allocable to such liabilities under Title
IV of ERISA (excluding any accrued but unpaid contributions).

 

“Unintegrated Merger Event”
means a Merger Event has occurred but an Integrated Merger Event has not
occurred.

 

“Unpaid Sum” means any sum
due and payable by an Obligor under this Agreement but unpaid.

 

“US Borrower” means
Telewest Global Finance LLC, a limited liability company incorporated in
Delaware, United States of America.

 

“US Borrower Security Documents”
means the Initial Security Documents listed in paragraphs 4 and 6 of Part 3 of
Schedule 4 (Initial Security Documents).

 

“Utilisation” means the utilisation
of a Facility under this Agreement, whether by way of an Advance, the issue of
a Documentary Credit or the establishment of any Ancillary Facility.

 

“Utilisation Date” means
(a) in relation to an Advance, the date on which such Advance is (or is
requested) to be made (b) in relation to a utilisation by way of Ancillary
Facility, the date on which such Ancillary Facility is established, and (c) in
relation to a utilisation by way of Documentary Credit, the date on which such
Documentary Credit is to be issued, in each case, in accordance with the terms
of this Agreement.

 

“Utilisation Request”
means:

 

(a)           in relation to an Advance a duly
completed notice in the form set out in Part 1 to Schedule 5 (Form of Utilisation Request (Advances)); or

 

49

 

(b)           in relation to a Documentary Credit, a
duly completed notice in the form set out in Part 2 to Schedule 5 (Form of Utilisation Request (Documentary Credits)).

 

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

 

“Working Capital” means, in respect of
any person or group on any date, Current Assets less Current Liabilities of
such person or group.

 

1.2          Accounting Expressions

 

All accounting expressions which are not otherwise defined in this
Agreement shall be construed in accordance with GAAP.

 

1.3          Construction

 

Unless a contrary indication appears, any reference in this Agreement
to:

 

the “Facility Agent”, the “US Paying Agent”, the “Administrative Agent”, a “Mandated Lead Arranger”, the “Security Trustee”, a “Hedge Counterparty”, the “L/C Bank”, an “Ancillary Facility Lender” or a “Lender” shall be construed so as to include their respective
and any subsequent successors, Transferees and permitted assigns in accordance
with their respective interests;

 

“agreed form” means, in relation to any document,
in the form agreed by or on behalf of the Mandated Lead Arrangers and TCN prior
to the date of this Agreement;

 

a reference to “Barclays Capital” is a reference to Barclays Capital the
investment banking division of Barclays Bank PLC;

 

“company”
includes any body corporate;

 

“continuing” in relation to
an Event of Default, or a Default shall be construed as meaning that (a) the
circumstances constituting such Event of Default or Default continue and (b)
neither the Facility Agent (being duly authorised to do so) nor the Lenders
have waived in accordance with this Agreement, such of its or their rights
under this Agreement as arise as a result of that event;

 

“determines”
or “determined” means, except as
otherwise provided herein, a determination made in the absolute discretion of
the person making the determination;

 

the “equivalent” on any
given date in one currency (the “first
currency”) of an amount denominated in another currency (the “second currency”) is a reference to the
amount of the first currency which could be purchased with the second currency
at the Facility Agent’s Spot Rate of Exchange at or about 11:00 a.m. on the
relevant date for the purchase of the first currency with the second currency
or for the purposes of determining any amounts testing any covenant or
determining whether an Event of Default has occurred under this Agreement:

 

(a)           in the case of any basket or threshold
amount qualifying a covenant:

 

(i)            in order to determine how much of such basket
has been used at any time, for each transaction entered into in reliance upon
the utilisation of such basket or in reliance upon such threshold not being
reached prior to such time, the date upon which such transaction was entered
into; and

 

50

 

(ii)           in order to determine the
permissibility of a proposed transaction, on the date upon which the
permissibility of that transaction is being tested for the purposes of
determining compliance with that covenant; and

 

(b)           in the case of any basket or threshold amount
relating to an Event of Default, the date on which the relevant event is being
assessed for the purposes of determining whether such Event of Default has
occurred,

 

provided that in the case of Financial Indebtedness proposed to be
incurred to refinance other Financial Indebtedness denominated in a currency
other than Sterling or other than the currency in which such refinanced
Financial Indebtedness is denominated, if such refinancing would cause any
applicable Sterling-denominated restriction to be exceeded if calculated at the
relevant currency exchange rate in effect on the date of such refinancing, such
Sterling-denominated restriction shall be deemed not to be exceeded so long as
the principal amount of such refinancing Financial Indebtedness does not exceed
the principal amount of such Financial Indebtedness being refinanced in the
applicable currency at the then current exchange rate.

 

“month” is a reference to a
period starting on one day in a calendar month and ending on the numerically
corresponding day in the next succeeding calendar month save that, where any
such period would otherwise end on a day which is not a Business Day, it shall
end on the next succeeding Business Day, unless that day falls in the calendar
month succeeding that in which it would otherwise have ended, in which case it
shall end on the immediately preceding Business Day provided that, if a period
starts on the last Business Day in a calendar month or if there is no numerically
corresponding day in the month in which that period ends, that period shall end
on the last Business Day in that later month (provided that in any reference to
“months” only the last month in a
period shall be construed in the aforementioned manner);

 

a “repayment”
shall include a “prepayment” and
references to “repay” or “prepay” shall be construed accordingly;

 

a “person” shall be
construed as a reference to any person, firm, company, whether with limited
liability or otherwise, government, state or agency of a state or any
association or partnership (whether or not having separate legal personality)
of two or more of the foregoing;

 

“tax” shall be construed so
as to include all present and future taxes, charges, imposts, duties, levies,
deductions or withholdings of any kind whatsoever, or any amount payable on
account of or as security for any of the foregoing, by whomsoever on whomsoever
and wherever imposed, levied, collected, withheld or assessed together with any
penalties, additions, fines, surcharges or interest relating to it; and “taxes” and “taxation” shall be construed accordingly;

 

“VAT” shall be construed as
value added tax as provided for in the Value Added Tax Act 1994 and legislation
(or purported legislation and whether delegated or otherwise) supplemental to
that Act or in any primary or secondary legislation promulgated by the European
Community or European Union or any official body or agency of the European
Community or European Union, and any tax similar or equivalent to value added
tax imposed by any country other than the United Kingdom and any similar or
turnover tax replacing or introduced in addition to any of the same;

 

“wholly-owned Subsidiary”
of a company shall be construed as a reference to any company which has no other
members except that other company and that other company’s wholly-owned
Subsidiaries or nominees for that other company or its wholly-owned
Subsidiaries; and

 

the “winding-up”,
“dissolution” or “administration” of a company shall be
construed so as to include any equivalent or analogous proceedings under the
Law of the jurisdiction in which such company is incorporated, established or
organised or any jurisdiction in which such company carries

 

51

 

on business, including the seeking of
liquidation, winding-up, dissolution, administration, adjustment, protection
from creditors or relief of debtors.

 

1.4          Currency

 

“€” and “Euro” denote the lawful currency of each
Participating Member State, “£”
and “Sterling” denote the lawful
currency of the United Kingdom and “$”
and “Dollars” denote the lawful
currency of the United States of America.

 

1.5          Statutes

 

Any reference in this Agreement to a statute or a statutory provision
shall, save where a contrary intention is specified, be construed as a
reference to such statute or statutory provision as the same shall have been,
or may be, amended or re-enacted.

 

1.6          Time

 

Any reference in this Agreement to a time shall, unless otherwise
specified, be construed as a reference to London time.

 

1.7          References to Agreements

 

Unless otherwise stated, any reference in this Agreement to any
agreement or document (including any reference to this Agreement) shall be
construed as a reference to:

 

(a)           such agreement or document as amended, varied, novated or
supplemented from time to time;

 

(b)           any other agreement or document whereby such agreement or
document is so amended, varied, supplemented or novated; and

 

(c)           any other agreement or document entered into pursuant to or in
accordance with any such agreement or document.

 

1.8          Documentary Credits

 

Any reference in this Agreement to:

 

(a)           an amount borrowed includes any amount utilised by way of
Documentary Credit;

 

(b)           a Lender funding its participation in a Utilisation includes
an Indemnifying Lender participating in a Documentary Credit;

 

(c)           amounts outstanding under this Agreement
include amounts outstanding under, or in relation to, any Documentary Credit;

 

(d)           an outstanding amount of a Documentary Credit at any time is
the maximum amount that is or may be payable by the L/C Bank in respect of that
Documentary Credit at that time;

 

(e)           TCN “repaying”
a Documentary Credit or an Ancillary Facility utilised by way of performance
bond means:

 

(i)            TCN providing
cash cover for that Documentary Credit or performance bond;

 

(ii)           the
maximum amount payable under the Documentary Credit or performance bond being
reduced in accordance with its terms or otherwise in a manner satisfactory to

 

52

 

the L/C Bank or
Ancillary Facility Lender, as the case be, in each case, acting reasonably; or

 

(iii)         the L/C Bank or
Ancillary Facility Lender, as the case be, being satisfied that it has no
further liability under that Documentary Credit or performance bond,

 

and that the amount by which a Documentary Credit or performance bond is
repaid under sub-paragraph (e)(i) or reduced under sub-paragraph (e)(ii) above
is the amount of the relevant cash cover or reduction; and

 

(f)            TCN providing “cash cover”  for a Documentary Credit or an Ancillary
Facility utilised by way of performance bond means TCN paying an amount in the
currency of the Documentary Credit or performance bond to an interest-bearing
account in the name of TCN and the following conditions are met:

 

(i)            the account is
with the Facility Agent (if the cash cover is to be provided for all the
Indemnifying Lenders) or with an Indemnifying Lender or the L/C Bank or the
Ancillary Facility Lender (if the cash cover is to be provided for that
Indemnifying Lender or the L/C Bank or Ancillary Facility Lender, as the case
may be);

 

(ii)           in the case of
cash deposited as cash cover for a Documentary Credit, withdrawals from the
account may only be made to pay a Finance Party amounts due and payable to it
under this Agreement in respect of that Documentary Credit until no amount is
or may be outstanding under that Documentary Credit; and

 

(iii)         TCN has executed
a security document over that account, in form and substance satisfactory to
the Facility Agent or the Finance Party with which that account is held,
creating a first ranking security interest over that account,

 

or on such other terms as may be
satisfactory to the Facility Agent, the relevant Indemnifying Lender, the
relevant Ancillary Facility Lender or the L/C Bank.

 

1.9          Principal Intercreditor Deed

 

Each of the parties to this Agreement agree and acknowledge that this
Agreement is entered into, subject to the terms of the Principal Intercreditor
Deed and in the event of any inconsistency between this Agreement and the
Principal Intercreditor Deed the terms of the Principal Intercreditor Deed
shall prevail.

 

2.             THE FACILITIES

 

2.1          The Facilities

 

The Lenders grant, upon the terms and subject to the conditions of this
Agreement:

 

(a)           to TCN, a revolving loan facility in an aggregate amount of
£100,000,000 (the “Revolving Facility”)
which shall be available for drawing in Sterling subject to the utilisation in
full of the Term Facilities;

 

(b)           to TCN, a term loan facility in an aggregate amount of
£700,000,000 (the “A Facility”)
which shall be available in Sterling in a single drawing on the Closing Date;

 

(c)           to the Borrowers, a term loan facility
in an aggregate amount of £425,000,000 (or its equivalent in other currencies)
(the “B Facility”) which shall be
available (subject to paragraph (e) of this Clause 2.1) by way of (i) no more
than one drawing by each of the

 

53

 

Borrowers on the Closing Date in
Dollars in an aggregate principal amount of $85,000,000 (the “B Facility $ Tranche”) (ii) no more than one drawing by
each of the  Borrowers on the Closing
Date in Euros in an aggregate principal amount of €56,667,000 (the “B Facility  € Tranche”)
and (iii) no more than one drawing by each of the Borrowers on the Closing Date
in Sterling in an aggregate principal amount equal to the remaining Available B
Facility Commitment (the “B Facility  £ Tranche”); and

 

(d)           to the Borrowers, a term loan facility in an aggregate
amount of £325,000,000 (or its equivalent in other currencies) (the “C Facility”) which shall be available
(subject to paragraph (e) of this Clause 2.1) by way of (i) no more than one
drawing by each of the Borrowers on the Closing Date in Dollars in an aggregate
principal amount of $65,000,000 (the “C Facility $ Tranche”)
(ii) no more than one drawing by each of the Borrowers on the Closing Date in
Euros in an aggregate principal amount of €43,333,000  (the “C Facility  € Tranche”)and
(iii) no more than one drawing by each of the Borrowers on the Closing Date in
Sterling in a principal aggregate amount equal to the remaining Available C
Facility Commitment (the “C Facility  £ Tranche”).

 

(e)           Drawings under each of the B Facility $ Tranche, the B
Facility € Tranche, the B Facility £ Tranche, the C Facility $ Tranche, the C
Facility €  Tranche
and  the C  Facility £ Tranche shall be made by each
of  the Borrowers in such proportions as
the Facility Agent shall have notified TCN prior to the first Utilisation
hereunder.

 

2.2          Purpose

 

(a)           The Term Facilities, together with cash on hand of TCN and
the proceeds of the Second Lien Facility are intended to finance, directly or
indirectly, the repayment in full of all amounts due and payable under the
Existing Credit Facility (including without limitation, by way of principal,
interest, break costs, fees and expenses, commission and any other premiums),
any fees, costs and expenses due and payable under the Finance Documents and
the Second Lien Finance Documents and any other fees, costs and expenses
incurred by the Obligors in connection with the negotiation and preparation of
the Finance Documents and the Second Lien Finance Documents.

 

(b)           The Revolving Facility is intended to finance the purposes
set out in paragraph (a) above to the extent that the utilisation in full of
the Term Facilities together with cash on hand of TCN and the proceeds of the
Second Lien Facility is insufficient to satisfy such purposes, to finance the
general working capital requirements and the general corporate purposes of the
TCN Group or for the purposes of complying with the obligations of TCN under
the Pari Passu Intercreditor Agreement and may be utilised by way of Revolving
Facility Advances, Documentary Credits or, subject to the provisions of Clause
6 (Ancillary Facilities), Ancillary
Facilities.

 

(c)           The US Borrower shall apply all amounts borrowed by it under
this Agreement in or towards funding of the TCN Short Term Notes, and TCN shall apply all amounts
borrowed under this Agreement and the TCN Short Term Notes in or towards satisfaction of the
purposes referred to in paragraphs (a) and (b).

 

(d)           None of the Finance Parties shall be obliged to concern
themselves with the application of any amounts borrowed under this Agreement.

 

2.3          Several Obligations

 

The obligations of each Finance Party under this Agreement are several
and the failure by a Finance Party to perform any of its obligations under this
Agreement shall not affect the obligations of any of

 

54

 

the Obligors towards any other party to this
Agreement nor shall any other party be liable for the failure by such Finance
Party to perform its obligations under this Agreement.

 

2.4          Several Rights

 

The rights of each Finance Party are several and any debt arising under
this Agreement at any time from an Obligor to any Finance Party to this
Agreement shall be a separate and independent debt.  Each Finance Party may, except as otherwise
stated in this Agreement, separately enforce its rights under this Agreement.

 

3.             CONDITIONS

 

3.1          Conditions Precedent

 

The obligations of the Lenders to make the Facilities available shall be
conditional upon the Facility Agent having confirmed to TCN that it has
received (or has waived in accordance with this Agreement, the requirement to
receive) the documents listed in Part 1 of Schedule 4 (Conditions
Precedent to First Utilisation) and that each is satisfactory, in
form and substance, to the Facility Agent, acting reasonably.  The Facility Agent shall notify TCN and the
Lenders promptly upon being so satisfied.

 

3.2          General Conditions Subsequent

 

TCN shall procure (and each relevant Obligor shall ensure) that within
30 days after the Closing Date (or earlier, to the extent required by any
time-limit prescribed by law) all Initial Security Documents shall have been
registered or filed with all appropriate authorities to the extent necessary
for the purposes of perfecting the Security created thereunder.  The Facility Agent shall notify TCN and the
Lenders promptly upon being so satisfied.

 

4.             UTILISATION

 

4.1          Conditions to Utilisation

 

Save as otherwise provided in this Agreement, an Advance will be made by
the Lenders to the relevant Borrower or a Documentary Credit will be issued by
an L/C Bank at TCN’s request if:

 

(a)           in the case of an Advance, the Facility Agent has received
from TCN or Telewest Global Finance LLC as appropriate, a duly completed
Utilisation Request in the relevant form, and in the case of a Documentary
Credit, both the Facility Agent and the L/C Bank have received from TCN a duly
completed Utilisation Request in the relevant form, in each case, no earlier
than the day which is 10 Business Days and no later than 2:00 p.m. on the day
which is 3 Business Days (or in the case of any Documentary Credit which is not
or will not be in the form of Schedule 12 (Form
of Documentary Credit), no later than 2:00 p.m. on the day which is
5 Business Days) prior to the proposed Utilisation Date for such Advance or
Documentary Credit, receipt of which shall oblige the relevant Borrower to
utilise the amount requested on the Utilisation Date stated therein upon the
terms and subject to the conditions contained in this Agreement;

 

(b)           the proposed Utilisation Date is a Business Day for the
proposed currency of the Advance or Documentary Credit, as the case may be,
which is or precedes the relevant Termination Date;

 

(c)           in the case of a Utilisation by way of Term Facility
Advance, such Utilisation would result in the maximum principal amount of each
Term Facility Advance being utilised, or in the case of a Utilisation by way of
a Revolving Facility Advance, the proposed Sterling Amount of such Revolving
Facility Advance is (i) equal to the amount of the Available Revolving

 

55

 

Facility Commitment at such
time, or (ii) less than such amount but equal to a minimum amount of
£5,000,000, and an integral multiple of £1,000,000;

 

(d)           in the case of a Utilisation by way of Documentary Credit,
the proposed Sterling Amount of such Documentary Credit is (i) equal to the
amount of the Available Revolving Facility or (ii) less than such amount but
equal to or more than £1,000,000 or such lesser amount as the L/C Bank may
agree;

 

(e)           in the case of a Utilisation by way of a Revolving Facility
Advance, immediately after the making of such Advance there will be no more
than 10 Revolving
Facility Advances then outstanding;

 

(f)            in the case of a Utilisation by way of a Documentary Credit,
the proposed Term of the Documentary Credit ends on or before the Termination
Date in respect of the Revolving Facility;

 

(g)           in the case of a Utilisation by way of a Revolving Facility
Advance, the proposed Term of such Advance is a period of 1, 2, 3 or 6 months,
or such other period of up to 12 months as all the Lenders having a
Revolving Facility Commitment may agree (prior to submission of the relevant
Utilisation Request), and ends on or before the Final Maturity Date in respect
of the Revolving Facility provided that, save as the Mandated Lead Arrangers
may otherwise agree, prior to the Syndication Date, the Term of each Revolving
Facility Advance shall be 1 month (or, if less, such duration as is necessary
to ensure that such Term ends on the Syndication Date);

 

(h)           in the case of the first Advance, the Facility Agent has
received evidence satisfactory to it that £250,000,000 (or its equivalent in
other currencies) has been or will, simultaneously with the drawing of the
first Advance hereunder, be drawn by the Borrowers under the Second Lien
Facility;

 

(i)            in the case of a Utilisation by way of an Advance (other
than a Rollover Advance), the interest rate applicable to such Advance’s first
Interest Period or Term (as the case may be) will not have to be determined
under Clause 14 (Market Disruption and Alternative Interest
Rates);

 

(j)            in the case of a Utilisation by way of a Documentary Credit
which is  not substantially in the form
set out in Schedule 12 (Form of Documentary Credit), the L/C Bank and the Facility Agent
shall each have approved the terms of such Documentary Credit;

 

(k)           in the case of a Utilisation by way of a Revolving Facility
Advance upon and following an Integrated Merger Event, such Utilisation is made
in accordance with the provisions of the Pari Passu Intercreditor Agreement;
and

 

(l)            in the case of any Utilisation, on the date of the
Utilisation Request, the date of any Conversion Notice and the proposed
Utilisation Date:

 

(i)            in the case of a
Rollover Advance or a Documentary Credit which is being renewed pursuant to
Clause 5.2 (Renewal of Documentary Credits), the
Facility Agent shall not have received instructions from an Instructing Group
requiring the Facility Agent to refuse such rollover or renewal of a
Documentary Credit by reason of an Event of Default having occurred which is
continuing or would result from the proposed Rollover Advance or the renewal of
that Documentary Credit; or

 

(ii)           in the
case of any Utilisation other than that referred to in sub-paragraph (i):

 

56

 

(A)          in
the case of the first Utilisation (except to the extent such first Utilisation
occurs on the date immediately after the date of this Agreement), all
representations set out in Clause 20 (Representations
and Warranties) made by each of the persons identified as making
those representations are true in all material respects by reference to the circumstances
then existing and no Default is continuing or would result from the proposed
Utilisation; or

 

(B)          in the case of any other Utilisation, the
Repeating Representations made by the persons identified as making those
representations are true in all material respects by reference to the
circumstances then existing and no Default is continuing or would result from
the proposed Utilisation.

 

4.2          Lenders’ Participations

 

Each Lender will participate through its Facility Office in each Advance
made pursuant to Clause 4.1 (Conditions to Utilisation)
in its respective Proportion.

 

5.             DOCUMENTARY CREDITS

 

5.1          Issue of Documentary Credits

 

(a)           Each L/C Bank shall issue Documentary Credits pursuant to
Clause 4.1 (Conditions to Utilisation) by:

 

(i)            completing the
issue date and the proposed Expiry Date of any Documentary Credit to be issued
by it; and

 

(ii)           executing and
delivering such Documentary Credit to the relevant Beneficiary on the relevant
Utilisation Date.

 

(b)           Each Lender having a Revolving Facility Commitment (an “Indemnifying Lender”) will participate by
way of indemnity in each Documentary Credit in an amount equal to its L/C
Proportion.

 

(c)           The Facility Agent shall notify each Indemnifying Lender and
the L/C Bank of the details of any requested Documentary Credit (including its
Sterling Amount) and its participation in that Documentary Credit.

 

5.2          Renewal of Documentary Credits

 

(a)           TCN may request that a Documentary Credit issued on its
behalf be renewed by delivering to the Facility Agent and the L/C Bank a
Renewal Request which complies with Clause 4.1 (Conditions
to Utilisation).

 

(b)           The terms of each renewed Documentary Credit shall be the
same as those of the relevant Documentary Credit immediately prior to its
renewal, except that (as stated in the Renewal Request therefor):

 

(i)            its
amount may be less than the amount of such Documentary Credit immediately prior
to its renewal; and

 

(ii)           its
Term shall start on the date which was the Expiry Date of that Documentary
Credit immediately prior to its renewal, and shall end on the proposed Expiry
Date specified in the Renewal Request.

 

57

 

(c)           If the conditions set out in this Clause 5.2 have been met,
the L/C Bank shall amend and re-issue the relevant Documentary Credit pursuant
to a Renewal Request.

 

5.3          Immediately Payable

 

If a Documentary Credit or any amount outstanding under a Documentary
Credit is expressed to be immediately payable, TCN shall repay that amount
immediately.

 

5.4          Claims under a Documentary Credit

 

(a)           TCN irrevocably and unconditionally authorises the L/C Bank
to pay any claim made or purporting to be made under a Documentary Credit
requested by it and which appears on its face to be in order (a “claim”).

 

(b)           TCN shall within 3 Business Days of a demand pay to the
Facility Agent for the L/C Bank an amount equal to the amount of any claim.

 

(c)           TCN acknowledges that the L/C Bank:

 

(i)            is not obliged to
carry out any investigation or seek any confirmation from any other person before
paying a claim; and

 

(ii)           deals in
documents only and will not be concerned with the legality of a claim or any
underlying transaction or any available set-off, counterclaim or other defence
of any person.

 

(d)           The obligations of TCN under this Clause 5.4 will not be
affected by:

 

(i)            the
sufficiency, accuracy or genuineness of any claim or any other document; or

 

(ii)           any
incapacity of, or limitation on the powers of, any person signing a claim or
other document.

 

(e)           Without prejudice to any other matter contained in this
Clause 5.4, the L/C Bank shall notify TCN and the Facility Agent as soon as
reasonably practicable after receiving a claim.

 

5.5          Documentary Credit Indemnities

 

(a)           TCN shall within 3 Business Days of demand indemnify the L/C
Bank against any cost, loss or liability incurred by the L/C Bank (otherwise
than by reason of the L/C Bank’s gross negligence or wilful misconduct) in
acting as the L/C Bank under any Documentary Credit requested by TCN provided
that this indemnity shall not take effect until the Closing Date.

 

(b)           Each Indemnifying Lender shall (according to its L/C
Proportion) promptly on demand indemnify the L/C Bank against any cost, loss or
liability incurred by the L/C Bank (otherwise than by reason of the L/C Bank’s
gross negligence or wilful misconduct) in acting as the L/C Bank under any
Documentary Credit (except to the extent that the L/C Bank has been reimbursed
by an Obligor pursuant to a Finance Document).

 

(c)           If any Indemnifying Lender is not permitted (by its constitutional
documents or any applicable Law) to comply with paragraph (b) above, then that
Indemnifying Lender will not be obliged to comply with paragraph (b) and shall
instead be deemed to have taken, on the date the relevant Documentary Credit is
issued (or if later, on the date that Indemnifying Lender’s participation in
the Documentary Credit is transferred or assigned to that Indemnifying Lender
in accordance with the terms of this Agreement), an undivided interest

 

58

 

and participation in the Documentary
Credit in an amount equal to its L/C Proportion of that Documentary
Credit.  On receipt of demand from the
Facility Agent, that Indemnifying Lender shall pay to the Facility Agent (for
the account of the L/C Bank) an amount equal to its L/C Proportion of the
amount demanded under paragraph (b) above.

 

(d)           TCN shall within 3 Business Days of demand reimburse any
Indemnifying Lender for any payment it makes to the L/C Bank under this Clause
5.5 in respect of that Documentary Credit unless an Obligor has already
reimbursed the L/C Bank in respect of that payment.

 

(e)           The obligations of each Indemnifying Lender under this
Clause 5.5 are continuing obligations and will extend to the ultimate balance
of sums payable by that Indemnifying Lender in respect of any Documentary
Credit, regardless of any intermediate payment or discharge in whole or in
part.

 

(f)            The obligations of any Indemnifying Lender under this Clause
5.5 will not be affected by any act, omission, matter or thing which, but for
this Clause 5.5 would reduce, release or prejudice any of its obligations under
this Clause 5.5 (without limitation and whether or not known to it or any other
person) including:

 

(i)            any
time, waiver or consent granted to, or composition with, any Obligor, any
Beneficiary or any other person;

 

(ii)           the
release of any Obligor or any other person under the terms of any composition
or arrangement with any creditor of any member of the Group;

 

(iii)         the taking,
variation, compromise, exchange, renewal or release of, or refusal or neglect
to perfect, take up or enforce, any rights against, or security over assets of,
any Obligor, any Beneficiary or any other person or any non-presentation or
non-observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any security;

 

(iv)          any
incapacity or lack of power, authority or legal personality of or dissolution
or change in the members or status of an Obligor, any Beneficiary or any other
person;

 

(v)            any
amendment or restatement (however fundamental) or replacement of a Finance
Document, any Documentary Credit or any other document or security;

 

(vi)          any
unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document, any Documentary Credit or any other document or
security; or

 

(vii)         any
insolvency or similar proceedings.

 

5.6          Rights of Contribution

 

No Obligor will be entitled to any right of contribution or indemnity
from any Finance Party in respect of any payment it may make under this Clause
5 (Documentary Credits).

 

5.7          Role of the L/C Bank

 

(a)           Nothing in this Agreement constitutes the L/C Bank as a
trustee or fiduciary of any other person.

 

(b)           The L/C Bank shall not be bound to account to any Lender for
any sum or the profit element of any sum received by it for its own account.

 

59

 

(c)           The L/C Bank may accept deposits from, lend money to and
generally engage in any kind of banking or other business with any member of
the Group.

 

(d)           The L/C Bank may rely on:

 

(i)            any
representation, notice of document believed by it to be genuine, correct and
appropriately authorised; and

 

(ii)           any
statement made by a director, authorised signatory or employee of any person
regarding any matters which may reasonably be assumed to be within his
knowledge or within his power to verify.

 

(e)           The L/C Bank may engage, pay for and rely on the advice or
services of any lawyers, accountants, surveyors or other experts.

 

(f)            The L/C Bank may act in relation to the Finance Documents
through its personnel and agents.

 

(g)           The L/C Bank is not responsible for:

 

(i)            the adequacy,
accuracy and/or completeness of any information (whether oral or written)
supplied by the L/C Bank, the Facility Agent, the Mandated Lead Arrangers, an
Obligor or any other person given in or in connection with any Finance
Document; or

 

(ii)           the
legality, validity, effectiveness, adequacy or enforceability of any Finance
Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with any Finance Document.

 

5.8          Exclusion of Liability

 

(a)           Without limiting paragraph (b) below, the L/C Bank will not
be liable for any action taken by it under or in connection with any Finance
Document, unless directly caused by its gross negligence or wilful misconduct.

 

(b)           No Finance Party (other than the L/C Bank) may take any
proceedings against any officer, employee or agent of the L/C Bank in respect
of any claim it might have against the L/C Bank or in respect of any act or
omission of any kind by that officer, employee or agent in relation to any
Finance Document.

 

5.9          Credit Appraisal by the Indemnifying Lenders

 

Without affecting the responsibility of any Obligor for information
supplied by it or on its behalf in connection with any Finance Document, each
Indemnifying Lender confirms to the L/C Bank that it has been, and will
continue to be, solely responsible for making its own independent appraisal and
investigation of the risks arising under or in connection with any Finance
Document, including but not limited to, those listed in paragraphs (a) to (d)
of Clause 29.15 (Credit Appraisal by the Lenders).

 

5.10        Appointment and Change of L/C Bank

 

(a)           TCN, with the prior written consent of the relevant Lender,
may designate any Lender with a Revolving Facility Commitment as an L/C Bank or
as a replacement therefor, but not with respect to Documentary Credits already
issued by any other L/C Bank.

 

(b)           Any Lender so designated shall become an L/C Bank under this
Agreement by delivering to the Facility Agent an executed L/C Bank Accession
Certificate.

 

60

 

(c)           An L/C Bank may resign as issuer of further Documentary
Credits at any time if (i) TCN and an Instructing Group consent to such
resignation or so require; (ii) there is, in the reasonable opinion of the L/C
Bank, an actual or potential conflict of interest in it continuing to act as
L/C Bank; or (iii) its Revolving Facility Commitment is reduced to zero,
provided that the L/C Bank shall not resign until a replacement L/C Bank is
appointed.

 

6.             ANCILLARY FACILITIES

 

6.1          Utilisation of Ancillary Facilities

 

(a)           TCN may, subject to paragraphs (b) and (c) below, at any
time at least 35 days prior to the Termination Date in respect of the Revolving
Facility by delivery of a notice (a “Conversion
Notice”) to the Facility Agent, request an Ancillary Facility to be
established by the conversion of any Lender’s Available Revolving Facility
Commitment (or any part of it) into an Ancillary Facility Commitment with
effect from the date (in this Clause 6, the “Effective
Date”) specified in the Conversion Notice (being a date not less
than 3 Business Days after the date such Conversion Notice is received by the
Facility Agent).

 

(b)           Each Conversion Notice shall specify:

 

(i)            the
nominated Ancillary Facility Lender;

 

(ii)           the
type of Ancillary Facility and the currency or currencies in which TCN wishes
such Ancillary Facility to be available;

 

(iii)         the proposed
Sterling Amount of the original Ancillary Facility Commitment (subject always
to paragraph (c) below), being an amount equal to (i) the Available Revolving
Facility Commitment of the nominated Ancillary Facility Lender or, if less,
(ii) equal to or more than £5,000,000;

 

(iv)          the
commencement and expiry date for the relevant Ancillary Facility (such expiry
date not to extend beyond the Final Maturity Date in respect of the Revolving
Facility); and

 

(v)            such other
details as to the nature, amount, fees for and operation of the proposed
Ancillary Facility as the Facility Agent and the nominated Ancillary Facility
Lender may reasonably require.

 

(c)           The aggregate Sterling Amount of the Revolving Facility
Commitments which may at any time be utilised by way of Ancillary Facilities
shall not exceed £60,000,000.

 

(d)           The Facility Agent shall promptly notify the Lenders having
a Revolving Facility Commitment of each Conversion Notice received pursuant to
paragraph (a) above.

 

(e)           Any Lender nominated as an Ancillary Facility Lender which
has notified the Facility Agent of its consent to such nomination shall be
authorised to make the proposed Ancillary Facility available in accordance with
the Conversion Notice (as approved by the Facility Agent) with effect on and
from the Effective Date.  No other Lender
shall be obliged to consent to the nomination of the Ancillary Facility Lender.

 

(f)            Any material variation from the terms of the Ancillary
Facility or any proposed increase or reduction of the Ancillary Facility
Commitment shall be effected on and subject to the provisions of this Clause 6 mutatis mutandis as if such Ancillary Facility were newly
requested, provided that the Sterling Amount of the Ancillary Facility Outstandings
under each Ancillary Facility shall at no time exceed the related Ancillary
Facility Commitment.

 

61

 

(g)           TCN may (subject to compliance with the applicable terms of
the relevant Ancillary Facility) at any time by giving written notice to the
Facility Agent and the relevant Ancillary Facility Lender cancel any Ancillary
Facility Commitment pursuant to and in accordance with Clause 9.1 (Voluntary Cancellation), provided that on the date of such
cancellation, that part of such Ancillary Facility Commitment as shall have
been so cancelled shall be converted back into the Revolving Facility
Commitment of the relevant Lender unless the Revolving Facility Commitments are
also cancelled on such date.

 

(h)           The Ancillary Facility Commitment of any Ancillary Facility
Lender shall terminate and be cancelled on the date agreed therefor between the
relevant Ancillary Facility Lender and TCN, provided such date shall be no
later than the Termination Date in respect of the Revolving Facility (the “Ancillary Facility Termination Date”).  Any Ancillary Facility Outstandings on the
applicable Ancillary Facility Termination Date shall be repaid in full by TCN
on such date.

 

(i)            The Revolving Facility Commitment of each Lender at any time
shall be reduced by the amount of any Ancillary Facility Commitment of such
Lender at such time but shall, subject to any other provisions of this
Agreement, automatically be increased by the amount of any portion of its
Ancillary Facility Commitment which ceases to be made available to TCN for any
reason (other than as a result of Utilisation of it) in accordance with the
terms of such Ancillary Facility or is cancelled pursuant to paragraphs (g) or
(h) above.

 

6.2          Operation of Ancillary Facilities

 

(a)           Subject to paragraph (b) below, the terms governing the
operation of any Ancillary Facility (including the rate of interest (including
default interest), fees, commission and other remuneration in respect of such
Ancillary Facility) shall be those determined by agreement between the
Ancillary Facility Lender and TCN, provided that such terms shall be based upon
the normal commercial terms and market rates of the relevant Ancillary Facility
Lender.

 

(b)           In the case of any inconsistency or conflict between the
terms of any Ancillary Facility, the applicable Ancillary Facility Documents
and this Agreement, the terms and provisions of the applicable Ancillary
Facility Document shall prevail unless the contrary intention is expressly
provided for in this Agreement.

 

(c)           TCN and Ancillary Facility Lender will promptly upon request
by the Facility Agent, supply the Facility Agent with such information relating
to the operation of each Ancillary Facility (including without limitation
details of the Ancillary Facility Outstandings and the Sterling Amount thereof)
as the Facility Agent may from time to time reasonably request (and TCN
consents to such documents and information being provided to the Facility Agent
and the other Lenders).

 

6.3          Ancillary Facility Default

 

(a)           If a default occurs under any Ancillary Facility, no
Ancillary Facility Lender may demand repayment of any monies or demand cash
cover for any Ancillary Facility Outstandings, or take any analogous action in
respect of any Ancillary Facility, until the Acceleration Date.

 

(b)           If an Acceleration Date occurs, the claims of each Lender
with a Revolving Facility Commitment and each Ancillary Facility Lender in
respect of amounts outstanding to them under the Revolving Facility and
Ancillary Facilities respectively shall be adjusted in accordance with this
Clause 6.3 by making all necessary transfers of such portions of such claims
such that following such transfers the Revolving Facility Outstandings and
Ancillary Facility Outstandings (together with the rights to receive interest,
fees and charges in relation thereto) of (i) each Lender with a Revolving
Facility Commitment and (ii) each Ancillary

 

62

 

Facility Lender, in each case as
at the Acceleration Date shall be an amount corresponding pro rata
to the proportion that the sum of such Lender’s Revolving Facility Commitment
and/or (as the case may be) Ancillary Facility Commitment bears to the sum of
all of the Revolving Facility Commitments and the Ancillary Commitments, each
as at the Acceleration Date.

 

(c)           No later than the third Business Day following the
Acceleration Date each of the Ancillary Facility Lenders shall notify the
Facility Agent in writing of the Sterling Amount of its Ancillary Facility
Outstandings as at the close of business on the Acceleration Date, such amount
to take account of any clearing of debits which were entered into the clearing
system of such Ancillary Facility Lenders prior to the Acceleration Date and
any amounts credited to the relevant accounts prior to close of business on the
Acceleration Date.

 

(d)           On receipt of the information referred to in paragraph (c)
above, the Facility Agent will promptly determine what adjustment payments (if
any) are necessary as between the Lenders participating in the Revolving
Facility and each Ancillary Facility Lender in order to ensure that, following
such adjustment payments, the requirements of paragraph (b) above are complied
with.

 

(e)           The Facility Agent will notify all the Lenders as soon as
practicable of its determinations pursuant to paragraph (d) above, giving
details of the adjustment payments required to be made.  Such adjustment payments shall be payable by
the relevant Lenders and shall be made to the Facility Agent within 3 Business
Days following receipt of such notification from the Facility Agent.  The Facility Agent shall distribute the
adjustment payments received, among the Ancillary Facility Lenders and the
Lenders participating in the Revolving Facility in order to satisfy the
requirements of paragraph (b) above.

 

(f)            If at any time following the Acceleration Date, the amount
of Revolving Facility Outstandings of any Lender or Ancillary Facility
Outstandings of any Ancillary Facility Lender used in the Facility Agent’s
calculation of the adjustments required under paragraph (d) above should vary
for any reason (other than as a result of currency exchange fluctuation or
other reason which affects all relevant Lenders equally), further adjustment
payments shall be made on the same basis (mutatis mutandis)
provided for in this Clause 6.3.

 

(g)           In respect of any amount paid by any Lender (a “Paying Lender”) pursuant to either of
paragraphs (e) or (f) above, as between TCN and the Paying Lender, the amount
so paid shall be immediately due and payable by TCN to the Paying Lender and
the payment obligations of TCN to the Lender(s) which received such payment
shall be treated as correspondingly reduced by the amount of such payment.

 

(h)           Each Lender shall promptly supply to the Facility Agent such
information as the Facility Agent may from time to time request for the purpose
of giving effect to this Clause 6.3.

 

(i)            If an Ancillary Facility Lender has the benefit of any
Encumbrance securing any of its Ancillary Facilities, the realisations from
such security when enforced will be treated as an amount recovered by such
Ancillary Facility Lender in its capacity as a Lender which is subject to the
sharing arrangements in Clause 34 (Sharing Among the Finance
Parties) to the intent that such realisation should benefit all
Lenders pro rata.

 

63

 

7.             REPAYMENT OF REVOLVING
FACILITY OUTSTANDINGS

 

7.1          Repayment of Revolving Facility Advances

 

Subject to the provisions of the Pari Passu Intercreditor Agreement upon
and following an Integrated Merger Event, TCN shall (subject to Clause 7.2 (Rollover Advances)) repay the full amount of each Revolving
Facility Advance on its Repayment Date.

 

7.2          Rollover Advances

 

Without prejudice to TCN’s obligation to repay the full amount of each
Revolving Facility Advance made to it on the applicable Repayment Date, where,
on the same day on which TCN is due to repay a Revolving Facility Advance (a “Maturing Advance”) TCN has also requested
that a Revolving Facility Advance in the same currency as and in an amount
which is equal to or less than the Maturing Advance be made to it (a “Rollover Advance”), subject to the Lenders
being obliged to make such Rollover Advance under Clause 4.1 (Conditions to Utilisation), the amount to be so repaid and
the amount to be so drawn down shall be netted off against each other so that
the amount which TCN is actually required to repay on the applicable Repayment
Date shall be the net amount remaining after such netting off.

 

7.3          Cash Collateralisation of Documentary Credits

 

TCN may give the Facility Agent not less than 5 Business Days’ prior
written notice of its intention to repay all or any portion of a Documentary
Credit and, having given such notice, shall procure that the relevant
Outstanding L/C Amount (or portion thereof) in respect of such Documentary
Credit is reduced to zero and repaid in full by providing cash cover therefor
in accordance with Clause 1.8 (Documentary Credits)
(in each case,) or by reducing the Outstanding L/C Amount of such Documentary
Credit or by cancelling such Documentary Credit and returning the original to
the L/C Bank or the Facility Agent on behalf of the Lenders.

 

7.4          Cleandown

 

Notwithstanding any other provision of this Agreement, TCN shall procure
that (other than in respect of any Ancillary Facility Outstandings or
Documentary Credits) Revolving Facility Outstandings are reduced to zero for a
period of at least 5 consecutive Business Days in each annual period during
which the Revolving Facility is available for drawing under this Agreement.

 

8.             REPAYMENT OF TERM FACILITY OUTSTANDINGS

 

8.1          Repayment of A Facility Outstandings

 

TCN shall make such repayments as may be necessary to ensure that on
each of the dates set out in the table below (each an “A Facility Repayment Date”) the aggregate
Sterling Amount of the A Facility Outstandings (as at the close of business in
London on the Closing Date) is reduced by an amount equal to the amount set out
in the table below (each, an “A Facility
Repayment Instalment”).

 

64

 

	
  Repayment Date

  	
   

  	
  Amount Repayable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2005

  	
   

  	
  £

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  £

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2006

  	
   

  	
  £

  	
  25,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  £

  	
  30,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2007

  	
   

  	
  £

  	
  40,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2007

  	
   

  	
  £

  	
  50,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2008

  	
   

  	
  £

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2008

  	
   

  	
  £

  	
  70,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2009

  	
   

  	
  £

  	
  80,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2009

  	
   

  	
  £

  	
  80,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2010

  	
   

  	
  £

  	
  80,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2010

  	
   

  	
  £

  	
  80,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2011

  	
   

  	
  £

  	
  80,000,000

  	
   

  

 

8.2          Repayment of B Facility Outstandings

 

TCN shall procure that the B Facility Outstandings are repaid by the
making of such repayments (each, a “B
Facility Repayment Instalment”) as may be necessary to ensure that
on each of the dates falling 90 months and 96 months (each, a “B Facility Repayment Date”) after the date
of this Agreement, the aggregate Sterling Amount of the B Facility Outstandings
(as at the close of business in London on the Closing Date) is reduced by 50%
of such B Facility Outstandings (in the case of the initial B Facility
Repayment Instalment) and the remaining aggregate amount of such B Facility
Outstandings (in the case of the final B Facility Repayment Instalment).

 

8.3          Repayment of C Facility Outstandings

 

TCN shall procure that the C Facility Outstandings are repaid by the
making of such repayments (each, a “C
Facility Repayment Instalment”) as may be necessary to ensure that
on each of the dates falling 102 months and 108 months (each, a “C Facility Repayment Date”) after the date
of this Agreement, the aggregate Sterling Amount of the C Facility Outstandings
(as at the close of business in London on the Closing Date) is reduced by 50%
of such C Facility Outstandings (in the case of the initial C Facility
Repayment Instalment) and the remaining aggregate amount of such C Facility
Outstandings (in the case of the final C Facility Repayment Instalment).

 

8.4          No Reborrowing of Term Facility Advances

 

No Borrower may reborrow any part of any Term Facility Advance which is
repaid.

 

9.             CANCELLATION

 

9.1          Voluntary Cancellation

 

Subject to the provisions of the Pari Passu Intercreditor Agreement upon
and following an Integrated Merger Event, TCN may, by giving to the Facility
Agent not less than 3 Business Days’ prior written

 

65

 

notice to that effect (unless an Instructing Group has
given its prior consent to a shorter period) cancel any Available Facility in
whole or any part (but if in part, in an amount that reduces the Sterling
Amount of such Facility by a minimum amount of £5,000,000 and an integral
multiple of £1,000,000) and any such cancellation shall (subject to the
provisions of Clause 6.1(g) (Utilisation of Ancillary
Facilities), reduce the relevant Available Commitments of the
Lenders rateably.

 

9.2          Notice of Cancellation

 

Any notice of cancellation given by TCN pursuant to Clause 9.1 (Voluntary Cancellation) shall be irrevocable and shall
specify the date upon which such cancellation is to be made and the amount of
such cancellation.

 

9.3          Cancellation
of Available
Commitments

 

(a)           On each Termination Date any Available Commitments in
respect of the Facility to which such Termination Date relates shall automatically
be cancelled and the Commitment of each Lender in relation to such Facility
shall automatically be reduced to zero.

 

(b)           No Available Commitments which have been cancelled hereunder
may thereafter be reinstated.

 

10.          VOLUNTARY PREPAYMENT

 

10.1        Voluntary Prepayment

 

A Borrower may by giving to the Facility Agent not less than 5 Business
Days’ prior written notice to that effect (unless an Instructing Group has
given its prior consent to a shorter period), repay any Advance in whole or in
part (but if in part, in an amount that reduces the Sterling Amount of the
relevant Advance by a minimum amount of £5,000,000 and an integral multiple of
£1,000,000) together with accrued interest on the amount repaid without premium
or penalty but subject to the payment of any Break Costs.

 

10.2        Right of Prepayment and Cancellation in relation to a
single Lender

 

If any sum payable to any Lender by an Obligor is required to be
increased under Clause 16.1 (Tax Gross-up)
or a Lender claims indemnification from any Borrower under the provisions of
Clause 16.2 (Tax Indemnity) or Clause 17.1 (Increased Costs) TCN may elect, by providing at least 5
Business Days’ prior notice of its intention to repay or to cause to be repaid
such Lender’s share of the Outstandings to the Facility Agent, to repay such
Lender’s share of the Outstandings on a non-pro rata basis.  In such event, TCN shall procure that on the
last day of each of the then current Interest Periods or Terms (as the case may
be) such Lender’s portion of each Advance to which each such Interest Period or
Term relates is repaid and if the relevant Lender is also an L/C Bank, TCN
shall procure that the relevant Outstanding L/C Amount(s) are reduced to zero
and if the relevant Lender is also an Ancillary Facility Lender, TCN shall
repay the relevant Ancillary Facility Outstandings in full.

 

10.3        Application of Repayments

 

(a)           Subject to the provisions of the Principal Intercreditor
Deed and, upon and following an Integrated Merger Event to the Pari Passu
Intercreditor Agreement, to the extent applicable, any repayment made pursuant
to Clauses 10.1 (Voluntary Prepayment), 11.2 (Repayment from Net Proceeds of Disposals and
Insurance Recoveries), 11.4 (Repayment
from Excess Cash Flow), 11.5 (Repayment
from Debt Proceeds) and 11.6 (Repayment
from Equity Proceeds) under the circumstances set out therein, shall
be applied firstly, subject to paragraph (d) below, in repayment of the Term
Facility Outstandings pro rata to the

 

66

aggregate amount of A Facility
Outstandings, B Facility Outstandings and C Facility Outstandings on the date
of such repayment until all A Facility Outstandings, all B Facility
Outstandings and all C Facility Outstandings have been repaid in full, secondly,
in repayment of Revolving Facility Outstandings on the date of such repayment
and thirdly following repayment in full of the Facilities, against outstanding
amounts of the Second Lien Facility.

 

(b)           Any repayment of A Facility Outstandings made pursuant to
paragraph (a) shall either:

 

(i)            reduce each of
the remaining Repayment Instalments for the A Facility on a pro rata basis; or

 

(ii)           at the election
of TCN made on or prior to the date upon which such repayment of A Facility
Outstandings is made pursuant to paragraph (a) above, repay the two immediately
succeeding Repayment Instalments for the A Facility in chronological order of
maturity, and thereafter in respect of any excess, reduce each of the remaining
Repayment Instalments for the A Facility on a pro rata basis.

 

(c)           Subject to the provisions of paragraph (d) below, any
repayment of B Facility Outstandings and/or C Facility Outstandings made
pursuant to paragraph (a) shall reduce each of the Repayment Instalments for
the B Facility and the C Facility, as applicable, on a pro rata basis.

 

(d)           Without prejudice to the provisions of paragraph (a) above,
any Lender under the B Facility or the C Facility (a “B Facility Lender” or a “C Facility Lender”, as the case may be), may at its sole
discretion, notify the Facility Agent at least 3 Business Days in advance that
it does not wish to receive its share of the prepayment of the B Facility
Outstandings or C Facility Outstandings to be made pursuant to paragraph (a),
at the time such prepayment is to be made. 
In the event of such notification, the amount which would have been
applied in prepaying such B Facility Lender or C Facility Lender shall instead
be applied in prepayment to the Lenders of the A Facility (in the case of any
repayments foregone by a B Facility Lender) or the B Facility (in the case of
any repayments foregone by a C Facility Lender).

 

(e)           Any repayment of any Revolving Facility Outstandings under
this Agreement shall be applied first against Revolving Facility Advances and
when all Revolving Facility Advances have been repaid in full, to provide cash
collateral in respect of any Outstanding L/C Amounts.

 

10.4        Release from
Obligation to
make Advances

 

A Lender for whose account a repayment is to be made under Clause 10.2 (Right of Prepayment and Cancellation in relation to a single Lender) shall
not be obliged to participate in the making of Advances (including Revolving
Facility Advances) or in the issue or counter-guarantee in respect of
Documentary Credits or in the provision of Ancillary Facilities on or after the
date upon which the Facility Agent receives the relevant notice of intention to
repay such Lender’s share of the Outstandings, on which date all of such Lender’s
Available Commitments shall be cancelled and all of its Commitments shall be
reduced to zero.

 

10.5        Notice of Repayment

 

Any notice of repayment given by either Borrower pursuant to Clauses
10.1 (Voluntary Prepayment) or 10.2 (Right of Prepayment and Cancellation in relation to a single Lender)
shall be irrevocable, shall specify the date upon which such repayment is to be
made and the amount of such repayment and shall oblige such Borrower to make
such repayment on such date.

 

67

 

10.6        Restrictions on Repayment

 

No Borrower may repay all or any part of any Advance  (including, at any time, a Revolving Facility
Advance) except at the times and in the manner expressly provided for in this
Agreement.

 

10.7        Cancellation upon Repayment

 

No amount repaid under this Agreement may subsequently be reborrowed
other than any amount of a Revolving Facility Advance repaid in accordance with
Clause 7.1 (Repayment of Revolving Facility Advances)
or any Documentary Credit repaid in accordance with this Agreement on or prior
to the Final Maturity Date in respect of the Revolving Facility and upon any
repayment (other than in respect of a Revolving Facility Advance, as aforesaid)
the availability of the relevant Facility shall be reduced by an amount
corresponding to the amount of such repayment and the Available Commitment of
each Lender in relation to that Facility shall be cancelled in an amount equal
to such Lender’s Proportion of the amount repaid.  For the avoidance of doubt, unless expressly
agreed to the contrary in the relevant Ancillary Facility Documents, this
Clause 10.7 shall not apply to any Ancillary Facility.

 

11.          MANDATORY PREPAYMENT AND CANCELLATION

 

11.1        Change of Control

 

If, other than to the extent arising from or in connection with a Merger
Event:

 

(a)           there occurs a sale of all or substantially all of the
assets and/or business of the TCN Group, (excluding for the purposes of this
Clause 11.1(a), any Flextech Disposal), taken as a whole;

 

(b)           Telewest UK ceases to be a direct or indirect wholly-owned
Subsidiary of the Ultimate Parent;

 

(c)           TCN ceases to be a direct wholly-owned Subsidiary of
Telewest UK; or

 

(d)           a Change of Control occurs,

 

all of the Available Commitments shall immediately be cancelled, the
Commitments of each Lender in respect of each Facility shall be reduced to zero
and TCN shall procure that the Outstandings are immediately repaid in full
together with unpaid interest accrued thereon and all other amounts payable
pursuant to Clause 30 (TCN’s Indemnities)
and any other provision of this Agreement.

 

11.2        Repayment from Net Proceeds of Disposals and Insurance
Recoveries

 

(a)           Subject to the provisions of the Principal Intercreditor
Deed and, upon and following an Integrated Merger Event to the Pari Passu
Intercreditor Agreement, TCN shall procure that, subject to paragraph (b) below
or unless the Facility Agent (acting on the instructions of the Instructing
Group) otherwise agrees, an amount equal to the Net Proceeds (other than Net
Proceeds of Financial Indebtedness) received:

 

(i)            by any member of
the TCN Group in excess of an aggregate of £6,000,000 (or its equivalent in
other currencies) in any financial year of TCN; or

 

(ii)           by any member of
the TCN Group in respect of any insurance policy in aggregate exceeding £6,000,000 (or its
equivalent in other currencies) in any financial year of TCN,

 

68

 

is applied in or towards repayment of the Outstandings in accordance
with Clause 10.3 (Application of Repayments) at the
end of the Interest Period or Term current at the time of receipt of such Net
Proceeds.

 

(b)           Paragraph (a) shall not apply to Net Proceeds arising:

 

(i)            from a Disposal
where such Net Proceeds are used for the acquisition of or reinvestment in
assets used or useful in the business of the TCN Group or in a business
directly related to the business of the TCN Group or are applied towards
Capital Expenditures of the TCN Group, in each case, within 12 months of the
date of receipt of such Net Proceeds and to the extent not otherwise restricted
by the provisions of this Agreement;

 

(ii)           from any Disposal
referred to in paragraphs (a), (b) (where the Net Proceeds of any individual
such Disposal, or series of Disposals forming part of the same transaction, are
less than £3,000,000 (or its equivalent in other currencies)), (c) (other than
to the extent such Net Proceeds relate to the Disposal of Cash Equivalent
Investments or Marketable Securities acquired in consideration of any disposal
which is subject to the proviso to Clause 24.6 (Disposals)), (d), (e), (f), (g), (h), (i), (j), (k), (l) and
(p) of Clause 24.6 (Disposals);

 

(iii)         from any
insurance recovery, where the Net Proceeds arising out of the same are applied
within 12 months of receipt of such Net Proceeds in replacing, reinstating or
repairing the relevant damaged or destroyed assets in refinancing any
expenditure incurred in the replacement, reinstatement and/or repair of such
assets, for the acquisition of or reinvestment in assets acquired for use in
the business of the TCN Group or for application towards Capital Expenditures
of the TCN Group; or

 

(iv)          out of or in
connection with all or any part of a Flextech Disposal.

 

11.3        Blocked Accounts

 

(a)           In relation to any amount of Net Proceeds or Equity Proceeds
in excess of £20,000,000 (i) referred to in paragraphs (b)(i) and (b)(iii) of
Clause 11.2 (Repayment from Net Proceeds of Disposals and
Insurance Receivables), (ii) contributed to the TCN Group under
sub-paragraph (b)(ix) of Clause 11.5 (Repayment
from Debt Proceeds) or
(iii) contributed to or invested in the TCN Group under sub-paragraph
(b)(ii) of Clause 11.6 (Repayment from Equity
Proceeds) pending the acquisition, reinvestment, replacement,
reinstatement or repair or application towards Capital Expenditures
contemplated in Clause 11.2(b), or the application towards any acquisition,
investment or Capital Expenditures contemplated in Clause 11.5(b) or Clause
11.6(b), all such amounts shall be deposited in a Blocked Account.

 

(b)           While there are any Outstandings or any of the Commitments
are available for drawing, no amount shall be withdrawn from any Blocked
Account by any member of the Group or the Facility Agent except for (i) amounts
applied in accordance with sub-paragraphs (b)(i) and (b)(iii) of Clause 11.2 (Repayment from Net Proceeds of Disposals and Insurance Recoveries),
sub-paragraph (b)(ix) of Clause 11.5 (Repayment from Debt
Proceeds) and sub-paragraph (b)(ii) of Clause 11.6 (Repayment from Equity Proceeds), (ii) amounts applied in or
towards repayment of Outstandings in accordance with Clause 11.2 (Repayment from Net Proceeds of Disposals and Insurance Recoveries),
Clause 11.5 (Repayment from Debt Proceeds) or
Clause 11.6 (Repayment from Equity Proceeds),
(iii) at the election of TCN, amounts applied in or towards repayment of Revolving
Facility Outstandings, or (iv) following the Acceleration Date, applications by
the Facility Agent of the whole or any part of the sums standing to the credit
of a Blocked Account in or towards payment of any sums due and unpaid at any
time from any Obligor under any Finance Document.

 

69

 

11.4        Repayment from Excess Cash Flow

 

(a)           Subject to the provisions of the Principal Intercreditor
Deed and, upon and following an Integrated Merger Event to the Pari Passu
Intercreditor Agreement, TCN shall ensure that, to the extent Excess Cash Flow
exceeds £10,000,000 in any financial year of TCN, subject to paragraph (b)
below, an amount equal to:

 

(i)            50% of Excess
Cash Flow in such financial year in the event that the Compliance Certificate
delivered pursuant to Clause 21.4 (Compliance Certificates)
and the annual financial information delivered pursuant to Clause 21.1 (Financial Statements) demonstrate that the
ratio of Consolidated Total Debt as at the end of such financial year to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on the last day of such financial year, is greater than 3.5 to
1.0; or

 

(ii)           25% of Excess
Cash Flow in such financial year in the event that the Compliance Certificate
delivered pursuant to Clause 21.4 (Compliance Certificates)
and the annual financial information delivered pursuant to Clause 21.1 (Financial Statements) demonstrate that the
ratio of Consolidated Total Debt as at the end of such financial year to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on the last day of such financial year, is 3.5 to 1.0 or less but
is more than 2.75 to 1.0,

 

is applied in or towards repayment of Outstandings in accordance with
Clause 10.3 (Application of Repayments) within
10 Business Days after the delivery to the Facility Agent of the annual
financial information of the TCN Group for such financial year.

 

(b)           No repayments shall be required under paragraph (a) above in
respect of (i) the financial year ending 31 December 2004 or (ii) any other
financial year in the event that, in the case of this paragraph (b)(ii), the
Compliance Certificate delivered pursuant to Clause 21.4 (Compliance
Certificates) and the annual financial information delivered
pursuant to Clause 21.1 (Financial
Statements) in respect of such other financial year demonstrate that
the ratio of Consolidated Total Debt as at the end of such financial year to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on the last day of such financial year, is 2.75 to 1.0 or less.

 

11.5        Repayment from Debt Proceeds

 

(a)           Subject to the provisions of the Principal Intercreditor
Deed and, upon and following an Integrated Merger Event to the Pari Passu
Intercreditor Agreement and unless the Facility Agent (acting on the
instructions of the Instructing Group) otherwise agrees, TCN shall, subject to
paragraph (b) below, ensure that an amount equal to 50% of the Net Proceeds in
excess of £10,000,000 of any Financial Indebtedness raised by the Ultimate
Parent, Telewest UK or any member of the TCN Group in connection with any
single raising of Financial Indebtedness after the date hereof shall be
contributed to a member of the TCN Group, if applicable, in accordance with
Clause 23.16 (Contributions to the TCN Group)
and applied in or towards repayment of Outstandings in accordance with Clause
10.3 (Application of Repayments) in the
incremental amount at the end of Interest Periods next ending on or after the
10th Business Day following the date of receipt of such Net Proceeds by the
relevant member of the Group.

 

(b)           Paragraph (a) above shall not apply to:

 

(i)            the Net Proceeds
of the Second Lien Facility or any Financial Indebtedness raised in respect of
any Second Lien Refinancing provided that any amount received in

 

70

 

connection with any Second Lien Refinancing which exceeds the aggregate
of (A) the aggregate principal amount of the Second Lien Facility being
refinanced, (B) any accrued interest thereon, (C) any make-whole and any other
contractual premium payable in respect thereof and (D) any fees, costs,
expenses, commissions and other similar charges reasonably incurred in connection
with such refinancing, shall be required to be repaid in accordance with
paragraph (a) above except to the extent such excess would be excluded from the
application of paragraph (a) above under the terms of any other provision of
this paragraph (b);

 

(ii)           in connection
with an Unintegrated Merger Event or at any time prior to an Integrated Merger
Event, the Net Proceeds of any Target Group Refinancing Indebtedness raised by
the Ultimate Parent or Telewest UK;

 

(iii)         in connection
with or at any time after an Integrated Merger Event, the Net Proceeds of any
Target Group Refinancing Indebtedness and any Post Merger Target Group
Refinancing raised by the Ultimate Parent, Telewest UK or any member of the
Group, which is not otherwise prohibited by this Agreement, (provided in each
case, that any amount received in connection with any Target Group Refinancing
Indebtedness or any Post Merger Target Group Refinancing which exceeds the
aggregate of (A) the aggregate principal amount of the Target Group Financial
Indebtedness and/or Target Group Refinancing Indebtedness (as the case may be)
which is being refinanced, (B) any accrued interest thereon, (C) make-whole and
any other contractual premium payable in respect thereof which is not
inconsistent with standard market practice, and (D) any reasonable fees, costs,
expenses, commissions and other similar charges reasonably incurred in
connection with such refinancing, shall be required to be repaid in accordance
with paragraph (a) above, except to the extent such excess would be excluded
from the application of paragraph (a) above under the terms of any other
provision in this paragraph (b));

 

(iv)          the Net Proceeds
of any Financial Indebtedness in respect of any Hedging Agreement entered into
by any member of the Group;

 

(v)            the Net Proceeds
of any Financial Indebtedness raised by the Ultimate Parent, Telewest UK or any
member of the TCN Group from any other member of the Group to the extent not
otherwise prohibited by this Agreement;

 

(vi)          the Net Proceeds
of any Financial Indebtedness raised by the Ultimate Parent, Telewest UK or a
member of the TCN Group to the extent such Financial Indebtedness is permitted
by Clause 24.4 (Financial Indebtedness) or
paragraph (b) of Clause 24.15 (Telewest UK
Covenants);

 

(vii)         the Net Proceeds
of any Telewest Global Debt raised by the Ultimate Parent or Telewest UK which
Net Proceeds are, within 90 Business Days of receipt thereof, contributed to
the TCN Group in accordance with Clause 23.16 (Contributions
to the TCN Group) and deposited into a Blocked Account to the extent
contemplated by Clause 11.3 (Blocked
Accounts) and applied within 90 days after such deposit towards the
purchase price of any acquisition or investment permitted by Clause 24.13 (Acquisitions and Investments) or within 12 months thereafter
towards Capital Expenditure in compliance with the provisions of Clause 22.2 (Permitted  Capital
Expenditure) or towards amounts relating to video on demand as set
out in paragraph (a)(iv) of the definition of Consolidated TCN Group Cash Flow;

 

(viii)        the Net Proceeds
of any Serviceable Non-TCN Group Debt raised by the Ultimate Parent or Telewest
UK which Net Proceeds are contributed to the TCN Group in accordance with
Clause 23.16 (Contributions to the TCN Group),
provided that if

 

71

 

such Serviceable Non-TCN Group Debt had been incurred by a member of
the TCN Group, it would have been permitted pursuant to paragraph (g) or (m) of
Clause 24.4 (Financial Indebtedness);
or

 

(ix)          the Net Proceeds
of any Telewest Global Debt raised by the Ultimate Parent or Telewest UK which
constitutes Target Group Acquisition Indebtedness or Target Group Acquisition
Refinancing Indebtedness (provided that any amount received in connection with
any Target Group Acquisition Refinancing Indebtedness which exceeds the
aggregate of (A) the aggregate principal amount of the Target Group Acquisition
Indebtedness being refinanced, (B) any accrued interest thereon, (C) make-whole
and any other contractual premium payable in respect thereof which is not
inconsistent with standard market practice, and (D) any fees, costs, expenses,
commissions and other similar charges reasonably incurred in connection with
such refinancing, shall be required to be repaid in accordance with paragraph
(a) above, except to the extent such excess would be excluded from the
application of paragraph (a) above under the terms of any other provision in
this paragraph (b)).

 

11.6        Repayment
from Equity Proceeds

 

(a)           Subject to the provisions of the Principal Intercreditor
Deed and, upon and following an Integrated Merger Event to the Pari Passu
Intercreditor Agreement and unless the Facility Agent (acting on the
instructions of the Instructing Group) otherwise agrees, TCN shall (subject to
paragraph (b) below) ensure, to the extent Equity Proceeds exceed £10,000,000
in any financial year of TCN, that an amount equal to:

 

(i)            50% of Equity
Proceeds in respect of any single raising of equity, in the event that the
Compliance Certificate most recently delivered pursuant to Clause 21.4 (Compliance Certificates) and the quarterly financial
information delivered pursuant to Clause 21.1 (Financial
Statements) for each Financial Quarter in the Semi-Annual Period
ending on the Quarter Date to which such Compliance Certificate relates
demonstrate that the ratio of Consolidated Total Debt as at such Quarter Date
to Consolidated Annualised TCN Group Net Operating Cash Flow for the
Semi-Annual Period ending on such Quarter Date is more than 3.5 to 1.0; or

 

(ii)           25% of Equity
Proceeds in respect of any single raising of equity, in the event that the
Compliance Certificate most recently delivered pursuant to Clause 21.4 (Compliance Certificates) and the quarterly financial
information delivered pursuant to Clause 21.1 (Financial
Statements) for each Financial Quarter in the Semi-Annual Period
ending on the Quarter Date to which such Compliance Certificate relates
demonstrate that the ratio of Consolidated Total Debt as at such Quarter Date
to Consolidated Annualised TCN Group Net Operating Cash Flow for the
Semi-Annual Period ending on such Quarter Date is 3.5 to 1.0 or less but is
more than 3.0 to 1.0,

 

shall be contributed to a member of the TCN Group in accordance with
Clause 23.16 (Contributions to the TCN Group)
and applied in or towards repayment of Outstandings in accordance with Clause
10.3 (Application of Repayments) in each case
at the end of Interest Periods next ending on or after the 10th Business Day
following the date of receipt of such Net Proceeds by the relevant  issuer.

 

(b)           Paragraph (a) shall not apply to any Equity Proceeds:

 

(i)            to the extent
that any Borrower has made a voluntary prepayment of the Outstandings in
accordance with Clause 10.1 (Voluntary
Prepayment) using the proceeds of any Telewest Global Debt (the “Voluntary Prepayment Amount”) and, in the
case of the Revolving Facility Outstandings, the aggregate Revolving Facility
Commitments

 

72

 

have been permanently cancelled by an amount equal to the amount of
Revolving Facility Outstandings so prepaid and such Equity Proceeds are applied
in prepayment of the Telewest Global Debt so used;

 

(ii)           to the extent
such Equity Proceeds are contributed to or invested in the TCN Group in accordance
with Clause 23.16 (Contributions to the TCN
Group) and, immediately upon such contribution, are deposited into a
Blocked Account to the extent contemplated by Clause 11.3 (Blocked Accounts) and applied within 180
days thereafter towards the purchase price of any acquisition or investment
permitted by Clause 24.13 (Acquisitions and
Investments) or within 12 months thereafter towards any Capital
Expenditures not prohibited by the provisions of Clause 22.2 (Permitted Capital Expenditure) or towards
amounts relating to video on demand as set out in paragraph (a)(iv) of the
definition of Consolidated TCN Group Cash Flow;

 

(iii)         to the extent
such Equity Proceeds are applied towards consideration payable in connection
with, and any reasonable fees, commissions, expenses or other similar charges
incurred by the Group in relation to, a Merger Event;

 

(iv)          arising from the
exercise of stock options or any other issuance of similar securities to
directors, officers, employees or consultants of any member of the Group;

 

(v)            to the extent
such Equity Proceeds are applied towards any refinancing of Target Group
Acquisition Indebtedness, Target Group Acquisition Refinancing Indebtedness,
Target Group Financial Indebtedness, Target Group Refinancing Indebtedness or
Post Merger Target Group Refinancing; and

 

(vi)          to the extent
raised by any member of the Group which is a Joint Venture but which is not a
member of the TCN Group and applied for its own purposes.

 

(c)           TCN’s obligations under Clause 11.6(a) above shall not apply
in respect of Equity Proceeds if, on the last day of the Financial Quarter
ended most recently prior to the receipt of such Equity Proceeds in respect of
which a Compliance Certificate has been delivered pursuant to Clause 21.4 (Compliance Certificates) and quarterly
financial information has been delivered pursuant to Clause 21.1 (Financial Statements), the ratio of
Consolidated Total Debt as at the last day of such Financial Quarter to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on such day is 3.0 to 1.0 or less.

 

12.          INTEREST ON REVOLVING FACILITY ADVANCES

 

12.1        Interest Payment Date for Revolving Facility Advances

 

On (a) each Repayment Date (and, if the Term of any Revolving Facility
Advance exceeds 6 months, on the expiry of each period of 6 months during such
Term) or (b) if Clause 16.1(k) applies, the relevant Confirmation Date, TCN
shall pay accrued interest on each Revolving Facility Advance made to it.

 

12.2        Interest Rate for Revolving Facility Advances

 

The rate of interest applicable to each Revolving Facility Advance
during its Term shall be the rate per annum which is the sum of the Applicable
Margin for the Revolving Facility, the Associated Costs Rate for such Advance
at such time (if applicable) and, in relation to any Revolving Facility Advance
denominated in Euro, EURIBOR, or in relation to any Revolving Facility Advance
denominated in any other currency, LIBOR, for the relevant Term.

 

73

 

12.3        Margin
Ratchet for Revolving
Facility Advances

 

(a)           Subject to paragraph (c) of this Clause 12.3, if in respect
of any Quarter Date falling not less than 6 months after the date of the first
Utilisation of the Revolving Facility, the ratio of Consolidated Net Borrowings
to Consolidated Annualised TCN Group Net Operating Cash Flow computed on the
same basis as the ratio set out in paragraph (a) of Clause 22.1 (Ratios) is within the range of ratios set
out in column 1 of the table set out below, then the Revolving Facility Margin
shall be reduced or increased to the percentage rate per annum set out opposite
the relevant range in column 2.

 

Margin Ratchet Table

	
  Column 1

  	
   

  	
  Column 2

  	
   

  
	
  Greater than or equal to 3.75:1

  	
   

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.75:1 but greater than or equal
  to 3.5:1

  	
   

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.5:1 but greater than or equal
  to 3.25:1

  	
   

  	
  1.85

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.25:1 but greater than or equal
  to 3:1

  	
   

  	
  1.65

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3:1

  	
   

  	
  1.50

  	
  %

  

 

(b)           Any reduction or increase to the Revolving Facility Margin
in accordance with paragraph (a) above shall take effect in relation to
Revolving Facility Advances with effect from the date of receipt by the
Facility Agent in respect of the relevant Quarter Date of:

 

(i)            the quarterly
financial information required to be delivered in accordance with Clause 21.1 (Financial Statements); and

 

(ii)           a Compliance
Certificate required to be delivered in accordance with paragraph (a) of Clause
21.4 (Compliance Certificates)
setting out the relevant ratio of Consolidated Net Borrowings to Consolidated
Annualised TCN Group Net Operating Cash Flow,

 

and shall apply until the date of receipt by the Facility Agent of the
quarterly financial information and Compliance Certificate in respect of the
next succeeding Quarter Date (or if such financial information and Compliance
Certificate are not so delivered, the last day upon which such financial
information and Compliance Certificate should have been so delivered in
accordance with Clause 21.1 (Financial Statements)
and paragraph (a) of Clause 21.4 (Compliance
Certificates)) whereupon the Revolving Facility Margin shall be
recalculated on the basis of such financial information and Compliance
Certificate.

 

(c)           Upon the occurrence of any Event of Default, the Revolving
Facility Margin shall revert to 2.25% and shall remain at such rate for so long
as such Event of Default is continuing and when such Event of Default ceases to
be continuing it shall revert:

 

(i)            in the case of an
Event of Default set out in paragraph (d) of Clause 26.3 (Covenants), upon the date on which the
Facility Agent has received a Compliance Certificate confirming compliance with
the financial covenants set out in Clause 22 (Financial
Condition); or

 

(ii)           in the case of
any Event of Default not referred to in sub-paragraph (i) above either (A) upon
the date on which the Facility Agent has received a certificate of a duly
authorised officer of TCN certifying that such Event of Default has been
remedied, in which case, immediately upon receipt of such certificate or (B) where
the Lenders have waived such Event of Default in accordance with the terms of
this Agreement,

 

74

 

in which case, immediately upon the Facility Agent having confirmed to
TCN that such Event of Default has been waived,

 

in each case, to the
applicable rate provided in paragraph (a) above by reference to:

 

(x)           in the case of an Event of Default of the type
referred to in paragraph (c)(i) above, the ratio of Consolidated Net Borrowings
to Consolidated Annualised TCN Group Net Operating Cash Flow set out in the
Compliance Certificate referred to therein; or

 

(y)           in the case of any other Event of
Default, by reference to the ratio of Consolidated Net Borrowings to
Consolidated Annualised TCN Group Net Operating Cash Flow set out in the
Compliance Certificate most recently delivered to the Facility Agent prior to
the remedy or waiver of such Event of Default.

 

13.          INTEREST ON TERM FACILITY ADVANCES

 

13.1        Interest Periods for Term Facility Advances

 

The period for which a Term Facility Advance is outstanding shall be
divided into successive periods (each an “Interest
Period”) each of which (other than the first) shall start on the
last day of the preceding such period.

 

13.2        Duration

 

The duration of each Interest Period shall, save as otherwise provided
in this Agreement, be 1, 2, 3 or 6 months or such other period of up to 12
months as all the Lenders holding Commitments (in the case of first Interest
Period for an Advance and thereafter, Outstandings), under the relevant
Facility may agree, in each case, as the relevant Borrower may select by no
later than 2:00 p.m. on the date falling 3 Business Days before the first day of the relevant Interest
Period, provided that:

 

(a)           if the relevant Borrower fails to give such notice of
selection in relation to an Interest Period, the duration of that Interest
Period shall, subject to the other provisions of this Clause 13, be 3 months;

 

(b)           prior to the Syndication Date, unless the Facility Agent
otherwise agrees, the duration of each Interest Period shall be 1 month (or, if
less, such duration as may be necessary to ensure that such Interest Period
ends on the Syndication Date); and

 

(c)           any Interest Period that would otherwise end during the
month preceding or extend beyond a Repayment Date relating to the relevant Term
Facility Outstandings shall be of such duration that it shall end on that
Repayment Date if necessary to ensure that there are Advances under the
relevant Term Facility with Interest Periods ending on the relevant Repayment
Date in a sufficient aggregate amount to make the repayment due on that
Repayment Date.

 

13.3        Consolidation
of Term Facility
Advances

 

If 2 or more Interest Periods in respect of Term Facility Advances
denominated in the same currency under the same Term Facility end at the same
time, then on the last day of those Interest Periods, the Term Facility
Advances to which those Interest Periods relate shall be consolidated into and
treated as a single Term Facility Advance.

 

13.4        Division of Term Facility Advances

 

Subject to the requirements of Clause 13.2 (Duration)
either Borrower may, by no later than 2:00 p.m. on the date falling 3 Business
Days before the first day of the relevant Interest Period, direct that any

 

75

 

Term Facility Advance borrowed by it shall, at the beginning of the next
Interest Period relating to it, be divided into (and thereafter, save as
otherwise provided in this Agreement, be treated in all respects as) 2 or more
Advances in such amounts (equal in aggregate to the Sterling Amount (or the
equivalent in Sterling) of the Term Facility Advance being so divided) as shall
be specified by the relevant Borrower in such notice provided that such
Borrower shall not be entitled to make such a direction if:

 

(a)           as a result of so doing, there would be outstanding more
than 10 Advances
outstanding under the relevant Term Facility; or

 

(b)           any Term Facility Advance thereby coming into existence
would have a Sterling Amount of less than £25,000,000.

 

13.5        Payment of Interest for Term Facility Advances

 

On (a) the last day of each Interest Period (or if such day is not a
Business Day, on the immediately succeeding Business Day in the then current
month (if there is one) or the preceding Business Day (if there is not)), and
if the relevant Interest Period exceeds 6 months, on the expiry of each 6 month
period during that Interest Period, or (b) if Clause 16.1(k) applies, the
relevant Confirmation Date, the Borrower to whom the relevant Advance was made
shall pay accrued interest on the Term Facility Advance to which such Interest
Period relates.

 

13.6        Interest Rate for Term Facility Advances

 

The rate of interest applicable to a Term Facility Advance at any time
during an Interest Period relating to it shall be the rate per annum which is
the sum of the Applicable Margin, the Associated Costs Rate for such Advance at
such time (if applicable) and, in relation to any Term Facility Advance
denominated in Euro, EURIBOR, or in relation to any Term Facility Advance
denominated in any other currency, LIBOR, for such Interest Period.

 

13.7        Margin Ratchet for A Facility Advances and B Facility
Advances

 

(a)           Subject to paragraph (d) of this Clause 13.7, if in respect
of any Quarter Date falling not less than 6 months after the date of the first
Utilisation of the A Facility the ratio of Consolidated Net Borrowings to
Consolidated Annualised TCN Group Net Operating Cash Flow computed on the same
basis as the ratio set out in paragraph (a) of Clause 22.1 (Ratios) is within the range of ratios set
out in column 1 of the table set out below, then the A Facility Margin shall be
reduced or increased to the percentage rate per annum set out opposite the
relevant range in column 2.

 

Margin Ratchet Table

	
  Column 1

  	
   

  	
  Column 2

  	
   

  
	
  Greater than or equal to 3.75:1

  	
   

  	
  2.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.75:1 but greater than or equal
  to 3.5:1

  	
   

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.5:1 but greater than or equal
  to 3.25:1

  	
   

  	
  1.85

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3.25:1 but greater than or equal
  to 3:1

  	
   

  	
  1.65

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 3:1

  	
   

  	
  1.50

  	
  %

  

 

(b)           Any reduction or increase to the A Facility Margin in
accordance with paragraph (a) above shall take effect in relation to A Facility
Advances with effect from the date of receipt by the Facility Agent in respect
of the relevant Quarter Date of:

 

76

 

(i)            the
quarterly financial information required to be delivered in accordance with
Clause 21.1 (Financial Statements); and

 

(ii)           a
Compliance Certificate required to be delivered in accordance with paragraph
(a) of Clause 21.4 (Compliance Certificates)
setting out the relevant ratio of Consolidated Net Borrowings to Consolidated
Annualised TCN Group Net Operating Cash Flow,

 

and shall apply until the date
of receipt by the Facility Agent of the quarterly financial information and
Compliance Certificate in respect of the next succeeding Quarter Date (or if
such financial information and Compliance Certificate are not so delivered, the
last day upon which such financial information and Compliance Certificate
should have been so delivered in accordance with Clause 21.1 (Financial Statements) and paragraph (a) of Clause 21.4 (Compliance Certificates)) whereupon the A
Facility Margin shall be recalculated on the basis of such financial information
and Compliance Certificate;.

 

(c)           Subject to paragraph (d) of this Clause 13.7, if in respect
of any Quarter Date falling not less than 6 months after the date of the first
Utilisation of the B Facility the ratio of Consolidated Net Borrowings to Consolidated
Annualised TCN Group Net Operating Cash Flow computed on the same basis as the
ratio set out in paragraph (a) of Clause 22.1 (Ratios)
is less than or equal to 3.0 to 1.0, then the B Facility Margin shall be
reduced by 0.25%.

 

(d)           Upon the occurrence of any Event of Default, the A Facility
Margin shall revert to 2.25% and the B Facility Margin shall revert to 2.50%
and shall remain at such rates for so long as the Event of Default is
continuing and when such Event of Default ceases to be continuing it shall
revert:

 

(i)            in the case of an
Event of Default set out in paragraph (d) of Clause 26.3 (Covenants), upon the date on which the
Facility Agent has received a Compliance Certificate confirming compliance with
the financial covenants set out in Clause 22 (Financial
Condition); or

 

(ii)           in the case of
any Event of Default not referred to in sub-paragraph (i) above either (A) upon
the date on which the Facility Agent has received a certificate of a duly
authorised officer of TCN certifying that such Event of Default has been
remedied, immediately upon receipt of such certificate or (B) where the Lenders
have waived such Event of Default in accordance with the terms of this
Agreement, immediately upon the Facility Agent having confirmed to TCN that such
Event of Default has been waived,

 

in each case, to the applicable rate provided in paragraph (a) or (c)
above (as applicable) by reference to:

 

(x)           in the case of an Event of Default of the type
referred to in paragraph (d)(i) above, the ratio of Consolidated Net Borrowings
to Consolidated Annualised TCN Group Net Operating Cash Flow set out in the
Compliance Certificate referred to therein; or

 

(y)           in the case of any other Event of
Default, by reference to the ratio of Consolidated Net Borrowings to Consolidated
Annualised TCN Group Net Operating Cash Flow set out in the Compliance
Certificate most recently delivered to the Facility Agent prior to the remedy
or waiver of such Event of Default.

 

13.8        Notification

 

The Facility Agent shall promptly notify the relevant Borrower and the
Lenders of each determination of LIBOR, EURIBOR, the Associated Costs Rate, and
any change to the proposed length of a Term

 

77

 

or Interest Period or any interest rate occasioned by the operation of
Clause 14 (Market Disruptions and
Alternative Interest Rates).

 

14.          MARKET DISRUPTION AND ALTERNATIVE INTEREST RATES

 

14.1        Market Disruption

 

If, in relation to any Interest Period or Term:

 

(a)           EURIBOR or LIBOR, as the case may be, is to be determined by
reference to the Reference Banks and, at or about 11.00 a.m. (Brussels time in
the case of EURIBOR or London time in the case of LIBOR) on the Quotation Date
for such Interest Period or Term, none or only one of the Reference Banks supplies
a rate for the purpose of determining EURIBOR or LIBOR, as the case may be, for
the relevant period; or

 

(b)           before the close of business in London on the Quotation Date
for such Interest Period or Term, the Facility Agent has been notified by a
Lender or each of a group of Lenders to whom in aggregate 40% or more of the
relevant Advance is owed (or, in the case of an undrawn Advance, if made, would
be owed) that the cost to it of obtaining matching deposits for the relevant
Advance in the Relevant Interbank Market would be in excess of EURIBOR or
LIBOR, as the case may be,

 

then the Facility Agent shall notify the relevant Borrowers and the
Lenders of such event and, notwithstanding anything to the contrary in this
Agreement, Clause 14.2 (Substitute Interest Period
or Term and Interest Rate) shall apply (if the relevant Advance is a
Term Facility Advance which is already outstanding or a Rollover Advance).  If either paragraph (a) or (b) applies to a
proposed Advance other than a Rollover Advance, such Advance shall not be made.

 

14.2        Substitute
Interest Period or
Term and Interest Rate

 

(a)           If paragraph (a) of Clause 14.1 (Market
Disruption) applies, the duration of the relevant Interest Period or
Term shall be 1 month or, if less, such that it shall end on the Termination
Date in respect of the Revolving Facility (in the case of a Rollover Advance)
or the next succeeding Repayment Date (in the case of a Term Facility Advance).

 

(b)           If either paragraph of Clause 14.1 (Market
Disruption) applies to an Advance, the rate of interest applicable
to each Lender’s portion of such Advance during the relevant Interest Period or
Term shall (subject to any agreement reached pursuant to Clause 14.3 (Alternative Rate)) be the rate per annum which is the sum
of:

 

(i)            the Applicable
Margin;

 

(ii)           the rate per
annum notified to the Facility Agent by such Lender before the last day of such
Interest Period or Term to be that which expresses as a percentage rate per
annum the cost to such Lender of funding from whatever sources it may
reasonably select its portion of such Advance during such Interest Period or
Term; and

 

(iii)         the Associated
Costs Rate, if any, applicable to such Lender’s participation in the relevant
Advance.

 

14.3        Alternative Rate

 

If Clause 14.1 (Market Disruption)
applies and the Facility Agent or any Borrower so requires, the Facility Agent
and TCN shall enter into negotiations with a view to agreeing an alternative
basis:

 

78

 

(a)           for determining the rate of interest
from time to time applicable to such Advances; and/or

 

(b)           upon which such Advances may be
maintained (whether in Sterling or some other currency) thereafter,

 

and any such alternative basis that is agreed shall take effect in
accordance with its terms and be binding on each party to this Agreement,
provided that the Facility Agent may not agree any such alternative basis
without the prior consent of each Lender holding Outstandings under each
applicable Facility, acting reasonably.

 

15.          COMMISSIONS AND FEES

 

15.1        Commitment Fees

 

TCN shall pay to the Facility Agent for the account of each relevant
Lender (other than an Ancillary Facility Lender) a commitment commission on the
aggregate amount of such Lender’s Available Revolving Facility Commitment
(other than any Ancillary Facility) from day to day during the period beginning
on the date of this Agreement and ending on the Termination Date in respect of
the Revolving Facility, such commitment commission to be calculated at the rate
of 0.75% per annum payable in arrears on the last day of each successive period
of 3 months which ends during such period and on the Termination Date for the
Revolving Facility.

 

15.2        Arrangement
and Underwriting Fee

 

TCN shall pay to the Mandated Lead Arrangers the arrangement fee
specified in the letter dated 2 November 2004 from the Mandated Lead Arrangers
to TCN at the time and in the amount specified in such letter.

 

15.3        Agency Fee

 

TCN shall pay to the Facility Agent for its own account the fees
specified in the letter dated on or around the date hereof from the Facility
Agent to TCN at the times and in the amounts specified in such letter.

 

15.4        Documentary Credit Fee

 

TCN shall, in respect of each Documentary Credit, pay to the Facility
Agent for the account of each Indemnifying Lender (for distribution in
proportion to each Indemnifying Lender’s L/C Proportion of such Documentary
Credit) a documentary credit fee in the currency in which the relevant
Documentary Credit is denominated at a rate equal to the applicable Revolving
Facility Margin applied on the Outstanding L/C Amount in relation to such
Documentary Credit.  Such documentary
credit fee shall be paid in arrears on the last day of each successive period
of 3 months which begins during the Term of the relevant Documentary Credit and
on the relevant Expiry Date.  Accrued
Documentary Credit fees shall also be payable on the cancelled amount of any
Revolving Facility Commitment attributable to a Documentary Credit which is
repaid in full at the time such cancellation is effective, if the Revolving
Facility Commitment is cancelled in full and a Documentary Credit is repaid in
full.

 

15.5        L/C Bank Fee

 

TCN shall pay to the L/C Bank a fronting fee in respect of each
Documentary Credit requested by it in the amount and at the times agreed in the
letter dated on or about the date of this Agreement between the L/C Bank and
TCN.

 

79

 

16.          TAXES

 

16.1        Tax Gross-up

 

(a)           Each payment made by an Obligor under a Finance Document
shall be made by it without any Tax Deduction, unless a Tax Deduction is
required by Law.

 

(b)           As soon as it becomes aware that an Obligor is or will be
required by Law to make a Tax Deduction (or that there is any change in the
rate at which or the basis on which such Tax Deduction is to be made) the
relevant Obligor shall notify the Facility Agent accordingly.  Similarly, a Lender shall notify the Facility
Agent upon becoming so aware in respect of a payment payable to that Lender.

 

(c)           If a Tax Deduction is required by Law to be made by an
Obligor, the amount of the payment due shall, unless paragraph (f) below
applies, be increased to an amount so that, after the required Tax Deduction is
made, the payee receives an amount equal to the amount it would have received
had no Tax Deduction been required.

 

(d)           If a Tax Deduction is required by Law to be made by the
Facility Agent, the US Paying Agent or the Security Trustee (other than by
reason of the Facility Agent or the Security Trustee performing its obligations
as such under this Agreement through an office located outside the United
Kingdom or the US Paying Agent performing its obligations as such through an
office located outside the United States) from any payment to any Finance Party
which represents an amount or amounts received from an Obligor, that Obligor
shall, unless paragraph (f) below applies, pay directly to that Finance Party
an amount which, after making the required Tax Deduction enables the payee of
that amount to receive an amount equal to the payment which it would have
received if no Tax Deduction had been required.

 

(e)           If a Tax Deduction is required by Law to be made by the
Facility Agent, the US Paying Agent or the Security Trustee from any payment to
any Finance Party, the Facility Agent, the US Paying Agent or the Security
Trustee as appropriate shall make that Tax Deduction and any payment required
in connection with that Tax Deduction to the relevant taxing authority within
the time allowed and in the minimum amount required by Law and within 30 days
of making either a Tax Deduction or any payment in connection with that Tax
Deduction, the Facility Agent, the US Paying Agent or the Security Trustee as
appropriate making that Tax Deduction or other payment shall deliver to TCN or
the US Borrower, as appropriate, evidence that the Tax Deduction or other
payment has been made or accounted for to the relevant tax authority.

 

(f)            No Obligor is required to make a Tax Payment to a Lender
under paragraphs (c) or (d) above for a Tax Deduction in respect of tax imposed
by the United Kingdom on a payment of interest in respect of a participation in
an Advance by that Lender to TCN where that Lender is not a Qualifying Lender
on the date on which the relevant payment of interest is due (otherwise than as
a consequence of a Change in Tax Law) to the extent that payment could have
been made without a Tax Deduction if that Lender had been a Qualifying Lender
on that date.

 

(g)           The relevant Obligor which is required to make a Tax
Deduction shall make that Tax Deduction and any payment required in connection
with that Tax Deduction to the relevant taxing authority within the time
allowed and in the minimum amount required by Law.

 

(h)           Within 30 days of making either a Tax Deduction or any
payment required in connection with that Tax Deduction, the relevant Obligor
making that Tax Deduction or other payment shall deliver to the Facility Agent
or the US Paying Agent, as appropriate, for the Finance Party

 

80

 

entitled to the interest to
which such Tax Deduction or payment relates evidence that the Tax Deduction or
other payment has been made or accounted for to the relevant tax authority.

 

(i)            Each Lender expressed to be a “UK Non-Bank Lender” in Part 2
of Schedule 1 (UK Non-Bank Lenders) or in the Transfer Deed pursuant to which it
becomes a Lender represents and warrants to:

 

(i)            the Facility
Agent and TCN, on the date of this Agreement, or on the relevant Transfer Date
(as the case may be) that it is within paragraph (a) of the definition of UK
Non-Bank Lender on that date (unless, if it is not within paragraph (a), it is
within paragraph (b) of the definition of UK Non-Bank Lender on that date, and
has notified the Facility Agent of the circumstances by virtue of which it
falls within such paragraph (b) and has provided evidence of the same to TCN if
and to the extent requested to do so, and the Facility Agent); and

 

(ii)           the Facility
Agent and TCN that, unless it notifies the Facility Agent and TCN to the contrary
in writing prior to any such date, its representation and warranty in paragraph
(i) of this Clause 16.1(i) is true in relation to that Lender’s participation
in each Advance made to TCN, on each date that TCN makes a payment of interest
in relation to such Advance.

 

(j)            A Lender that intends to qualify as a UK Treaty Lender and
the relevant Obligor that makes a payment to which that Lender is entitled
shall co-operate in completing any procedural formalities necessary for the
relevant Obligor to obtain authorisation to make that payment without a Tax
Deduction.

 

(k)           (i)            If, in relation to any interest payment to a Lender on an
Advance:

 

(A)          that Lender has confirmed to TCN and the Facility Agent
before that interest payment would otherwise fall due that:

 

(1)           it has completed the necessary procedural formalities
referred to in paragraph (j) of this Clause 16.1; and

 

(2)           the Inland Revenue has not declined to issue the
authorisation referred to in the definition of “UK Treaty Lender” (the “Authorisation”) to that Lender in relation to that
Advance, or if the Inland Revenue has declined, the Lender is disputing that
decision in good faith; and

 

(B)           the relevant Obligor has not received the Authorisation,

 

then, that interest payment (the “relevant Interest Payment”) shall not be
due and payable under Clause 12.1 (Interest
Payment Date for Revolving Facility Advances) or Clause 13.5 (Payment of Interest for Term Facility Advances)
(as applicable) until the date (the “Confirmation
Date”) which is  2 Business
Days after the earlier of:

 

(x)            the date on which the Authorisation is received by the relevant Obligor;

 

(y)           the date that Lender confirms to TCN and the Facility Agent that it is
not entitled to claim full relief from liability to taxation otherwise imposed
by the United Kingdom (in relation to that Lender’s participation in Advances
made to TCN) on interest under a Double Taxation Treaty in relation to the
relevant Interest Payment; and

 

81

 

(z)            the date which is 6 months after the date on which the relevant Interest
Payment had otherwise been due and payable.

 

(ii)           For the avoidance of doubt, in the event that
sub-paragraph (i) of this pargraph (k) applies the Interest Period or Term to
which the relevant Interest Payment relates shall not be extended and the start
of the immediately succeeding Interest Period or Term shall not be delayed.

 

16.2        Tax Indemnity

 

(a)           Subject to paragraph (b) of this Clause, TCN shall (within 5
Business Days of demand by the Facility Agent) pay (or procure that the
relevant Obligor pays) for the account of a Protected Party an amount equal to
any Tax Liability which that Protected Party reasonably determines has been or
will be suffered by that Protected Party (directly or indirectly) in connection
with any Finance Document.

 

(b)           Paragraph (a) of this Clause shall not apply:

 

(i)            with respect to
any Tax Liability of a Protected Party in respect of Tax on Overall Net Income
of that Protected Party;

 

(ii)           to the extent
that any Tax Liability has been compensated for by an increased payment or
other payment under paragraphs (c) or (d) of Clause 16.1 (Tax Gross-up)
or would have been compensated for by such an increased payment or other
payment, but for the application of paragraph (f) of Clause 16.1 (Tax Gross-up); or

 

(iii)         until the Closing
Date has occurred.

 

(c)           A Protected Party making, or intending to make, a claim
pursuant to paragraph (a) of this Clause 16.2 shall promptly notify the
Facility Agent of the event which will give, or has given, rise to the claim
together with supporting evidence, following which the Facility Agent shall
notify TCN and provide such evidence to it.

 

(d)           A Protected Party shall, on receiving a payment from an
Obligor under this Clause 16.2, notify the Facility Agent.

 

(e)           In this Clause 16.2:

 

“Tax Liability” means, in
respect of any Protected Party:

 

(i)            any liability or
any increase in the liability of that person to make any payment of or in
respect of tax;

 

(ii)           any loss of any
relief, allowance, deduction or credit in respect of tax which would otherwise
have been available to that person;

 

(iii)         any setting off
against income, profits or gains or against any tax liability of any relief,
allowance, deduction or credit in respect of tax which would otherwise have
been available to that person; and

 

(iv)          any loss or
setting off against any tax liability of a right to repayment of tax which
would otherwise have been available to that person.

 

For this purpose, any question of whether or not any relief, allowance,
deduction, credit or right to repayment of tax has been lost or set off in
relation to any person, and if so, the date

 

82

 

on which that loss or set-off took place, shall be conclusively determined
by that person, acting reasonably and in good faith, and such determination
shall be binding on the relevant parties to this Agreement.

 

“Tax on Overall Net Income”
means, in relation to a Protected Party, tax (other than tax deducted or
withheld from any payment) imposed on the net income received or receivable
(but not any sum deemed to be received or receivable) by that Protected Party
by the jurisdiction in which the relevant Finance Party is incorporated or, if
different, the jurisdiction (or jurisdictions) in which the Finance Party is
treated as residing for tax purposes or in which the relevant Finance Party’s
Facility Office or head office is situated.

 

(f)            A Protected Party making or intending to make a claim under
paragraph (a) above shall promptly notify the Facility Agent of the event which
will give, or has given, rise to the claim together with supporting evidence,
following which the Facility Agent shall notify TCN and provide such evidence
to it.

 

(g)           A Protected Party shall, on receiving a payment from an
Obligor under this Clause 16.2, notify the Facility Agent.

 

16.3        Tax Credit

 

(a)           If an Obligor makes a Tax Payment and the relevant Finance
Party determines (acting in good faith and reasonably) that:

 

(i)            a Tax Credit is
attributable to that Tax Payment; and

 

(ii)           that Finance
Party has obtained, utilised and retained that Tax Credit,

 

the Finance Party shall (subject to paragraph (b) below and to the
extent that such Finance Party can do so without prejudicing the availability
and/or the amount of the Tax Credit and the right of that Finance Party to
obtain any other benefit, relief or allowance which may be available to it) pay
to the relevant Obligor such amount which that Finance Party determines, acting
reasonably and in good faith, will leave it (after that payment) in the same
after-tax position as it would have been in had the Tax Payment not been made
by the relevant Obligor.

 

(b)         (i)              Each Finance Party shall have an
absolute discretion as to the time at which and the order and manner in which
it realises or utilises any Tax Credits and shall not be obliged to arrange its
business or its tax affairs in any particular way in order to be eligible for
any credit or refund or similar benefit.

 

(ii)           No Finance Party shall be obliged to disclose
to any other person any information regarding its business, tax affairs or tax
computations.

 

(iii)         If a Finance Party has made a payment to an
Obligor pursuant to this Clause 16.3 on account of a Tax Credit and it
subsequently transpires that that Finance Party did not receive that Tax Credit
or received a reduced Tax Credit, such Obligor shall, on demand, pay to that
Finance Party the amount which that Finance Party determines, acting reasonably
and in good faith, will put it (after that payment is received) in the same
after tax position as it would have been in had no such payment or a reduced
payment been made to such Obligor.

 

(c)           No Finance Party shall be obliged to
make any payment under this Clause 16.3 if, by doing so, it would contravene
the terms of any applicable Law or any notice, direction or requirement of any
governmental or regulatory authority (whether or not having the force of law).

 

83

 

17.          INCREASED COSTS

 

17.1        Increased Costs

 

Subject to Clause 17.3 (Exceptions) TCN
shall, within 3 Business Days of a demand by the Facility Agent, pay for the
account of a Finance Party the amount of any Increased Cost incurred by that
Finance Party or any of its Affiliates as a result (direct or indirect) of:

 

(a)           the introduction or implementation of or any change in (or
any change in the interpretation, administration or application of) any Law,
regulation, practice or concession or any directive, requirement, request or
guideline (whether or not having the force of law but where such law,
regulation, practice, concession, directive, requirement, request or guideline
does not have the force of law, it is one with which banks or financial
institutions subject to the same are generally accustomed to comply) of any
central bank, including the European Central Bank, the Financial Services
Authority or any other fiscal, monetary, regulatory or other authority after
the date of this Agreement;

 

(b)           compliance with any Law, regulation, practice, concession or
any such directive, requirement, request or guideline made after the date of
this Agreement; or

 

(c)           the implementation of economic or monetary union by any
Member State which is not already a Participating Member State.

 

17.2        Increased Costs Claims

 

(a)           A Finance Party intending to make a claim pursuant to Clause
17.1 (Increased Costs) shall notify the
Facility Agent of the event giving rise to the claim following which the
Facility Agent shall promptly notify TCN.

 

(b)           Each Finance Party shall, as soon as practicable after a
demand by the Facility Agent, provide a certificate confirming the amount of
its or if applicable, its Affiliate’s Increased Costs setting out in reasonable
detail its calculations in relation to such Increased Costs.

 

17.3        Exceptions

 

Clause 17.1 (Increased Costs)
does not apply to the extent any Increased Cost is:

 

(a)           attributable to a Tax Deduction required by Law to be made
by an Obligor, as the case may be;

 

(b)           compensated for by Clause 16.2 (Tax
Indemnity) (or would have been compensated for by Clause 16.2 but
was not so compensated solely because paragraph (b) of Clause 16.2 applied);

 

(c)           compensated for by the payment of the Associated Costs Rate;

 

(d)           attributable to the gross negligence of, or wilful breach
by, the relevant Finance Party or if applicable, any of its Affiliates of any
law, regulation, practice, concession, directive, requirement, request or
guideline, to which the imposition of such Increased Cost relates; or

 

(e)           attributable to a delay of more than 30 days in the relevant
Finance Party notifying the Facility Agent of any claim pursuant to paragraph
(a) of Clause 17.2 (Increased Costs Claims)
after such Finance Party has become aware that it had suffered the relevant
Increased Cost.

 

84

 

18.          ILLEGALITY

 

If it becomes unlawful in any relevant jurisdiction for a Lender to
perform any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Advance or to issue a Documentary Credit or
provide a guarantee in relation to it as envisaged hereby/or in any Ancillary
Facility:

 

(a)           that Lender shall promptly notify the Facility Agent upon
becoming aware of that event;

 

(b)           upon the Facility Agent notifying TCN, the Available
Commitments of that Lender will immediately be cancelled and its Commitments
reduced to zero and such Lender shall not thereafter be obliged to participate
in any Advance or issue or guarantee any Documentary Credit/or make available
any Ancillary Facility; and

 

(c)           if so required by the Facility Agent on behalf of the
relevant Lender, TCN shall repay or procure that there is repaid that Lender’s
participation in the Advances made to it on the last day of the current
Interest Period or Term for each Advance occurring after the Facility Agent has
notified TCN or, if earlier, the date specified by the Lender in the notice
delivered to the Facility Agent (being no earlier than the last day of any
applicable grace period permitted by Law) and, if applicable, shall promptly
reduce that Lender’s L/C Proportion of the Outstanding L/C Amount in respect of
any outstanding Documentary Credit issued by it to zero and, if applicable,
shall promptly reduce the Ancillary Facility Outstandings in respect of that
Lender to zero, together with accrued interest and all other amounts owing to
that Lender under the Finance Documents.

 

19.          MITIGATION

 

19.1        Mitigation

 

(a)           Each Finance Party shall in consultation with TCN, take all
reasonable steps to mitigate any circumstances which arise and which would
result in any amount becoming payable under, or pursuant to, or cancelled
pursuant to, any of Clause 16 (Taxes), Clause
17 (Increased Costs) or Clause 18 (Illegality) including (but not limited to) transferring its
rights and obligations under the Finance Documents to another Affiliate or
Facility Office or financial institution acceptable to TCN which is willing to
participate in any Facility in which such Lender has participated.

 

(b)           Paragraph (a) of this Clause does not in any way limit the
obligations of any Obligor under the Finance Documents.

 

19.2        Limitation of Liability

 

(a)           With effect from the Closing Date, TCN agrees to indemnify
each Finance Party for all costs and expenses reasonably incurred by that
Finance Party as a result of steps taken by it under Clause 19.1 (Mitigation).

 

(b)           A Finance Party is not obliged to take any steps under
Clause 19.1 (Mitigation) if, in
the opinion of that Finance Party (acting reasonably), to do so might in any
way be prejudicial to it.

 

20.          REPRESENTATIONS AND WARRANTIES

 

(a)           Telewest UK makes each of the representations and warranties
set out in this Clause 20, other than Clauses 20.9 (No Winding-up), 20.10 (No
Event of Default), 20.12 (Original
Financial Statements), 20.13 (No
Material Adverse Change), 20.14 (No
Undisclosed Liabilities), 20.15

 

85

 

(Accuracy of Information), paragraphs (a) and (b) of Clause
20.16 (Indebtedness and Encumbrances),
20.18 (Structure), 20.26 (Investment Company Act), 20.27 (Public Utility Holding Company Act), or
20.35 (Liabilities of US Borrower)
to each Finance Party on the date of this Agreement and (if different) on the
Closing Date (except where the Closing Date falls on the date immediately after
the date of this Agreement) with respect to itself.

 

(b)           TCN makes each of the representations and warranties set out
in this Clause 20, other than Clause 20.32 (Liabilities
of Telewest UK) and 20.35 (Liabilities
of US Borrower) with respect to itself and, save to the extent such
representation provides otherwise, Telewest UK and each TCN Group Obligor, to
each Finance Party on the date of this Agreement and (if different) on the
Closing Date (except where the Closing Date falls on the date immediately after
the date of this Agreement).

 

(c)           The US Borrower makes each of the representations and
warranties set out in this Clause 20, other than those expressed to be made by
TCN or Telewest UK only, to each Finance Party on the date of its accession to
this Agreement and (if different) on the Closing Date (except where the Closing
Date falls on the date immediately after the date of this Agreement) with
respect to itself.

 

(d)           Each Obligor (other than Telewest UK, TCN and the US
Borrower) makes each of the representations and warranties set out in this
Clause 20, other than those expressed to be made by TCN, Telewest UK or the US
Borrower only, to each Finance Party on the date of this Agreement or, in the
case of an Acceding Guarantor, on the date of its accession hereto and (if
different) on the Closing Date (except where the Closing Date falls on the date
immediately after the date of this Agreement) with respect to itself.

 

1.1          Due Organisation

 

It is a company duly organised, or a partnership duly formed, under the
laws of its jurisdiction of incorporation or establishment with power and
authority to enter into those of the Finance Documents to which it is party and
to exercise its rights and perform its obligations thereunder and all corporate
and (subject to paragraphs (d) and (e) of the definition of Reservations) other
action required to authorise its execution of those of the Finance Documents to
which it is party and its performance of its obligations have been duly taken.

 

20.2        No Deduction

 

At the date of this Agreement, it will not be required to make any
deduction for or withholding on account of tax from any payment it may make
under any of the Finance Documents to any Lender which is a Qualifying Lender.

 

20.3        Claims Pari Passu

 

Subject to the Reservations, under the laws of its jurisdiction of
incorporation or establishment, and, if different, England, in force at the
date of this Agreement, the claims of the Finance Parties against it under the
Finance Documents to which it is party rank and will rank at least pari passu with the claims of all its unsecured and
unsubordinated creditors save those whose claims are preferred by any
bankruptcy, insolvency, liquidation or similar laws of general application.

 

20.4        No Immunity

 

In any legal proceedings taken in its jurisdiction of incorporation or
establishment and, if different, England in relation to any of the Finance
Documents to which it is party it will not be entitled to claim for itself or
any of its assets immunity from suit, execution, attachment or other legal
process.

 

86

 

20.5        Governing Law and Judgments

 

Subject to the Reservations, in any legal proceedings taken in its
jurisdiction of incorporation or establishment in relation to any of the Finance
Documents to which it is party, the choice of law expressed in such documents
to be the governing law of it and any judgment obtained in such jurisdiction
will be recognised and enforced.

 

20.6        All Actions Taken

 

All acts, conditions and things required to be done, fulfilled and
performed in order:

 

(a)           to enable it lawfully to enter into, exercise its rights
under and perform and comply with all material obligations expressed to be
assumed by it in the Finance Documents to which it is party;

 

(b)           subject to the Reservations, to ensure that all material
obligations expressed to be assumed by it in the Finance Documents to which it
is party are legal, valid and binding; and

 

(c)           subject to the Reservations, to make the Finance Documents
to which it is party admissible in evidence in its jurisdiction of
incorporation or establishment and, if different, the United Kingdom,

 

have been done, fulfilled and performed.

 

20.7        No Filing or Stamp Taxes

 

Under the laws of the United Kingdom or the United States of America, in
force at the date of this Agreement, it is not necessary that any of the
Finance Documents to which it is party be filed, recorded or enrolled with any
court or other authority in such jurisdiction or that any stamp, registration
or similar tax be paid on or in relation to any of them other than those
filings which are necessary to perfect the Security and save as stated in the
Reservations, provided that for the purposes of this Clause 20.7, “Finance
Documents” does not include any Transfer Deeds.

 

20.8        Binding Obligations

 

Subject to the Reservations, the obligations expressed to be assumed by
it in the Finance Documents to which it is party, are legal, valid and binding
and enforceable against it in accordance with the terms thereof and no limit on
its powers will be exceeded as a result of the borrowings, grant of security or
giving of guarantees contemplated by such Finance Documents or the performance
by it of any of its obligations thereunder.

 

20.9        No Winding-up

 

In the case of TCN only none of the Ultimate Parent, Telewest UK or any
TCN Group Obligor is taking any corporate action nor are any other steps being
taken (including the commencement of any legal proceedings) against the
Ultimate Parent, Telewest UK or any TCN Group Obligor, for its winding-up,
suspension of payments, moratorium, dissolution, administration or
reorganisation, composition or compromise of other arrangement, for the
appointment of a liquidator, receiver, administrative receiver, administrator,
compulsory manager, conservator, custodian, trustee or similar officer of it or
of any or all of its assets or revenues save as disclosed to the Facility Agent
prior to the date of this Agreement.

 

87

 

20.10      No Event of Default

 

In the case of TCN only, no Event of Default is continuing or might
reasonably be expected to result from the making of any Advance.

 

20.11      No Material Proceedings

 

In the case of TCN and Telewest UK only, no litigation, arbitration or
administrative proceeding of or before any court, arbitral body, or agency in
which there is a reasonable possibility of an adverse decision which could
reasonably be expected to have a Material Adverse Effect has been started or,
to the best of its knowledge, is threatened in writing or (in the case of TCN
only) is pending against it or any member of the TCN Group, other than
litigation, arbitration or administrative proceedings commenced prior to the
date of this Agreement, details of which are set out in the Information Memorandum.

 

20.12      Original
Financial Statements

 

In the case of TCN only, except as described in Note 1 to the Original
Financial Statements, the Original Financial Statements were prepared in
accordance with applicable GAAP which have been consistently applied (unless
and to the extent expressly disclosed to the Facility Agent in writing to the
contrary before the date of this Agreement) and fairly present in all material
respects the consolidated financial position of the TCN Group at the date as of
which they were prepared and/or (as appropriate) the results of operations and
changes in financial position during the period for which they were prepared.

 

20.13      No Material Adverse Change

 

In the case of TCN only, since publication of its Original Financial
Statements no event or series of events has occurred, in each case which has
had or could reasonably be expected to have a Material Adverse Effect.

 

20.14      No Undisclosed Liabilities

 

In the case of TCN only, as at 31 December 2003, neither TCN nor any of
its Subsidiaries had any material liabilities (contingent or otherwise) which
were not disclosed in the Original Financial Statements (or by the notes
thereto) or reserved against therein and the TCN Group had no material
unrealised or anticipated losses arising from commitments entered into by it
which were not so disclosed or reserved against, in each case, to the extent
required to be disclosed by applicable GAAP.

 

20.15      Accuracy of Information

 

In the case of TCN only:

 

(a)           to the best of its knowledge and belief having made all
reasonable and proper enquiries, all statements of fact relating to the
business, assets, financial condition and operations of the Group contained in
the Information Memorandum and the Supplement are true, complete and accurate
in all material respects as at their respective dates, and in any event the
matters detailed in the Supplement have not had and will not have a Material
Adverse Effect.

 

(b)           the opinions and views expressed in the Information
Memorandum, the Long Range Plan and the current Budget represent the honestly
held opinions and views of TCN and were arrived at after careful consideration
and were based on reasonable grounds as at the dates on which they were
prepared;

 

88

 

(c)           all financial projections and forecasts made by any member
of the TCN Group in the Information Memorandum, the Long Range Plan and the
current Budget have been prepared in good faith and are based upon reasonable
assumptions (it being understood that such financial projections are subject to
significant uncertainties, many of which are beyond the control of TCN and that
no assurance can be given that such projections will be realised);

 

(d)           (other than in respect of the financial projections and
forecasts referred to in paragraph (c) above), the Information Memorandum did
not omit to disclose or take into account any matter known to TCN after due and
careful enquiry where failure to disclose or take into account such matter
would result in any of the Information Memorandum (or any factual information
contained therein) being misleading in any material respect as at the date
thereof.

 

20.16      Indebtedness and Encumbrances

 

In the case of TCN only, other than in the case of paragraph (c):

 

(a)           save as permitted under this Agreement, neither it nor any
member of the TCN Group has incurred any Financial Indebtedness which is
outstanding.

 

(b)           save as permitted under this Agreement, no Encumbrance
exists over all or any of the present or future revenues or assets of any
member of the TCN Group.

 

(c)           in the case of Telewest UK only, save as provided in the
Security Documents or granted in respect of the Existing Credit Facility, no
Encumbrance exists over any of its rights, title or interest in the shares of
TCN or the Parent Intercompany Debt.

 

20.17      Execution of Finance Documents

 

Its execution of the Finance Documents to which it is party and the
exercise of its rights and performance of its obligations thereunder do not and
will not:

 

(a)           conflict with any agreement, mortgage, bond or other
instrument or treaty to which it is a party or which is binding upon it or any
of its assets (save as contemplated by paragraphs (d) and (e) of the definition
of Reservations) in a manner that could reasonably be expected to have a
Material Adverse Effect;

 

(b)           conflict with any matter contained in its constitutional
documents;

 

(c)           conflict with any applicable law.

 

20.18      Structure

 

In the case of TCN only:

 

(a)           the Group Structure Chart is a complete and accurate
representation of the structure of the TCN Group and the Holding Companies of
TCN in all material respects;

 

(b)           the US Borrower is a wholly-owned Subsidiary of TCN;

 

(c)           TCN is a wholly owned Subsidiary of Telewest UK;

 

(d)           Telewest UK is a wholly owned Subsidiary of the Ultimate
Parent; and

 

(e)           the Ultimate Parent is a Holding Company of the Group.

 

89

 

20.19      Environmental Matters

 

(a)           It has to the best of its knowledge and belief:

 

(i)            complied with all
Environmental Laws to which it is subject;

 

(ii)           obtained all
Environmental Licences required in connection with its business; and

 

(iii)         complied with the
terms of all such Environmental Licences,

 

in each case where failure to do so could reasonably be expected to have
a Material Adverse Effect.

 

(b)           To the best of its knowledge and belief, there is no
Environmental Claim pending or threatened against it, which could reasonably be
expected to have a Material Adverse Effect.

 

(c)           No:

 

(i)            property
currently or previously owned, leased, occupied or controlled by it is
contaminated with any Hazardous Substance; and

 

(ii)           discharge,
release, leaking, migration or escape of any Hazardous Substance into the
Environment has occurred or is occurring on, under or from that property,

 

in each case in circumstances where the same could reasonably be
expected to have a Material Adverse Effect.

 

20.20      Necessary Authorisations

 

(a)           The Necessary Authorisations required by it are in full
force and effect.

 

(b)           It is in compliance with the material provisions of each
Necessary Authorisation relating to it.

 

(c)           To the best of its knowledge, none of the Necessary
Authorisations relating to it are the subject of any pending or threatened
proceedings or revocation,

 

in each case, except where any failure to maintain such Necessary
Authorisations in full force and effect, any non-compliance or any proceedings
or revocation could not reasonably be expected to have a Material Adverse
Effect and subject to the Reservations.

 

20.21      Intellectual Property

 

The Intellectual Property Rights owned by or licensed to it are all the
material Intellectual Property Rights required by it in order to carry out,
maintain and operate its business, properties and assets, and so far as it is
aware, it does not infringe, in any way any Intellectual Property Rights of any
third party save, in each case, where the failure to own or license the
relevant Intellectual Property Rights or any infringement thereof could not
reasonably be expected to have a Material Adverse Effect.

 

20.22      Ownership of Assets

 

Save to the extent disposed of in a manner permitted by the terms of any
of the Finance Documents with effect from and after the Closing Date, it has
good title to or valid leases or licences of or is otherwise entitled to use
all material assets necessary to conduct its business in a manner consistent
with the Long Range Plan except to the extent that the failure to have such
title, leases or licences or to be so entitled could not be reasonably expected
to have a Material Adverse Effect.

 

90

 

20.23      Payment of Taxes

 

It has no claims or liabilities which are being, or are reasonably
likely to be, asserted against it with respect to taxes which, if adversely
determined, could reasonably be expected to have a Material Adverse Effect save
to the extent it (or TCN) having set aside proper reserves for such claims or
liabilities, can demonstrate that the same are being contested in good faith on
the basis of appropriate professional advice.

 

20.24      Pension Plans

 

(a)           Each defined benefit pension plan operated by it generally
for the benefit of the employees of Telewest UK or any member of the TCN Group
has been valued by an actuary appointed by the trustees of such plan in all
material respects in accordance with all laws applicable to it and using
actuarial assumptions and recommendations complying with statutory requirements
or approved by the actuary and since the most recent valuation the relevant
employers have paid contributions to the plan in accordance with the schedule
of contributions in force from time to time in relation to the plan, in each
case save to the extent that any failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

(b)           It is in compliance in all material respects with all
applicable laws relating to any pension plan operated by it or in which it
participates, save to the extent that any failure to comply could not
reasonably be expected to have a Material Adverse Effect.

 

(c)           It does not maintain or contribute to, and is not obliged to
maintain or contribute to, any pension plan that is required by Title IV of
ERISA.

 

20.25      Security

 

Subject to the Reservations, it is the legal or beneficial owner of all
assets and other property which it purports to charge, mortgage, pledge, assign
or otherwise secure pursuant to each Security Document and all shares subject
to the Security are fully paid and not subject to any restrictions on transfer
in the constitutional documents of the relevant Obligor or company which would
be contravened by the creation of the Security if any necessary consent is not
in full force and effect and (subject to their registration or filing at
appropriate registries for the purposes of perfecting the Security created
thereunder and the Reservations) those Security Documents to which it is a
party create and give rise to valid and effective Security having the ranking
expressed in those Security Documents.

 

20.26      Investment Company Act

 

In the case of TCN only, neither the Ultimate Parent nor any of its
Subsidiaries is an “investment company” which is registered or required to be
registered under the United States Investment Company Act of 1940 or a company “controlled”
by such an “investment company”.

 

20.27      Public Utility
Holding Company Act

 

In the case of TCN only, neither the Ultimate Parent nor any of its
Subsidiaries is a “holding company” or a “Subsidiary company” of a “holding
company” or an “affiliate” of a “holding company” or of a “Subsidiary company”
of a “holding company” within the meaning of the United States Public Utility
Holding Company Act of 1935.

 

20.28      Insurance

 

In the case of TCN and Telewest UK only, it and (in the case of TCN
only) each member of the TCN Group is adequately insured for the purposes of
its business with reputable underwriters or insurance companies against such
risks and to such extent as is necessary or usual for prudent companies

 

91

 

carrying on such a business
(other than insurance in respect of the underground portion of the cable
network and various pavement-based electronics associated with the cable
network as disclosed in the Group’s public disclosure documents) and except to
the extent that the failure to so insure could not reasonably be expected to
have a Material Adverse Effect.

 

20.29      Centre of Main Interests

 

Its Centre of Main Interests
is the place in which its registered office is situated or, if different,
another place in the country in which its registered office is situated, or
England.

 

20.30      Broadcasting Act 1990

 

Neither it (and in the case of
TCN only) nor any member of any Joint Venture Group is (other than being a body
corporate which is controlled by a person or persons falling within paragraph
1(1)(b) of Part 11 of schedule 2 to the Broadcasting Act 1990 (as amended)) a “disqualified
person” for the purposes schedule 2 to such Act.

 

20.31      Telecommunications, Cable and Broadcasting Laws

 

(a)           It and (and in the case of TCN only) each member of each
Joint Venture Group complies and has at all times complied in all material
respects with all Telecommunications, Cable and Broadcasting Laws (but
excluding, for these purposes only, breaches of Telecommunications, Cable and
Broadcasting Laws which have been expressly waived by the relevant regulatory
authority).

 

(b)           It and (and in the case of TCN only) each member of each
Joint Venture Group complies and has at all times complied in all material
respects with any and all conditions set by the Director General of
Telecommunications or by OFCOM under section 45 of the Communications Act 2003
as are applicable to it or such member of the Joint Venture Group (as the case
may be).

 

20.32      Liabilities of Telewest UK

 

In the case of Telewest UK
only, Telewest UK is a Holding Company of TCN and:

 

(a)           has not traded or undertaken any commercial activities of
any kind (other than by entering into any of the Finance Documents or Second
Lien Finance Documents);

 

(b)           does not have any assets other than shares in its relevant
Subsidiaries, rights in respect of Parent Intercompany Debt owed to it and
cash;

 

(c)           does not have any material liabilities or obligations
(actual or contingent) to any person other than (i) pursuant to the Transfer
Agreement, (ii) as contemplated by the terms of the Finance Documents and/or
the Second Lien Finance Documents and (iii) pursuant to any intercompany loans
or obligations owing as at the date of this Agreement to any members of the
Group; and

 

(d)           as at the date of this Agreement, no material claims have
been made or threatened in writing against Telewest UK pursuant to the Transfer
Agreement.

 

20.33      US Patriot Act

 

(a)           It has no reason to believe that it or any of its
Affiliates:

 

92

 

(i)            is a Restricted
Party or controlled by a Restricted Party or has received funds or property
from a Restricted Party; or

 

(ii)           has violated any
Anti-Terrorism Law or is the subject of any action or investigation (including
any relating to asset seizure, forfeiture or confiscation) under any
Anti-Terrorism Law.

 

(b)           It and its Affiliates have taken reasonable measures to
ensure compliance with the Anti-Terrorism Laws.

 

20.34      Compliance with ERISA

 

(a)           Each Plan (and each related trust, insurance contract or
fund) is in compliance with its terms and with all applicable laws, including
without limitation ERISA and the Code, save where the failure to be so
compliant would not result in a material liability.

 

(b)           Each Plan (and each related trust, if any) which is intended
to be qualified under Section 401(a) of the Code has received a determination
letter from the Internal Revenue Service to the effect that it meets the
requirements of Sections 401(a) and 501(a) of the Code.

 

(c)           No Reportable Event has occurred in relation to a Plan.

 

(d)           Neither it nor any member of the Group nor any ERISA
Affiliate contributes to or has or ever had any obligation to contribute to,
any Multiemployer Plan.

 

(e)           No Plan has an Unfunded Current Liability which, when added
to the aggregate amount of Unfunded Current Liabilities with respect to all
other Plans, exceeds $10,000,000.

 

(f)            No Plan which is subject to section 412 of the Code or
section 302 of ERISA has an accumulated funding deficiency, within the meaning
of such sections of the Code or ERISA, or has applied for or received a waiver
of an accumulated funding deficiency or an extension of any amortisation
period, within the meaning of section 412 of the Code or section 303 or 304 of
ERISA.

 

(g)           All contributions required to be made with respect to a Plan
have been made within the time limit therefor, save where the failure to do so
would not result in a material liability.

 

(h)           Neither it nor any other member of the Group nor any ERISA
Affiliate has incurred any material liability (including any indirect,
contingent or secondary liability) to or on account of a Plan pursuant to
sections 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212
of ERISA or section 401(a)(29), 4971 or 4975 of the Code or expects to incur
any such  material liability under any of
the foregoing sections with respect to any Plan.

 

(i)            To Telewest UK’s knowledge, no condition exists which
presents a material risk to it or any other member of the Group or any ERISA
Affiliate of incurring a liability to or on account of a Plan pursuant to the
provisions of ERISA and the Code enumerated in paragraph (h) of this Clause
20.34.

 

(j)            No proceedings have been instituted to terminate or appoint
a trustee to administer any Plan maintained by it which is subject to Title IV
of ERISA.

 

(k)           No action, suit, proceeding, hearing, audit or investigation
with respect to the administration, operation or the investment of assets of
any Plan (other than routine claims for benefits) is pending or, to Telewest UK’s
knowledge, expected or threatened.

 

 

93

 

(l)            Each group health plan (as defined in section 607(1) of
ERISA or section 4980B(g)(2) of the Code) which covers or has covered employees
or former employees of any member of the Group or any ERISA Affiliate has at
all times been operated in compliance with the provisions of Part 6 of subtitle
B of Title I of ERISA and section 4980B of the Code, save where the failure to
do so would not result in a material liability.

 

(m)          No lien imposed under the Code or ERISA on its assets or the
assets of any other member of the Group or any ERISA Affiliate exists or is
likely to arise on account of any Plan.

 

(n)           It and each other member of the Group do not maintain or
contribute to any employee welfare benefit plan (as defined in Section 3(1) of
ERISA) which provides benefits to retired employees or other former employees
(other than as required by Section 601 of ERISA) or any Plan the obligations
with respect to which could reasonably be expected to have a Material Adverse
Effect.

 

(o)           Each Foreign Pension Plan has been maintained in substantial
compliance with its terms and with the requirements of any and all applicable
laws, statutes, rules, regulations and orders and has been maintained, where
required, in good standing with applicable regulatory authorities, save where
the failure to do so would not result in a material liability.

 

(p)           All contributions required to be made with respect to a
Foreign Pension Plan maintained by it have been made within the time limit
therefor, save where the failure to do so would not result in a material
liability.

 

20.35      Liabilities of the US Borrower

 

In the case of the US Borrower
only, it is a wholly owned Subsidiary of TCN and:

 

(a)           has not traded or undertaken any commercial activities of
any kind (other than by entering into the Finance Documents and Second Lien
Finance Documents to which it is party or the TCN Notes);

 

(b)           does not have any assets other than its rights under and
payments received pursuant to the TCN Notes; and

 

(c)           does not have any material liabilities or obligations
(actual or contingent) to any person other than as contemplated by the terms of
the Finance Documents and Second Lien Finance Documents.

 

20.36      Repetition

 

Each Repeating Representation
is deemed to be made by the party identified as making such Repeating
Representation above in relation to itself, or in the case of TCN in relation
to itself and each TCN Group Obligor or the TCN Group as a whole (as
applicable), by reference to the facts and circumstances then existing on:

 

(a)           each Utilisation Date (save for a Utilisation Date in
respect of a Rollover Advance or a Documentary Credit which is being renewed
pursuant to Clause 5.2 (Renewal of
Documentary Credits) and on the first day of each Interest Period;
and

 

(b)           in the case of any Acceding Guarantor on the day the same
becomes an Acceding Guarantor.

 

94

 

21.          FINANCIAL INFORMATION

 

21.1        Financial Statements

 

TCN shall
provide to the Agents in sufficient copies for all the Lenders, the following
financial information relating to each of the TCN Group and the Group:

 

(a)           as soon as the same become available, but in any event within
120 days after the end of each of TCN’s financial years, the consolidated
financial statements for such financial year in respect of the TCN Group and of
the Group, audited by a firm of auditors meeting the requirements of Clause
23.18 (Change in Auditors), and
accompanied by the related auditor’s report such report not to be qualified in
any material respect as a result of the investigation described in the
Supplement;

 

(b)           as soon as they become available but in any event within 45
days after the end of the first three Financial Quarters of each financial
year, the unaudited consolidated quarterly financial statements of the TCN
Group and of the Group commencing with the Financial Quarter ending on 31 March
2005, provided that the unaudited consolidated quarterly financial statements
for the Financial Quarter during which a Merger Event or an Integrated Merger
Event occurs shall be required to be delivered within 90 days after the end of
such Financial Quarter;

 

(c)           as soon  as
they become available but in any event within 45 days after the end of the last
Financial Quarter in each of TCN’s financial years, the unaudited consolidated
management accounts of the TCN Group and of the Group in respect of such
Financial Quarter.

 

In relation to the financial information
of the Group only, the above requirements (including in relation to the
financial statements in (c) above) may be satisfied by the provision, within
the specified time periods, of copies of reports for the Group already filed
with the Securities and Exchange Commission (“SEC”)
for the relevant period (it being acknowledged that the SEC does not as at the
date hereof require the filing of quarterly financial statements for the fourth
Financial Quarter of any financial year).

 

21.2        Budget

 

In respect of each financial
year, as soon as the same becomes available and in any event by no later than
31 January in any financial year, TCN shall deliver to the Agents, in
sufficient copies for the Lenders, the annual operating budget, which as
regards paragraphs (b) and (c) below shall be in the agreed form or with such
amendments as may be necessary to reflect changes made to the Group’s public
financial information as agreed by the Facility Agent (acting reasonably) and
prepared by reference to each Financial Quarter in respect of such financial
year and projections for the first Financial Quarter (the “initial  Financial
Quarter”) in respect
such financial year of the TCN Group. 
The annual operating budget and the projections for the initial
Financial Quarter shall be prepared in form and context consistent with past
practice of TCN and shall include:

 

(a)           forecasts of any projected material Disposals (including
timing and anticipated Net Proceeds thereof) on a consolidated basis for the
TCN Group;

 

(b)           projected annual statements of operations (including
projected revenue and operating costs) on a consolidated basis for the TCN
Group in the agreed form or with such amendments as may be necessary to reflect
changes made to the Group’s public financial information as agreed by the
Facility Agent (acting reasonably);

 

(c)           projected estimated pro forma balance sheets and estimated
pro forma statements of cash flows on a consolidated basis for the TCN Group in
the agreed form or with such

 

95

 

amendments as may be necessary
to reflect changes made to the Group’s public financial information as agreed
by the Facility Agent (acting reasonably);

 

(d)           projected Capital Expenditure to be included for each
Financial Quarter of such financial year and on a consolidated basis for the
TCN Group; and

 

(e)           a commentary from the management in relation to the key
drivers for the TCN Group for such financial year and for the initial Financial
Quarter.

 

TCN shall provide the Agents with
any details of material changes in the projections set out in any Budget
delivered under this Clause 21.2 as soon as reasonably practicable after it
becomes aware of any such change.

 

21.3        Other Information

 

TCN shall and shall procure
that each of the Obligors shall from time to time on the request of the
Facility Agent and/or the Administrative Agent:

 

(a)           provide the Facility Agent and/or the Administrative Agent
with such information about the business and financial condition of the TCN
Group or any member of the TCN Group (including such member’s business) as the
Facility Agent may reasonably require, provided that TCN shall not be under any
obligation to provide, or procure the providing of, any information the supply
of which would be contrary to any confidentiality obligation binding on any
member of the TCN Group or where the supply of such information could prejudice
the retention of legal privilege in such information and provided further that
no Obligor shall (and TCN shall procure that no member of the TCN Group shall)
be able to deny the Facility Agent and/or the Administrative Agent any such
information by reason of it having entered into a confidentiality undertaking
which would prevent it from disclosing, or be able to claim any legal privilege
in respect of, any financial information relating to itself or the Group; and

 

(b)           provide all then existing information about the business and
financial condition of the TCN Group or any member of the TCN Group (including
such member’s business) as Standard & Poor’s or Moody’s may reasonably
require and extend all reasonable co-operation for the purpose of determining
or assessing the credit ratings (if any) assigned to the Facilities and TCN
shall use all reasonable efforts to meet with representatives of Standard &
Poor’s and Moody’s no less frequently than once in each calendar year and in
connection with an Integrated Merger Event.

 

21.4        Compliance Certificates

 

(a)           TCN shall ensure that each set of financial information
delivered by it pursuant to Clause 21.1 (Financial
Statements) is accompanied by a working paper (the “Attached Working Paper”) setting out the calculations showing
compliance with the financial covenants set out in Clause 22 (Financial Condition) and the information
from which such calculations are derived (including the calculations for the
components of such covenants on a line by line basis) and a Compliance
Certificate signed by two of its authorised signatories (at least one of whom
shall be a Financial Officer) confirming:

 

(i)            compliance with
the relevant financial covenants set out in Clause 22 (Financial Condition) and showing figures
representing the actual financial ratios then in effect and the amount of
Capital Expenditure spent in the relevant period;

 

(ii)           the ratio of
Consolidated Net Borrowings to Consolidated Annualised TCN Group Net Operating
Cash Flow;

 

96

 

(iii)         the ratio of
Consolidated Annualised TCN Group Net Operating Cash Flow to Total Interest
Charges;

 

(iv)          the ratio of
Consolidated TCN Group Cash Flow to Consolidated Debt Service;

 

(v)            compliance with
the 95% Security Test;

 

(vi)          the absence of
any Default; and

 

(vii)         that the
information contained in the Attached Working Paper has been prepared on the
basis of the same information and methodology used to prepare the appropriate
financial information,

 

in each case, as at the end of such financial year or Financial Quarter
to which such financial information relates or detailing any non-compliance.

 

(b)           Upon the occurrence of an Integrated Merger Event, TCN shall
deliver:

 

(i)            a Compliance
Certificate signed by two of its authorised signatories (at least one of whom
shall be a Financial Officer) confirming that as at the effective date of such
Integrated Merger Event, the Merger Event Condition set out in paragraph (b) of
the definition thereof and (unless the consent of an Instructing Group has been
obtained to the Integrated Merger Event pursuant to paragraph (a)(ii) of the
definition of Merger Event Conditions) the Merger Event Integration Tests set
out in paragraphs (c), (d), (e) or (f) (as applicable) and (g) of the
definition thereof have been satisfied, such certificate to set out (in the
case of such Merger Event Integration Tests) the relevant ratios, the
calculations showing compliance with such ratios and the information from which
such calculations were derived (including the calculations for the components
of such ratios on a line by line basis); and

 

(ii)           a business plan
for the combined businesses of the TCN Group and the Target Group for the
period up to the Final Maturity Date in respect of Facility C.

 

(c)           If:

 

(i)            an Event of
Default has occurred, but only while such Event of Default is continuing,
(provided that with respect to an Event of Default relating to a breach of any
covenant in Clause 22 (Financial Condition),
such Event of Default shall be deemed to be continuing until such time as TCN
has delivered a Compliance Certificate pursuant to Clause 21.4 (Compliance Certificates) demonstrating
that TCN is in compliance with each of the covenants set out in Clause 22 (Financial Condition)); or

 

(ii)           in the reasonable
opinion of an Instructing Group, a breach of any covenant in Clause 22 (Financial Condition) is reasonably likely
to occur,

 

in each such circumstance, at TCN’s expense (in the case of
sub-paragraph (i)) and at the Lenders’ expense (in the case of sub-paragraph
(ii)), but without causing any undue interruption to the normal business
operations of such Obligor or any member of the TCN Group:

 

(x)           the
Facility Agent shall be entitled to call for an independent audit and
investigation which is reasonable in scope and degree having regard to the
nature of the Event of Default or suspected breach (as the case may be) of the
financial position of the TCN Group; and

 

97

 

(y)           the
Facility Agent, any Finance Party, or representative of the Facility Agent or
such Finance Party (an “Inspecting Party”)
shall be entitled to have access, together with its accountants or other
professional advisers, during normal business hours, to inspect or observe such
part of the business of the TCN Group as is owned or operated by any Obligor,
and to have access to books, records, accounts, documents, computer programmes,
data or other information in the possession of or available to such Obligor or
member of the TCN Group and to take such copies as may be considered
appropriate by such Inspecting Party, provided that no Obligor shall (and TCN
shall not be obliged to procure that any member of the TCN Group shall) be
under any obligation to allow any person to have access to any books, records,
accounts, documents, computer programmes, data or other information or to take
copies thereof where to do so would breach any confidentiality obligation
binding on any member of the Group or would prejudice the retention of legal
privilege to which such Obligor or member of the Group is then entitled in
respect of such books, records, accounts, documents, computer programmes, data
or other information and provided further that no Obligor shall (and TCN shall
procure that no member of the TCN Group shall) be able to deny the Facility
Agent any such information by reason of it having entered into a
confidentiality undertaking which would prevent it from disclosing, or be able
to claim any legal privilege in respect of, any financial information relating
to itself or the Group.

 

21.5        Change in Accounting Practices

 

TCN shall ensure that each set
of financial information delivered to the Facility Agent pursuant to Clause
21.1 (Financial Statements) is
prepared using accounting policies, practices and procedures consistent with US
GAAP as at the date hereof, unless in relation to any such set of financial
information TCN elects to notify the Agents that there have been one or more
changes in any such accounting policies, practices or procedures (including,
without limitation, any change in the basis upon which costs are capitalised):

 

(a)           TCN provides a description of the changes and the
adjustments which would be required to be made to that financial information in
order to cause them to reflect US GAAP as at the date hereof and any reference
in this Agreement to that financial information shall be construed as a
reference to that financial information as adjusted to reflect US GAAP as at
the date hereof; or

 

(b)           TCN notifies the Facility Agent that it is not longer
practicable to test compliance with the financial covenants set out in Clause
22 (Financial Condition) against
the financial information required to be delivered pursuant to this Clause 21
or that it wishes to cease preparing the additional information required by
sub-paragraph (a) above, in which case:

 

(i)            the Facility
Agent and TCN shall enter into negotiations with a view to agreeing alternative
financial covenants to replace those contained in Clause 22 (Financial Condition) in order to maintain
a consistent basis for such financial covenants (and for approval by an
Instructing Group);

 

(ii)           if the Facility
Agent and TCN agree alternative financial covenants to replace those contained
in Clause 22 (Financial Condition)
which are acceptable to an Instructing Group, such alternative financial
covenants shall be binding on all parties hereto; and

 

(iii)         if, after three
months following the date of the notice given to the Facility Agent pursuant to
this sub-paragraph (b), the Facility Agent and TCN cannot agree alternative
financial covenants which are acceptable to an Instructing Group, the Facility
Agent shall refer the matter to any of the Permitted Auditors as may be agreed
between TCN and the Facility Agent for determination of the adjustments

 

98

 

required to be made to such financial information or the calculation of
such ratios to take account of such change, such determination to be binding on
the parties hereto, provided that pending such determination (but not
thereafter) TCN shall continue to prepare financial information and calculate
such covenants in accordance with paragraph (a) above.

 

21.6        Notifications

 

TCN shall furnish or procure
that there shall be furnished to the Agents in sufficient copies for each of
the Lenders:

 

(a)           as soon as reasonably practicable, documents required to be
despatched by the Ultimate Parent to its shareholders generally (or any class
of them) in their capacity as such and all documents relating to the financial
obligations of any Obligor despatched by or on behalf of any Obligor to its
creditors generally (in their capacity as creditors), it being agreed that to
the extent such information is filed with the Securities and Exchange
Commission, such filing will satisfy TCN’s obligations with regard to the
provision of such information;

 

(b)           as soon as reasonably practicable after the same are instituted
or, to its knowledge, threatened, details of any litigation, arbitration or
administrative proceedings involving any member of the TCN Group which, is
reasonably likely to be adversely determined and if adversely determined, could
reasonably be expected to have a Material Adverse Effect;

 

(c)           written details of any Default promptly upon becoming aware
of the same, and of all remedial steps being taken and proposed to be taken in
respect of that Default; and

 

(d)           as soon as reasonably practicable after receipt of a request
by the Facility Agent, TCN shall supply to the Facility Agent a certificate
signed by a director or its Chief Financial Officer (given without personal
liability) on its behalf certifying that no Default is continuing (or if a Default
is continuing, specifying the Default and the steps, if any, being taken to
remedy the same).

 

21.7        Role of the Administrative Agent

 

Notwithstanding the right of
the Administrative Agent to receive or request certain documentation and other
information as set out in this Clause 21 (Financial
Information), the other Finance Parties hereby expressly acknowledge
and agree that the Administrative Agent (a) is under no obligation to ensure
that any such documentation or other information is made available to all or
any of them, (b) may (in its sole discretion) determine whether or not to
exercise any of its rights as set out in this Clause 21 (Financial Information) and (c) shall have
no liability whatsoever to any other Finance Party for the failure to exercise,
or any delay in exercising, any of its rights set out in this Clause 21 (Financial Information).

 

22.          FINANCIAL CONDITION

 

22.1        Ratios

 

The financial condition of the
TCN Group as evidenced by the financial information provided pursuant to Clause
21.1 (Financial Statements) and
the Attached Working Paper referred to in paragraph (a) of Clause 21.4 (Compliance Certificates) shall be such
that:

 

99

 

(a)           Consolidated Net Borrowings to
Consolidated Annualised TCN Group Net Operating Cash Flow

 

Consolidated
Net Borrowings as at any Quarter Date specified in the table in paragraph (d)
of this Clause 22.1, shall not be more than X times Consolidated Annualised TCN
Group Net Operating Cash Flow for the Semi-Annual Period ending on such Quarter
Date, where X has the value indicated for such Quarter Date in such table.

 

(b)           Consolidated Annualised TCN Group
Net Operating Cash Flow to Total Interest Charges

 

Consolidated Annualised  TCN Group Net Operating Cash Flow for the
Semi-Annual Period ending on any Quarter Date specified in the table in
paragraph (d) of this Clause 22.1, shall not be less than Y times Total
Interest Charges calculated on an annualised basis based on the Total Interest
Charges for such Semi-Annual Period, where Y has the value indicated for such
period in such table.

 

(c)           Consolidated TCN Group Cash Flow
to Consolidated Debt Service

 

Consolidated TCN Group Cash
Flow in respect of the twelve month period ending on each Quarter Date
commencing with 30 June 2005 specified in the table in paragraph (d) of this
Clause 22.1 shall not be less than Z times Consolidated Debt Service for such
twelve month period, where Z has the value indicated for such period in such
table, provided that (i) in the case of the test on 30 June 2005, this ratio
shall be calculated by reference to Consolidated TCN Group Cash Flow and
Consolidated Debt Service for the Semi-Annual Period ending on 30 June 2005
multiplied by 2 and (ii) in the case of the test on 30 September 2005, this
ratio shall be calculated by reference to Consolidated TCN Group Cash Flow and
Consolidated Debt Service for the nine month period ending on 30 September 2005
multiplied by 4/3.

 

(d)           Ratio Table

 

This is the table referred to
in paragraphs (a) to (c) above.

 

	
   

  	
   

  	
  Consolidated Net

  Borrowings to Consolidated

  Annualised TCN Group Net

  Operating Cash Flow

  	
   

  	
  Consolidated Annualised

  TCN Group Net

  Operating Cash Flow to

  Total Interest Charges

  	
   

  	
  Consolidated TCN

  Group Cash Flow to

  Consolidated

  Debt Service

  	
   

  
	
  Quarter Date

  	
   

  	
  X

  	
   

  	
  Y

  	
   

  	
  Z

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2005

  	
   

  	
  4.40

  	
   

  	
  2.35

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2005

  	
   

  	
  4.35

  	
   

  	
  2.45

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2005

  	
   

  	
  4.20

  	
   

  	
  2.55

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  4.05

  	
   

  	
  2.65

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2006

  	
   

  	
  4.00

  	
   

  	
  2.65

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2006

  	
   

  	
  3.95

  	
   

  	
  2.70

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2006

  	
   

  	
  3.80

  	
   

  	
  2.80

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  3.65

  	
   

  	
  2.95

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2007

  	
   

  	
  3.55

  	
   

  	
  3.00

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2007

  	
   

  	
  3.45

  	
   

  	
  3.00

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2007

  	
   

  	
  3.30

  	
   

  	
  3.15

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2007

  	
   

  	
  3.15

  	
   

  	
  3.25

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2008

  	
   

  	
  3.05

  	
   

  	
  3.35

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2008

  	
   

  	
  2.90

  	
   

  	
  3.40

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2008

  	
   

  	
  2.80

  	
   

  	
  3.60

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2008

  	
   

  	
  2.60

  	
   

  	
  3.75

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2009

  	
   

  	
  2.55

  	
   

  	
  3.90

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2009

  	
   

  	
  2.50

  	
   

  	
  4.05

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2009

  	
   

  	
  2.50

  	
   

  	
  4.30

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2009

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2010

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2010 and thereafter

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  

 

100

 

22.2        Permitted Capital Expenditure

 

(a)           Capital Expenditure during each financial year of the TCN
Group shall not exceed the aggregate of:

 

(i)            the Capital
Expenditure Allowance (as set out in paragraph (b) below) for such financial
year; plus

 

(ii)           to the extent not
used in the immediately preceding financial year, up to 25% of the Capital
Expenditure Allowance for the immediately preceding financial year (“Carried Forward Capex”),

 

(together, the “Permitted Capital
Expenditure”) provided that in the case of any financial year:

 

(A)          for the purposes of
calculating Permitted Capital Expenditure for such financial year, any Carried
Forward Capex shall be deemed to have been utilised last and shall not be
carried forward more than once;

 

(B)          in no circumstances
may Permitted Capital Expenditure in such financial year exceed 125% of the
Capital Expenditure Allowance for such financial year;

 

(C)          an amount of up to
£75,000,000 in aggregate (or its equivalent in other currencies) of Capital
Expenditure may be incurred (in addition to any Permitted Capital

 

101

 

Expenditure allowed under this Clause 22.2) to the extent such Capital
Expenditure is funded from Equity Proceeds which are contributed to the TCN
Group and applied from time to time towards Capital Expenditure as contemplated
by sub-paragraph (b)(ii) of Clause 11.6 (Repayment
from Equity Proceeds).

 

(b)    
The
Capital Expenditure Allowance (subject to its adjustment in accordance with
paragraph (c) below) in respect of each financial year is as follows:

 

	
  Financial Year ending

  	
   

  	
  Capital Expenditure Allowance (£)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  315,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  330,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2007

  	
   

  	
  310,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2008

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2009

  	
   

  	
  295,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2010

  	
   

  	
  290,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2011

  	
   

  	
  285,000,000

  	
   

  

 

(c)           Following an Integrated Merger Event, the amounts set out in
the table in paragraph (b) above under the column entitled “Capital Expenditure
Allowance” shall be adjusted so that such amounts after an Integrated Merger
Event shall bear the same relation to such amounts prior to the Integrated Merger
Event as the combined TCN Group Consolidated Revenues for the Semi-Annual
Period ending on the most recent Quarter Date for the TCN Group for which
quarterly financial information is available for the TCN Group and Target Group
Consolidated Revenues for the Semi-Annual Period ending on the last Quarter
Date for which quarterly financial information is available for the Target
Group bears to the TCN Group Consolidated Revenues for the Semi-Annual Period
ending on the most recent Quarter Date for the TCN Group immediately prior to
the Integrated Merger Event.

 

22.3        Currency calculations

 

Where any financial
information with reference to which any of the covenants in Clause 22.1 (Ratios) are tested states amounts in a
currency other than Sterling such amounts shall, for the purposes of testing
such covenants be converted from such currency into Sterling at the rate used
in such financial information for the purpose of converting such amounts from
Sterling into the currency in which they are stated in such financial
information or where no such rate is stated in such financial information at an
appropriate rate selected by TCN, acting reasonably.

 

22.4        Pro Forma Calculations

 

For the purposes of testing
compliance with the financial covenants set out in Clause 22.1 (Ratios), 
Clause 24.15 (Telewest UK Covenants)
and paragraph (j) of Clause 24.13 (Acquisitions
and Investments) the calculation of such ratios shall be made on a
pro forma basis giving effect to all material acquisitions and disposals made
by the TCN Group during the relevant period of calculation based on historical
financial results of the items being acquired or disposed of, provided that any
Flextech Disposal shall not give rise to any adjustments.

 

102

 

23.          POSITIVE UNDERTAKINGS

 

23.1        Application of Advances

 

TCN shall ensure that the
proceeds of each Advance made under this Agreement are applied exclusively for
the applicable purposes specified in Clause 2.2 (Purpose).

 

23.2        Financial Assistance and Fraudulent Conveyance

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall) ensure that its
execution of the Finance Documents to which it is a party and the performance
of its obligations thereunder does not contravene any applicable local laws and
regulations concerning fraudulent conveyance, financial assistance by a company
for the acquisition of or subscription for its own shares or the shares of its
parent or any other company or concerning the protection of shareholders’
capital.

 

23.3        Necessary Authorisations

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall):

 

(a)           obtain, comply with and do all that is necessary to maintain
in full force and effect all Necessary Authorisations, except where a failure
to do so could not reasonably be expected to have a Material Adverse Effect;
and

 

(b)           promptly upon request of the Facility Agent, supply
certified copies to the Facility Agent of any such Necessary Authorisations so
requested.

 

23.4        Compliance with Applicable Laws

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall) comply with all
applicable laws to which it is subject in respect of the conduct of its
business and the ownership of its assets (including, without limitation, all
Statutory Requirements), in each case, where a failure so to comply could
reasonably be expected to have a Material Adverse Effect.

 

23.5        Insurance

 

(a)           Each Obligor shall (and TCN shall procure that each member
of the TCN Group shall) effect and maintain insurances on and in relation to
its business and assets against such risks and to such extent as is necessary
or usual for prudent companies carrying on a business such as that carried on
by such Obligor or member of the TCN Group with a reputable underwriter or
insurance company except to the extent disclosed in the Group’s public
disclosure documents or to the extent that the failure to so insure could not
reasonably be expected to have a Material Adverse Effect.

 

(b)           TCN shall (upon the reasonable request of the Facility
Agent) supply the Facility Agent with copies of all such insurance policies or
certificates of insurance in respect thereof or (in the absence of the same)
such other evidence of the existence of such policies as may be reasonably
acceptable to the Facility Agent.

 

23.6        Intellectual Property

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall):

 

(a)           take all necessary action to safeguard and maintain its
rights, present and future, in or relating to all Intellectual Property Rights
owned, used or exploited by it and which are material to the business of the
TCN Group (including, without limitation, paying all applicable renewal fees,

 

103

 

licence fees and other
outgoings) save where a failure to do so could not reasonably be expected to
have a Material Adverse Effect; and

 

(b)           notify the Facility Agent promptly of any infringement or
suspected infringement or any challenge to the validity of any of the present
or future Intellectual Property Rights owned, used or exploited by it and which
are material to the business of the TCN Group which may come to its notice and
it will supply the Facility Agent with all information in its possession relating
thereto if the same could reasonably be expected to have a Material Adverse
Effect and take all necessary steps (including, without limitation, the
institution of legal proceedings) to prevent third parties infringing such
Intellectual Property Rights to the extent that failure to do so could
reasonably be expected to have a Material Adverse Effect.

 

23.7        Ranking of Claims

 

Subject to the Reservations,
each Obligor shall ensure that at all times the claims of the Finance Parties
against it under the Finance Documents to which it is a party rank at least pari passu with the claims of all its unsecured,
unsubordinated creditors save those whose claims are preferred by any
bankruptcy, insolvency, liquidation or similar laws of general application.

 

23.8        Pay Taxes

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall), file all material tax
returns on time and ensure that at all times, there are no material claims or
liabilities which are asserted against it in respect of tax, save to the extent
the relevant Obligor or in the case of any other member of the TCN Group, TCN
(as the case may be) can demonstrate that the same are being contested in good
faith on the basis of appropriate professional advice and that proper reserves
have been established therefor to the extent required by applicable generally
accepted accounting principles.

 

23.9        Hedging

 

Each Borrower
shall:

 

(a)           within 6 months of the date of this Agreement enter into and
maintain Hedging Agreements for the purpose of limiting the TCN Group’s
exposure to adverse movements in interest rates or foreign exchange in relation
to the Facilities and the Second Lien Facility (or any Second Lien Refinancing,
as applicable) as follows:

 

(i)            interest rate
hedging required to ensure that interest is payable at fixed rates on not less
than 55% of the combined aggregate principal amount outstanding as at the
Closing Date, under the Facilities and the Second Lien Facility (or any Second
Lien Refinancing, as applicable), for a period commencing on the date on which
such Hedging Agreements are executed and ending on the third anniversary of the
Closing Date; and

 

(ii)           currency rate
hedging in respect of all amounts of principal and interest payable under the B
Facility, the C Facility or the Second Lien Facility (or any Second Lien
Refinancing, as applicable) in Euro or Dollars for a period commencing on the
date on which such Hedging Agreements are executed and ending on the third
anniversary of the Closing Date;

 

(b)           within 6 months of the date of any Second Lien Refinancing,
enter into and maintain hedging arrangements for the purpose of limiting the
TCN Group’s exposure to adverse movements in interest rates or foreign exchange
in relation to such Second Lien Refinancing for the relevant remaining period
specified in paragraph (a) above and to the extent that TCN would have 

 

104

 

been obliged to enter into
hedging arrangements in respect of such Second Lien Refinancing under paragraph
(a) above if the loan instrument constituting such Second Lien Refinancing had
constituted the Second Lien Facility;

 

(c)           ensure that the hedging arrangements required pursuant to
paragraphs (a) and (b) in are entered into in the form of Acceptable Hedging
Agreements; and

 

(d)           as soon as reasonably practicable following request by the
Facility Agent provide the Facility Agent with certified true copies of each
such Hedging Agreement entered into,

 

provided that no Borrower
shall be in breach of this Clause 23.9 if such Borrower fails to enter into the
hedging arrangements required under paragraphs (a) and (b) by the relevant
times specified in paragraphs (a) and (b) and, in the case of paragraph (a),
during the time between the date of this Agreement and the date falling six
months thereafter, either:

 

(i)            none of the Lenders
or their Affiliates is willing to enter into Hedging Agreements to effect the
hedging arrangements required by paragraphs (a) or (b), as the case may be; or

 

(ii)           where
a Lender or its Affiliate is willing to enter into such hedging arrangements,
the terms of such hedging arrangements are, in the reasonable opinion of the
Facility Agent and the Mandated Lead Arrangers and having regard to the
creditworthiness of any Borrower and current market conditions, considered to
be unreasonable, or where in the opinion of the Facility Agent and the Mandated
Lead Arrangers, acting reasonably, such hedging arrangements would cause
material adverse tax-related implications for any member of the Group.

 

23.10      Pension Plans

 

TCN shall use reasonable
endeavours to ensure that all pension plans maintained and operated by it
generally for the benefit of employees of any member of the TCN Group are
maintained and operated in all material respects in accordance with all
applicable laws from time to time and that the employer contributions are
assessed and paid in all material respects in accordance with the governing
provisions of such schemes and all laws applicable thereto, in each case, save
to the extent that any failure to fund such pension plan on that basis could
not reasonably be expected to have a Material Adverse Effect.

 

23.11      Environmental Matters

 

(a)           Each Obligor shall (and TCN shall procure that each member
of the TCN Group shall):

 

(i)            comply with all Environmental
Laws to which it is subject;

 

(ii)           obtain all
Environmental Licences required or desirable in connection with the business it
carries on; and

 

(iii)         comply with the
terms of all such Environmental Licences,

 

in each case where failure to do so could reasonably be expected to have
a Material Adverse Effect.

 

(b)           Each Obligor shall (and TCN shall procure that each member
of the TCN Group shall) promptly notify the Facility Agent of any Environmental
Claim (to the best of such Obligor’s or member of the TCN Group’s knowledge and
belief) pending or threatened against it which, if substantiated, could
reasonably be expected to have a Material Adverse Effect.

 

105

 

(c)           No Obligor shall (and TCN shall procure that no member of
the TCN Group shall) permit or allow to occur any discharge, release, leak,
migration or other escape of any Hazardous Substance into the Environment on,
under or from any property owned, leased, occupied or controlled by it, where such
discharge, release, leak, migration or escape could reasonably be expected to
have a Material Adverse Effect.

 

23.12      Further Assurance

 

(a)           Each Obligor shall (and TCN shall procure that each member
of the TCN Group shall) at its own expense, promptly take all such reasonable
action as the Facility Agent or the Security Trustee may require for the
purpose of complying with the provisions of paragraph (b) and for the
registration or filing of any Security Documents delivered pursuant thereto
with all appropriate authorities to the extent necessary for the purposes of
perfecting the Security created thereunder.

 

(b)           TCN shall:

 

(i)            subject to the
proviso below and except as otherwise provided in this Clause 23.12, procure
that the 95% Security Test is satisfied, on each Quarter Date during the term
of the Facilities where such percentage is calculated by reference to the
quarterly financial information relating to the TCN Group most recently
delivered pursuant to Clause 21.1 (Financial
Statements) and certified in the relevant Compliance Certificate
accompanying the same;

 

(ii)           procure that in
relation to any member of the TCN Group which becomes an Obligor for the
purposes of ensuring compliance with sub-paragraph (i) above, each intermediate
Holding Company of such member of the TCN Group within the TCN Group shall also
become an Obligor hereunder; and

 

(iii)         procure that each
Obligor which is or becomes a party to this Agreement in such capacity under
sub-paragraph (i) above shall have delivered to the Security Trustee, one or
more Security Documents granting security over all or substantially all of its
assets other than any shares in, receivables owed by or any other interest in
any Excluded Subsidiary or Project Company or any other asset which is of a type
excluded from existing corresponding Security Documents or has been excluded
for the reasons provided in paragraph (c) of Merger Event Conditions, or which
the Security Trustee agrees may be excluded from the Security granted under the
Security Documents (provided that the Security Trustee shall not agree to
exclude any asset of an Obligor from the Security where the net book value of
such asset exceeds £3,000,000 (or its equivalent in other currencies) without
the prior consent of an Instructing Group (not to be unreasonably withheld or
delayed)),

 

provided that it shall not constitute a breach of this paragraph (b) if
any Obligor is prevented by any legal or contractual restriction from complying
with the provisions of sub-paragraphs (i) and (iii) and provided further that
in no event shall the Obligors represent less than 90% of the Consolidated
Annualised TCN Group Net Operating Cash Flow.

 

(c)           A breach of sub-paragraph (b) shall not constitute a Default
if:

 

(i)            one or more
members of the TCN Group become Obligors in accordance with Clause 25.1 (Acceding Guarantors) within 5 Business
Days of the delivery of a Compliance Certificate by TCN demonstrating that the
95% Security Test is not satisfied; and

 

(ii)           the Facility
Agent (acting reasonably) is satisfied that the 95% Security Test would have
been satisfied on the relevant Quarter Date if such Compliance Certificate had

 

106

 

been prepared on the basis that such members of the TCN Group had
been  Obligors as at that Quarter Date.

 

(d)           In relation to any provision of this Agreement or after an
Integrated Merger Event, the Pari Passu Intercreditor Agreement which requires
the Obligors or any member of the TCN Group to deliver a Security Document for
the purposes of granting any guarantee or Security for the benefit of the
Finance Parties, the Security Trustee agrees to execute as soon as reasonably
practicable, any such guarantee or Security Document which is presented to it
for execution.

 

(e)           Each of the Finance Parties hereby agrees that it will, upon
the request of TCN made following delivery of the written notice referred to in
Clause 23.19 (Notice of Integrated Merger
Event), execute a Pari Passu Intercreditor Agreement substantially
in the form set out in Schedule 13 (Pro
Forma Pari Passu Intercreditor Agreement). To the extent that any
amendments are requested as contemplated by Clause 42.7 (Amendments to the Pari Passu Intercreditor
Agreement), each Finance Party agrees that the provisions of Clause
42.7 (Amendments to the Pari Passu
Intercreditor Agreement) shall apply.

 

(f)            In anticipation of the incurrence of any Target Group
Refinancing Indebtedness or Post Merger Target Group Refinancing after the
occurrence of an Integrated Merger Event, each of the Finance Parties hereby
agrees that it will, upon the request of TCN execute a new Pari Passu
Intercreditor Agreement substantially in the form set out in Schedule 13 (Pro Forma Pari Passu Intercreditor Agreement).
To the extent that any amendments are requested as contemplated by Clause 42.7 (Amendments to the Pari Passu Intercreditor
Agreement), each Finance Party agrees that the provisions of Clause
42.7 (Amendments to the Pari Passu
Intercreditor Agreement) shall apply.

 

(g)           Each of the Finance Parties hereby agrees that it will, upon
the request of TCN made upon reasonable notice prior to the proposed effective
date of any Second Lien Refinancing, accept an accession deed by which parties
will accede to the Principal Intercreditor Deed in relation to such Second Lien
Refinancing.  To the extent that any
amendments are requested by any person party to such agreement, each Finance
Party agrees to negotiate such amendments in good faith

 

(h)           At any time after an Event of Default has occurred and
whilst such Event of Default is continuing, each Obligor shall, at its own
expense, take any and all action as the Security Trustee may deem necessary for
the purposes of perfecting or otherwise protecting the Lenders’ interests in
the Security constituted by the Security Documents.

 

23.13      Assets

 

Each Obligor shall (and TCN
shall procure that each member of the TCN Group shall) maintain and preserve
all of its assets that are necessary in the conduct of its business as it is
conducted from time to time, in good working order and condition subject to
ordinary wear and tear where any failure to do so would be reasonably likely to
have a Material Adverse Effect.

 

23.14      Centre of Main Interests

 

No Obligor incorporated or
otherwise existing under the laws of England shall (and TCN shall procure that
no other member of the TCN Group incorporated or otherwise existing under the
laws of England shall), without the prior written consent of an Instructing
Group, cause or allow its Centre of Main Interests to change to a country other
than England.

 

107

 

23.15      Group Structure Chart

 

If there is a material change
or inaccuracy in the corporate structure of the TCN Group or any Holding
Companies of TCN from that set out in the Group Structure Chart most recently
delivered to the Facility Agent, TCN shall deliver or procure that there is
delivered to the Facility Agent, as soon as practicable upon becoming
available, an updated Group Structure Chart containing information sufficient
to evidence the matters set out in paragraphs (b) and (c) of Clause 20.18 (Structure) and showing such change or correcting such
inaccuracy.

 

23.16      Contributions to the TCN Group

 

Telewest UK shall procure that
any monies which are at any time contributed by any member of the Group to any
member of the TCN Group shall be contributed by way of Subordinated Funding, by
way of an investment through capital contribution or a subscription of
securities or convertible unsecured loan stock in the relevant member of the
TCN Group.

 

23.17      “Know your client” checks

 

(a)           Each Obligor shall promptly upon the request of the Facility
Agent or any Lender and each Lender shall promptly upon the request of the
Facility Agent supply, or procure the supply of, such documentation and other
evidence as is reasonably requested by the Facility Agent (for itself or on
behalf of any Lender) or any Lender (for itself or on behalf of any prospective
Transferee in order for the Facility Agent, such Lender or any prospective
Transferee to carry out and be satisfied with the results of all necessary “know
your client” or other applicable anti-money laundering checks in relation to
the identity of any person that it is required to carry out in relation to the
transactions contemplated in the Finance Documents.

 

(b)           TCN shall, by not less than 3 Business Days written notice to the Facility Agent, notify
the Facility Agent (which shall promptly notify the Lenders) of its intention
to request that one of its wholly-owned Subsidiaries becomes an Acceding
Guarantor pursuant to Clause 25.1 (Acceding Guarantors).

 

(c)           Following the giving of any notice pursuant to paragraph (b)
above, TCN shall promptly upon the request of the Facility Agent or any Lender
supply, or procure the supply of, such documentation and other evidence as is
reasonably requested by the Facility Agent (for itself or on behalf of any
Lender) or any Lender (for itself or on behalf of any prospective Transferee to
carry out and be satisfied with the results of all necessary “know your client”
or other applicable anti-money laundering checks in relation to the identity of
any person that it is required to carry out in relation to the accession of
such Acceding Guarantor to this Agreement.

 

23.18      Change in Auditors

 

The Obligors shall ensure that
its auditors are (and in the case of TCN, the TCN Group’s auditors are) any one of the Permitted Auditors provided
that in the event of any change in such auditors, the relevant Obligor (or TCN,
in the case of any change to the TCN Group’s auditors) shall promptly notify
the Facility Agent of such change.

 

23.19      Notice of Integrated Merger Event

 

TCN may designate an
Integrated Merger Event by providing not less than 30 days’ written notice
before the proposed effective date thereof to the Facility Agent.  Such notice shall specify the following
matters as projected by TCN in its reasonable judgment, as at the date of such
notice:

 

(a)           the proposed provisional effective date of the Integrated
Merger Event;

 

108

 

(b)           which members of the Target Group shall become Target Group
Obligors and which other members of the Target Group are being designated as
members of the TCN Group at the date of the Integrated Merger Event for the
purposes of sub-paragraph (b) of the definition of “TCN Group”; and

 

(c)           what (if any) corporate reorganisations will be implemented
in connection with the Integrated Merger Event; for the avoidance of doubt, any
reorganisation involving the Target Group (including without limitation, the
acquisition of one or more members of the Target Group by TCN or one or more
Subsidiaries of TCN) for the purposes of an Integrated Merger Event shall
constitute a permitted acquisition for the purposes of paragraph (a) of Clause
24.13 (Acquisitions and Investments),

 

provided that, upon reasonable
request of the Facility Agent following 
delivery of the notice referred to above and from time to time, TCN
shall keep the Facility Agent appraised of all material developments with respect
to the Integrated Merger Event and provided further that no less than 3
Business Days before the effective date of the Integrated Merger Event, TCN
shall provide written confirmation of the matters referred to in paragraphs (a)
to (c) to the Facility Agent.

 

23.20      ERISA

 

(a)           As soon as possible and, in any event, within 20 days after
Telewest UK or any Obligor knows or has reason to know of the occurrence of any
of the events specified in paragraph (b) of this Clause 23.20, Telewest UK or
such Obligor will deliver to the Agent in sufficient copies for each Lender a
certificate of the chief financial officer of Telewest UK or such Obligor
setting out full details as to such occurrence and the action, if any, that the
relevant member of the Group or ERISA Affiliate is required or proposes to
take, together with any notices required or proposed to be given or filed by
such member of the Group, the Plan administrator or such ERISA Affiliate to or
with the PBGC or any other government agency, or a Plan or Multiemployer Plan
participant and any notices received by such member of the Group or ERISA
Affiliate from the PBGC or any other government agency, or a Plan or
Multiemployer Plan participant with respect to it.

 

(b)           the events referred to in paragraph (a) of this Clause 23.20
are:

 

(i)            a Reportable
Event occurs (except to the extent that the relevant member of the Group has
previously delivered to the Agent a certificate and notices (if any) concerning
such event pursuant to the next clause of this Agreement);

 

(ii)           a contributing
sponsor (as defined in section 4001(a)(13) of ERISA) of a Plan subject to Title
IV of ERISA is subject to the advance reporting requirement of PBGC Regulation
section 4043.61 (without regard to subparagraph (b)(1) of it), and an event
described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation
section 4043 is reasonably expected to occur with respect to such Plan within
the following 30 days;

 

(iii)         an accumulated
funding deficiency, within the meaning of section 412 of the Code or section
302 of ERISA, is incurred or an application is or may be made for a waiver or
modification of the minimum funding standard (including any required instalment
payments) or an extension of any amortisation period under section 412 of the
Code or section 303 or 304 of ERISA with respect to a Plan or Multiemployer
Plan;

 

(iv)          any contribution
required to be made with respect to a Multiemployer Plan, Plan or Foreign
Pension Plan is not made before or within 30 days following the time limit
therefor;

 

109

 

(v)            a Plan or
Multiemployer Plan is or may be terminated, reorganised, partitioned or
declared insolvent under Title IV of ERISA;

 

(vi)          a Plan has an
Unfunded Current Liability which, when added to the aggregate amount of
Unfunded Current Liabilities with respect to all other Plans, exceeds the
aggregate amount of such Unfunded Current Liabilities that existed on the date
of this Agreement by $10,000,000;

 

(vii)         proceedings are
or may be instituted to terminate or appoint a trustee to administer a Plan
which is subject to Title IV of ERISA;

 

(viii)        proceedings are
instituted pursuant to section 515 of ERISA to collect a delinquent
contribution to a Plan;

 

(ix)          any member of the
Group or any ERISA Affiliate incurs or is reasonably expected to incur any
liability to or on account of the termination of or withdrawal from a Plan or
Multiemployer Plan under section 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of
ERISA or with respect to such a Plan under section 401(a)(29), 4971, 4975 or
4980 of the Code or section 409, 502(i) or 502(l) of ERISA or with respect to a
group health plan (as defined in section 607(1) of ERISA or section 4980B(g)(2)
of the Code) maintained by Telewest UK or any member of the Group under section
4980B of the Code; and

 

(x)           any member of the
Group incurs or may incur a liability that exceeds $10,000,000 pursuant to any
employee welfare benefit plan (as defined in section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by section 601 of ERISA) or any Plan or any Foreign Pension Plan
maintained by it.

 

(c)           The Parent shall procure that each member of the Group will
deliver to the Agent in sufficient copies for each of the Lenders:

 

(i)            copies of any
records, documents or other information that must be furnished to the PBGC with
respect to any Plan pursuant to Section 4010 of ERISA;

 

(ii)           a complete copy
of the annual report (on Internal Revenue Service Form 5500-series (including, to
the extent required, the related financial and actuarial statements and
opinions and other supporting statements, certifications, schedules and
information)) of each Plan or Multiemployer Plan (if available to any member of
the Group or an ERISA Affiliate) required to be filed with the Internal Revenue
Service;

 

(iii)         copies of annual
reports and any records, documents or other information required to be
furnished by such member of the Group or any ERISA Affiliate to the PBGC or any
other government agency; and

 

(iv)          any material
notices received by a member of the Group or any ERISA Affiliate with respect
to any Plan, Multiemployer Plan or Foreign Pension Plan, in the case of each of
(i), (ii), (iii) and (iv), no later than 30 days (or 10 days in the case of
this paragraph (iv)) after the date such annual report has been filed with the
Internal Revenue Service or such records, documents and/or information has been
furnished to the PBGC or such other government agency or such notice has been
received by such member of the Group or ERISA Affiliate, as applicable.

 

(d)           The Parent shall procure that each member of the Group shall
ensure that all Foreign Pension Plans administered by them or into which they
make payments, obtain or retain (as

 

110

 

applicable) registered status
under and as required by applicable law and are administered in a timely manner
in all respects in compliance with all applicable laws except where the failure
to do any of the foregoing will not have a Material Adverse Effect.

 

23.21      Telewest UK

 

Telewest UK shall promptly
upon becoming aware of the same notify the Facility Agent of any material claim
made, issued or threatened in writing against Telewest UK under the Transfer
Agreement.

 

24.          NEGATIVE UNDERTAKINGS

 

24.1        Undertakings with respect to the Flextech Group

 

Any action undertaken, or any
transaction entered into, by any member of the TCN Group and any circumstances
arising in connection with or as a result of a Flextech Disposal shall not be
restricted by (nor be deemed to constitute a utilisation of any of the
permitted exceptions to) any of the provisions of this Clause 24 (and any such
action, transaction or circumstance shall not constitute a breach of any of the
Finance Documents, an Event of Default or an event which would trigger a
mandatory prepayment under Clause 11 (Mandatory
Prepayment and Cancellation)) to the extent such action, transaction
or circumstance has been undertaken or entered into for the purposes of or in
connection with effecting a Flextech Disposal.

 

24.2        Negative Pledge

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) create or permit
to subsist any Encumbrance over all or any of its present or future revenues or
assets to secure or prefer any present or future Financial Indebtedness of any
Person other than an Encumbrance:

 

(a)           which is an Existing Encumbrance set out in:

 

(i)            Part 1A of
Schedule 10 (Existing Encumbrances)
provided that such Encumbrance is released within 10 days following the Closing
Date; or

 

(ii)           Part 1B of
Schedule 10 (Existing Encumbrances) provided
that the principal amount secured thereby may not be increased unless any
Encumbrance in respect of such increased amount would be permitted under another
paragraph of this Clause 24.2;

 

(b)           which arises (i) by operation of Law or (ii) under a
contract having a similar effect, or an escrow arrangement required by a
trading counterparty of any member of the TCN Group, in each case entered into
the ordinary course of business of the relevant member of the TCN Group;

 

(c)           which is created pursuant to any of the Finance Documents or
the Second Lien Finance Documents;

 

(d)           arising from any Finance Leases, sale and leaseback
arrangements or Vendor Financing Arrangements permitted to be incurred pursuant
to Clause 24.4 (Financial Indebtedness)

 

(e)           which arises in respect of any right of set-off, netting
arrangement, title transfer or title retention arrangements which:

 

(i)            arises in the
ordinary course of business and/or by operation of Law;

 

111

 

(ii)           is entered into
by any member of the TCN Group in the normal course of its banking arrangements
for the purpose of netting debit and credit balances on bank accounts of
members of the TCN Group operated on a net balance basis;

 

(iii)         arises in respect
of netting or set off arrangements contained in any Hedging Agreement or other
contract permitted under Clause 24.12 (Limitations
on Hedging) or required pursuant to
any other provision of this Agreement;

 

(iv)          which is a
retention of title arrangement with respect to customer premises equipment in
favour of a supplier (or its Affiliate) in respect of Financial Indebtedness
referred to in paragraph (f) of Clause 24.4 (Financial
Indebtedness); provided that the title is only retained to
individual items of customer premises equipment in respect of which the
purchase price has not been paid in full; or

 

(v)            is entered into
by any member of the TCN Group on terms which are generally no worse than the
counterparty’s standard or usual terms and entered into in the ordinary course
of business of the relevant member of the TCN Group;

 

(f)            which arises in respect of any judgment, award or order or
any tax liability for which an appeal or proceedings for review are being
diligently pursued in good faith, provided that the affected member of the TCN
Group shall have or will establish such reserves as may be required under
applicable generally accepted accounting principles in respect of such
judgment, award, order or tax liability;

 

(g)           which is created by any member of the TCN Group in
substitution for any Existing Encumbrance referred to in paragraph (a)(ii)
above of this Clause 24.2, provided that the principal amount secured thereby
may not be increased unless any Encumbrance in respect of such increased amount
would be permitted under another paragraph of this Clause 24.2;

 

(h)           over or affecting any asset acquired by any member of the
TCN Group after the date of this Agreement and subject to which such asset is
acquired, if:

 

(i)            such Encumbrance
was not created in contemplation of the acquisition of such asset by a member
of the TCN Group; and

 

(ii)           the Financial
Indebtedness secured thereby is Financial Indebtedness of, or is assumed by,
the relevant acquiring members of the TCN Group, is Financial Indebtedness
which at all times falls within paragraph (j) or (m) of Clause 24.4 (Financial Indebtedness) and the amount of Financial
Indebtedness so secured is not increased at any time;

 

(i)            over or affecting any asset of any company which becomes a
member of the TCN Group after the date of this Agreement, where such
Encumbrance is created prior to the date on which such company becomes a member
of the TCN Group, if:

 

(i)            such Encumbrance
was not created in contemplation of the acquisition of such company; and

 

(ii)           to the extent not
repaid by close of business on the date upon which such company became a member
of the TCN Group, the Financial Indebtedness secured by such Encumbrance at all
times falls within paragraph (j) or (m) of Clause 24.4 (Financial
Indebtedness);

 

112

 

(j)            constituted by a rent deposit deed entered into on arm’s
length commercial terms and in the ordinary course of business securing the
obligations of a member of the TCN Group in relation to property leased to a
member of the TCN Group;

 

(k)           constituted by an arrangement referred to in paragraphs (d)
or (f) of the definition of Financial Indebtedness;

 

(l)            which is granted by a member of the TCN Group over the
shares of, Financial Indebtedness owed by or other interests it holds in, or
over the assets (including, without limitation, present or future revenues)
attributable to, a Project Company, an Excluded Subsidiary or a Joint Venture;

 

(m)          over cash deposited as security for the obligations of a
member of the TCN Group in respect of a performance bond, guarantee, standby
letter of credit or similar facility entered into in the ordinary course of
business of the TCN Group;

 

(n)           over the assets and undertakings of any members of the TCN
Group which secures Target Group Financial Indebtedness and/or Target Group
Refinancing Indebtedness as at close of business on the effective date of the
Integrated Merger Event up to an aggregate principal amount of £2,425,000,000
(or its equivalent in other currencies) or which secures Financial Indebtedness
constituting a Post Merger Target Group Refinancing and which, in each case,
ranks on a pari passu basis with
the Facilities;

 

(o)           securing any Second Lien Refinancing; or

 

(p)           securing Financial Indebtedness the principal amount of
which (when aggregated with the principal amount of any other Financial
Indebtedness which has the benefit of an Encumbrance other than as permitted
pursuant to paragraphs (a) to (o) above) does not exceed £125,000,000 (or its
equivalent in other currencies), which may be secured:

 

(i)            on assets not
subject to the Security; and/or

 

(ii)           over assets
subject to the Security on a basis ranking junior to the Security, provided
that such junior ranking security shall be granted on terms no more favourable
to the beneficiaries thereof than that granted under the Second Lien Facility
Agreement (or if the Second Lien Facility and any Second Lien Refinancing have been
repaid or refinanced in full on other than a second secured basis, on terms no
more favourable to the beneficiaries thereof than that granted under this
Agreement) or where the rights of the relevant mortgagee, chargee or other
beneficiary of such security in respect of any payment will be subordinated to
the rights of the Finance Parties under the Principal Intercreditor Deed, any
TGD Intercreditor Agreement, the Pari Passu Intercreditor Agreement or any
other intercreditor arrangement which is either:

 

(A)          on
terms satisfactory to the Finance Parties; or

 

(B)          on
terms where the relevant mortgagee, chargee or other beneficiary of such
security shall not be entitled to exercise any voting rights (or shall transfer
any voting rights to which it may be entitled (whether such voting rights are
granted by contract or applicable law) to the Security Trustee), shall agree to
turnover any monies it receives in respect of such security, shall not enforce
any rights to which it may be entitled in respect of the Financial Indebtedness
secured by such security, dispose of, enforce any Encumbrance over, and shall
not appoint any receiver, manager, attorney or any similar officer over, or
otherwise exercise any rights in respect of, all or any part of the assets

 

113

 

subject to such security until such time that all amounts outstanding
under the Finance Documents have been repaid and discharged in full,

 

provided that in either case, each of the Finance Parties agrees to execute
such intercreditor deed as soon as practicable following request from TCN, and
provided further that any Encumbrances securing Target Group Financial
Indebtedness, Target Group Refinancing Indebtedness and/or Post Merger Target
Group Refinancing Indebtedness shall be limited as provided in paragraph (n) of
this Clause 24.2.

 

24.3        Loans and Guarantees

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) grant any loan or
credit or give any guarantee in any such case in respect of Financial
Indebtedness, other than:

 

(a)           any extension of trade credit or guarantees, bonds or
indemnities granted in the ordinary course of business on usual and customary
terms;

 

(b)           any credit given by a member of the TCN Group to another
member of the TCN Group which arises by reason of cash-pooling, set-off or
other cash management arrangements of the TCN Group;

 

(c)           the Existing Loans, provided that the aggregate principal
amount outstanding thereunder may not be increased from that existing at the
date of this Agreement in reliance on this paragraph (c) (except with respect
to the accrual or capitalisation of interest);

 

(d)           any loans or credit granted:

 

(i)            by a member of
the TCN Group which is not an Obligor to an Obligor by way of Subordinated
Funding;

 

(ii)           by one Obligor to
another Obligor; or

 

(iii)         by a member of
the TCN Group which is not an Obligor to any other member of the TCN Group
which is not an Obligor;

 

(iv)          by a member of
the TCN Group to one or more members of the Flextech Group; provided that the
aggregate principal amount of all loans or credit at any time outstanding and
granted after the Closing Date pursuant to this Clause (d)(iv) shall not exceed
the sum of £15,000,000 plus that amount which, when taken together with the
aggregate amount of any loans, distributions or other payments to, or
guarantees for the Financial Indebtedness of, or acquisitions of interests or
investments in Joint Ventures during the then current financial year, does not
exceed 3.5% of TCN Group Consolidated Revenues for the preceding financial year
calculated by reference to the annual financial information for the TCN Group
delivered in respect of the preceding financial year of the TCN Group pursuant
to Clause 21.1 (Financial Statements),
and provided further that any such loans or credit shall be repaid on or before
any Flextech Disposal that results in the relevant member of the Flextech Group
ceasing to be a member of the Group;

 

(v)            by a member of
the TCN Group to the relevant member of the Flextech Group for the purposes of
funding drawings available under the undrawn portion of any Existing Loan Stock
of up to £50,000,000 in aggregate, provided that any such loans or credit
granted after the date of this Agreement shall be repaid on or before any
Flextech

 

114

 

Disposal that results in the relevant member of the Flextech Group
ceasing to be a member of the Group;

 

(vi)          in accordance
with Clause 24.9 (Joint Ventures);

 

(vii)         by the US Borrower
pursuant to the TCN Notes;

 

(e)           any loans made by any member of the TCN Group to its
employees either:

 

(i)            in the ordinary
course of its employees’ employment; or

 

(ii)           to fund the
exercise of share options or other purchase of capital stock by its employees,

 

provided that the aggregate principal amount of all such loans shall not
at any time exceed £2,500,000 (or its equivalent in other currencies);

 

(f)            any loan granted as a result of a Subscriber being allowed
terms, in the ordinary course of trade, whereby it does not have to pay for the
services provided to it for a period after the provision of such services;

 

(g)           any loan made by a member of the TCN Group to a member of
the Group, where the proceeds of such loan are, or are to be (whether directly
or indirectly) used;

 

(i)            provided that no
Event of Default has occurred and is continuing or is likely to occur as a
result thereof, to fund Permitted Payments; or

 

(ii)           at any time after
the occurrence of an Event of Default, to fund Permitted Payments (A) under
paragraph (a)(ii) of the definition thereof to the extent made to Telewest UK
or the Ultimate Parent (and provided that documentation detailing the same is
provided to the Facility Agent in advance of making any such loan) or (B)
otherwise to the extent permitted by the Principal Intercreditor Deed or any
applicable TGD Intercreditor Agreement;

 

(h)           trade credit granted on arms’ length terms by any member of
the TCN Group to a member of the Flextech Group in connection with Intra-Group
Services, provided that any settlement of any such trade credit may occur by
way of set-off and further provided that any overpayment or underpayment
arising as a result of the settlement of all such trade credit may be returned
to the overpaying party or paid to the underpaying party (and any credit or
Financial Indebtedness arising as a result of such overpayment or underpayment
pending repayment to the overpaying party or payment to the underpaying party
is hereby permitted);

 

(i)            following an Integrated Merger Event, any guarantee given by
a member of the Target Group or the TCN Group in respect of Financial
Indebtedness permitted under paragraph (d) of Clause 24.4 (Financial
Indebtedness);

 

(j)            any guarantees arising under the Finance Documents or the
Second Lien Finance Documents;

 

(k)           any guarantee given in respect of membership interests in
any company limited by guarantee where the acquisition of such membership
interest is permitted under Clause 24.13 (Acquisitions and
Investments);

 

(l)            any guarantee included within or given by a member of the
TCN Group in respect of or constituted by any Financial Indebtedness permitted
under Clause 24.4 (Financial Indebtedness)
or Clause 24.10 (Transactions with
Affiliates);

 

115

 

(m)          any customary title guarantee given in connection with the
assignment of leases where such assignment is permitted under Clause 24.6 (Disposals);

 

(n)           any loan or credit made to any Person (other than a member
of the TCN Group) from Flextech Assets; or

 

(o)           loans made, credit granted or guarantees given by any member
of the TCN Group not falling within paragraphs (a) to (n) above, in an
aggregate amount not exceeding £20,000,000 (or its equivalent in other currencies).

 

24.4        Financial Indebtedness

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) incur, create or
permit to subsist or have outstanding any Financial Indebtedness or enter into
any agreement or arrangement whereby it is entitled to incur, create or permit
to subsist any Financial Indebtedness other than in either case:

 

(a)           Financial Indebtedness arising under or pursuant to the
Finance Documents;

 

(b)           Existing Financial Indebtedness, provided that all Existing
Financial Indebtedness described in Section A of Part 3 of Schedule 10 (Existing Financial Indebtedness) shall be
repaid immediately upon the making of the first Advance under this Agreement;

 

(c)           in relation to an Integrated Merger Event:

 

(i)            any Target Group
Financial Indebtedness existing as at the effective date of the Integrated
Merger Event;

 

(ii)           any Target Group
Refinancing Indebtedness existing as at or immediately following the effective
date of the Integrated Merger Event; and

 

(iii)         any Post Merger
Target Group Refinancing;

 

(d)           Financial Indebtedness of any member of the TCN Group
falling within, and permitted by Clause 24.3 (Loans and
Guarantees);

 

(e)           Financial Indebtedness arising under any Hedging Agreements
permitted under Clause 24.12 (Limitations on
Hedging);

 

(f)            Financial Indebtedness arising in respect of any guarantee
given by TCN or any other member of the TCN Group in respect of the relevant
borrower’s obligations under any Second Lien Refinancing or any other Telewest
Global Debt, provided that, except at the option of TCN in the case of a Second
Lien Refinancing, any such guarantee is given on a subordinated unsecured basis
and is subject to the terms of a TGD Intercreditor Agreement, and provided
further that if and to the extent required by Clause 11.5 (Repayment from Debt Proceeds), the Net
Proceeds of such Telewest Global Debt are applied in the prepayment of the
Outstandings;

 

(g)           Financial Indebtedness (i) arising under Finance Leases or
(ii) provided or arranged by a supplier (or its Affiliates) of assets (including
equipment) and/or related services to the TCN Group (the “Vendor Financing Arrangements”), to the extent that such Finance
Leases and/or Vendor Financing Arrangements (x) comprise Finance Leases and/or
Vendor Financing Arrangements which were outstanding on the Closing Date,
details of which are set out in Schedule 15 (Vendor
Financing Arrangements) or any refinancing or rollover thereof, or
(y) comprise Finance Leases and/or Vendor Financing Arrangements entered into
after the

 

116

 

Closing Date, in the case of
clause (x) and (y) in an aggregate principal amount which, together with the
aggregate principal amount of all outstanding Financial Indebtedness incurred
under paragraph (m) below, does not at any time exceed £125,000,000 plus the
principal amount of such Finance Leases and Vendor Financing Arrangements
outstanding on the Closing Date; provided in each case that the relevant lessor
or provider of Vendor Financing Arrangements does not have the benefit of any
Encumbrance other than over the assets the subject of such Vendor Financing
Arrangements and/or Finance Leases;

 

(h)           Financial Indebtedness relating to deferral of PAYE taxes
with the agreement of the Inland Revenue by any member of the TCN Group;

 

(i)            Financial Indebtedness arising in respect of Existing
Performance Bonds or any performance bond, guarantee, standby letter of credit
or similar facility entered into by any member of the TCN Group to the extent
that cash is deposited as security for the obligations of such member of the
TCN Group thereunder;

 

(j)            other than in connection with the Integrated Merger Event,
Financial Indebtedness of any company which became or becomes a member of the
TCN Group after the date of this Agreement, where such Financial Indebtedness
arose prior to the date on which such company became or becomes a member of the
TCN Group; if:

 

(i)            such Financial
Indebtedness was not created in contemplation of the acquisition of such
company; and

 

(ii)           the aggregate
principal amount of all Financial Indebtedness falling within this paragraph
(j) either (A) does not exceed £12,000,000
(or its equivalent in other currencies) outstanding at any time or (B)
to the extent such Financial Indebtedness does exceed £12,000,000, an amount
equal to such excess is repaid immediately upon such company becoming a member
of the TCN Group;

 

(k)           Financial Indebtedness which constitutes Subordinated
Funding provided that each member of the TCN Group that is a debtor in respect
of Subordinated Funding shall procure that the relevant creditor of such
Subordinated Funding, to the extent not already a party at the relevant time,
accedes to the Principal Intercreditor Deed or any applicable TGD Intercreditor
Agreement, as appropriate and in such capacity, upon the granting of such
Subordinated Funding;

 

(l)            the TCN Notes, the Second Lien Facility and any Second Lien
Refinancing; or

 

(m)          Financial Indebtedness not falling within paragraphs (a) to
(l) above, of any member of the TCN Group provided that the aggregate amount of such Financial
Indebtedness outstanding at any time, when taken together with the aggregate
outstanding amount in respect of Finance Leases and Vendor Financing
Arrangements in excess of the aggregate amount thereof outstanding as at the
Closing Date, does not exceed £125,000,000 (or its equivalent in other
currencies) and the aggregate amount of any Financial Indebtedness, the
proceeds of which are not required to be applied in prepayment of outstanding
amounts pursuant to paragraph (a) of Clause 11.5 (Repayment from Debt Proceeds) by virtue of the exception in
paragraph (b)(viii) of such Clause; and further provided that in the case of
any Financial Indebtedness constituted by an overdraft facility which operates
on a gross/net basis, only the net amount of such facility shall count towards
such aggregate amount.

 

24.5        Dividends, Distributions and Share Capital

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall):

 

117

 

(a)           declare, make or pay any dividend (or
interest on any unpaid dividend), charge, fee or other distribution (whether in
cash or in kind) on or in respect of any of its shares;

 

(b)           redeem, repurchase, defease, retire or
repay any of its share capital, or resolve to do so;

 

(c)           repay or distribute any share premium account; or

 

(d)           repay or otherwise discharge or purchase any amount of
principal of (or capitalised interest on) or pay any amount of interest in
respect of Subordinated Funding,

 

other than:

 

(i)            to the extent the
share capital of such TCN Group Obligor is held by one or more other TCN Group
Obligors or to the extent the share capital of any member of the TCN Group
which is not an Obligor is held by one or more other members of the TCN Group;

 

(ii)           to the extent
discharged in consideration of a transfer of any non-cash asset the disposal of
which is not otherwise prohibited by this Agreement, by the waiver of any
payment where no cash consideration is given in respect of such waiver or by
way of conversion into any securities (including convertible unsecured loan
stock), (or vice versa), which do not involve any cash payments or by way of
capital contribution to the debtor in respect of such Subordinated Funding;

 

(iii)         provided that no
Event of Default has occurred and is continuing or is likely to occur as a
result thereof, to the extent required to fund Permitted Payments;

 

(iv)          at any time after
the occurrence of an Event of Default, to the extent required to fund Permitted
Payments (A) under paragraph (a)(ii) of the definition thereof to the extent
made to Telewest UK or the Ultimate Parent (and provided that documentation
detailing the same is provided to the Facility Agent in advance of making any
such loan) or (B) otherwise to the extent not prohibited by the Principal
Intercreditor Deed or any applicable TGD Intercreditor Agreement; or

 

(v)            to the extent
such redemption, repurchase, defeasance, retirement or repayment is in respect
of a nominal amount.

 

24.6        Disposals

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) either in a
single transaction or in a series of related transactions, engage in any
Disposal other than:

 

(a)           any payment required to be made under the Finance Documents;

 

(b)           the Disposal of obsolete or surplus assets no longer
required for the efficient operation of the core business of the TCN Group, on
arms’ length commercial terms;

 

(c)           Disposals of cash, the lending or repayment of cash or the
Disposal of Cash Equivalent Investments or Marketable Securities, on arms’
length commercial terms where the same is not otherwise restricted by the terms
of the Finance Documents;

 

(d)           Disposals by a TCN Group Obligor to another TCN Group
Obligor, provided that if the
relevant assets are subject to existing Security they remain so or will be made
subject to Security (in form and substance substantially similar to the
existing Security or otherwise in

 

118

 

such form and substance as may
reasonably be required by the Facility Agent) within 10 Business Days of such
Disposal;

 

(e)           Disposals by a member of the TCN Group which is not an
Obligor to another member of the Group;

 

(f)            Disposals on arm’s length commercial terms where the cash
proceeds of such Disposals are reinvested within 12 months of the date of the
relevant Disposal in the purchase of replacement assets of similar nature and
to be used in the same jurisdiction as the assets which it replaces and the
business of the TCN Group, such reinvestment to be on no worse than arms’
length commercial terms by a member of the TCN Group, provided that where the
party making such Disposal is a TCN Group Obligor, such replacement assets are
either subject to existing Security granted by the member of the TCN Group that
has acquired the replacement assets, or will be made subject to Security by
such member of the TCN Group (in form and substance substantially similar to
the existing Security or otherwise in such form and substance as may reasonably
be required by the Facility Agent) within 10 Business Days of the acquisition
of such replacement assets;

 

(g)           Disposals of any accounts receivable on arms’ length
commercial terms pursuant to an asset securitisation programme or one or more
receivables factoring transactions provided that:

 

(i)            such disposal is
conducted on a non-recourse basis;

 

(ii)           the aggregate
principal amount of all such securitisations or factoring transactions
conducted in reliance on this paragraph (g) does not exceed £100,000,000 (or
its equivalent in other currencies) at any time; and

 

(iii)         the availability
of the Revolving Facility shall be reduced by the Sterling equivalent of the
aggregate principal amount of any such securitisation programme;

 

(h)           Disposals of any shares or other interests in any Project
Company, an Excluded Subsidiary or Joint Venture or the assignment of any
Financial Indebtedness owed to a member of the TCN Group by a Project Company,
Excluded Subsidiary or Joint Venture;

 

(i)            Disposals of assets, revenues or rights of any member of the
TCN Group arising from an amalgamation, consolidation or merger of such member
of the TCN Group with any other person which is permitted by Clause 24.8 (Mergers);

 

(j)            Disposals of accounts receivable which have remained due and
owing from a third party for a period of more than 90 days and in respect of
which the relevant member of the TCN Group has diligently pursued payment in
the normal course of its business and where such disposal is on non-recourse
terms to such member of the TCN Group;

 

(k)           Disposals of assets subject to finance or capital leases
pursuant to the exercise of an option by the lessee under such finance or
capital leases;

 

(l)            Disposals of assets in exchange for the receipt of assets of
a similar or comparable value provided that the assets received by any member
of the TCN Group following such exchange are located in the United Kingdom or
Ireland, and provided further that:

 

(i)            to the extent that the assets being disposed of
are subject to existing Security, the assets received following such exchange
will be subject to the existing Security Documents, or will be made subject to
Security (in form and substance substantially similar to the existing Security
or otherwise in such form and substance as may

 

119

 

reasonably be required by the Facility Agent) within 10 Business Days
of such Disposal; and

 

(ii)           where the
aggregate net book value of all assets being exchanged in reliance on this
paragraph (l) exceeds £2,000,000 (or its equivalent in other currencies) in any
Financial Quarter, there is delivered to the Facility Agent, within 30 days
from the end of such Financial Quarter of the TCN Group, a certificate signed
by two authorised officers of TCN (given without personal liability) certifying
that the assets received by such member of the TCN Group in reliance on this
paragraph (l) during such Financial Quarter are of a similar or comparable
value to the assets disposed of by such member of the TCN Group;

 

(m)          Disposals of tax losses by any member of the TCN Group to
any person, provided that, if the acquiring person is not a member of the TCN
Group, the disposing company receives fair market value for such tax losses
from the recipient and provided further that where the acquiring person is not
a member of the TCN Group and the fair market value to the recipient of any tax
losses so disposed of exceeds £5,000,000 (or its equivalent in other
currencies), no later than 30 days after the proposed sale, transfer, surrender
or other Disposal, there is delivered to the Facility Agent a certificate
signed by two authorised signatories of TCN (given without personal liability)
giving brief details of the relevant transaction and certifying:

 

(i)            the fair market value received by the transferring company
in respect of such tax losses, as determined by TCN in its reasonable opinion,
after taking account of advice from its external tax advisers; and

 

(ii)           that, taking into account the aggregate amount of tax losses
disposed of by members of the TCN Group (whether in reliance on this paragraph
(m) or otherwise) and assuming that the financial performance of the TCN Group
is in accordance with the projections set out in the Long Range Plan), there is
no reasonable expectation that any member of the TCN Group will become a tax
payer prior to the Termination Date in respect of the Revolving Facility as a
result of such disposal of tax losses;

 

(n)           Disposals of assets to any person who is providing services
the provision of which has been or is to be outsourced to that person by any
member of the TCN Group provided that:

 

(i)            the assets being
disposed of in reliance on this paragraph (n) shall be assets which relate to
the services which are the subject of such outsourcing;

 

(ii)           the projected
cash cost to the TCN Group of such outsourcing shall be less than the projected
cash cost to the TCN Group of carrying out such outsourced activities at the
levels of service to be provided by the service provider within the TCN Group;

 

(iii)         the economic
benefits derived from any such outsourcing contract shall be received by the
TCN Group during the term of such contract;

 

(iv)          the aggregate
fair market value of the assets disposed of shall not exceed in any financial
year £75,000,000 (or its equivalent in other currencies); and

 

(v)            no later than 30
days after the date of such outsourcing where the consideration payable in
respect of the assets subject to such Disposal exceeds £1,000,000 (or its
equivalent in other currencies), a duly authorised officer of TCN shall have
provided to the Facility Agent, a certificate (without personal liability)
verifying each of the matters set out in sub-paragraphs (i) to (iii) above and
certifying that as at the date of such certificate, the aggregate fair market
value of all assets disposed of in reliance on

 

120

 

this paragraph (n) during such financial year, does not exceed the
threshold specified in sub-paragraph (iv) above;

 

(o)           Disposals of assets pursuant to sale and leaseback
transactions not constituting Financial Indebtedness where the aggregate fair
market value of any assets disposed of in reliance on this paragraph (o) does
not exceed £50,000,000 (or its equivalent in other currencies) in any financial
year of TCN and any Disposals of assets pursuant to sale and leaseback
transactions constituting Financial Indebtedness to the extent such Financial
Indebtedness is permitted under this Agreement;

 

(p)           Disposals of any Hedging Agreements no longer required for
the purpose for which it was originally entered into;

 

(q)           Disposals of non-core assets acquired in connection with a
transaction permitted under Clause 24.13 (Acquisitions
and Investments);

 

(r)           any Flextech Disposal.

 

(s)           Disposals not otherwise permitted under this Clause 24.6,
provided that the aggregate fair market value of the assets disposed of in
reliance on this paragraph (s) does not exceed £50,000,000 during any given
financial year or £250,000,000 from and after the Closing Date,

 

provided that in respect of any Disposal permitted under paragraphs (g),
(k), (m) (other than Disposals to a member of the TCN Group), (o) or (s) above:

 

(A)          (other than in
respect of Disposals under paragraphs (k) or (m) above) such Disposal shall be
on arm’s length commercial terms;

 

(B)          at least 75% of the
consideration for such Disposal shall be comprised of cash, Cash Equivalent
Investments or Marketable Securities, provided that the aggregate amount of
consideration received by way of Marketable Securities shall not (valued as at
the relevant time of receipt of any Marketable Securities) at any time exceed
£25,000,000 (or its equivalent in other currencies) and provided further that
any Cash Equivalent Investments and/or Marketable Securities acquired pursuant
to any such Disposal are monetised within 3 months of the expiry of any lock-up
arrangement entered into by the relevant member of the TCN Group making such
Disposal with any third party (where such lock-up arrangement has a term not
exceeding 12 months); and

 

(C)          in respect of any
Disposal the fair market value of which exceeds £5,000,000 (or its equivalent
in other currencies) no later than 30 days after the date of such Disposal,
there shall have been delivered to the Facility Agent, a certificate signed by
two authorised officers of TCN providing brief details of the transaction and
certifying (in each case, to the extent applicable) (1) (other than in respect
of Disposals under paragraphs (k) or (m) above) such Disposal shall be on arm’s
length commercial terms or (in the case of paragraph (m) such Disposals are for
fair market value from the perspective of the transferring company), (2) that
not less than 75% of the consideration for such Disposal shall be in cash, Cash
Equivalent Investments or Marketable Securities, and (3) to the extent any of
the consideration will include Marketable Securities, the name, amount and
other brief details of such Marketable Securities.

 

121

 

24.7        Change of Business

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall), save as
otherwise permitted by the terms of this Agreement make any change in the
nature of its business as carried on immediately prior to the date of this
Agreement, which would give rise to a substantial change in the business of the
TCN Group taken as a whole, provided that this Clause 24.7 shall not be
breached by any member of the TCN Group making a Disposal permitted by Clause
24.6 (Disposals), an acquisition or investment
permitted by Clause 24.13 (Acquisitions and
Investments) or as a result of any Flextech Disposal.

 

24.8        Mergers

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) amalgamate,
consolidate or merge with any other person unless:

 

(a)           such amalgamation, consolidation or merger constitutes an
Integrated Merger Event or an Unintegrated Merger Event;

 

(b)           such amalgamation, consolidation or merger is between two
TCN Group Obligors or a TCN Group Obligor and another member of the Group where
the TCN Group Obligor will be the surviving entity;

 

(c)           such amalgamation, consolidation or merger is between two
members of the TCN Group which are not Obligors;

 

(d)           any member of the TCN Group liquidates or dissolves in
either case on a solvent basis and in connection therewith all of its assets
are transferred to one or more TCN Group Obligors or, if such member is not
itself a TCN Group Obligor to one or more members of the TCN Group;

 

(e)           such amalgamation, consolidation or merger is by a TCN Group
Obligor (excluding TCN) (the “Original Entity”)
into one or more entities (each a “Merged Entity”);
provided that:

 

(i)            such Merged Entity is a TCN Group Obligor and is liable for
the obligations of the relevant Original Entity under this Agreement and the
Security which remain unaffected thereby and entitled to the benefit of all the
rights of such Original Entity;

 

(ii)           if required by the Facility Agent, such Merged Entity has
entered into Security which provide security over the same assets of at least
an equivalent nature and ranking to the security provided by the relevant
Original Entity pursuant to any Security entered into by them and any
possibility of the Security referred to in this paragraph or paragraph (iii)
below being challenged or set aside is not greater than any such possibility in
relation to the Security entered into by or in respect of the share capital of
any relevant Original Entity; and

 

(iii)         (if all or any part of the share capital of the relevant
Original Entity was charged pursuant to the Security) the equivalent part of
the issued share capital of such Merged Entity is charged pursuant to Security
on terms of at least an equivalent nature and ranking as the Security relating
to the shares in the relevant Original Entity; and

 

(iv)          the Facility Agent is satisfied (acting reasonably) that all
the property and other assets of the relevant Original Entity are vested in the
Merged Entity and that the Merged Entity has assumed all the rights and
obligations of the relevant Original Entity under all material Necessary
Authorisations,

 

122

 

provided that in the case of
paragraphs (b), (c), (d) and (e) above, no later than 10 Business Days prior to
the proposed amalgamation, consolidation or merger a duly authorised officer of
TCN shall have delivered to the Facility Agent (in form and substance
satisfactory to the Facility Agent, acting reasonably) a certificate verifying
compliance with the relevant matters set out in such paragraph and to the
extent deemed necessary, the Facility Agent shall have received appropriate
advice from counsel in any relevant jurisdiction that such amalgamation,
consolidation or merger (i) will not result in the breach of any applicable law
or regulation in any material respect and (ii) in the case of an amalgamation,
consolidation or merger involving a TCN Group Obligor, will not have a
materially adverse impact upon any of the obligations owed by such TCN Group
Obligor to the Finance Parties or upon the Security granted by such TCN Group
Obligor under any Security Document.

 

24.9        Joint Ventures

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) enter into, make
any loans, distributions or other payments to, give any guarantees for the
Financial Indebtedness of, or acquire any interest or otherwise invest in, any
Joint Venture other than such loans, distributions, payments, guarantees or
consideration for acquisitions or investments may be made, paid or given by TCN
Group Obligors in an aggregate amount during any financial year of the TCN
Group, which taken together with the aggregate principal amount of loans or
credit granted to any member of the Flextech Group during such financial year
which are then outstanding in excess of £15 million under paragraph
(d)(iv) of Clause 24.3 (Loans and Guarantees),
do not exceed 3.5% of TCN Group Consolidated Revenues for the preceding
financial year, calculated by reference to the annual financial information for
the TCN Group delivered in respect of the preceding financial year of the TCN
Group pursuant to Clause 21.1 (Financial
Statements).

 

24.10      Transactions with Affiliates

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) enter into any arrangement,
contract or transaction with any other member of the Group which is not a TCN
Group Obligor, other than:

 

(a)           transactions expressly permitted by the Finance Documents;

 

(b)           transactions between a member of the TCN Group which is not
an Obligor and any other member of the TCN Group which is not an Obligor;

 

(c)           transactions in the ordinary course of business and either
on no worse than arm’s length terms or, where there is no available market by
which to assess whether such a transaction is on no worse than arm’s length
terms, on terms such that the transaction is financially fair to the relevant
TCN Group Obligor or, as the case may be, other members of the TCN Group;

 

(d)           transactions with any member of the Group in relation to
management services conducted at not less than Cost on behalf of such member of
the Group;

 

(e)           transactions relating to the provision of Intra-Group
Services;

 

(f)            transactions either on terms and conditions (including,
without limitation, as to any reasonable fees payable in connection with such
transactions) not substantially less favourable to the relevant TCN Group
Obligor or, as the case may be, other members of the TCN Group than would be
obtainable at such time in comparable arm’s length transactions with an entity
which is not an Affiliate or, where there is no comparable arm’s length
transaction by which to assess whether such a transaction is on terms and
conditions not substantially less favourable to the relevant TCN Group Obligor
or, as the case may be, other members of the TCN Group, on such terms and
conditions (including, without limitation, as to any fees 

 

123

 

payable in connection with such
transaction) that the transaction is financially fair to the relevant TCN Group
Obligor or, as the case may be, other members of the TCN Group;

 

(g)           any transaction to which one or more
TCN Group Obligors and one or more members of the Group who are not TCN Group
Obligors are party where the sole purpose of such transaction is for such TCN
Group Obligors and members of the Group to effect a transaction with a person
who is not a member of the Group;

 

(h)           transactions relating to capital contributions between TCN
Group Obligors or the amendment of the terms of any loans made by or any
convertible unsecured loan stock or other securities issued by any TCN Group
Obligors to any other member of the Group (whether by way of conversion of
loans to convertible unsecured loan stock or vice versa or otherwise) or the
capitalisation of, or the waiver of or the repayment of, loans made by or any
convertible unsecured loan stock issued by any TCN Group Obligors to any other
TCN Group Obligor;

 

(i)            transactions
required to implement an Integrated Merger Event;

 

(j)            transactions constituting Subordinated Funding;

 

(k)           transactions constituting Permitted Payments;

 

(l)            tax sharing agreements or arrangements to surrender tax
losses and payments made pursuant thereto, to the extent such transactions are
not prohibited by  this Agreement;

 

(m)          any arrangements entered into in connection with any
guarantee of any Telewest Global Debt permitted under Clause 24.3 (Loans and Guarantees) and/or Clause 24.4 (Financial Indebtedness); and

 

(n)           any other transaction or arrangement permitted under Clause
24.3 (Loans and Guarantees),
Clause 24.4 (Financial Indebtedness),
Clause 24.5 (Dividends, Distributions and
Share Capital), Clause 24.6 (Disposals),
Clause 24.8 (Mergers), Clause
24.9 (Joint Ventures) or Clause
24.13 (Acquisitions and Investments).

 

24.11      Change in Financial Year

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall), without the
prior consent of the Facility Agent, change the end of its financial year from
31 December.

 

24.12      Limitations on Hedging

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) enter into any
Hedging Agreement other than:

 

(a)           the Hedging Agreements identified in Schedule 14 (Hedging Agreements);

 

(b)           any Hedging Agreements specifically required under Clause
23.9 (Hedging); or

 

(c)           any Hedging Agreement entered into in connection with the
business or any Financial Indebtedness of the TCN Group, in each case which is
not entered into for investment or speculative purposes and, for the avoidance
of doubt (subject to the provisions of Clause 24.10 (Transactions with Affiliates)), any such Hedging Agreement
may be entered into with another member of the Group.

 

124

 

24.13      Acquisitions and Investments

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) purchase,
subscribe for or otherwise acquire or invest in any shares (or other securities
or any interest in it) in, or incorporate, any company or acquire (by subscription
or otherwise) all or any substantial part of the assets, property or business
(including Content, save to the extent envisaged in the Long Range Plan) of any
other person or any assets that constitute a division or operating unit of the
business of any other person, other than:

 

(a)           any acquisition, incorporation or investment relating to an
Integrated Merger Event;

 

(b)           the purchase of or investment in Cash Equivalent Investments
or Marketable Securities (including without limitation by way of consideration
in respect of any Disposal as contemplated in the proviso to Clause 24.6 (Disposals) and subject to the conditions
set out therein);

 

(c)           the incorporation of a company or the acquisition of an “off-the-shelf”
company which is or becomes a member of the TCN Group;

 

(d)           any acquisition by any member of the TCN Group in connection
with a Disposal permitted by the provisions of Clause 24.6 (Disposals) and any acquisition or subscription by a TCN
Group Obligor of shares issued by another TCN Group Obligor or, after an
Integrated Merger Event, a Subsidiary of the holding company of the Target
Group which is a member of the TCN Group which will, after the acquisition of
such shares, become a wholly-owned direct or indirect Subsidiary of TCN or by
any other member of the Group (not being a TCN Group Obligor) of shares issued
by any member of the Group other than a TCN Group Obligor; provided in each
case that if the other shares of such TCN Group Obligor or other member of the
Group are subject to existing Security, either (i) such newly issued shares
shall also be subject to Security (in form and substance substantially similar
to any existing Security or otherwise in such form and substance as may be
reasonably required by the Facility Agent) upon their issue or (ii) such shares
shall be made subject to Security (in form and substance substantially similar
to any existing Security or otherwise in such form and substance as may be
reasonably required by the Facility Agent) within 10 Business Days of their issue;

 

(e)           any acquisition by any member of the TCN Group of any loan
receivable, security or other asset by way of capital contribution or in
consideration of the issue of any securities or of Subordinated Funding;

 

(f)            any acquisition of shares, assets, revenues or rights
arising from an amalgamation, consolidation or merger of a member of the TCN
Group with any other person which is permitted by Clause 24.8 (Mergers);

 

(g)           the acquisition of any leasehold interest in any assets
which are the subject of a sale and leaseback permitted by the provisions of
paragraph (o) of Clause 24.6 (Disposals);

 

(h)           any purchase or acquisition of assets or revenues by a
member of the TCN Group from a member of the TCN Group, provided that the
Disposal of such assets or revenues by the relevant member of the TCN Group is
permitted under Clause 24.6 (Disposals)

 

(i)            acquisitions not falling within paragraphs (a) to (h) above
of up to an amount of £40,000,000; or

 

(j)            acquisitions not falling within paragraphs (a) to (i) above,
provided that TCN can demonstrate by reference to the quarterly information
most recently delivered pursuant to Clause 21.1 (Financial Statements) that the ratio of Consolidated Net
Borrowings (as at the date of such

 

125

 

financial statements, calculated
on a pro forma basis giving effect to any Financial Indebtedness incurred by
any member of the TCN Group in connection with such acquisition and any
Financial Indebtedness raised by any member of the TCN Group since the date of
such quarterly information and on a pro forma basis giving effect to the
acquisition) to Consolidated Annualised TCN Group Net Operating Cash Flow for
the Semi-Annual Period then ended is not more than 3.0 to 1.0 and provided
further that the aggregate value of acquisitions permitted in any financial
year of the TCN Group by this paragraph (j) shall not exceed the aggregate of
3% of TCN Group Consolidated Revenues for the preceding financial year of the
TCN Group, calculated by reference to the annual financial information for the
TCN Group delivered in respect of the preceding financial year of the TCN Group
pursuant to Clause 21.1 (Financial
Statements), plus any amount permitted to be used during such
financial year for investments in Joint Ventures in accordance with Clause 24.9
(Joint Ventures) which has not
been so used.

 

24.14      No Restrictions on Payments

 

No TCN Group Obligor shall
(and TCN shall procure that no member of the TCN Group shall) enter into any
agreement, transaction or other arrangement which restricts or attempts to
restrict such TCN Group Obligor from making any payments or other distributions
in cash to any other TCN Group Obligor, if any such restriction affects the
ability of the TCN Group Obligors as a whole to comply with the payment
obligations under the Finance Documents or is reasonably likely to result in
the incurrence of significant costs, or any significant increase in, any costs
and expenses payable by or any taxes in any material amount owing by the TCN Group
Obligors as a whole, other than pursuant to or as contemplated by the Finance
Documents and/or the Second Lien Finance Documents.

 

24.15      Telewest UK Covenants

 

(a)           Telewest UK shall not:

 

(i)            carry on trade;

 

(ii)           create or permit
to subsist any Encumbrance over its shares in TCN or over its rights, title and
interest in any Subordinated Funding owed to it by TCN, other than:

 

(A)          pursuant to the Security;

 

(B)          after
an Integrated Merger Event, for the purposes of securing Target Group Financial
Indebtedness, any Target Group Refinancing Indebtedness and any Post Merger
Target Group Refinancing to the extent not otherwise prohibited by this
Agreement; or

 

(C)          as
contemplated by any applicable TGD Intercreditor Agreement or the Principal
Intercreditor Deed;

 

(iii)         dispose of any or
all of its interests in the shares of TCN or any of its rights, title and
interest in any Subordinated Funding owed to it by TCN, other than pursuant to
or as contemplated by the Security Documents or as contemplated by any applicable
TGD Intercreditor Agreement or the Principal Intercreditor Deed; or

 

(iv)          amalgamate,
consolidate or merge with any other person unless such amalgamation, merger or
consolidation constitutes an Integrated Merger Event or an Unintegrated Merger
Event.

 

(b)           Prior to the occurrence of a Merger Event, Telewest UK shall
not, and shall procure that the Ultimate Parent does not, incur, create or
permit to subsist or have outstanding any Financial

 

126

 

Indebtedness or enter into any
agreement or arrangement whereby it is entitled to incur, create or permit to
subsist any Financial Indebtedness unless Telewest UK can demonstrate by
reference to the quarterly information for the Group most recently delivered pursuant
to Clause 21.1 (Financial Statements)
that Consolidated Group Net Borrowings (adjusted to take account of the
Financial Indebtedness in question and any other Financial Indebtedness raised
by the Ultimate Parent, Telewest UK or any member of the TCN Group since the
date of such quarterly information) is not more than 4.25 times Consolidated
Group Net Operating Cash Flow for the period of four consecutive financial
quarters ended on the last day of the financial quarter in respect of which
such quarterly information was delivered; provided that the foregoing
limitations shall not apply to:

 

(i)            any Financial
Indebtedness arising under or pursuant to the Finance Documents or the Transfer
Agreement;

 

(ii)           any Financial
Indebtedness incurred by the Ultimate Parent or Telewest UK to refinance all or
any part of any outstanding Financial Indebtedness of the Ultimate Parent,
Telewest UK or any member of the TCN Group, including any Financial
Indebtedness incurred for the purpose of the payment of all principal,
interest, fees, expenses, commissions, make-whole and any other contractual
premium payable in respect thereof, in respect of such outstanding Financial
Indebtedness and any fees, costs and expenses incurred in connection with such
refinancing;

 

(iii)         any Financial
Indebtedness incurred (including any such Financial Indebtedness existing as at
the date of this Agreement) by the Ultimate Parent or Telewest UK and owed to
the Ultimate Parent, Telewest UK or any member of the Group;

 

(iv)          any Financial
Indebtedness incurred by the Ultimate Parent or Telewest UK which, if it had
been incurred by the Borrower at such time, would be permitted to be incurred
pursuant to paragraph (g) and/or (m) of Clause 24.4 (Financial Indebtedness);

 

(v)            the Second Lien
Facility and any Second Lien Refinancing; or

 

(vi)          any Financial
Indebtedness of the type referred to in paragraph (e), (h) and (i) of Clause
24.4 (Financial Indebtedness).

 

For the avoidance of doubt, it is understood and agreed that nothing in
this Agreement shall limit or prohibit the incurrence of Financial Indebtedness
by any member of the Group other than the Ultimate Parent, Telewest UK and the
members of the TCN Group, and no Financial Indebtedness of any member of the
Group other than the Ultimate Parent, Telewest UK and the members of the TCN
Group shall be taken into consideration in the calculation of Consolidated
Group Net Borrowings for purposes of this paragraph (b). Upon the effectiveness
of a Merger Event, paragraph (b) of this Clause 24.15 shall cease to be
effective.

 

24.16      Following Integrated Merger Event

 

Following an Integrated Merger
Event:

 

(a)           the baskets set out
in paragraph (p) of Clause 24.2 (Negative
Pledge), paragraphs (e) and (o) of Clause 24.3 (Loans and Guarantees), paragraphs (g), (j)
and (m) of Clause 24.4 (Financial
Indebtedness) and paragraphs (n), (o) and (r) of Clause 24.6 (Disposals) shall be adjusted so that the
baskets after such Integrated Merger Event shall bear the same relation to the
baskets prior to the Integrated Merger Event, as the combined Consolidated
Annualised TCN Group Net Operating Cash Flow for the Semi-Annual Period ending
on the most recent Quarter Date of the TCN Group prior to the effective date of
the Integrated Merger Event for which quarterly financial information is
available for the TCN Group and Target Group Net 

 

127

 

Operating Cash Flow for the Semi-Annual Period ending on the most recent
Quarter Date prior to the effective date of the Integrated Merger Event for
which quarterly financial information is available for the Target Group, bears
to the Consolidated Annualised TCN Group Net Operating Cash Flow for the
Semi-Annual Period ending on the most recent Quarter Date for the TCN Group
prior to the effective date of the Integrated Merger Event; and

 

(b)           notwithstanding any
contrary provision of this Agreement, no transaction engaged in by any member
of the Target Group which transaction is permitted pursuant to the terms of any
then applicable Target Group Financial Indebtedness and/or Target Group
Refinancing Indebtedness shall, or shall be deemed to, violate any undertaking
set forth in this Clause 24 or any other provision of this Agreement or any
other Finance Document, provided that if any such transaction is entered into
(i) after the Integrated Merger Event but prior to the date that is six months
after the date of the Integrated Merger Event (the “Long Stop Date”), then if such transaction does not comply
with this Clause 24 as at the Long Stop Date, such transaction will constitute
a breach of this Clause 24 on the Long Stop Date and (ii) after the Long Stop
Date, then if it does not comply with this Clause 24 as at the date it is
entered into it will constitute a breach of this Clause 24 as at such
date.  For the avoidance of doubt, no
transaction referred to in (i) of this paragraph (b) shall constitute or be
deemed to constitute a Default or an Event of Default prior to the Long Stop
Date.

 

24.17      US Borrower

 

The US Borrower shall not:

 

(a)           carry on trade or business other than as may be necessary in
connection with the acquisition and ownership of the TCN Notes or with its
voluntary winding-up;

 

(b)           create or permit to subsist any Encumbrance over its rights
under or title and interest in the TCN Notes, other than:

 

(A)          pursuant to the Security;

 

(B)          after an Integrated
Merger Event, for the purposes of securing Target Group Financial Indebtedness,
any Target Group Refinancing Indebtedness and any Post Merger Target Group
Refinancing to the extent not otherwise prohibited by this Agreement; or

 

(C)          as contemplated by
any applicable TGD Intercreditor Agreement or the Principal Intercreditor Deed;

 

(c)           dispose of any or all of its rights, title and interest in
the TCN Notes other than pursuant to or as contemplated by the Security
Documents or as contemplated by any applicable TGD Intercreditor Agreement or
the Principal Intercreditor Deed; or

 

(d)           amalgamate, consolidate or merge with any other person
unless such amalgamation, merger or consolidation constitutes an Integrated
Merger Event or an Unintegrated Merger Event.

 

25.          ACCESSION; US BORROWER; ACCEDING GUARANTORS

 

25.1        The US Borrower

 

No later than the date of first Utilisation under this Agreement, TCN
shall procure that there is delivered to the Facility Agent an Accession Notice
duly executed by itself and Telewest Global Finance LLC together with the
documents set out in Part 2 of Schedule 7 (Accession

 

128

 

Documents) in relation to Telewest Global Finance LLC and the US
Borrower Security Documents, all in form and substance satisfactory to the
Facility Agent, acting reasonably.

 

25.2        Acceding Guarantors

 

(a)           TCN may, upon not less than 3 Business Days’ prior written
notice to the Facility Agent, request that any member of the TCN Group (or,
immediately prior to the effective date of the Integrated Merger Event, any
member of the Target Group) becomes an Acceding Guarantor under this Agreement.

 

(b)           TCN shall procure that there is delivered, for the purposes
of paragraph (a) above, an Accession Notice duly executed by itself and the
relevant member of the TCN Group or the Target Group together with the
documents set out in Part 2 of Schedule 7 (Accession Documents)
and such other documents (including any new Security Documents) as the Facility
Agent may reasonably require, in relation to such member of the TCN Group or
the Target Group all in form and substance satisfactory to the Facility Agent,
acting reasonably.

 

25.3        Assumption of Rights and Obligations

 

Upon
satisfactory delivery of a duly executed Accession Notice to the Facility
Agent, together with the other documents required to be delivered under Clause
25.1 (The US Borrower), or paragraph (b)
of Clause 25.2 (Acceding Guarantors)
the US Borrower or the relevant member of the TCN Group (as the case may be),
the Obligors and the Finance Parties, will assume such obligations towards one
another and/or acquire such rights against each other as they would each have
assumed or acquired had US Borrower or the such member of the TCN Group been an
original party to this Agreement as a Borrower and/or an Original Guarantor (as
the case may be), and the US Borrower or such member of the TCN Group shall
become a party to this Agreement as a Borrower and/or an Acceding Guarantor (as
the case may be).

 

26.          EVENTS OF DEFAULT

 

26.1        Events of Default

 

Each of Clauses 26.2 (Non-Payment) to Clause 26.16 (Material
Proceedings) describes the circumstances which constitute an Event
of Default for the purposes of this Agreement.

 

26.2        Non-Payment

 

Any Obligor fails to pay any
sum due from it under any Finance Document at the time, in the currency and in
the manner specified in such Finance Document within (a) 1 Business Day of the
due date, in the case of payments of principal where failure to pay was due
solely to technical or administrative error in the transmission of funds, (b) 3
Business Days of the due date, in the case of payments of interest, or (c) 5
Business Days of the due date, in respect of payments of any other amounts.

 

26.3        Covenants

 

(a)           Any TCN Group Obligor fails duly to perform or comply with
any obligation expressed to be assumed by it in Clause 23.1 (Application of Advances), Clause 24.2 (Negative Pledge), Clause 24.3 (Loans and
Guarantees), Clause 24.4 (Financial Indebtedness),
Clause 24.5 (Dividends, Distributions and Share Capital),
Clause 24.8 (Mergers), Clause 24.9 (Joint Ventures) or Clause 24.13 (Acquisitions
and Investments).

 

(b)           Telewest UK fails to duly perform or comply with any obligation
expressed to be assumed by it in Clause 24.15 (Telewest
UK Covenants).

 

129

 

(c)           Any Obligor fails duly to perform or comply with any
obligation expressed to be assumed by it in Clause 21 (Financial Information),
Clause 23.12 (Further Assurance)
or Clause 23.9 (Hedging), and
such failure, if capable of remedy is not so remedied within 10 Business Days
of the earlier of such Obligor becoming aware of such failure to perform or
comply and the Facility Agent having given notice of such failure to TCN.

 

(d)           There is any breach of Clause 22.1 (Ratios)
or Clause 22.2 (Permitted Capital
Expenditure).

 

(e)           There is any breach of Clause 24.6 (Disposals),
provided that where the failure to comply with any obligation under Clause 24.6
(Disposals) relates to the obligation to
deliver a certificate within a specified time period, no Event of Default shall
be deemed to have occurred unless TCN shall have failed to deliver the required
certificate within such time period and upon request by the Facility Agent for
a description of the transactions relating to such certificate which was not
delivered, TCN fails to provide such details within 10 Business Days after such
request.

 

26.4        Other Obligations

 

Any member of the Group fails
duly to perform or comply with any of the obligations expressed to be assumed
by it in any of the Finance Documents (other than any of those referred to in
Clauses 26.2 (Non-Payment) and 26.3 (Covenants)) and such failure, if capable of remedy, is not
so remedied within 30 days of the
earlier of such Obligor becoming aware of such failure to perform or
comply and the Facility Agent having given notice of such failure to TCN.

 

26.5        Misrepresentation

 

Any representation or
statement made or repeated by any member of the Group (or, prior to its
accession hereto, Telewest Global Finance LLC) in any Finance Document or in
any notice or other document or certificate delivered by it pursuant to a
Finance Document is or proves to have been incorrect or misleading in any
material respect when made or repeated where the circumstances giving rise to
such inaccuracy, if capable of remedy or change are not remedied or do not
change within 30 days of the
earlier of the relevant Obligor becoming aware of such circumstances and the
Facility Agent having notified TCN of such misrepresentation having occurred.

 

26.6        Cross Default

 

(a)           any Financial Indebtedness of any member of the TCN Group is
not paid at its specified maturity or becomes due and payable prior to the date
when it would otherwise have become due;

 

(b)           any Financial Indebtedness of any member of the TCN Group is
declared (or becomes capable of being declared) to be or otherwise becomes due
and payable prior to its specified maturity as a result of an event of default
(however described), after taking into account any applicable grace period;

 

(c)           any commitment for any Financial Indebtedness of any member
of the TCN Group is cancelled or suspended by a creditor of any member of the
TCN Group as a result of an event of default (however defined); or

 

(d)           there occurs under any Hedging Agreement (other than a
Hedging Agreement the obligations under which constitute Financial
Indebtedness), an Early Termination Date (as defined in such Hedging Agreement)
resulting from (i) any event of default under such Hedging Agreement as to
which any member of the TCN Group is the Defaulting Party (as defined in such
Hedging Agreement) or (ii) any Termination Event (as so defined) as to which
any member of the TCN Group is an Affected Party (as so defined);

 

130

 

provided that no Event of
Default will occur under this Clause 26.6:

 

(i)            if the aggregate
amount of Financial Indebtedness, commitment for Financial Indebtedness and/or
Derivatives Termination Value owed by a member of the TCN Group falling within
paragraphs (a) to (d) above is less than £35,000,000 (or its equivalent in other currencies);

 

(ii)           if the relevant
Financial Indebtedness or Derivatives Termination Value is cash-collateralised
and such cash is available for application in satisfaction of such Financial
Indebtedness or Derivatives Termination Value; or

 

(iii)         if such Financial
Indebtedness or Derivatives Termination Value is owed by a member of the TCN
Group to Telewest UK or another member of the TCN Group.

 

26.7        Insolvency

 

(a)           The Ultimate Parent, Telewest UK, TCN or any other TCN Group
Obligor that is a Material Subsidiary is unable to pay its debts as they fall
due, ceases or suspends generally the payment of its debts or announces an
intention to do so, or makes a general assignment for the benefit of or a
composition with its creditors generally or a general moratorium is declared in
respect of the Financial Indebtedness of the Ultimate Parent, Telewest UK, TCN
or such other TCN Group Obligor.

 

(b)           At any time, one or more TCN Group Obligors whose
contributions to Consolidated Annualised TCN Group Net Operating Cash Flow in
aggregate represent 5% or more of the Consolidated Annualised TCN Group Net
Operating Cash Flow are unable to pay their debts as they fall due, cease or
suspend generally the payment of their debts or announce an intention to do so,
or make a general assignment for the benefit of or a composition with their
creditors generally or a general moratorium is declared in respect of their
Financial Indebtedness.

 

26.8        Winding-up

 

After the date of this
Agreement, the Ultimate Parent, Telewest UK, TCN, or any other TCN Group
Obligor that is a Material Subsidiary, takes any corporate action or formal
legal proceedings are started and served (not being actions or proceedings
which can be demonstrated to the satisfaction of the Facility Agent by
providing an opinion of a leading firm of London solicitors (within 30 days of
any such action or proceedings having commenced) to that effect, as frivolous,
vexatious or an abuse of the process of the court or related to a claim to
which such Person has a good defence and which is being vigorously contested by
such body) for its winding-up, dissolution, administration or reorganisation or
for the appointment of a liquidator, receiver, administrator, administrative
receiver, conservator, custodian, trustee or similar officer of it or of any or
all of its revenues and assets other than where any such legal proceedings in
respect of the Ultimate Parent, Telewest UK, TCN or other TCN Group Obligor
which is a Material Subsidiary (a)(i) do not relate to the appointment of an
administrator and (ii) are stayed or discharged within 30 days from their
commencement or (b) relate to a solvent liquidation or dissolution permitted
under paragraph (d) of Clause 24.8 (Mergers).

 

26.9        Execution or Distress

 

Any execution, distress or
diligence is levied against, or an encumbrancer takes possession of, the whole
or any part of, the property, undertaking or assets having an aggregate value
of more than £1,000,000 (or its
equivalent in other currencies) of Telewest UK or any TCN Group Obligor which
is a Material Subsidiary and the same is not discharged within 30 days.

 

131

 

26.10      Similar Events

 

Any event occurs which, under
the laws of any jurisdiction, has a similar or analogous effect to any of those
events mentioned in Clause 26.7 (Insolvency),
26.8 (Winding-up) or Clause 26.9 (Execution or Distress).

 

26.11      Repudiation

 

Any member of the Group
repudiates any of the Finance Documents to which it is party.

 

26.12      Illegality

 

Save as provided in the
Reservations, at any time it is or becomes unlawful for any member of the Group
to perform or comply with any or all of its obligations under any of the
Finance Documents to which it is party or any of the obligations of any member
of the Group under any of the Finance Documents to which it is party are not or
cease to be legal, valid and binding except as contemplated by the Reservations
and, if capable of remedy, is not remedied within 10 Business Days of the
earlier of such member of the Group becoming aware of the relevant illegality
and the Facility Agent having given notice of the same to TCN.

 

26.13      Intercreditor Default

 

Any member of the Group which
is party to the Principal Intercreditor Deed, any applicable TGD Intercreditor
Agreement or the Pari Passu Intercreditor Agreement fails to comply with its
obligations under it and such failure, if capable of remedy, is not remedied
within 30 days of the earlier of such member of the Group becoming aware of the
relevant failure to comply and the Facility Agent having given notice of the
same to TCN.

 

26.14      Revocation of Necessary Authorisations

 

Any Necessary Authorisation is
revoked and where such revocation is reasonably likely to have a Material
Adverse Effect, is not replaced within 10
Business Days.

 

26.15      Material Adverse Effect

 

Any event or circumstance
occurs which would have a Material Adverse Effect.

 

26.16      Resignation of Auditors

 

The auditors resign their
appointment as auditors of the Group or the TCN Group as a result of the
investigation detailed in the Supplement under circumstances which, in the
opinion of the  Facility Agent, acting on
the instructions of an Instructing Group are materially adverse to the credit
of the Obligors (taken as a whole).

 

26.17      Material Proceedings

 

Any litigation, arbitration or
administrative proceeding of or before any court, arbitral body, or agency is
commenced against any member of the Group, which is reasonably likely to be
adversely determined and which, if adversely determined, is reasonably likely
to have a Material Adverse Effect.

 

26.18      Acceleration

 

Upon the occurrence of an
Event of Default and while the same is continuing at any time thereafter, the
Facility Agent may (and, if so instructed by an Instructing Group, shall) by
written notice to TCN:

 

132

 

(a)           declare all or any part of the Outstandings to be
immediately due and payable (whereupon the same shall become so payable
together with accrued interest thereon and any other sums then owed by any
Obligor under the Finance Documents) or declare all or any part of the
Outstandings to be due and payable on demand of the Facility Agent; and/or

 

(b)           require TCN to procure that the Outstanding L/C Amount under
each Documentary Credit is and all Ancillary Facility Outstandings are promptly
reduced to zero and/or provide cash collateral therefor by deposit in such
interest bearing account as the Facility Agent may specify for each Documentary
Credit/Ancillary Facility in an amount specified by the Facility Agent and in
the currency of such Documentary Credit/Ancillary Facility (whereupon TCN shall
do so) but no greater than the amount outstanding under such Documentary
Credit/Ancillary Facility; and/or

 

(c)           declare that any unutilised portion of the Facilities shall
be cancelled, whereupon the same shall be cancelled and the corresponding Commitments
of each Lender shall be reduced to zero; and/or

 

(d)           exercise or direct the Security Trustee to exercise any
rights and remedies (including any right to demand cash collateral by deposit
in such interest-bearing account as the Facility Agent may specify) to which
the Facility Agent, the Security Trustee or the Lenders may be entitled.

 

26.19      Repayment on Demand

 

If, pursuant to paragraph (a)
of Clause 26.18 (Acceleration), the Facility Agent
declares all or any part of the Outstandings to be due and payable on demand of
the Facility Agent, then, and at any time thereafter, the Facility Agent may
(and, if so instructed by an Instructing Group, shall) by written notice to the
relevant Borrowers:

 

(a)           require repayment of all or the relevant part of the
Outstandings on such date as it may specify in such notice (whereupon the same
shall become due and payable on such date together with accrued interest
thereon and any other sums then owed by any Obligor under the Finance
Documents) or withdraw its declaration with effect from such date as it may
specify in such notice; and/or

 

(b)           select as the duration of any Interest Period or Term which
begins whilst such declaration remains in effect a period of 6 months or less.

 

27.          DEFAULT INTEREST

 

27.1        Consequences of Non-Payment

 

If any sum due and payable by
any Obligor under this Agreement is not paid on the due date therefor in
accordance with the provisions of Clause 32 (Payments)
or if any sum due and payable by an Obligor pursuant to a judgment of any court
in connection with this Agreement is not paid on the date of such judgment, the
period beginning on such due date or, as the case may be, the date of such
judgment and ending on the Business Day on which the obligation of such Obligor
to pay the Unpaid Sum is discharged shall be divided into successive periods,
each of which (other than the first) shall start on the last day of the
preceding such period (which shall be a Business Day) and the duration of each
of which shall (except as otherwise provided in this Clause 27) be selected by
the Facility Agent.

 

27.2        Default Rate

 

During each such period
relating thereto as is mentioned in Clause 27.1 (Consequences
of Non-Payment) an Unpaid Sum shall bear interest at the rate
per annum which is the sum from time to time of 1%, the Applicable Margin
(provided that if any Unpaid Sum is not directly referable to a

 

133

 

particular Facility the
Applicable Margin shall be the Revolving Facility Margin), the Associated Costs
Rate at such time and EURIBOR or LIBOR, as the case may be, on the Quotation
Date therefor, provided that:

 

(a)           if, for any such period, EURIBOR or LIBOR, as the case may
be, cannot be determined, the rate of interest applicable to each Lender’s
portion of such Unpaid Sum shall be the rate per annum which is the sum of 1%,
the Applicable Margin, (as aforesaid), and the Associated Costs Rate at such
time and the rate per annum that shall be notified to the Facility Agent by
such Lender as soon as practicable after the beginning of such period as being
that which expresses as a percentage rate per annum the cost to such Lender of
funding from whatever sources it may reasonably select its portion of such
Unpaid Sum during such period; and

 

(b)           if such Unpaid Sum is all or part of an Advance which became
due and payable on a day other than the last day of an Interest Period or Term
relating thereto, the first Interest Period applicable to it shall be of a
duration equal to the unexpired portion of that Interest Period or Term and the
rate of interest applicable thereto from time to time during such Interest
Period shall be that which exceeds by 1% the rate which would have been
applicable to it had it not so fallen due.

 

27.3        Maturity of Default Interest

 

Any interest which shall have
accrued under Clause 27.2 (Default Rate)
in respect of an Unpaid Sum shall be due and payable and shall be paid by the
Obligor owing such sum at the end of the period by reference to which it is
calculated or on such other dates as the Facility Agent may specify by written
notice to such Obligor.

 

27.4        Construction of Unpaid Sum

 

Any Unpaid Sum shall (for the
purposes of this Clause 27 (Default Interest),
Clause 17 (Increased Costs), Clause 30 (TCN’s Indemnities) and Schedule 6 (Associated
Costs Rate)) be treated as an advance and accordingly in those
provisions the term “Advance” includes any Unpaid Sum and the term “Interest
Period” and “Term”, in relation to an Unpaid Sum, includes each such period
relating thereto as is mentioned in Clause 27.1 (Consequences
of Non-Payment).

 

28.          GUARANTEE AND INDEMNITY

 

28.1        Guarantee

 

With effect from the Closing
Date or if later, the date on which it accedes to this Agreement in such
capacity, each Guarantor irrevocably and unconditionally guarantees, jointly
and severally, to each of the Finance Parties the due and punctual payment by
each of the Borrowers of all sums payable by 
each of them under each of the Finance Documents and agrees that
promptly on demand it will pay to the Facility Agent each and every sum of
money which either of the Borrowers is at any time liable to pay to any Finance
Party under or pursuant to any Finance Document and which has become due and
payable but has not been paid at the time such demand is made.

 

28.2        Indemnity

 

With effect from the Closing
Date, or if later, the date upon which it accedes to this Agreement in such
capacity, each Guarantor irrevocably and unconditionally agrees, jointly and
severally, as primary obligor and not only as surety, to indemnify and hold
harmless each Finance Party on demand by the Facility Agent from and against
any loss incurred by such Finance Party as a result of any of the obligations
of the Borrowers or either of them under or pursuant to any Finance Document
being or becoming void, voidable, unenforceable or ineffective as against the
Borrowers for any reason whatsoever (whether or not known to that Finance Party
or any other person) the amount of such loss

 

134

 

being the amount which the
Finance Party suffering it would otherwise have been entitled to recover from
the Borrowers or either of them.

 

28.3        Continuing and Independent Obligations

 

The obligations of each
Guarantor under this Agreement shall constitute and be continuing obligations
which shall not be released or discharged by any intermediate payment or
settlement of all or any of the obligations of the Borrowers under the Finance
Documents, shall continue in full force and effect until the unconditional and
irrevocable payment and discharge in full of all amounts owing by the Borrowers
and either of them under each of the Finance Documents and are in addition to
and independent of, and shall not prejudice or merge with, any other security
(or right of set-off) which any Finance Party may at any time hold in respect
of such obligations or any of them.

 

28.4        Avoidance of Payments

 

Where any release, discharge
or other arrangement in respect of any obligation of either Borrower, or any
Security held by any Finance Party therefor, is given or made in reliance on
any payment or other disposition which is avoided or must be repaid (whether in
whole or in part) in an insolvency, liquidation or otherwise and whether or not
any Finance Party has conceded or compromised any claim that any such payment
or other disposition will or should be avoided or repaid (in whole or in part),
the provisions of this Clause 28 shall continue as if such release, discharge
or other arrangement had not been given or made.

 

28.5        Immediate Recourse

 

None of the Finance Parties
shall be obliged, before exercising or enforcing any of the rights conferred
upon them in respect of the Guarantors by this Agreement or by Law, to seek to
recover amounts due from either Borrower or to exercise or enforce any other
rights or Security any of them may have or hold in respect of any of the
obligations of the Borrowers or either of them under any of the Finance
Documents.

 

28.6        Waiver of Defences

 

Neither the obligations of the
Guarantors contained in this Agreement nor the rights, powers and remedies
conferred on the Finance Parties in respect of the Guarantors by this Agreement
or by Law shall be discharged, impaired or otherwise affected by:

 

(a)           the winding-up, dissolution, administration or
reorganisation of either Borrower or any other person or any change in the
status, function, control or ownership of any Borrower or any such person;

 

(b)           any of the obligations of either Borrower or any other
person under any Finance Document or any Security held by any Finance Party
therefor being or becoming illegal, invalid, unenforceable or ineffective in
any respect;

 

(c)           any time or other indulgence being granted to or agreed (i)
to or with either Borrower or any other person in respect of its obligations or
(ii) in respect of any security granted under any Finance Documents;

 

(d)           unless otherwise agreed, any amendment to, or any variation,
waiver or release of, any obligation of, or any Security granted by, either
Borrower or any other person under any Finance Document;

 

 

135

 

(e)           any total or partial failure to take, or perfect, any
Security proposed to be taken in respect of the obligations of the Borrowers or
either of them or any other person under the Finance Documents;

 

(f)            any total or partial failure to realise the value of, or any
release, discharge, exchange or substitution of, any security held by any
Finance Party in respect of any obligation of a Borrower under any Finance
Document; or

 

(g)           any other act, event or omission which might operate to
discharge, impair or otherwise affect any of the obligations of any of the
Guarantors under this Agreement or any of the rights, powers or remedies
conferred upon the Finance Parties or any of them by this Agreement or by Law.

 

28.7        No Competition

 

Until all amounts which may
become payable by the Borrowers and either of them under or in connection with
the Finance Documents have been paid in full, any rights which any Guarantor
may at any time have by way of contribution or indemnity in relation to any of
the obligations of the Borrowers or either of them under any of the Finance
Documents or to claim or prove as a creditor of the Borrowers or either of them
or any other person or its estate in competition with the Finance Parties or
any of them, shall be exercised by such Guarantor only if and to the extent
that the Facility Agent so requires and in such manner and upon such terms as
the Facility Agent may specify and each Guarantor shall hold any moneys, rights
or security held or received by it as a result of the exercise of any such
rights on trust for the Facility Agent for application in or towards payment of
any sums at any time owed by the Borrowers or either of them under any of the
Finance Documents as if such moneys, rights or security were held or received
by the Facility Agent under this Agreement.

 

28.8        Appropriation

 

To the extent any Finance
Party receives any sum from any Guarantor in respect of the obligations of any
other Obligor under any of the Finance Documents which is insufficient to
discharge all sums which are then due and payable in respect of such
obligations of such other Obligor, such Finance Party shall not be obliged to
apply any such sum in or towards payment of amounts owing by such other Obligor
under any of the Finance Documents, and any such sum may, in the relevant
Finance Party’s discretion, be credited to a suspense or impersonal account and
held in such account pending the application from time to time (as the relevant
Finance Party may think fit) of such sums in or towards the discharge of such
liabilities owed to it by such other Obligor under the Finance Documents as
such Finance Party may select provided that such Finance Party shall promptly
make such application upon receiving sums sufficient to discharge all sums then
due and payable to it by such other Obligor under the Finance Documents.

 

28.9        Limitation of Liabilities of United States Guarantors

 

Each Guarantor organised or
established in the United States of America (a “US Guarantor”) and each of the Finance Parties (by its
acceptance of the benefits of the guarantee under this Clause 28) hereby
confirms its intention that this guarantee should not constitute a fraudulent
transfer or conveyance for the purposes of any bankruptcy, insolvency or
similar law, the United States Uniform Fraudulent Conveyance Act or any similar
Federal, state or foreign law.  To
effectuate the foregoing intention, each US Guarantor and each of the Finance
Parties (by its acceptance of the benefits of the guarantee under this Clause
28) hereby irrevocably agrees that its obligations under this Clause 28 shall
be limited to the maximum amount as will, after giving effect to such maximum
amount and all other (contingent or otherwise) liabilities of such US Guarantor
that are relevant under such laws, and after giving effect to any rights to
contribution pursuant to any agreement providing for an equitable contribution
among such US Guarantor and the other Guarantors, result in the obligations of
such US Guarantor in respect of such maximum amount not constituting a
fraudulent transfer or conveyance.

 

136

 

28.10      Droit de Discussion / Droit de Division

 

(a)           Any right which at any time any Guarantor may have under the
existing or future laws of Jersey whether by virtue of the droit de discussion
or otherwise to require that recourse be had to the assets of any other person
before any claim is enforced against such Guarantor in respect of the
obligations assumed by such Guarantor under or in connection with any Finance
Document is hereby waived.

 

(b)           Any right which at any time any Guarantor may have under the
existing or future laws of Jersey whether by virtue of the droit de division or
otherwise to require that any liability under any guarantee or indemnity given
in or in connection with any Finance Document be divided or apportioned with
any other person or reduced in any manner whatsoever is hereby waived.

 

29.          AGENTS

 

29.1        Appointment of the Agents

 

(a)           Each of the other Finance Parties appoints the Facility
Agent to act as its agent under and in connection with the Finance Documents
and authorises the Facility Agent to exercise the rights, powers, authorities
and discretions specifically delegated to it under or in connection with the
Finance Documents together with any other incidental rights, powers,
authorities and discretions.

 

(b)           Each of the Lenders under the B Facility and the C Facility
appoints the US Paying Agent and/or the Administrative Agent (as applicable) to
act as its agent under and in connection with the Finance Documents.

 

29.2        Duties of the Facility Agent/US Paying Agent

 

(a)           The Facility Agent and/or the US Paying Agent, as
applicable, shall promptly inform each Lender of the contents of any notice or
document received by it in its capacity as Agent from any of the Obligors under
the Finance Documents.

 

(b)           The Facility Agent shall promptly notify the Lenders of the
occurrence of any Event of Default or any default by an Obligor in the due
performance of or compliance with its obligations under any Finance Document
upon becoming aware of the same.

 

(c)           If so instructed by an Instructing Group, the Facility Agent
shall refrain from exercising any power or discretion vested in it as agent
under any Finance Document.

 

(d)           The duties of the Facility Agent and the US Paying Agent, as
the case may be, under the Finance Documents are, save to the extent otherwise
expressly provided, solely mechanical and administrative in nature.

 

29.3        Role of the Mandated Lead Arrangers and Administrative Agent

 

Except as specifically
provided in the Finance Documents, neither the Mandated Lead Arrangers nor the
Administrative Agent shall have any obligations or duties of any kind to any
other party under or in connection with any Finance Document.

 

29.4        No Fiduciary Duties

 

(a)           Nothing in the Finance Documents constitutes any Agent or
any Mandated Lead Arranger as a trustee or fiduciary of any other person.

 

137

 

(b)           No Agent or Mandated Lead Arranger shall be bound to account
to any Lender for any sum or the profit element of any sum received by it for
its own account.

 

29.5        Business with the Group

 

The Agents and the Mandated
Lead Arrangers may accept deposits from, lend money to and generally engage in
any kind of banking or other business with any member of the Group.

 

29.6        Discretion of the Facility Agent/US Paying Agent

 

(a)           Each Agent may rely on:

 

(i)            any
representation, notice or document believed by it to be genuine, correct and
appropriately authorised; and

 

(ii)           any statement
made by a director, authorised signatory or employee of any person regarding
any matters which may reasonably be assumed to be within his knowledge or
within his power to verify.

 

(b)           Each Agent may assume, unless it has received notice to the
contrary in its capacity as agent for the Lenders, that:

 

(i)            no Default has
occurred;

 

(ii)           any right, power,
authority or discretion vested in this Agreement upon any party, the Lenders or
an Instructing Group has not been exercised; and

 

(iii)         any notice or
request made by the Obligors’ Agent is made on behalf of and with the consent
and knowledge of all the Obligors.

 

(c)           The Agents may engage, pay for and rely on the advice or
services of any lawyers, accountants, surveyors or other experts.

 

(d)           The Agents may act in relation to the Finance Documents
through their respective personnel and agents.

 

(e)           The Facility Agent may execute on behalf of any L/C Bank any
Documentary Credit issued under this Agreement.

 

29.7        Instructing Group’s Instructions

 

(a)           Unless a contrary indication appears in a Finance Document,
the Facility Agent (or the US Paying Agent, as applicable) shall (i) act
in accordance with any instructions given to it by an Instructing Group (or, if
so instructed by an Instructing Group, refrain from acting or exercising any
right, power, authority or discretion vested in it as Agent) and (ii)
shall not be liable to any Finance Party for any act (or omission) if it
acts (or refrains from taking any action) in accordance with such an
instruction of an Instructing Group.

 

(b)           Unless a contrary indication appears in a Finance Document,
any instructions given by an Instructing Group will be binding on all the
Finance Parties.

 

(c)           The Facility Agent may refrain from acting in accordance
with the instructions of an Instructing Group (or, if appropriate, the Lenders)
until it has received such security or collateral as it may require for any
cost, loss or liability which it may incur in complying with such instructions.

 

138

 

(d)           In the absence of instructions from an Instructing Group
(or, if appropriate, the Lenders), the Facility Agent may act (or refrain from
taking action) as it considers to be in the best interest of the Lenders.

 

(e)           No Agent shall be authorised to act on behalf of a Lender in
any legal or arbitration proceedings relating to any Finance Document without
first obtaining the Lender’s consent to do so.

 

29.8        No Responsibility

 

No Agent or Mandated Lead
Arranger shall be:

 

(a)           responsible for the adequacy, accuracy and/or completeness
of any information (whether oral or written) supplied by any Finance Party or
an Obligor or any other person in or in connection with any Finance Document, including
the Information Memorandum, the Long Range Plan and any Budget; or

 

(b)           responsible for the legality, validity, effectiveness,
adequacy or enforceability of any Finance Document or any other agreement,
arrangement or document entered into, made or executed in anticipation of or in
connection with any Finance Document.

 

29.9        Exclusion of Liability

 

(a)           Without limiting paragraph (b) of this Clause, no Agent will
be liable to any Finance Party for any action taken by it under or in
connection with any Finance Document, unless directly caused by its gross
negligence or wilful misconduct.

 

(b)           Each of the Lenders agrees that it will not take any
proceedings, or assert or seek to assert any claim, against any officer,
employee or agent of any of the Agents in respect of any claim it might have
against any Agent or in respect of any act or omission of any kind by that
officer, employee or agent in relation to any Finance Document and agrees that
any officer, employee or agent of any Agent, may enforce this provision.

 

(c)           No Agent will be liable for any failure to notify any person
of any matter referred to in Clause 13.8 (Notification)
or any delay (or any related consequences) in crediting an account with an
amount required under the Finance Documents to be paid by it if it has taken
all reasonable steps to comply with Clause 13.8 (Notification) and taken all necessary steps as soon as
reasonably practicable to comply with the regulations or operating procedures
of any recognised clearing or settlement system used by it for that purpose.

 

29.10      Lender’s Indemnity

 

Each Lender shall (in its
relevant Proportion (as determined at all times for these purposes in
accordance with paragraph (c) of the definition of “Proportion”) indemnify each
Agent from time to time on demand by the relevant Agent against any cost, loss
or liability incurred by the relevant Agent (otherwise than by reason of its
gross negligence or wilful misconduct) in acting as an Agent under the Finance
Documents (unless it has been reimbursed therefor by an Obligor pursuant to the
terms of the Finance Documents).

 

29.11      Resignation

 

(a)           The Facility Agent or the US Paying Agent may resign and
appoint one of its respective Affiliates acting through an office in the United
Kingdom (or, in the case of the US Paying Agent, acting through an office in
the State of New York) as successor Agent by giving notice to the Lenders and
TCN.

 

139

 

(b)           The Facility Agent or the US Paying Agent may resign without
having designated a successor as agent under paragraph (a) above (and shall do
so if so required by an Instructing Group) by giving notice to the Lenders and
TCN, in which case an Instructing Group may appoint a successor Facility Agent
(acting through an office in the United Kingdom), or a successor US Paying
Agent (acting through an office in the State of New York) approved by TCN,
acting reasonably.  If an Instructing
Group has not appointed a successor Agent in accordance with this paragraph (b)
within 30 days after notice of resignation was given, the Facility Agent may
appoint a successor Facility Agent (acting through an office in the United
Kingdom) and the US Paying Agent may appoint a successor US Paying Agent
(acting through an office in the State of New York) approved by TCN, acting
reasonably.

 

(c)           The retiring Agent shall, at TCN’s cost, make available to
its successor such documents and records and provide such assistance as its
successor may reasonably request for the purposes of performing its functions
as Agent under the Finance Documents.

 

(d)           The resignation notice of the Facility Agent or the US
Paying Agent shall only take effect upon the appointment of a relevant
successor Agent.

 

(e)           Upon the appointment of a successor, the retiring Agent
shall be discharged from any further obligation in respect of the Finance
Documents but shall remain entitled to the benefit of this Clause 29.  The Agent’s successor and each of the other
parties to this Agreement shall have the same rights and obligations amongst
themselves as they would have had if such successor Agent had been an original
party as Facility Agent or as US Paying Agent, as the case may be.

 

(f)            Unless otherwise agreed between the Administrative Agent and
TCN, the Administrative Agent shall automatically resign (and no successor
shall need to be appointed) on the day upon which it ceases to be a party to
this Agreement in the capacity as a Lender.

 

29.12      Confidentiality

 

(a)           The Facility Agent (in acting as agent for the Finance
Parties) and each of the US Paying Agent and the Administrative Agent (in
acting as US paying agent and administrative agent respectively for the Lenders
under the B Facility and the C Facility) shall be regarded as acting through
its agency division which shall be treated as a separate entity from any other
of its divisions or departments.

 

(b)           If information is received by another division or department
of any Agent, it may be treated as confidential to that division or department
and the relevant Agent shall not be deemed to have notice of it.

 

(c)           Notwithstanding any other provision of any Finance Document
to the contrary, the Finance Parties are not obliged to disclose to any other
person (i) any confidential information or (ii) any other information if the disclosure
would, or might in its reasonable opinion, constitute a breach of any Law.

 

(d)           Notwithstanding any other provision of any Finance Document,
the parties (and each employee, representative or other agent of the parties)
may disclose to any and all persons, without limitation of any kind, the tax
treatment and any facts that may be relevant to the tax structure of the
transaction, provided, however, that no party (and no employee, representative,
or other agent thereof) shall disclose any other information that is not
relevant to understanding the tax treatment and tax structure of the
transaction (including the identity of any party and any information that could
lead another to determine the identity of any party), or any other information
to the extent that such disclosure could reasonably result in a violation of
any applicable securities law.

 

140

 

29.13      Facility Office

 

The Facility Agent and/or the
US Paying Agent, as applicable, may treat each Lender as a Lender, entitled to
payments under this Agreement and acting through its Facility Office unless it
has received not less than 5 Business Days’ prior notice from that Lender to
the contrary in accordance with the terms of this Agreement.

 

29.14      Lenders’ Associated Costs Details

 

To the extent applicable, each
Lender shall supply the Facility Agent and/or the US Paying Agent, as
applicable, with any information required by such Agent in order to calculate
the Associated Costs Rate in accordance with Schedule 6 (Associated
Costs Rate).

 

29.15      Credit Appraisal by the Lenders

 

Without affecting the
responsibility of any Obligor for information supplied by it or on its behalf
in connection with any Finance Document, each Lender confirms to the Agents and
the Mandated Lead Arrangers that it has been, and will continue to be, solely
responsible for making its own independent appraisal and investigation of all
risks arising under or in connection with any Finance Document including but
not limited to:

 

(a)           the financial condition, status and nature of each member of
the Group;

 

(b)           the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document;

 

(c)           whether that Lender has recourse, and the nature and extent
of that recourse, against any party or any of its respective assets under or in
connection with any Finance Document, the transactions contemplated by the
Finance Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, under or in connection with any Finance
Document; and

 

(d)           the adequacy, accuracy and/or completeness of the Information
Memorandum, the Long Range Plan and each Budget and any other information
provided by the Facility Agent, the Mandated Lead Arrangers or by any other
person under or in connection with any Finance Document, the transactions
contemplated by the Finance Documents or any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document.

 

29.16      Deduction from Amounts Payable by the Agents

 

If any amount is due and
payable by any party to the Facility Agent, the US Paying Agent or the
Administrative Agent under any Finance Document the Facility Agent, the US
Paying Agent or the Administrative Agent may, after giving notice to that
party, deduct an amount not exceeding that amount from any payment to that
party which the Facility Agent, the US Paying Agent or the Administrative Agent
would otherwise be obliged to make under the Finance Documents and apply the
amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents
that party shall be regarded as having received such payment without any such
deduction.

 

29.17      Obligors’ Agent

 

(a)           Each Obligor (other than TCN) irrevocably authorises TCN to
act on its behalf as its agent in relation to the Finance Documents and
irrevocably authorises:

 

141

 

(i)            TCN on its behalf
to supply all information concerning itself, its financial condition and
otherwise to the relevant persons contemplated under this Agreement and to give
all notices and instructions to execute on its behalf any Finance Document and
to enter into any agreement in connection with the Finance Documents
notwithstanding that the same may affect such Obligor, without further
reference to or the consent of such Obligor; and

 

(ii)           each Finance
Party to give any notice, demand or other communication to be given to or
served on such Obligor pursuant to the Finance Documents to TCN on its behalf,

 

and in each such case such Obligor will be bound thereby as though such
Obligor itself had supplied such information, given such notice and instructions,
executed such Finance Document and agreement or received any such notice,
demand or other communication.

 

(b)           Every act, omission, agreement, undertaking, settlement,
waiver, notice or other communication given or made by the Obligors’ Agent
under any Finance Document, or in connection with this Agreement (whether or
not known to any other Obligor, as the case may be, and whether occurring
before or after such person became party to this Agreement), shall be binding
for all purposes on all other Obligors as if the other Obligors had expressly
made, given or concurred with the same. 
In the event of any conflict between any notices or other communications
of the Obligors’ Agent and any other Obligor, those of the Obligors’ Agent
shall prevail.

 

29.18      Co-operation with the Facility Agent/US Paying Agent

 

Each Lender and each Obligor
will co-operate with the Facility Agent and/or the US Paying Agent, as
applicable, to complete any legal requirements imposed on the Facility Agent or
the US Paying Agent in connection with the performance of its duties under this
Agreement and shall supply any information requested by the relevant Agent in
connection with the proper performance of those duties provided that no Obligor
shall be under any obligation to provide any information the supply of which
would be contrary to any confidentiality obligation binding on any member of
the Group or prejudice the retention of legal privilege in such information and
provided further that no Obligor shall (and TCN shall procure that no member of
the TCN Group shall) be able to deny the Facility Agent any such information by
reason of it having entered into a 
confidentiality undertaking which would prevent it from disclosing, or
be able to claim any legal privilege in respect of, any financial information
relating to itself or the Group.

 

29.19      “Know your client” checks

 

Nothing in this Agreement
shall oblige any of the Agents or the Mandated Lead Arrangers to carry out any “know
your client” or other applicable anti-money laundering checks in relation to
the identity of any person on behalf of any Lender and each Lender confirms to
the Agents and the Mandated Lead Arrangers that it is solely responsible for
any such checks it is required to carry out and that it may not rely on any statement
in relation to such checks made by any other person.

 

29.20      Facility Agent’s Management Time

 

Any amount payable to the
Facility Agent under Clause 37 (Costs and
Expenses) and Clause 29.10 (Lender’s
Indemnity) shall include the reasonable cost of utilising the
Facility Agent’s management time or other resources and will be calculated on
the basis of such reasonable daily or hourly rates as the Facility Agent may
notify to TCN and the Lenders and is in addition to any fee paid or payable to
the Facility Agent under Clause 15 (Commissions
and Fees).

 

142

 

 

30.          TCN’S INDEMNITIES

 

30.1        General Indemnities

 

With effect from the Closing
Date, TCN undertakes to indemnify:

 

(a)           each of the Finance Parties against any out-of-pocket cost,
claim, loss, expense (including legal fees) or liability, which any of them may
sustain or incur as a consequence of the occurrence of any Default; and

 

(b)           each Lender against any out-of-pocket loss it may suffer or
incur as a result of (i) its funding or making arrangements to fund its portion
of an Advance or (ii) its issuing or making arrangements to issue a Documentary
Credit or (iii) its funding or making arrangements to fund any Ancillary
Facility made available by it, in each case requested by any Borrower (or,
prior to its accession hereto, Telewest Global Finance LLC) under this
Agreement but not made by reason of the operation of any one or more of the
provisions of this Agreement (save as a result of such Lender’s own gross
negligence or wilful default).

 

30.2        Break Costs

 

(a)           Each Borrower shall, within 3 Business Days of demand by a
Finance Party, pay to that Finance Party its Break Costs attributable to all or
any part of any Advance or Unpaid Sum being paid by that Borrower on a day
other than the last day of an Interest Period or Term for that Advance or
Unpaid Sum.

 

(b)           Each Lender shall, as soon as reasonably practicable after a
demand by the Facility Agent, provide a certificate confirming the amount of
its Break Costs for any Interest Period or Term in which they accrue.

 

31.          CURRENCY OF ACCOUNT

 

31.1        Currency

 

Sterling is the currency of
account and payment for each and every sum at any time due from any Obligor
under this Agreement provided that:

 

(a)           each repayment of any Outstandings or Unpaid Sum (or part of
it) shall be made in the currency in which those Outstandings or Unpaid Sum are
denominated on their due date;

 

(b)           interest shall be payable in the currency in which the sum
in respect of which such interest is payable was denominated when that interest
accrued;

 

(c)           each payment in respect of costs and expenses shall be made
in the currency in which the same were incurred; and

 

(d)           each payment pursuant to Clause 16.2 (Tax
Indemnity) or Clause 17.1 (Increased Costs)
shall be made in the currency specified by the Finance Party claiming under it,
acting reasonably.

 

31.2        Currency Indemnity

 

If any sum due from any
Obligor under this Agreement or any order or judgment given or made in relation
to this Agreement has to be converted from the currency (the “first currency”) in which the same is
payable under this Agreement or under such order or judgment into another
currency (the “second currency”)
for the purpose of (a) making or filing a claim or proof against such
Obligor, (b) obtaining an order or judgment in any court or other tribunal
or (c) enforcing any order or

 

143

 

judgment given or made in
relation to this Agreement, each Borrower agrees, with effect from the Closing
Date, to indemnify and hold harmless each of the persons to whom such sum is
due from and against any loss suffered or incurred as a result of any
discrepancy between (x) the rate of exchange used for such purpose to
convert the sum in question from the first currency into the second currency
and (y) the rate or rates of exchange at which such person may in the
ordinary course of business purchase the first currency with the second
currency at the time of receipt of the sum paid to it in satisfaction, in whole
or in part, of any such order, judgment, claim or proof.

 

32.          PAYMENTS

 

32.1        Payment to the Facility Agent and the US Paying Agent

 

On each date on which this
Agreement requires an amount to be paid by any Obligor or any of the Lenders
under this Agreement, such Obligor or, as the case may be, such Lender shall
make the same available to the Facility Agent or, in the case of payments by
the US Borrower, the US Paying Agent by payment in same day funds (or such
other funds as may for the time being be customary for the settlement of
transactions in the relevant currency) to such account or bank as the Facility
Agent or US Paying Agent, as applicable (acting reasonably), may have specified
for this purpose and any such payment which is made for the account of another
person shall be made in time to enable the Facility Agent or US Paying Agent,
as applicable, to make available such person’s portion of it to such other
person in accordance with Clause 32.2 (Same Day Funds).

 

32.2        Same Day Funds

 

Save as otherwise provided in
this Agreement, each payment received by the Facility Agent or US Paying Agent,
as applicable, for the account of another person shall be made available by the
Facility Agent to such other person (in the case of a Lender, for the account
of its Facility Office) for value the same day by transfer to such account of
such person with such bank in a Participating Member State or London (or for
payments in Dollars or Euro, in the applicable financial centre) as such person
shall have previously notified to the Facility Agent or US Paying Agent, as
applicable, for this purpose.

 

32.3        Clear Payments

 

Any payment required to be
made by any Obligor under this Agreement shall be calculated without reference
to any set-off or counterclaim and shall be made free and clear of, and without
any deduction for or on account of, any set-off or counterclaim.

 

32.4        Partial Payments

 

If the Facility Agent or US
Paying Agent, as applicable, receives a payment that is insufficient to
discharge all the amounts then due and payable by any Obligor under this
Agreement, the Facility Agent or US Paying Agent, as applicable, shall, unless
otherwise instructed by an Instructing Group, apply that payment towards the
obligations of that Obligor under this Agreement in the following order:

 

(a)           first, in payment in or towards payment pro rata
of any unpaid fees, costs and expenses incurred by the Facility Agent or US
Paying Agent, as applicable, and the L/C Bank under this Agreement

 

(b)           secondly, in or towards payment pro rata
of any accrued interest or commission due but unpaid under this Agreement;

 

(c)           thirdly, in or towards payment pro rata of
any principal due but unpaid under any this Agreement; and

 

144

 

(d)           fourthly, in or towards payment pro rata
of any other sum due but unpaid under this Agreement,

 

and such application shall
override any appropriation made by an Obligor.

 

32.5        Indemnity

 

Where a sum is to be paid
under the Finance Documents to the Facility Agent or the US Paying Agent, as
applicable, for the account of another person, the Facility Agent or the US
Paying Agent, as applicable, shall not be obliged to make the same available to
that other person (or to enter into or perform any exchange contract in
connection therewith) until it has been able to establish to its satisfaction
that it has actually received such sum, but if it does so and it proves to be
the case that it had not actually received such sum, then the person to whom
such sum (or the proceeds of such exchange contract) was (or were) so made
available shall on request refund the same to the Facility Agent or the US
Paying Agent, as applicable, together with an amount sufficient to indemnify
and hold harmless the Facility Agent or the US Paying Agent, as applicable,
from and against any cost or loss it may have suffered or incurred by reason of
its having paid out such sum (or the proceeds of such exchange contract) prior
to its having received such sum.  This
indemnity shall only apply to the Obligors with effect from the Closing Date.

 

32.6        Notification of Payment

 

Without prejudice to the
liability of each party to this Agreement to pay each amount owing by it under
this Agreement on the due date therefor, whenever a payment is expected to be
made by any of the Finance Parties, the Facility Agent or the US Paying Agent,
as applicable, shall give notice prior to the expected date for such payment,
notify all such Finance Parties of the amount, currency and timing of such
payment.

 

32.7        Business Days

 

(a)           Any payment which is due to be made on a day that is not a
Business Day shall be made on the immediately succeeding Business Day in the
same calendar month (if there is one) or the immediately preceding Business Day
(if there is not).

 

(b)           During any extension of the due date for payment of any
principal or an Unpaid Sum under this Agreement, interest is payable on such
amount at the rate payable on the original due date.

 

33.          SET-OFF

 

33.1        Right to Set-off

 

With effect from the Closing
Date, each of the Obligors authorises each Lender to apply any credit balance
to which such Obligor is entitled on any account of such Obligor with that
Lender in satisfaction of any sum due and payable from such Obligor to such
Lender under this Agreement but unpaid; for this purpose, each Lender is
authorised to purchase with the moneys standing to the credit of any such
account such other currencies as may be necessary to effect such application.

 

33.2        No Obligation

 

No Lender shall be obliged to
exercise any right given to it by Clause 33.1 (Right to
Set-Off).

 

145

 

34.          SHARING AMONG THE FINANCE PARTIES

 

34.1        Payments to Finance Parties

 

If a Finance Party (a “Recovering Finance Party”) receives or
recovers any amount from any Obligor other than in accordance with Clause 32 (Payments) and applies that amount to a payment due under the
Finance Documents then:

 

(a)           the Recovering Finance Party shall, within 3 Business Days,
notify details of the receipt or recovery to the Facility Agent;

 

(b)           the Facility Agent shall determine whether the receipt or
recovery is in excess of the amount the Recovering Finance Party would have
been paid had the receipt or recovery been received or made by the Facility
Agent and distributed in accordance with Clause 32.4 (Partial
Payments), without taking account of any tax which would be imposed
on the Facility Agent in relation to the receipt, recovery or distribution; and

 

(c)           the Recovering Finance Party shall, within 3 Business Days
of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Facility Agent determines may be retained by
the Recovering Finance Party as its share of any payment to be made, in
accordance with Clause 32.4 (Partial Payments).

 

34.2        Redistribution of Payments

 

The Facility Agent shall treat
the Sharing Payment as if it had been paid by the relevant Obligor and shall
distribute it between the Finance Parties (other than the Recovering Finance
Party) in accordance with Clause 32.4 (Partial Payments).

 

34.3        Recovering Finance Party’s Rights

 

(a)           On a distribution by the Facility Agent under Clause 34.2 (Redistribution of Payments), the Recovering Finance Party
will be subrogated to the rights of the Finance Parties which have shared in
the redistribution.

 

(b)           If and to the extent that the Recovering Finance Party is
not able to rely on its rights under paragraph (a) above, the relevant Obligor
shall be liable to the Recovering Finance Party for a debt equal to the Sharing
Payment which is immediately due and payable.

 

34.4        Reversal of Redistribution

 

If any part of the Sharing
Payment received or recovered by a Recovering Finance Party becomes repayable
and is repaid by that Recovering Finance Party, then:

 

(a)           each Finance Party which has received a share of the
relevant Sharing Payment pursuant to Clause 34.2 (Redistribution
of Payments) shall, upon
the request of the Facility Agent, pay to the Facility Agent for account of
that Recovering Finance Party an amount equal to its share of the Sharing
Payment (together with an amount as is necessary to reimburse that Recovering
Finance Party for its share of any interest on the Sharing Payment which that
Recovering Finance Party is required to pay); and

 

(b)           that Recovering Finance Party’s rights of subrogation in
respect of any reimbursement shall be cancelled and the relevant Obligor will
be liable to the reimbursing Finance Party for the amount so reimbursed.

 

146

 

34.5        Exceptions

 

(a)           This Clause 34 shall not apply to the extent that the
Recovering Finance Party would not, after making any payment pursuant to this
Clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)           A Recovering Finance Party is not obliged to share with any
other Finance Party under this Clause 34, any amount which the Recovering
Finance Party has received or recovered as a result of taking legal or
arbitration proceedings, if:

 

(i)            it notified such
other Finance Party of the legal or arbitration proceedings; and

 

(ii)           such other
Finance Party had an opportunity to participate in those legal or arbitration
proceedings but did not do so as soon as reasonably practicable having received
notice of it or did not take separate legal or arbitration proceedings.

 

35.          CALCULATIONS AND ACCOUNTS

 

35.1        Day Count Convention

 

Interest and commitment
commission shall accrue from day to day and shall be calculated on the basis of
a year of 365 days (in the case of amounts denominated in Sterling) or 360 days
(in the case of amounts denominated in any other currency) (as appropriate or,
in any case where market practice differs, in accordance with market practice)
and the actual number of days elapsed.

 

35.2        Reference Banks

 

Save as otherwise provided in
this Agreement, on any occasion a Reference Bank or Lender fails to supply the
Facility Agent with an interest rate quotation required of it under the
foregoing provisions of this Agreement, the rate for which such quotation was
required shall be determined from those quotations which are supplied to the
Facility Agent.

 

35.3        Maintain Accounts

 

Each Lender shall maintain in
accordance with its usual practice accounts evidencing the amounts from time to
time lent by and owing to it under this Agreement.

 

35.4        Control Accounts

 

The Facility Agent shall
maintain on its books a control account or accounts in which shall be recorded:

 

(a)           the amount and the Sterling Amount of any Advance or Unpaid
Sum and the face amount and the Sterling Amount of any Documentary Credit, and
each Lender’s share in it;

 

(b)           the Sterling Amount of the Ancillary Facility Commitment (if
any) of each Lender and the amount and Sterling Amount of any Ancillary
Facility Outstandings;

 

(c)           the amount of all principal, interest and other sums due or
to become due from each of the Obligors to any of the Lenders under the Finance
Documents and each Lender’s share in it; and

 

(d)           the amount of any sum received or recovered by the Facility
Agent under this Agreement and each Lender’s share in it.

 

147

 

35.5        Prima Facie Evidence

 

In any legal action or
proceeding arising out of or in connection with this Agreement, the entries
made in the accounts maintained pursuant to Clause 35.3 (Maintain
Accounts) and Clause 35.4 (Control Accounts)
shall, in the absence of manifest error, be prima  facie evidence of the existence and amounts of the specified
obligations of the Obligors.

 

35.6        Certificate of Finance Party

 

A certificate of a Finance
Party as to the amount for the time being required to indemnify it against any
Tax Liability pursuant to Clause 16.2 (Tax Indemnity)
or any Increased Cost pursuant to Clause 17.1 (Increased
Costs) shall, in the absence of manifest error, be prima facie evidence of the existence and amounts of the
specified obligations of any Borrower.

 

35.7        Certificate of the Facility Agent

 

A certificate of the Facility
Agent as to the amount at any time due from any Borrower under this Agreement
(or the amount which, but for any of the obligations of any Borrower under this
Agreement being or becoming void, unenforceable or ineffective, at any time,
would have been due from such Borrower under this Agreement) shall, in the
absence of manifest error, be prima facie evidence
for the purposes of Clause 28 (Guarantee and Indemnity).

 

35.8        Certificate of L/C Bank

 

A certificate of an L/C Bank
as to the amount paid out or at any time due in respect of a Documentary Credit
shall, absent manifest error, be prima facie
evidence of the payment of such amounts or (as the case may be) of the amounts
outstanding in any legal action or proceedings arising in connection therewith.

 

36.          ASSIGNMENTS AND TRANSFERS

 

36.1        Successors and Assignees

 

This Agreement shall be
binding upon and enure to the benefit of each party to this Agreement and its
or any subsequent successors, permitted assignees and Transferees.

 

36.2        Assignment or Transfers by Obligors

 

None of the rights, benefits
and obligations of an Obligor under this Agreement shall be capable of being
assigned or transferred and each Obligor undertakes not to seek to assign or
transfer any of its rights, benefits and obligations under this Agreement.

 

36.3        Assignments or Transfers by Lenders

 

(a)           Any Lender may, at any time, assign all or any of its rights
and benefits under the Finance Documents in accordance with Clause 36.4 (Assignments) or transfer all or any of its rights, benefits
and obligations under the Finance Documents in accordance with Clause 36.5 (Transfer Deed) provided that:

 

(i)            the prior
consultation of TCN shall be required in respect of any assignment or transfer
arising prior to the achievement of Successful Syndication;

 

(ii)           the prior consent
of TCN shall be required in respect of any assignment or transfer which becomes
effective after the achievement of Successful Syndication (such consent not to
be unreasonably withheld or delayed) except where such assignment or

 

148

 

transfer is to an Affiliate of the relevant Lender which is a
Qualifying Lender provided that such consent shall be deemed to have been given
if not declined, in writing, within 10 Business Days of a request by any Lender
for such consent; and

 

(iii)         if the proposed
Transferee purports to be a UK Non-Bank Lender, it provides TCN with the
information required under paragraph 9 of the Transfer Deed.

 

(b)           No Lender shall be entitled to:

 

(i)            effect any
assignment or transfer:

 

(A)          in respect of any
portion of its Commitment and/or Outstandings under any individual Facility in
an amount of less than £500,000 (or its equivalent in Euro or Dollars, as the
case may be);

 

(B)          which would result
in it or the proposed assignee or transferee holding an aggregate participation
of more than zero but less than £5,000,000 (or, in each case, its equivalent in
Dollars or Euro as at the date of such assignment or transfer) in the
Facilities, save that an assignment or transfer may be made to or by a trust,
fund or other non-bank entity which customarily participates in the
institutional market which would result in such entity holding an aggregate
participation of at least £1,000,000, $1,000,000 or €1,000,000 (in the case of
participations in Advances denominated in Sterling, Dollars or Euro
respectively) in the Facilities; or

 

(C)          in relation to its
participation in the Revolving Facility other than to the extent such transfers
and assignments are on a pro rata basis as between the relevant Lender’s
Commitment under and participation in Outstandings under the Revolving
Facility;

 

(ii)           in relation to any sub-participation of its rights and obligations
under the Facilities, relinquish some or all of
its voting rights in respect of the Facilities to any person in respect of any
such sub-participation other than
voting rights in respect of the matters referred to in paragraphs (b), (c), (d)
or (e) of Clause 42.2 (Consent).

 

(c)           If:

 

(i)            any sum payable to any Lender by an Obligor is required to
be increased under Clause 16.1 (Tax Gross-up);

 

(ii)           a Lender claims
indemnification from either Borrower under the provisions of Clause 16.2 (Tax Indemnity) or Clause 17.1 (Increased Costs); or

 

(iii)         in relation to any event or matter requiring unanimous
consent of the Lenders under Clause 42 (Amendments),
Lenders representing not less than 85% of the Outstandings consent to such
event or matter,

 

TCN may within 90 days of such
requirement or position being notified to TCN, request that such Lender assigns
or transfers all of its rights and obligations under this Agreement at par
(including any rights and obligations it may have in its capacity as a Hedge
Counterparty) to any person selected by TCN that has agreed to accept such
assignment or transfer, and such Lender shall effect such assignment or transfer
within 10 Business Days of such request.

 

(d)           Notwithstanding any other provision of this Agreement, the
consent of the L/C Bank shall be required (such consent not to be unreasonably
withheld or delayed) for any assignment or

 

149

 

transfer of any Lender’s rights
and/or obligations under the Revolving Facility provided that in relation to
any assignment or transfer required by TCN under paragraph (c), the L/C Bank
may not withhold such consent unless, acting reasonably, the reason for so
doing relates to the creditworthiness of the proposed assignee or transferee.

 

(e)           For the purposes of satisfying the minimum hold requirement
set out in paragraph (b)(i) of this Clause 36.3, any amounts of participations
in the B Facility or the C Facility (as applicable) held by funds advised
and/or managed by a common entity may be aggregated.

 

36.4        Assignments

 

If any Lender wishes to assign
all or any of its rights and benefits under the Finance Documents, unless and
until the relevant assignee has agreed with the other Finance Parties that it
shall be under the same obligations towards each of them as it would have been
under if it had been an original party to the Finance Documents as a Lender,
such assignment shall not become effective and the other Finance Parties shall
not be obliged to recognise such assignee as having the rights against each of
them which it would have had if it had been such a party to this Agreement.

 

36.5        Transfer Deed

 

(a)           If any Lender wishes to transfer all or any of its rights,
benefits and/or obligations under the Finance Documents, such transfer may be
effected by novation through the delivery to the Facility Agent of a duly
completed and duly executed Transfer Deed.

 

(b)           The Facility Agent shall only be obliged to execute a
Transfer Deed delivered to it pursuant to paragraph (a) above, upon its
satisfaction with the results of all “know your client” or other applicable
anti-money laundering checks relating to the identity of any person that it is
required to carry out in relation to such Transferee.

 

(c)           Upon its execution of the Transfer Deed pursuant to
paragraph (b) above on the later of the Transfer Date specified in such
Transfer Deed and the fifth Business Day after (or such earlier Business Day
endorsed by the Facility Agent on such Transfer Deed falling on or after) the
date of execution of such Transfer Deed by the Facility Agent:

 

(i)            to the extent
that in such Transfer Deed the Lender party to it seeks to transfer its rights,
benefits and obligations under the Finance Documents, each of the Obligors and
such Lender shall be released from further obligations towards one another
under the Finance Documents to that extent and their respective rights against
one another shall be cancelled to that extent (such rights and obligations
being referred to in this Clause 36.5 as “discharged
rights and obligations”);

 

(ii)           each of the
Obligors and the Transferee party to it shall assume obligations towards one
another and/or acquire rights against one another which differ from the
discharged rights and obligations only insofar as such Obligor and such
Transferee have assumed and/or acquired the same in place of such Obligor and
such Lender;

 

(iii)         the other Finance
Parties and the Transferee shall acquire the same rights and benefits and
assume the same obligations between themselves as they would have acquired and
assumed had such Transferee been an original party to the Finance Documents as
a Lender with the rights, benefits and obligations acquired or assumed by it as
a result of such transfer; and

 

(d)           such Transferee shall become a party to this Agreement as a
Lender.

 

150

 

36.6        Transfer Fee

 

On the date upon which a
transfer takes effect pursuant to Clause 36.5 (Transfer
Deed) the Transferee in respect of such transfer shall pay to the
Facility Agent for its own account a transfer fee of £1,500 provided that this
fee shall not be payable by any Lender party to this Agreement on the date of
this Agreement in respect of transfers made by such Lender prior to the earlier
of the Syndication Date and the date that is three months after the date of
launch of primary syndication.

 

36.7        Disclosure of Information

 

(a)           Each of the Facility Agent, the US Paying Agent, the
Administrative Agent, the Security Trustee, the Mandated Lead Arrangers, the
Lenders, the L/C Bank and any Ancillary Facility Lender agrees to maintain the
confidentiality of all information received from the Ultimate Parent or any
member of the Group relating to the Ultimate Parent or any member of the Group
or its business other than any such information that:

 

(i)            is or becomes
public knowledge other than as a direct result of any breach of this Clause; or

 

(ii)           is available to
the Facility Agent, the US Paying Agent, the Administrative Agent, the Security
Trustee, the Mandated Lead Arrangers, the Lenders, the L/C Bank or such
Ancillary Facility Lender on a non-confidential basis prior to receipt thereof
from the relevant member of the Group; or

 

(iii)         is lawfully
obtained by any of Facility Agent, the US Paying Agent, the Security Trustee,
the Administrative Agent, the Mandated Lead Arrangers, the Lenders, the L/C
Bank and any Ancillary Facility Lender after that date of receipt other than
from a source which is connected with the Group and which, as far as the
relevant recipient thereof is aware, has not been obtained in violation of, and
is not otherwise subject to, any obligation of confidentiality.

 

(b)           Notwithstanding paragraph (a) of this Clause 36.7, any
Lender may disclose to any of its Affiliates, to any actual or potential
assignee, Transferee or sub-participant to any person who may otherwise enter
into contractual relations with such Lender in relation to credit derivatives transactions
in relation to this Agreement or any person to whom, and to the extent that,
information is required to be disclosed, by any applicable Law, such
information about the Ultimate Parent, all or any of the Obligors or the Group
as a whole as such Lender shall consider appropriate provided that any such
Affiliate or actual or potential assignee, Transferee or sub-participant or
other person who may otherwise enter into contractual relations in relation to
credit derivatives transactions in relation to this Agreement shall first have
entered into a confidentiality undertaking on substantially the same terms as
this Clause 36.7.

 

36.8        No Increased Obligations

 

If:

 

(a)           a Lender assigns or transfers any of its rights or
obligations under the Finance Documents or changes its Facility Office; and

 

(b)           as a result of circumstances existing at the date of the
assignment, transfer or change of Facility Office, an Obligor would be obliged
to make a payment to the assignee, Transferee or the Lender acting through its
new Facility Office under Clause 16.1 (Tax Gross-Up),
16.2 (Tax Indemnity) or Clause 17 (Increased Costs),

 

151

 

then the assignee, Transferee
or the Lender acting through its new Facility Office shall only be entitled to
receive payment under those Clauses to the same extent as the assignor,
transferor or the Lender acting through its previous Facility Office would have
been if the assignment, transfer or change had not occurred.

 

36.9        Notification

 

The Facility Agent shall,
within 10 Business Days of receiving a Transfer Deed or a notice relating to an
assignment pursuant to Clause 36.4 (Assignments),
notify TCN of any such assignment or transfer.

 

37.          COSTS AND EXPENSES

 

37.1        Transaction Costs

 

TCN shall, from time to time
no later than 10 Business Days after demand from the Facility Agent (unless the
relevant cost or expense is being queried by TCN in good faith), reimburse the
Facility Agent, the Security Trustee and each of the Mandated Lead Arrangers
for all reasonable out-of-pocket costs and expenses (including reasonable third
party costs and expenses, legal fees and disbursements of legal counsel, and
all travel and other reasonable out-of-pocket expenses) incurred by them in
connection with the negotiation, preparation, execution, printing and
distribution of the Finance Documents and the completion of the transactions
therein contemplated and the syndication of the Facilities prior to the
Syndication Date (including publicity expenses) up to the levels agreed with
TCN.

 

37.2        Preservation and Enforcement Costs

 

TCN shall, from time to time
on demand of the Facility Agent, reimburse each Finance Party for all third
party costs and expenses (including legal fees) incurred in or in connection
with the preservation and/or enforcement of any of the rights of such Finance
Party under the Finance Documents provided that any such costs and expenses
incurred in connection with the preservation of such rights are reasonable.

 

37.3        Stamp Taxes

 

TCN shall pay all stamp,
registration, documentary and other taxes (including any penalties, additions,
fines, surcharges or interest relating thereto) to which any of the Finance
Documents (other than any Transfer Deed) or any judgment given in connection
therewith is or at any time may be subject and shall with effect from the
Closing Date and from time to time thereafter within 10 Business Days of demand
from the Facility Agent, indemnify the Finance Parties against any liabilities,
costs, claims and expenses resulting from any failure to pay or any delay in
paying those taxes.  The Facility Agent
shall be entitled (but not obliged) to pay those taxes (whether or not they are
its primary responsibility) and to the extent that it does so claim under this
Clause 37.3.

 

37.4        Amendments, Consents and Waivers

 

If an Obligor requests any
amendment, consent or waiver in accordance with Clause 42 (Amendments),
the relevant Obligor shall, on demand of the Facility Agent, reimburse the
Finance Parties for all third party costs and expenses (including legal fees)
incurred by any of the Finance Parties in responding to or complying with such
request.

 

37.5        Lenders’ Indemnity

 

If any Obligor fails to
perform any of its obligations under this Clause 37, each Lender shall
indemnify and hold harmless the Facility Agent, the Mandated Lead Arrangers
and/or the Security Trustee from and against its Proportion (as determined at
all times for these purposes in accordance

 

 

152

 

with paragraph (c) of the
definition of “Proportion”) of any loss incurred by any of them as a result of
such failure and the relevant Obligor shall forthwith reimburse each Lender for
any payment made by it pursuant to this Clause 37.

 

37.6        Value Added Tax

 

(a)           All amounts expressed to be payable under any Finance
Document by any Obligor to a Finance Party shall be exclusive of any VAT.  If VAT is chargeable on any supply made by a
Finance Party to any Obligor under any Finance Document (whether that supply is
taxable pursuant to the exercise of an option or otherwise), the relevant
Finance Party shall provide a VAT invoice to the Obligor and that Obligor shall
pay to that Finance Party (in addition to and at the same time as paying that
consideration) the VAT as further consideration.

 

(b)           No payment or other consideration to be made or furnished to
any Obligor pursuant to or in connection with any Finance Document may be
increased or added to by reference to (or as a result of any increase in the
rate of) any VAT which shall be or may become chargeable in respect of any
taxable supply.

 

(c)           Where a Finance Document requires any party to reimburse a
Finance Party for any costs or expenses, that party shall also pay any amount
of those costs or expenses incurred referable to VAT chargeable thereon.

 

38.          REMEDIES AND WAIVERS

 

No failure to exercise, nor
any delay in exercising, on the part of the Finance Parties or any of them, any
right or remedy under this Agreement 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 in this
Agreement are cumulative and not exclusive of any rights or remedies provided
by Law.

 

39.          NOTICES AND DELIVERY OF INFORMATION

 

39.1        Writing

 

Each communication to be made
under this Agreement shall be made in writing and, unless otherwise stated,
shall be made by fax, telex or letter.

 

39.2        Giving of Notice

 

Any communication or document to
be made or delivered by one person to another pursuant to this Agreement shall
in the case of any person other than a Lender (unless that other person has by
10 Business Days’ written notice to the Facility Agent specified another
address) be made or delivered to that other person at the address identified
with its signature below or, in the case of a Lender, at the address from time
to time designated by it to the Facility Agent for the purpose of this
Agreement (or, in the case of a Transferee at the end of the Transfer Deed to
which it is a party as Transferee) and shall be deemed to have been made or
delivered when despatched (in the case of any communication made by fax) or (in
the case of any communication made by letter) when left at the address or (as
the case may be) 5 Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address provided that any
communication or document to be made or delivered to the Facility Agent shall
be effective only when received by the Facility Agent and then only if the same
is expressly marked for the attention of the department or officer identified
with the Facility Agent’ signature below (or such other department or officer
as the relevant Agent shall from time to time specify by not less than 10
Business Days’ prior written notice to TCN for this purpose).

 

153

 

39.3        Use of Websites/E-mail

 

(a)           An Obligor may (and upon request by the Facility Agent,
shall) satisfy its obligations under this Agreement to deliver any information
in relation to those Lenders (the “Website
Lenders”) who have not objected to the delivery of information
electronically by posting this information onto an electronic website
designated by TCN and the Facility Agent (the “Designated Website”) or by e-mailing such information to the
Facility Agent, if:

 

(i)            the Facility
Agent expressly agrees that it will accept communication and delivery of any
documents required to be delivered pursuant to this Agreement by this method;

 

(ii)           in the case of
posting to the Designated Website, TCN and the Facility Agent is aware of the
address of, and any relevant password specifications for, the Designated
Website; and

 

(iii)         the information
is in a format previously agreed between TCN and the Facility Agent.

 

(b)           If any Lender (a “Paper Form Lender”)
objects to the delivery of information electronically then the Facility Agent
shall notify TCN accordingly and TCN shall supply the information to the
Facility Agent (in sufficient copies for each Paper Form Lender) in paper form.

 

(c)           The Facility Agent shall supply each Website Lender with the
address of, and any relevant password specifications for, the Designated
Website following designation of that website by TCN and the Facility Agent.

 

(d)           Any Website Lender may request, through the Facility Agent,
one paper copy of any information required to be provided under this Agreement
which is posted onto the Designated Website. 
TCN shall comply with any such request within 10 Business Days.

 

(e)           Subject to the other provisions of this Clause 39.3, any
Obligor may discharge its obligation to supply more than one copy of a document
under this Agreement by posting one copy of such document to the Designated
Website or e-mailing one copy of such document to the Facility Agent.

 

(f)            For the purposes of paragraph (a) above, the Facility Agent
hereby expressly agrees that:

 

(i)            they will accept
delivery of documents required to be delivered under Clause 21 (Financial Information) by the posting of
such documents to the Designated Website or by email delivery to the Facility
Agent; and

 

(ii)           they have agreed
to the format of the information required to be delivered under Clause 21 (Financial Information).

 

39.4        Electronic Communication

 

(a)           Any communication to be made between the Facility Agent and
any Lender under or in connection with the Finance Documents may be made by
electronic mail or other electronic means, if the relevant Agent and the
relevant Lender:

 

(i)            agree that, unless
and until notified to the contrary, this is to be an accepted form of
communication;

 

(ii)           notify each other
in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and

 

154

 

(iii)         notify each other
of any change to their address or any other such information supplied by them.

 

(b)           Any electronic communication made between the Facility Agent
and a Lender will be effective only when actually received in readable form and
in the case of any electronic communication made by a Lender to an Agent only
if it is addressed in such a manner as the Facility Agent shall specify for
this purpose.

 

39.5        Certificates of Officers

 

All certificates of officers
of any company hereunder may be given on behalf of the relevant company and in
no event shall personal liability attach to such an officer.

 

40.          ENGLISH LANGUAGE

 

Each communication and
document made or delivered by one party to another pursuant to this Agreement
shall be in the English language or accompanied by a translation of it into
English certified (by an officer of the person making or delivering the same)
as being a true and accurate translation of it.

 

41.          PARTIAL INVALIDITY

 

If, at any time, any provision
of this Agreement is or becomes illegal, invalid or unenforceable in any
respect under the Law of any jurisdiction, such illegality, invalidity or
unenforceability shall not affect:

 

(a)           the legality, validity or enforceability of the remaining
provisions of this Agreement; or

 

(b)           the legality, validity or enforceability of such provision
under the Law of any other jurisdiction.

 

42.          AMENDMENTS

 

42.1        Amendments

 

Subject to the provisions of
the Principal Intercreditor Deed, except as provided in Clauses 42.2 (Consent), 42.3 (Technical Amendments),
42.4 (Guarantees and Security) and 42.5 (Release of Guarantees and Security), the Facility Agent, if
it has the prior written consent of an Instructing Group, and the Obligors affected
thereby, may from time to time agree in writing to amend any Finance Document
or to consent to or waive, prospectively or retrospectively, any of the
requirements of any Finance Document and any amendments, consents or waivers so
agreed shall be binding on all the Finance Parties and the Obligors.  For the avoidance of doubt, any amendments
relating to this Agreement shall only be made in accordance with the provisions
of this Agreement and any amendments relating to a Hedging Agreement shall only
be made in accordance with the provisions of such Hedging Agreement, in each
case notwithstanding any other provisions of the Finance Documents.

 

42.2        Consent

 

Subject to the Principal
Intercreditor Deed, an amendment, consent or waiver relating to the following
matters shall not be made without the prior written consent of each Lender
affected thereby:

 

(a)           any increase in the Commitment of such Lender;

 

155

 

(b)           a reduction in the proportion of any amount received or
recovered (whether by way of set-off, combination of accounts or otherwise) in
respect of any amount due from any Obligor under this Agreement to which such
Lender is entitled;

 

(c)           a decrease in any Applicable Margin for, or the principal
amount of, any Advance, any Documentary Credit or any interest payment, fees or
other amounts due under this Agreement to such Lender from any Obligor or any
other party to this Agreement;

 

(d)           any change in the currency of account (other than a change
resulting from the United Kingdom becoming a Participating Member State);

 

(e)           unless otherwise specified, the deferral of the date for
payment of any principal, interest, fee or any other amount due under this
Agreement to such Lender from any Obligor or any other party to this Agreement;

 

(f)            the deferral of any Termination Date;

 

(g)           any reduction to the percentage set forth in the definition
of Instructing Group; or

 

(h)           a change to Clause 42.4 (Guarantees
and Security) or any provision which contemplates the need for the
consent or approval of all the Lenders.

 

42.3        Technical Amendments

 

Notwithstanding Clause 42.1 (Amendments), the Facility Agent may determine administrative
matters and make technical amendments arising out of manifest errors on the
face of any Finance Document, where such amendments would not prejudice or
otherwise be adverse to the position of any Lender, without further reference
to the Lenders.

 

42.4        Guarantees and Security

 

A waiver of issuance or the
release of all or substantially all of the Guarantors from any of their
respective obligations under Clause 28 (Guarantee and Indemnity)
or a release of all or substantially all of the Security under the Security
Documents, in each case, other than in accordance with the terms of any Finance
Document shall require the prior written consent of affected Lenders whose
Available Commitments plus Outstandings amount in aggregate to more than 90 per
cent. of the Available Facilities plus aggregate Outstandings.

 

42.5        Release of Guarantees and Security

 

(a)           Subject to paragraph (b) below, at the time of completion of
any disposal by any Obligor of any shares, assets or revenues the Security
Trustee shall (and it is hereby authorised by the other Finance Parties to) at
the request of and cost of TCN, execute such documents as may be required to:

 

(i)            release those
shares, assets or revenues from Security constituted by any relevant Security
Document or certify that any floating charge constituted by any relevant
Security Documents over such assets, revenues or rights has not crystallised;
and

 

(ii)           release any
person which as a result of that disposal, ceases to be any Obligor, from any
guarantee, indemnity or Security Document to which it is a party and its other
obligations under any other Finance Document.

 

156

 

(b)           The Security Trustee shall only be required under paragraph
(a) above to grant the release of any Security or to deliver a certificate of
non-crystallisation on account of a disposal as described in that paragraph
described in that paragraph if: -

 

(i)            the disposal is
permitted under Clause 24.6 (Disposals) or
otherwise with the consent of an Instructing Group;

 

(ii)           (to the extent
that any proceeds of that disposal are to be applied in repayment of the
Facilities) the Facility Agent has received (or is satisfied, acting
reasonably, that it will receive immediately following the disposal) the
appropriate amount of those proceeds; and

 

(iii)         (to the extent
that the disposal is to be in exchange for replacement assets) the Security
Trustee has either received (or is satisfied, acting reasonably, that it will
receive immediately following the disposal) one or more duly executed Security
Documents granting Security over those replacement assets or is satisfied,
acting reasonably, that the replacement assets will be subject to Security
pursuant to any existing Security Documents.

 

(c)           If at any time, a Compliance Certificate delivered pursuant
to Clause 21.4(a) (Compliance Certificates) shows
that the Obligors under this Agreement at the relevant time represent a
percentage which is greater than that required to satisfy the 95% Security Test
and TCN is able, at such time, to demonstrate to the satisfaction of the
Facility Agent (acting reasonably) that upon the release of one or more
specified Obligors from its obligations under this Agreement the 95% Security
Test would continue to be satisfied, the Security Trustee shall (and it is
hereby authorised by the other Finance Parties to) at the request and cost of
TCN, execute such documents as may be required to release such specified
Obligors from any guarantees, indemnities and Security Documents to which it is
a party and to release it from its other obligations under any Finance
Document.

 

42.6        Amendments affecting the Facility Agent

 

Notwithstanding any other
provision of this Agreement, the Facility Agent shall not be obliged to agree
to any amendment, consent or waiver if the same would:

 

(a)           amend or waive any provision of Clauses 29 (Agents), Clause 37 (Costs and Expenses)
or this Clause 42; or

 

(b)           otherwise amend or waive any of the Facility Agent’s rights
under this Agreement or subject the Facility Agent to any additional
obligations under this Agreement.

 

42.7        Amendments to the Pari Passu Intercreditor Agreement

 

If at any time following
receipt of the written notice referred to in Clause 23.19 (Notice of Integrated Merger Event) or at
any time thereafter, TCN notifies the Security Trustee that the creditors in
respect of the Target Group Financing Indebtedness and/or the proposed Target
Group Refinancing Indebtedness and/or any proposed Post Merger Target Group
Refinancing have requested an amendment to the form of the Pari Passu
Intercreditor Agreement set out in Schedule 13 (Pro Forma Pari Passi Intercreditor Agreement) to properly
address the intercreditor issues arising between the Finance Parties on the one
hand and such creditors on the other hand, each of the Facility Agent and the
Lenders hereby authorises the Security Trustee to negotiate on their behalf,
such amendments as may be required to the form of the Pari Passu Intercreditor
Agreement and any other Finance Documents to give effect to such intercreditor
arrangements as the Security Trustee shall agree with such creditors and TCN
provided that the Security Trustee shall not be authorised by the provisions of
this Clause 42.7 to agree any amendments which would, in the reasonable opinion
of the Security

 

157

 

Trustee, be adverse to the
interests of the Finance Parties.  For
the avoidance of doubt and notwithstanding the provisions of this Clause 42
(other than as provided in the foregoing sentence), no prior consent of the
Facility Agent or any Lender shall be required to effect such amendments.

 

42.8        Deemed Consent

 

Where a request for a waiver
of, or an amendment to, any provision of any Finance Document has been sent by
the Facility Agent to the Lenders at the request of an Obligor, each Lender
will be deemed to have consented to such waiver or amendment 30 days after
receipt by it of such request save to the extent such consent is expressly
refused by it prior to such date.

 

43.          THIRD PARTY RIGHTS

 

(a)           A person which is not a party to this Agreement (a “third party”) shall have no right to enforce
any of its provisions except that:

 

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

 

(ii)           each of Clause
5.8 (Exclusion of Liability), Clause 16.2 (Tax Indemnity), Clause 17 (Increased
Costs) and Clause 29.9(b) (Exclusion of Liability)
shall be enforceable by any third party referred to in such clause as if such
third party were a party to this Agreement.

 

(b)           The parties to this Agreement may without the consent of any
third party vary or rescind this Agreement.

 

44.          COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts and all of such counterparts taken together shall
be deemed to constitute one and the same instrument.

 

45.          GOVERNING LAW

 

45.1        Governing Law of Agreement

 

This Agreement shall be
governed by, and construed in accordance with, English Law.

 

45.2        Governing Law of Claims Against US Borrower

 

Notwithstanding the provisions
of Clause 45.1 (Governing Law of Agreement),
any proceedings in relation to a debt claim against the US Borrower shall be
governed by the internal laws of the state of New York, provided always that no
other Obligor may rely upon, or otherwise challenge any right of any Finance
Party on the basis of this Clause 45.2.

 

46.          JURISDICTION

 

46.1        Courts

 

(a)           The US Borrower and each of the other parties to this
Agreement irrevocably agrees for the benefit of the Finance Parties that the
courts of the State of New York and/or the federal courts of the United States
of America sitting in the State of New York in diversity jurisdiction shall
have exclusive jurisdiction to hear and determine any suit, action or
proceedings, and to settle any disputes which may arise out of or in connection
with the rights or obligations of the US Borrower under the Finance Documents
and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

158

 

(b)           Each of the parties to this Agreement irrevocably agrees for
the benefit of each of the Finance Parties that, except as set forth in
paragraph (a) above, the courts of England shall have exclusive jurisdiction to
hear and determine any suit, action or proceedings, and to settle any disputes,
which may arise out of or in connection with this Agreement (respectively “Proceedings”
and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction
of such courts.

 

46.2        Waiver

 

Each of the Obligors other
than the US Borrower irrevocably waives any objection which it might now or
hereafter have to Proceedings being brought or Disputes settled in the courts
of England and agrees not to claim that any such court is an inconvenient or
inappropriate forum.  The US Borrower and
each of the Finance Parties irrevocably waives any objection which it might now
or hereafter have to Proceedings being brought by or against the US Borrower or
Disputes with the US Borrower being settled in the courts of the State of New
York.

 

46.3        Service of Process

 

Each of the Obligors (other
than the US Borrower) which is not incorporated in England agrees that the
process by which any Proceedings are begun may be served on it by being
delivered in connection with any Proceedings in England, to TCN at its
registered office for the time being and TCN, by its signature to this
Agreement, accepts its appointment as such in respect of each such
Obligor.  If the appointment of the
person mentioned in this Clause ceases to be effective in respect of any of the
Obligors the relevant Obligor shall immediately appoint a further person in
England to accept service of process on its behalf in England and, failing such
appointment within 15 days, the Facility Agent shall be entitled to
appoint such person by notice to the relevant Obligor. Nothing contained in this
Agreement shall affect the right to serve process in any other manner permitted
by Law.

 

46.4        Proceedings in Other Jurisdictions

 

Nothing in Clause 46.1(b) (Courts) shall (and shall not be construed so as to) limit
the right of the Finance Parties or any of them to take Proceedings against any
of the Obligors other than the US Borrower in any other court of competent
jurisdiction nor shall the taking of Proceedings in any one or more
jurisdictions preclude the taking of Proceedings in any other jurisdiction
(whether concurrently or not) if and to the extent permitted by applicable Law.

 

46.5        General Consent

 

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

 

46.6        Waiver of Immunity

 

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

 

This
Agreement has been entered into on the date stated at the beginning of this
Agreement.

 

159

 

SCHEDULE 1

 

PART 1 - LENDERS AND COMMITMENTS

 

	
  Lender

  	
   

  	
  Revolving

  Facility

  Commitment

  	
   

  	
  A Facility

  Commitment

  	
   

  	
  B Facility

  Commitment

  	
   

  	
  C Facility

  Commitment

  	
   

  
	
   

  	
   

  	
  (£)

  	
   

  	
  (£)

  	
   

  	
  B Facility

  $ Tranche

  	
   

  	
  B Facility

  € Tranche

  	
   

  	
  B Facility

  £ Tranche

  	
   

  	
  C Facility

  $ Tranche

  	
   

  	
  C Facility

  € Tranche

  	
   

  	
  C Facility

  £ Tranche

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  25,000,000.00

  	
   

  	
  94,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  15,000,000.00

  	
   

  	
  104,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  15,000,000.00

  	
   

  	
  104,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse
  First Boston

  	
   

  	
  15,000,000.00

  	
   

  	
  104,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deutsche Bank AG
  London

  	
   

  	
  15,000,000.00

  	
   

  	
  104,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GE Capital
  Structured Finance Group Limited

  	
   

  	
  0

  	
   

  	
  85,106,382.98

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  22,606,382.98

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  17,287,234.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of
  Scotland plc

  	
   

  	
  15,000,000.00

  	
   

  	
  104,148,936.17

  	
   

  	
  14,166,666.67

  	
   

  	
  9,444,444.45

  	
   

  	
  53,175,881.50

  	
   

  	
  10,833,333.33

  	
   

  	
  7,222,222.22

  	
   

  	
  40,664,053.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Commitments

  	
   

  	
  100,000,000.00

  	
   

  	
  700,000,000.00

  	
   

  	
  85,000,000.00

  	
   

  	
  56,666,666.67

  	
   

  	
  341,661,671.97

  	
   

  	
  65,000,000.00

  	
   

  	
  43,333,333.33

  	
   

  	
  261,271,555.42

  	
   

  

 

160

 

PART 2 - UK NON-BANK
LENDERS

 

	
  Lender

  	
   

  	
  Paragraph (a) or (b) of definition
  of

  UK Non Bank Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Paragraph [(a)/(b)]

  

 

161

 

SCHEDULE 2

 

THE ORIGINAL GUARANTORS

 

	
  English Obligors

  	
   

  	
  Company Number

  
	
  Birmingham Cable Corporation Limited

  	
   

  	
  2170379

  
	
  Birmingham Cable Limited

  	
   

  	
  2244565

  
	
  Cable Camden Limited

  	
   

  	
  01795642

  
	
  Cable Enfield Limited

  	
   

  	
  02466511

  
	
  Cable Hackney & Islington Limited

  	
   

  	
  01795641

  
	
  Cable Haringey Limited

  	
   

  	
  01808589

  
	
  Cable London Limited

  	
   

  	
  01794264

  
	
  Central Cable Holdings Limited

  	
   

  	
  3008567

  
	
  Crystal Palace Radio Limited

  	
   

  	
  01459745

  
	
  Filegale Limited

  	
   

  	
  2804553

  
	
  General Cable Group Limited

  	
   

  	
  2872852

  
	
  General Cable Holdings Limited

  	
   

  	
  2798236

  
	
  General Cable Limited

  	
   

  	
  2369824

  
	
  Imminus Limited

  	
   

  	
  1785381

  
	
  Middlesex Cable Limited

  	
   

  	
  2460325

  
	
  Sheffield Cable Communications Limited

  	
   

  	
  2465953

  
	
  Southwestern Bell International Holdings Limited

  	
   

  	
  2378768

  
	
  Telewest Communications (Central Lancashire) Limited

  	
   

  	
  1737862

  
	
  Telewest Communications (Cotswolds) Limited

  	
   

  	
  1743081

  
	
  Telewest Communications (Liverpool) Limited

  	
   

  	
  1615567

  
	
  Telewest Communications (London South) Limited

  	
   

  	
  1697437

  
	
  Telewest Communications (Midlands and North West) Limited

  	
   

  	
  2795350

  
	
  Telewest Communications (Midlands) Limited

  	
   

  	
  1882074

  
	
  Telewest Communications (North East) Limited

  	
   

  	
  2378214

  
	
  Telewest Communications (North West) Limited

  	
   

  	
  2321124

  
	
  Telewest Communications (South East) Limited

  	
   

  	
  2270764

  
	
  Telewest Communications (South Thames Estuary) Limited

  	
   

  	
  2270763

  
	
  Telewest Communications (South West) Limited

  	
   

  	
  2271287

  
	
  Telewest Communications (St. Helens & Knowsley) Limited

  	
   

  	
  2466599

  

 

162

 

	
  English Obligors

  	
   

  	
  Company Number

  
	
  Telewest Communications (Tyneside) Limited

  	
   

  	
  2407676

  
	
  Telewest Communications (Wigan) Limited

  	
   

  	
  2451112

  
	
  Telewest Communications Cable Limited

  	
   

  	
  2883742

  
	
  Telewest Communications Group Limited

  	
   

  	
  2514287

  
	
  Telewest Communications Holdings Limited

  	
   

  	
  2982404

  
	
  Telewest Communications (Nominees) Limited

  	
   

  	
  2318746

  
	
  Telewest Limited

  	
   

  	
  03291383

  
	
  Telewest Parliamentary Holdings Limited

  	
   

  	
  2514316

  
	
  The Cable Corporation Limited

  	
   

  	
  2075227

  
	
  Theseus No. 1 Limited

  	
   

  	
  2994027

  
	
  Theseus No. 2 Limited

  	
   

  	
  2994061

  
	
  Windsor Television Limited

  	
   

  	
  1745542

  
	
  Yorkshire Cable Communications Limited

  	
   

  	
  2490136

  
	
  The Yorkshire Cable Group Limited

  	
   

  	
  2782818

  
	
  Eurobell (Holdings) Limited

  	
   

  	
  29404215

  
	
  Eurobell (Sussex) Limited

  	
   

  	
  2272340

  
	
  Eurobell (South West) Limited

  	
   

  	
  1796131

  
	
  Eurobell (West Kent) Limited

  	
   

  	
  2886001

  
	
  Eurobell (IDA) Limited

  	
   

  	
  3373001

  
	
  Eurobell Internet Services Limited

  	
   

  	
  3172207

  
	
  Eurobell CPE Limited

  	
   

  	
  2742145

  
	
  Eurobell Limited

  	
   

  	
  2983427

  
	
  EMS Investments Limited

  	
   

  	
  3373057

  
	
  Eurobell (No.2) Limited

  	
   

  	
  3405634

  
	
  Eurobell (No.3) Limited

  	
   

  	
  3006948

  
	
  Eurobell (No.4) Limited

  	
   

  	
  2983110

  

 

	
  Scottish Obligors

  	
   

  	
  Company Number

  
	
  Telewest Communications (Dundee & Perth) Limited

  	
   

  	
  SC096816

  
	
  Telewest Communications (Motherwell) Limited

  	
   

  	
  SC121617

  
	
  Telewest Communications (Scotland Holdings) Limited

  	
   

  	
  SC150058

  
	
  Telewest Communications (Scotland) Limited

  	
   

  	
  SC80891

  

 

163

 

	
  Jersey Obligors

  	
   

  	
  Company Number

  
	
  Birmingham Cable Finance Limited

  	
   

  	
  60972

  

 

	
  Partnership Obligors

  	
   

  	
  Principal Place of
  Business

  
	
  Avon Cable Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Avon Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Cotswolds Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Edinburgh Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Estuaries Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  London South Cable Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  TCI/US WEST Cable Communications Group

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Telewest Communications (London South) Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Telewest Communications (Cotswolds) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Telewest Communications (North East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Telewest Communications (Scotland) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Telewest Communications (South East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  Tyneside Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  
	
  United Cable (London South) Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  

 

164

 

SCHEDULE 3

 

FORM OF DEED OF TRANSFER AND ACCESSION

 

To:          [•] as Facility Agent

 

This Deed is dated [•] and relates to:

 

(a)           the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
whereby certain facilities in a maximum aggregate amount of £1,550,000,000 were
made available to Telewest Communications Networks Limited under the guarantee
of the Guarantors, by a group of banks and other financial institutions on
whose behalf
[                              ]
acts as Facility Agent in connection therewith;

 

(b)           the Principal
Intercreditor Deed;

 

(c)           the TGD
Intercreditor Agreement; [; and]

 

[(d)          the
Pari Passu Intercreditor Agreement.](1).

 

1.             Terms defined in
the Facilities Agreement shall, subject to any contrary indication, have the
same meanings in this Deed.  The terms “Lender”,
“Transferee”, “Lender’s Participation” and “Portion Transferred” are defined in
the Schedule to this Deed.

 

2.             The Lender:

 

(a)           confirms that the
details in the Schedule to this Deed are an accurate summary of the Lender’s
Participation in the Facilities Agreement and the Interest Periods or Terms (as
the case may be) for existing Advances as at the date of this Deed; and

 

(b)           requests the
Transferee to accept and procure the transfer by novation to the Transferee of
the Portion Transferred by countersigning and delivering this Deed to the
Facility Agent at its address for the service of notices designated to the
Facility Agent in accordance with the Facilities Agreement.

 

3.             The Transferee
requests the Facility Agent to accept this Deed as being delivered to the
Facility Agent pursuant to and for the purposes of Clause 36.5 (Transfer Deed) of the Facilities Agreement so as to
take effect in accordance with the terms of it on the Transfer Date or on such
later date as may be determined in accordance with the terms of it.

 

4.             The Transferee
confirms that it has received a copy of the Facilities Agreement and each of
the Intercreditor Deeds listed above together with such other information as it
has required in connection with this transaction and that it has not relied and
will not rely on the Lender to check or enquire on its behalf into the
legality, validity, effectiveness, adequacy, accuracy or completeness of any
such information and further agrees that it has not relied and will not rely on
the Lender to assess or keep under review on its behalf the financial
condition, creditworthiness, condition, affairs, status or nature of any
Obligor.

 

5.             The Transferee
undertakes with the Lender and each of the other parties to the Facilities
Agreement that it will perform in accordance with their terms all those
obligations which by

 

(1)           Delete if inapplicable.

 

165

 

the terms of the Finance Documents will be assumed by it after delivery
of this Deed to the Facility Agent and satisfaction of the conditions (if any)
subject to which this Deed is expressed to take effect.

 

6.             The Lender makes no
representation or warranty and assumes no responsibility with respect to the
legality, validity, effectiveness, adequacy or enforceability of the Facilities
Agreement, any other Finance Document or other document relating to it and
assumes no responsibility for the financial condition of any Obligor or for the
performance and observance by any Obligor of any of its obligations under the
Facilities Agreement, any Finance Document or any other document relating to it
and any and all such conditions and warranties, whether express or implied by
Law or otherwise, are excluded.

 

7.             The Lender gives
notice that nothing in this Deed or in the Facilities Agreement (or any Finance
Document or other document relating to it) shall oblige the Lender (a) to
accept a re-transfer from the Transferee of the whole or any part of its
rights, benefits and/or obligations under the Finance Documents transferred
pursuant to this Deed or (b) to support any losses directly or indirectly
sustained or incurred by the Transferee for any reason whatsoever (including
the failure by any Obligor or any other party to the Finance Documents (or any
document relating to them) to perform its obligations under any such document)
and the Transferee acknowledges the absence of any such obligation as is
referred to in (a) and (b) above.

 

8.             [The
Transferee is a UK Non-Bank Lender and falls within paragraph [(a)/(b)]* of the
definition thereof.].

 

OR

 

[The Transferee is a UK Bank
Lender.]

 

OR

 

[The Transferee is a UK Treaty
Lender.]

 

9.             [Any
Transferee which is a UK Non-Bank Lender will provide evidence reasonably
satisfactory to TCN that it is a UK Non-Bank Lender, assuming, for this purpose,
that no direction under section 349C of the Taxes Act will be given by the
Inland Revenue in relation to interest payments on any Advance by that
Transferee.]

 

ACCESSION TO
THE PRINCIPAL INTERCREDITOR DEED

 

The Transferee hereby agrees
with each other person who is or becomes party to the Principal Intercreditor
Deed in accordance with the terms thereof that with effect on and from the date
hereof, it will be bound by the Principal Intercreditor Deed as a Senior TCN
Group Lender as if it had been an original party thereto in such capacity.

 

[ACCESSION TO
THE TGD INTERCREDITOR AGREEMENT

 

The Transferee hereby agrees
with each other person who is or becomes party to the TGD Intercreditor
Agreement in accordance with the terms thereof that with effect on and from the
date hereof, it will be bound by the TGD Intercreditor Agreement as a [TGD
Creditor] as if it had been an original party thereto in such capacity.](2)

 

*              delete as
appropriate.

 

(2)           Delete
if inapplicable.

 

166

 

[ACCESSION TO
THE PARI PASSU INTERCREDITOR AGREEMENT

 

The Transferee hereby agrees
with each other person who is or becomes party to the Pari Passu Intercreditor
Agreement in accordance with the terms thereof that with effect on and from the
date hereof, it will be bound by the Pari Passu Intercreditor Agreement as a
TCN Group Lender as if it had been an original party thereto in such capacity.](3)

 

This Deed and the rights,
benefits and obligations of the parties hereunder shall be governed by and
construed in accordance with English Law.

 

IN WITNESS
WHEREOF this Deed has been executed as a deed by the parties
hereto and is delivered on the date written above.

 

(3)           Delete if inapplicable.

 

167

 

 

THE SCHEDULE

 

	
  1.

  	
   

  	
  Lender:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Transferee:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Transfer Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Lender’s Participation in
  Term Facilities

  	
  Portion Transferred

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Lender’s Available A
  Facility

  Commitment*

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Lender’s Available B
  Facility

  Commitment*

   

  (i) US Borrower

   

  1 B Facility $ Tranche

   

  2 B Facility € Tranche

   

  3 B Facility £ Tranche

   

  (ii) TCN

   

  1 B Facility $ Tranche

   

  2 B Facility € Tranche

   

  3 B Facility £ Tranche

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Lender’s Available C
  Facility

  Commitment*

   

  (i) US Borrower

   

  1 C Facility $ Tranche

   

  2 C Facility € Tranche

   

  3 C Facility £ Tranche

   

   (ii) TCN

   

  1 C Facility $ Tranche

   

  2 C Facility € Tranche

   

  3 C Facility £ Tranche 

  	
   

  

 

*              Details
of the Lender’s Available Commitment should not be completed after the
applicable Termination Date.

 

168

 

	
  5.

  	
   

  	
  Lender’s
  Participation in Term Facility

  Outstandings

  	
   

  	
  Interest
  Period

  	
   

  	
  Portion

  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  A Facility Advances

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  B Facility Advances

   

  (i) US Borrower

   

  1 B Facility $ Tranche

   

  2 B Facility € Tranche

   

  3 B Facility £ Tranche

   

  (ii) TCN B Facility Tranche

   

  1 B Facility $ Tranche

   

  2 B Facility € Tranche

   

  3 B Facility £ Tranche

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  C Facility Advances

   

  (i) US Borrower

   

  1 C Facility $ Tranche

   

  2 C Facility € Tranche

   

  3 C Facility £ Tranche

   

  (ii) TCN

   

  1 C Facility $ Tranche

   

  2 C Facility € Tranche

   

  3 C Facility £ Tranche

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  [(a)]

  	
  Lender’s Revolving Facility
  Commitment

  	
  Portion Transferred**

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [(b)

  	
  Lender’s Ancillary Facility
  Commitment

  	
  Portion Transferred 100%]

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  [(a)]

  	
  Lender’s Participation in
  Revolving

  Facility Outstandings

  	
  Term

  	
  Portion Transferred**

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [(b)

  	
  Lender’s Participation in
  Ancillary

  Facility Outstandings

  	
   

  	
  Portion Transferred 100%]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [8.

  	
   

  	
  Documentary Credits Issued

  	
  Term and Expiry

  Date

  	
  Portion

  Transferred]

  

 

**           Transfers
of Commitments under and participations in the Revolving Facility must be on a
pro rata basis.

 

169

 

	
  The
  Lender

  	
   

  	
  The
  Transferee

  
	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
   

  	
  EXECUTED as a DEED by

  
	
   

  	
   

  	
   

  
	
  [                   ]
  for and on

  	
   

  	
  [                    ]
  for and on

  
	
   

  	
   

  	
   

  
	
  behalf of [                                     ]

  	
   

  	
  behalf of [                                     ]

  

 

 

Administrative
Details of Transferee and its Facility Office

 

Facility Office Address:

 

Contact Name:

 

Account for Payments:

 

Fax:

 

Telephone:

 

Email address:

 

Registered address of the
office having the beneficial ownership of the Participation (if different from
the address for the Facility Office):

 

170

 

SCHEDULE 4

 

PART 1 - CONDITIONS
PRECEDENT TO FIRST UTILISATION

 

1.             Corporate
Documents

 

In relation to each Original
Obligor:

 

(a)           a copy of its up to
date constitutional documents (including, in the case of those Original
Obligors that are partnerships, the Partnership Agreements), together with a
copy of any written resolution requested by the Facility Agent prior to the
date of this Agreement relating to  any
amendments to such constitutional documents;

 

(b)           a copy of a board
resolution or a manager’s or partner’s resolution of such person approving the
execution, delivery and performance of the Finance Documents to which it is
party and the terms and conditions of such Finance Documents and authorising a
person or persons identified by name or office to sign the Finance Documents to
which it is party and any documents to be delivered by such person pursuant to
it;

 

(c)           a duly completed
certificate of a duly authorised officer of such person in the form attached in
Part 2 of Schedule 4 (Form of Certificate of
Obligor); and

 

(d)           copy resolutions
signed by all the holders of the issued shares of each of the Jersey
Obligors  and the Scottish Obligors
approving the terms of, and the transactions contemplated by, the Finance
Documents to which each such Obligor is a party.

 

2.             Authorisations
and Clearances

 

A copy of each Necessary
Authorisation as is, in the reasonable opinion of counsel to the Lenders,
necessary to render the Finance Documents to which each Original Obligor is
party legal, valid, binding and enforceable, to make the Finance Documents to
which each Original Obligor is party admissible in evidence in such Original
Obligor’s jurisdiction of incorporation and in England and to enable such
Original Obligor to perform its obligations thereunder, save in each case, for
any registration or recording required for the perfection of the Security
Documents and subject to the Reservations (to the extent applicable).

 

3.             Financial
Statements

 

A copy of the Original
Financial Statements.

 

4.             Fees

 

Original duly executed copies
of the Fee Letters and evidence that all fees and expenses (excluding legal
fees) due and payable under this Agreement or in connection with this Agreement
as at the date of first Utilisation, the quantum of which have been notified to
TCN in writing no less than two Business
Days prior to the Closing Date, have been or, simultaneously with the first
Utilisation, will be paid.

 

171

 

5.             Finance
Documents

 

Original duly executed copies
of:

 

(a)           this Agreement;

 

(b)           the Second Lien
Facility Agreement;

 

(c)           the Principal
Intercreditor Deed;

 

(d)           the Initial
Security Documents; and

 

(e)           the Barclays
Intercreditor Agreement.

 

6.             Group
Structure Chart

 

A copy of a chart showing the
structure of the TCN Group (including any Joint Ventures) and the Holding
Companies of TCN evidencing all material ownership interests (including the
matters set forth in paragraphs (b), (c) and (d) of Clause 20.18 (Structure)) thereof as at the Closing Date.

 

7.             Existing
Encumbrances and Indebtedness

 

Evidence satisfactory to the
Facility Agent that:

 

(a)           unless otherwise
agreed with the facility agent in respect of the Existing Credit Facility, a
notice of prepayment in full has been delivered by TCN to such facility agent
and that all amounts of principal, interest, fees, commissions and any other
amounts due and outstanding under the Existing Credit Facility and any other
agreements entered into in connection therewith have been or will be repaid in
full and all commitments thereunder have been or will be cancelled and reduced
to zero, in each case, on the Closing Date; and

 

(b)           all Existing
Encumbrances set out in Part 1A of Schedule 10 (Existing
Encumbrances) will within 10 days of the Closing Date be, released
or discharged.

 

8.             Legal
Opinions

 

An opinion of:

 

(a)           White & Case,
London, legal advisers to the Facility Agent and the Mandated Lead Arrangers on
matters of English law;

 

(b)           White & Case,
New York, legal advisers to the Facility Agent and the Mandated Lead Arrangers
on matters of New York law;

 

(c)           Fried, Frank,
Harris, Shriver & Jacobson (London) LLP, legal advisers to the US Borrower
on matters of New York law;

 

(d)           Dundas & Wilson
CS legal advisers to the Facility Agent and the Mandated Lead Arrangers on
matters of Scots law;

 

(e)           Mourant du Feu
& Jeune legal advisers to the Facility Agent and the Mandated Lead
Arrangers on matters of Jersey law; and

 

(f)            Morrison Foerster
LLP legal advisers to the Facility Agent and the Mandated Lead Arrangers on
matters of Colorado law,

 

172

 

in each case addressed to the
Finance Parties and in substantially the form agreed prior to the date of this
Agreement.

 

9.             Existing
Hedging Agreements

 

Copies of each of the Existing
Hedging Agreements.

 

10.          TCN
Short Term Notes

 

A copy of the TCN Short Term
Notes.

 

173

 

PART 2 - FORM OF CERTIFICATE OF
OBLIGOR

 

To:          [                              ]
(as Facility Agent)

 

We refer to the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited, Telewest Communications Networks Limited,
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse
First Boston, Deutsche Bank AG London, GE Capital Structured Finance Group
Limited and The Royal Bank of Scotland plc as Mandated Lead Arrangers, Barclays
Bank PLC as Facility Agent, US Paying Agent and Security Trustee, GE Capital
Structured Finance Group Limited as Administrative Agent and the financial and
other institutions named in it as Lenders. 
Terms defined in the Facilities Agreement shall have the same meanings
in this Certificate.

 

I, [name], a [Director/Partner/Officer] of [name of Obligor] of [address] (the “Company”/the
“Partnership”(1))

 

CERTIFY
without personal liability, that:

 

(a)           attached to this
Certificate marked “A” are true,
correct, complete and up-to-date copies of all documents which contain or
establish or relate to the [constitution of the Company]/[due formation of the
Partnership];

 

(b)           attached to this
Certificate marked “B” is a true, correct and complete copy of resolutions duly
passed [at a meeting of the [Board of Directors] [managers] [partners] or the
equivalent thereof duly convened and held on
[        ] [by a written resolution of
the [Company/Partnership] approving the Finance Documents to which the
[Company/Partnership] is a party and authorising their execution, signature, delivery
and performance and such resolutions have not been amended, modified or revoked
and are in full force and effect;

 

(c)           [attached to this
Certificate and marked “C” is a
true, correct and complete copy of all the Necessary Authorisations referred to
in paragraph 2 of Part 1 of Schedule 4 (Conditions Precedent to
first Utilisation) / paragraph 3 of Part 2 of Schedule 7 (Accession Documents)](1);

 

(d)           [attached
to this Certificate marked “D” is
a true, complete and correct copy of the acceptance by the agent in England of
its appointment as agent of the [Company/Partnership] for the purpose of
accepting service of process.  I confirm
that such agent’s appointment remains in force as at the date of this
Certificate;](2)

 

(e)           the entry into and
performance of the Finance Documents by the [Company/Partnership] will not
breach any borrowing or other Indebtedness limit to which the
[Company/Partnership] is subject other than any such limit imposed by the
Existing Credit Facility; and

 

(g)           subject to the
Reservations, the execution, delivery and performance of the Accession Notice
and the performance by the [Company/Partnership] of its obligations under the
Finance Documents and any other agreement or document executed pursuant thereto
does not breach any agreement binding on the [Company/Partnership] in any
manner that could reasonably be expected to have a Material Adverse Effect, and
all Necessary Authorisations in connection

 

(1)           delete as appropriate

 

(2)           To
be given by any Obligor which is not incorporated or established in England.

 

174

 

 

therewith have been obtained and are current, except where any failure
to maintain any Necessary Authorisations in full force and effect, any
non-compliance or any proceedings or revocations in respect thereof could not
reasonably be expected to have a Material Adverse Effect.

 

The following signatures are
the true signatures of the persons who have been authorised to sign the
relevant Finance Documents on behalf of the [Company/Partnership] and to give
notices and communications, (including Utilisation Requests), under or in
connection with the Finance Documents on behalf of the [Company/Partnership].

 

 

175

 

	
  Name

  	
   

  	
  Position

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [•]

  	
   

  	
  [•]

  	
   

  	
  [•]

  

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  Director/Partner/Officer

  

 

Date:       [•]

 

I, [name], a [Director/Secretary/Partner]
of [name of Obligor] (the “Company”/the
“Partnership”(1)), certify that
the persons whose names and signatures are set out above are duly appointed
[directors/partners/officers] of the [Company/Partnership] and that the
signatures of each of them above are their respective signatures.

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  [Director/Secretary]/[Partner]

  

 

Date:       [•]

 

 

(1)           delete as appropriate

 

176

 

PART 3 - INITIAL SECURITY DOCUMENTS

 

1.             Composite Debenture granted by
each of the Obligors incorporated in England and Wales, Scotland and Jersey in
favour of the Security Trustee.

 

2.             Share Charge Agreement granted
by Telewest UK in favour of the Security Trustee in respect of all of its
shares in TCN.

 

3.             Assignment of Loans granted by
Telewest UK in favour of the Security Trustee in respect of receivables arising
under any Financial Indebtedness owed to it by members of the TCN Group.

 

4.             US Pledge Agreement granted by
the US Borrower in favour of the Security Trustee in respect of all its rights,
title and interest in and under the TCN Notes.

 

5.             Charge over Bank Account
granted by the TCN in respect of the Blocked Account.

 

6.             US Share Pledge Agreement
granted by TCN in favour of the Security Trustee in respect of all of its
shares in US Borrower.

 

7.             US Reimbursement and
Contribution Agreement between TCN and each of the Partnership Obligors formed
in the State of Colorado.

 

8.             Scottish Bond and Floating
Charges entered into by each Obligor incorporated in Scotland in favour of the
Security Trustee.

 

9.             Scottish Share Pledges entered
into by each of Telewest Limited and Telewest Communications (Scotland
Holdings) Limited as pledgors in respect of their rights and interests in the
shares in those TCN Group Obligors incorporated in Scotland.

 

10.           Jersey Share Pledge entered
into by Birmingham Cable Limited in respect of its rights and interests in the
shares in Birmingham Cable Finance Limited, together with (a) original share
certificates, (b) signed, undated transfer forms, (c) signed, undated notices
of assignment and (d) certified copies of the registers of members in respect
of Birmingham Cable Limited.

 

11.           US Pledge and Security
Agreements entered into in favour of the Security Trustee by each of the
partners in each of the Partnership Obligors formed in the State of Colorado.

 

177

 

SCHEDULE 5

 

PART 1 - FORM OF UTILISATION
REQUEST (ADVANCES)

 

From:      Telewest Communications Networks Limited (“TCN”)/ Telewest Global Finance LLC (“TGF”)

 

To:          [        ]

as Facility Agent

 

Date:

 

Dear Sirs

 

We refer to the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited, Telewest Communications Networks Limited,
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse
First Boston, Deutsche Bank AG London, GE Capital Structured Finance Group
Limited and The Royal Bank of Scotland plc as Mandated Lead Arrangers, Barclays
Bank PLC as Facility Agent, US Paying Agent and Security Trustee, GE Capital
Structured Finance Group Limited as Administrative Agent and the financial and
other institutions named in it as Lenders. 
Terms defined in the Facilities Agreement shall have the same meanings
in this Utilisation Request.

 

We, [•] and [•],
being authorised signatories of [TCN/TGF], give you notice that, pursuant to the Facilities
Agreement, we wish the Lenders to make an Advance to us on the following terms:

 

(a)           Facility to be
used: [A/B/C Revolving Facility]

 

(b)           Amount [ $ [•]/€[•]/£[•]

 

(c)           Currency: [•]

 

(d)           Interest
Period/Term: [•] month[s]

 

(e)           Proposed date of
Advance: [•] (or if that day is not a Business Day, the next
Business Day)

 

[We
hereby inform you that as of the date of this Utilisation Request, the
following Event of Default has occurred and is continuing or would result from
the making of this Utilisation [insert details].](4)

 

[We
confirm that, at the date of this Utilisation Request, the Repeating
Representations are true in all material respects and no Default is continuing
or would result from the Advance to which this Utilisation Request relates.](5)

 

(4)           Applicable for Rollover
Advances only. Insert details of relevant Event of Default, if any.

 

(5)           Applicable for any Advance other
than a Rollover Advance.

 

178

 

The proceeds of this
Utilisation should be credited to [insert account details].

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorised Signatory for

  and on behalf of

  	
  Authorised Signatory

  for and on behalf of

  
	
  Telewest
  Communications Networks Limited

  	
  Telewest
  Communications Networks Limited

  

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorised Signatory

  	
  Authorised Signatory

  
	
  for and on behalf of

  	
  for and on behalf of

  
	
  Telewest
  Global Finance LLC

  	
  Telewest
  Global Finance LLC

  

 

 

179

 

PART 2 - FORM OF
UTILISATION REQUEST (DOCUMENTARY CREDITS)

 

From:      Telewest Communications Networks Limited

 

To:          [      ]

as Facility Agent

 

and

 

[•]

as the L/C Bank

 

Date:

 

Dear Sirs

 

We refer to the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited as Parent, Telewest Communications
Networks Limited, Barclays Capital, BNP Paribas, Citigroup Global Markets
Limited, Credit Suisse First Boston, Deutsche Bank AG London, GE Capital
Structured Finance Group Limited and The Royal Bank of Scotland plc as Mandated
Lead Arrangers, Barclays Bank PLC as Facility Agent, US Paying Agent and
Security Trustee, GE Capital Structured Finance Group Limited as Administrative
Agent and the financial and other institutions named in it as Lenders.  Terms defined in the Facilities Agreement
shall have the same meanings in this Utilisation Request.

 

We, [•] and [•],
being authorised signatories of TCN, give you notice that, pursuant to the
Facilities Agreement, we wish [name of L/C Bank] to issue a
Documentary Credit on the following terms:

 

(a)           Name of
Beneficiary: [•]

 

(b)           Address of
Beneficiary: [•]

 

(c)           Purpose
of/Liabilities to be assured by the Documentary Credit: [insert details]

 

(d)           Sterling Amount: £[•]

 

(e)           Currency: [•]

 

(f)            Expiry Date: [•] month[s]

 

(g)           Proposed date of
issue of Documentary Credit: [•] (or if that day is not a Business Day, the next
Business Day)

 

*              Please issue a Documentary
Credit in the form set out in Schedule 12 (Form
of Documentary Credit) to the Facilities Agreement/[in the form
attached].

 

*              Complete as
appropriate.

 

180

 

[We
hereby inform you that as of the date of this Renewal Request, the following
Event of Default has occurred and is continuing or would result from the
issuance of the Documentary Credit requested hereunder [insert
details].](6)

 

[We
confirm that, at the date of this Utilisation Request, the Repeating
Representations are true in all material respects and no Default is continuing
or would result from the issuance of the Documentary Credit to which this
Utilisation Request relates.](7)

 

Upon issuance of the
Documentary Credit requested hereunder, please send the Documentary Credit  to the Beneficiary at the address shown
above, with a copy to [insert details of relevant contact at TCN].

 

Yours faithfully

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorised Signatory

  for and on behalf of

  	
  Authorised Signatory

  for and on behalf of

  
	
   

  	
   

  
	
  Telewest
  Communications Networks Limited

  	
  Telewest
  Communications Networks Limited

  

(6)           Applicable for Renewal
Requests only.  Insert details of the
relevant Event of Default.  If any.

 

(7)           Applicable to all
Utilisation Requests in respect of a Documentary Credit (other than a Renewal
Request).

 

181

 

SCHEDULE 6

 

ASSOCIATED COSTS RATE

 

1.             On the first day of each
Interest Period or Term (or as soon as possible thereafter) the Lender shall
determine the percentage rate per annum for such Interest Period or Term which
is the applicable “Associated Costs Rate”
(as calculated in paragraph 2 or 3 below).

 

2.             The Associated Costs Rate if
the Lender is lending from a Facility Office in a Participating Member State
shall be the percentage certified by the Lender to the Borrowers as being its
reasonable determination of the cost (expressed as a percentage of the Lender’s
participation in all Advances made from that Facility Office) to the Lender of
complying with the minimum reserve requirements of the European Central Bank in
respect of Advances made from that Facility Office.

 

3.             The Associated Costs Rate if
the Lender is lending from a Facility Office in the United Kingdom shall be
calculated as follows:

 

(a)           In relation to an Advance
denominated in sterling:

 

	
  AB + C(B - D) + E x 0.01

  	
   

  	
  per cent per annum

  
	
  100 - (A + C)

  	
   

  	
   

  

 

(b)           In relation to an Advance
denominated in euro or in an Optional Currency

 

	
  E x 0.01

  	
   

  	
  per cent per annum

  
	
  300

  	
   

  

 

where:

 

A             is the percentage of
Eligible Liabilities (assuming these to be in excess of any stated minimum)
which the Lender is from time to time required to maintain as an interest free
cash ratio deposit with the Bank of England to comply with cash ratio
requirements.

 

B             is the percentage
rate of interest (excluding the Margin and the Associated Costs Rate and, if
the relevant amount is an Unpaid Sum, the additional rate of interest specified
in Clause 27.2 (Default Rate)),
payable for the relevant Interest Period or Term in respect of the relevant
Advance.

 

C             is the percentage
(if any) of Eligible Liabilities which the Lender is required from time to time
to maintain as interest bearing Special Deposits with the Bank of England.

 

D             is the percentage
rate per annum payable by the Bank of England to the Lender on interest bearing
Special Deposits.

 

E              is designed to
compensate the Lender in relation to the rate of charge payable by the Lender
to the Financial Services Authority pursuant to the Fees Rules and expressed in
pounds per £1,000,000 of the Tariff Base of the Lender.

 

4.             For the purposes of paragraph
3 of this Schedule:

 

182

 

(a)           “Eligible Liabilities” and “Special
Deposits” have the meanings given to them from time to time under or
pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank
of England; and

 

(b)           “Fees Rules” means the rules on periodic fees contained in the
FSA Supervision Manual or such other law or regulation as may be in force from
time to time in respect of the payment of fees for the acceptance of deposits.

 

5.             In application of the above
formulae, A, B, C and D will be included in the formulae as percentages (i.e.
5% will be included in the formula as 5 and not as 0.05).  A negative result obtained by subtracting D
from B shall be taken as zero.  The
resulting figures shall be rounded to 4 decimal places.

 

6.             For the purposes of paragraph
3 of this Schedule:

 

(a)           “Fee Tariffs” means the fee tariffs specified in the Fees Rules
under the activity group A.1 Deposit acceptors (ignoring any minimum fee or
zero rated fee required pursuant to the Fees Rules but taking into account any
applicable discount rate); and

 

(b)           “Tariff Base” has the meaning given to it, and will be
calculated in accordance with, the Fees Rules.

 

7.             Any determination by the
Lender pursuant to this Schedule in relation to a formula, an Associated Costs
Rate or any amount payable to the Lender shall, in the absence of manifest
error, be conclusive and binding on the Borrowers and the Lender.

 

8.             The Lender may from time to
time, after consultation with the Borrowers specify any amendments which are
required to be made to this Schedule in order to comply with any change in Law,
regulation or any requirements from time to time imposed by the Bank of
England, the Financial Services Authority or the European Central Bank (or, in
any case, any other authority which replaces all or any of its functions) and
any such determination shall, in the absence of manifest error, be conclusive and
binding on all the parties to this Agreement..

 

183

 

SCHEDULE 7

 

PART 1 - FORM OF ACCESSION NOTICE

 

THIS
ACCESSION NOTICE is entered into on [•] by [Telewest Global Finance
LLC/insert name of Subsidiary/Partnership] ([“Telewest LLC”/the “Proposed
Guarantor”]) and Telewest Communications Networks Limited by way of
a deed in favour of the Facility Agent, the US Paying Agent the Security
Trustee, the Mandated Lead Arrangers and the Lenders (each as defined in the
Facilities Agreement referred to below).

 

BACKGROUND

 

A             By a facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited as Parent, Telewest Communications
Networks Limited, Barclays Capital, BNP Paribas, Citigroup Global Markets
Limited, Credit Suisse First Boston, Deutsche Bank AG London, GE Capital
Structured Finance Group Limited and The Royal Bank of Scotland plc as Mandated
Lead Arrangers, Barclays Bank PLC as Facility Agent, US Paying Agent and
Security Trustee, GE Capital Structured Finance Group Limited as Administrative
Agent and the financial and other institutions named in it as Lenders, the
Lenders agreed to make certain facilities available to the Borrowers.

 

[B            Telewest LLC is
required to accede to the Facilities Agreement as a Borrower and Guarantor
pursuant to Clause 25.1 (The US Borrower)
of the Facilities Agreement and to the Principal Intercreditor Deed as if had
been originally party thereto as a Chargor.]

 

or

 

[B            TCN has requested
that the Proposed Guarantor become an Acceding Guarantor pursuant to Clause
25.2 (Acceding Guarantors) of the Facilities
Agreement and that it accedes to the Principal Intercreditor Deed as if had
been originally party thereto as an Original Guarantor.]

 

NOW THIS DEED
WITNESS AS FOLLOWS:

 

1.             Terms defined in
the Facilities Agreement have the same meanings in this Accession Notice.

 

2.             The Proposed
Guarantor] is a company [or specify other type of entity] duly
incorporated, established or organised under the laws of [insert relevant jurisdiction].

 

3.             [Telewest LLC/The
Proposed Guarantor] confirms that it has received from TCN a true and
up-to-date copy of the Facilities Agreement and the other Finance Documents.

 

4.             [Telewest LLC/The
Proposed Guarantor] undertakes, upon its becoming a party to the Facilities
Agreement and the Principal Intercreditor Deed, to perform all the obligations
expressed to be undertaken under the Facilities Agreement, the Principal
Intercreditor Deed, [the Pari
Passu Intercreditor Agreement](8) and the other Finance Documents by a [Borrower and a] Guarantor and
agrees that it shall be bound by the Facilities Agreement, the Principal
Intercreditor Deed and the other Finance Documents in all respects as if it had
been an original party to them as [the US Borrower and] an Original Guarantor.

 

(8)           Delete if inapplicable

 

184

 

5.             TCN:

 

(a)           repeats the
Repeating Representations identified as being made by it under Clause 20 (Representations and Warranties) upon the
date [Telewest LLC/the Proposed Guarantor] accedes to the Facilities Agreement;
and

 

(b)           confirms that no
Default [(other than any Default which will be remedied by the accession of the
Acceding Guarantor and each other person acceding as a Guarantor on or about
the date of this Accession Notice)] is continuing or will occur as a result of
[Telewest LLC/the Proposed Guarantor] becoming [a Borrower and] an Acceding
Guarantor.

 

6.             Telewest LLC/the
Proposed Guarantor] makes, in relation to itself, the representations and
warranties expressed to be made by [the US Borrower/a Guarantor] in Clause 20 (Representations and Warranties) of the Facilities Agreement.

 

7.             The Proposed
Guarantor confirms that it has appointed (and TCN confirms by its signature
below its acceptance of such appointment) Telewest Communications Networks
Limited to be its process agent for the purposes of accepting service of
Proceedings on it.](9)

 

8.             [Telewest LLC/the Proposed Guarantor’s]
administrative details for the purposes of the Facilities Agreement are as
follows:

 

Address:

 

Contact:

 

Telephone No:

 

Fax No:

 

9.             This Accession
Notice and the rights, benefits and obligations of the parties under this
Accession Notice shall be governed by and construed in accordance with English
Law.

 

ACCESSION TO THE PRINCIPAL
INTERCREDITOR DEED

 

[Telewest LLC/the Proposed Guarantor] agrees with
each other person who is or becomes party to the Principal Intercreditor Deed
in accordance with the terms thereof that with effect on and from the date
hereof, it will be bound by the Principal Intercreditor Deed as if it had been
originally party thereto as an Original Guarantor.

 

This Accession Notice has been
executed as a Deed by TCN and [Telewest LLC/the Proposed Guarantor] and signed
by the Facility Agent on the date written at the beginning of this Accession
Notice.

 

(9)           Non-English Acceding
Guarantors only

 

185

 

[TELEWEST
LLC/PROPOSED GUARANTOR]

 

EXECUTED as a DEED by

[Telewest Global Finance LLC/Name of Proposed Guarantor]

 

acting by

 

	
  Director)

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director]

  
	
   

  	
   

  	
   

  
	
  Director/Secretary)

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director/secretary]]

  
					

 

TCN

 

EXECUTED as a DEED by

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

acting by

 

	
  Director)

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director]

  
	
   

  	
   

  	
   

  
	
  Director/Secretary)

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director/secretary]

  
					

 

THE FACILITY
AGENT

 

[                                         ]

 

By:

 

186

 

PART 2 - ACCESSION DOCUMENTS

 

1.             Corporate
Documents

 

(a)           A copy of its
up-to-date constitutional documents.

 

(b)           A board resolution
or a manager’s resolution or a partner’s resolution of such person approving
the execution and delivery of the relevant Accession Notice, its accession to
the Facilities Agreement as the US Borrower and/or an Acceding Guarantor and
the performance of its obligations under the Finance Documents and authorising
a person or persons identified by name or office to sign such Accession Notice
and any other documents to be delivered by it pursuant thereto.

 

(c)           To the extent
legally necessary, a copy of a shareholders’ resolution of all the shareholders
of such person approving the execution, delivery and performance of the Finance
Documents to which it is a party and the terms and conditions to it.

 

(d)           A duly completed
certificate, of a duly authorised officer of such person in the form of Part 2
of Schedule 4 (Form of Certificate of Obligor).

 

2.             Legal
Opinions

 

Such legal opinions as the
Facility Agent may reasonably require of such legal advisers as may be
acceptable to the Facility Agent, as to:

 

(a)           the due
incorporation, capacity and authorisation of Telewest LLC or the relevant
Acceding Guarantor; and

 

(b)           the relevant
obligations to be assumed by the US Borrower or Acceding Guarantor under the
Finance Documents to which it is a party being legal, valid, binding and
enforceable against it,

 

in each case, under the
relevant laws of the jurisdiction of organisation or establishment of Telewest
LLC or such Acceding Guarantor.

 

3.             Necessary
Authorisations

 

A copy of any Necessary
Authorisation as is in, the reasonable opinion of counsel to the Lenders
necessary to render the Finance Documents to which Telewest LLC or the Acceding
Guarantor, is or is to be party legal, valid, binding and enforceable to make
the Finance Documents to which Telewest LLC or the Acceding Guarantor is or is
to be party admissible in evidence in Telewest LLC or such Acceding Guarantor’s
jurisdiction of incorporation and (if different) in England and to enable
Telewest LLC or such Acceding Guarantor to perform its obligations thereunder,
as a matter of law save, in the case of Telewest LLC or any Acceding Guarantor,
for any registrations or recordings required for the perfection of the Security
Documents and subject to the Reservations (to the extent applicable).

 

4.             Security
Documents

 

At least 2 original copies of
the US Borrower Security Documents in the case of Telewest LLC and in the case
of a proposed Acceding Guarantor any Security Documents required by the
Facility Agent, acting reasonably in accordance with the terms of this
Agreement in each case, duly executed by Telewest LLC or the proposed Acceding
Guarantor together with all documents required to be

 

187

 

delivered pursuant to such
Security Documents provided the Acceding Guarantor shall be under no obligation
to procure the granting of Security over any shares, in receivables owed by, or
any other interest in any Excluded Subsidiary or Project Company.

 

 

188

 

SCHEDULE 8

 

PART 1 - FORM OF QUARTERLY
COMPLIANCE CERTIFICATE

 

To:          [      ]

 

[Date]

 

Dear Sirs

 

Certificate
in respect of the [insert details of
relevant testing period] ended [insert
relevant Quarter Date] (the “Certification Date”)

 

We refer to the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited, Telewest Communications Networks Limited,
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse
First Boston, Deutsche Bank AG London, GE Capital Structured Finance Group
Limited and The Royal Bank of Scotland plc as Mandated Lead Arrangers, Barclays
Bank PLC as Facility Agent, US Paying Agent and Security Trustee, GE Structured
Capital Finance Group Limited as Administrative Agent and the financial and
other institutions named in it as Lenders. 
Terms defined in the Facilities Agreement shall have the same meanings
in this Compliance Certificate.

 

1.             This Compliance
Certificate is provided in accordance with paragraph (a) of Clause 21.4 (Compliance Certificates) of the Facilities Agreement.

 

2.             We, [•] and [•](1), being duly authorised signatories of TCN as at
the date of this Compliance Certificate, confirm that the financial covenants
contained in Clause 22 (Financial Condition)
of the Facilities Agreement have been complied with as at the Certification
Date.  This confirmation is based on the
following (applying the rules for calculation set out in Clause 22 (Financial Condition)):

 

(a)           The ratio of
Consolidated Net Borrowings to Consolidated Annualised TCN Group Net Operating
Cash Flow for the period ending on the Certification Date was [•].

 

(b)           The ratio of
Consolidated Annualised TCN Group Net Operating Cash Flow to Total Interest Charges for the period
ending on the Certification Date was [•].

 

(c)           The ratio of
Consolidated TCN Group Cash Flow to Consolidated
Debt Service for the period ending on the Certification Date was [•].

 

(d)           The amount of
Capital Expenditure of the TCN Group during the period to which this Compliance
Certificate relates was £[•].

 

3.             The information contained in
the Attached Working Paper has been prepared on the basis of the same
information and methodology used to prepare the appropriate financial
information.

 

(1)           At least one of whom
shall be a Financial Officer

 

189

 

4.             [The Obligors
party to the Agreement as at the Certification Date represent not less than 95%
of the Consolidated Annualised TCN Group Net Operating Cash Flow calculated as
at the Certification Date and accordingly the 95% Security Test was
satisfied as at that date.]

 

OR

 

[The Obligors party to the
Agreement as at the Certification Date represent not less than 90% of the
Consolidated Annualised TCN Group Net Operating Cash Flow calculated as at the
Certification Date and TCN is unable to procure that additional members of the
TCN Group accede to the Agreement as Obligors by reason of one or more legal
restrictions preventing such member of the TCN Group from becoming an Obligor.]

 

5.             We further confirm
that no Default is continuing as at the Certification Date.

 

6.             This Compliance
Certificate is given by the authorised signatories of TCN named below and is
given without personal liability.

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Authorised Signatory

  for and on behalf of

  	
  Authorised Signatory

  for and on behalf of

  
	
   

  	
   

  
	
  Telewest Communications
  Networks Limited

  	
  Telewest
  Communications Networks Limited

  

 

 

190

 

PART 2 - FORM OF
COMPLIANCE CERTIFICATE FOLLOWING INTEGRATED MERGER EVENT

 

To:          [      ]

 

[Date]

 

Dear Sirs

 

Certificate
in respect of an Integrated Merger Event

 

We refer to the facilities
agreement dated [•] (as from time to time amended, varied, novated or
supplemented, the “Facilities Agreement”)
and made between Telewest UK Limited, Telewest Communications Networks Limited,
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse
First Boston, Deutsche Bank AG London, GE Capital Structured Finance Group
Limited and The Royal Bank of Scotland plc as Mandated Lead Arrangers, Barclays
Bank PLC as Facility Agent, US Paying Agent and Security Trustee, GE Structured
Capital Finance Group Limited as Administrative Agent and the financial and
other institutions named in it as Lenders. 
Terms defined in the Facilities Agreement shall have the same meanings
in this Compliance Certificate.

 

1.             This Compliance
Certificate is provided in accordance with paragraph (b) of Clause 21.4 (Compliance Certificates) of the Facilities Agreement.

 

2.             We, [•] and [•](10), being authorised signatories of TCN confirm
that:

 

(a)           the Integrated
Merger Event became effective on [•] (the “Effective Date”);

 

(b)           such members of the
Target Group as are necessary to ensure that paragraph (b) of the Merger Event
Conditions is satisfied have acceded to the Facilities Agreement as Acceding
Guarantors pursuant to Clause 25.1 (Acceding Guarantors)
of the Facilities Agreement;

 

(c)           the Integrated
Merger Senior Leverage Ratio as at the Effective Date did not exceed 2.95:1;

 

(d)           the Integrated
Merger Trailing Debt Coverage Ratio, calculated in accordance with paragraph
(d)(i) of the definition of “Merger Event Integration Tests” was not less than [•];

 

(e)           the Integrated
Merger Projected Debt Coverage Ratio as at (i) the Quarter Date ending on the
first full Financial Quarter after the Effective Date is projected in the
combined business plan of the TCN Group and Target Group to be not less than [•] and (ii) as at the end of each subsequent Financial
Quarter is projected in the enclosed combined business plan of the TCN Group
and Target Group to be not less than each of the ratios set out in paragraph
(d)(ii) of the definition of “Merger Event Integration Tests”), in each case,
calculated in accordance with paragraph (d)(ii) of the definition of “Merger
Event Integration Tests”;

 

(f)            [the
ratio of projected Consolidated Net Borrowings and Pro Forma Target Group Debt
to Consolidated Annualised TCN Group Net Operating Cash Flow and Target

 

(10)         At least of whom shall be a
Financial Officer

 

191

 

 

 

Group Net Operating Cash Flow, calculated in
accordance with paragraph (e) of the definition of “Merger Event Integration
Tests”, as at the most recent Quarter Date prior to the Effective Date, was not
less than [•];]

 

OR

 

[pursuant to our written notice to you dated [•], we have designated Target Group
Acquisition Indebtedness in an aggregate principal amount of £[•] as Serviceable Non-TCN Group Debt and accordingly, we confirm that the
ratio of projected Consolidated Net Borrowings (calculated on a pro forma basis
to include such Target Group Acquisition Indebtedness) plus Pro Forma Target
Group Debt to Consolidated Annualised TCN Group Net Operating Cash Flow plus
Target Group Net Operating Cash Flow, calculated in accordance with paragraph
(f) of the definition of “Merger Event Integration Tests”, as at the most
recent Quarter Date prior to the Effective Date, was not less than [•];]
 [and/or]

 

AND/OR

 

[(A) the amount of Target Group Interim
Indebtedness plus Target Group Financial Indebtedness included for the purposes
of the Merger Event Integration Tests exceeds the amount of Target Group
Financial Indebtedness as of the date of the Unintegrated Merger Event; and (B)
during the period between the effective date of the Unintegrated Merger Event
and the proposed effective date of the Integrated Merger Event, the Target
Group entered into or made acquisitions of businesses or investments in joint
ventures outside the ordinary course of business (in each case excluding
businesses or joint ventures acquired from or entered into with other members
of the Group and excluding acquisitions of assets made in exchange for similar
assets) or paid any dividends or distributions to any member of the Group other
than to another member of the Target Group or to a member of the TCN Group
where the consideration paid, the investments contractually committed and the
dividends or distributions paid in aggregate exceeded £250,000,000 (or its
equivalent in other currencies)] [and]

 

(g)           the ratio of Consolidated Annualised
TCN Group Net Operating Cash Flow plus Target Group Net Operating Cash Flow to
Total Interest Charges plus Pro Forma Target Group Total Interest Charges,
calculated in accordance with paragraph (g) of the definition of “Merger Event
Integration Tests”, as at the most recent Quarter Date prior to the Effective
Date, was not less than [•].

 

[Set out confirmations of each
element required to determine each ratio]

 

3.             We attach a copy of the combined business plan
of the TCN Group and the Target Group for the period up to the Final Maturity
Date in respect of Facility B.

 

4.             This Compliance Certificate is given by the
authorised signatories of TCN named below and is given without personal
liability.

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorised Signatory

  	
  Authorised Signatory 

  

 

192

 

	
  for and on behalf of

  	
  for and on behalf of

  
	
   

  	
   

  
	
  Telewest Communications Networks Limited

  	
  Telewest Communications Networks Limited

  

 

193

 

SCHEDULE
9

 

PART 1
- MEMBERS OF THE TCN GROUP

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  
	
  Avon Cable Investments
  Limited

  	
   

  	
  ENG

  	
   

  	
  02487110

  
	
  Avon Cable Joint Venture

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Avon Cable Limited
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  
	
  Barnsley Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2466594

  
	
  Birmingham Cable Corporation
  Limited

  	
   

  	
  ENG

  	
   

  	
  2170379

  
	
  Birmingham Cable Finance
  Limited

  	
   

  	
  JERSEY

  	
   

  	
  60972

  
	
  Birmingham Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2244565

  
	
  Blue Yonder Workwise Limited

  	
   

  	
  ENG

  	
   

  	
  4055742

  
	
  Bradford Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2664803

  
	
  Cable Adnet Limited

  	
   

  	
  ENG

  	
   

  	
  3283202

  
	
  Cable Camden Limited

  	
   

  	
  ENG

  	
   

  	
  01795642

  
	
  Cable Communications
  (Telecom) Limited

  	
   

  	
  ENG

  	
   

  	
  02423585

  
	
  Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  01860121

  
	
  Cable Enfield Limited

  	
   

  	
  ENG

  	
   

  	
  02466511

  
	
  Cable Finance Limited

  	
   

  	
  JERSEY

  	
   

  	
  FC61656

  
	
  Cable Guide Limited

  	
   

  	
  ENG

  	
   

  	
  2025654

  
	
  Cable Hackney &
  Islington Limited

  	
   

  	
  ENG

  	
   

  	
  01795641

  
	
  Cable Haringey Limited

  	
   

  	
  ENG

  	
   

  	
  01808589

  
	
  Cable Interactive Limited

  	
   

  	
  ENG

  	
   

  	
  03006851

  
	
  Cable Internet Limited

  	
   

  	
  ENG

  	
   

  	
  3085918

  
	
  Cable London Limited

  	
   

  	
  ENG

  	
   

  	
  01794264

  
	
  Cable on Demand Limited

  	
   

  	
  ENG

  	
   

  	
  03039816

  
	
  Capital City Cablevision
  Limited

  	
   

  	
  ENG

  	
   

  	
  SC80665

  
	
  Central Cable Holdings
  Limited

  	
   

  	
  ENG

  	
   

  	
  3008567

  
	
  Central Cable Limited

  	
   

  	
  ENG

  	
   

  	
  3008681

  
	
  Central Cable Sales Limited

  	
   

  	
  ENG

  	
   

  	
  2985669

  
	
  Chariot Collection Services
  Limited (dormant)

  	
   

  	
  ENG

  	
   

  	
  3155349

  
	
  Cobweb Business Solutions
  Limited

  	
   

  	
  ENG

  	
   

  	
  04523555

  
	
  Cotswolds Cable Limited
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  

 

194

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  
	
  Crystal Palace Radio Limited

  	
   

  	
  ENG

  	
   

  	
  01459745

  
	
  Crystalvision Productions
  Limited

  	
   

  	
  ENG

  	
   

  	
  01947225

  
	
  Doncaster Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2407940

  
	
  Dundee Cable & Satellite

  	
   

  	
  ENG

  	
   

  	
  SC093114

  
	
  Edinburgh Cable Limited
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  
	
  Edinburgh Cablevision Limited

  	
   

  	
  ENG

  	
   

  	
  SC078895

  
	
  EMS Investments Limited

  	
   

  	
  ENG

  	
   

  	
  3373057

  
	
  Estuaries Cable Limited
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  
	
  Eurobell (Holdings) Limited

  	
   

  	
  ENG

  	
   

  	
  2904215

  
	
  Eurobell (IDA) Limited

  	
   

  	
  ENG

  	
   

  	
  3373001

  
	
  Eurobell (No.2) Limited

  	
   

  	
  ENG

  	
   

  	
  3405634

  
	
  Eurobell (No.3) Limited

  	
   

  	
  ENG

  	
   

  	
  3006948

  
	
  Eurobell (No.4) Limited

  	
   

  	
  ENG

  	
   

  	
  2983110

  
	
  Eurobell (South West)
  Limited

  	
   

  	
  ENG

  	
   

  	
  1796131

  
	
  Eurobell (Sussex) Limited

  	
   

  	
  ENG

  	
   

  	
  2272340

  
	
  Eurobell (West Kent) Limited

  	
   

  	
  ENG

  	
   

  	
  2886001

  
	
  Eurobell CPE Limited

  	
   

  	
  ENG

  	
   

  	
  2742145

  
	
  Eurobell Internet Services
  Limited

  	
   

  	
  ENG

  	
   

  	
  3172207

  
	
  Eurobell Limited

  	
   

  	
  ENG

  	
   

  	
  2983427

  
	
  European Business Network
  Limited (dormant)

  	
   

  	
  ENG

  	
   

  	
  2146363

  
	
  Fastrak Limited

  	
   

  	
  ENG

  	
   

  	
  1804294

  
	
  Filegale Limited

  	
   

  	
  ENG

  	
   

  	
  2804553

  
	
  Front Row Television Limited

  	
   

  	
  ENG

  	
   

  	
  3261331

  
	
  General Cable Group Limited

  	
   

  	
  ENG

  	
   

  	
  2872852

  
	
  General Cable Holdings
  Limited

  	
   

  	
  ENG

  	
   

  	
  2798236

  
	
  General Cable Investments
  Limited

  	
   

  	
  ENG

  	
   

  	
  2885920

  
	
  General Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2369824

  
	
  General Cable Programming
  Limited

  	
   

  	
  ENG

  	
   

  	
  2906200

  
	
  Halifax Cable Communications
  Limited

  	
   

  	
  ENG

  	
   

  	
  2459173

  
	
  Hieronymous Limited

  	
   

  	
  ENG

  	
   

  	
  SC80135

  
	
  Imminus (Ireland) Limited

  	
   

  	
  ENG

  	
   

  	
  267096

  
	
  Imminus Limited

  	
   

  	
  ENG

  	
   

  	
  1785381

  
	
  Lewis Reed Debt Recovery
  Limited

  	
   

  	
  ENG

  	
   

  	
  3008683

  
	
  London South Cable
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  

 

195

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  
	
  Matchco Directors Limited

  	
   

  	
  ENG

  	
   

  	
  3840851

  
	
  MatchCo Limited

  	
   

  	
  ENG

  	
   

  	
  3405630

  
	
  Matchco Secretaries Limited

  	
   

  	
  ENG

  	
   

  	
  4038220

  
	
  Mayfair Way Management
  Limited

  	
   

  	
  ENG

  	
   

  	
  2681702

  
	
  Middlesex Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2460325

  
	
  Northern Credit Limited

  	
   

  	
  ENG

  	
   

  	
  2743896

  
	
  Perth Cable Television
  Limited

  	
   

  	
  ENG

  	
   

  	
  SC032627

  
	
  Rapture TV Limited Joint
  Venture (in liquidation)

  	
   

  	
  ENG

  	
   

  	
  3196831

  
	
  Rotherham Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2455726

  
	
  Sheffield Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2465953

  
	
  Silverlink Business
  Management Limited

  	
   

  	
  ENG

  	
   

  	
  03535390

  
	
  Southwestern Bell
  International Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2378768

  
	
  TCI US West Cable
  Communications Group

  	
   

  	
  US

  	
   

  	
  —

  
	
  Telewest Carrier Services
  Limited

  	
   

  	
  ENG

  	
   

  	
  2475098

  
	
  Telewest Communications
  (Central Lancashire) Limited

  	
   

  	
  ENG

  	
   

  	
  1737862

  
	
  Telewest Communications
  (Cotswold) Limited

  	
   

  	
  ENG

  	
   

  	
  1743081

  
	
  Telewest Communications
  (Cotwolds) Venture

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Telewest Communications
  (Cumbenauld) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121614

  
	
  Telewest Communications
  (Dumbarton) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121700

  
	
  Telewest Communications
  (Dundee and Perth) Limited

  	
   

  	
  ENG

  	
   

  	
  SC096816

  
	
  Telewest Communications
  (East Lothian and Fife) Limited

  	
   

  	
  ENG

  	
   

  	
  SC150057

  
	
  Telewest Communications
  (Falkirk) Limited

  	
   

  	
  ENG

  	
   

  	
  SC122481

  
	
  Telewest Communications
  (Fylde & Wyre) Limited

  	
   

  	
  ENG

  	
   

  	
  02935056

  
	
  Telewest Communications
  (Glenrothes) Limited

  	
   

  	
  ENG

  	
   

  	
  SC119523

  
	
  Telewest Communications
  (Internet) Limited

  	
   

  	
  ENG

  	
   

  	
  03141035

  
	
  Telewest Communications
  (Liverpool) Limited

  	
   

  	
  ENG

  	
   

  	
  1615567

  
	
  Telewest Communications
  (London South) Joint Venture

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Telewest Communications
  (London South) Limited

  	
   

  	
  ENG

  	
   

  	
  1697437

  
	
  Telewest Communications
  (Midlands & North West) Limited

  	
   

  	
  ENG

  	
   

  	
  2795350

  
	
  Telewest Communications
  (Midlands) Limited

  	
   

  	
  ENG

  	
   

  	
  1882074

  
	
  Telewest Communications
  (Motherwell) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121617

  
	
  Telewest Communications (Nominees)
  Limited

  	
   

  	
  ENG

  	
   

  	
  2318746

  

 

196

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  
	
  Telewest Communications
  (North East) Limited

  	
   

  	
  ENG

  	
   

  	
  2378214

  
	
  Telewest Communications (North
  East) Partnership

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Telewest Communications
  (North West) Limited

  	
   

  	
  ENG

  	
   

  	
  2321124

  
	
  Telewest Communications
  (Publications) Limited

  	
   

  	
  ENG

  	
   

  	
  03860829

  
	
  Telewest Communications
  (Scotland) Limited

  	
   

  	
  ENG

  	
   

  	
  SC80891

  
	
  Telewest Communications
  (Scotland Holdings) Limited

  	
   

  	
  ENG

  	
   

  	
  SC150058

  
	
  Telewest Communications
  (Scotland) Venture

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Telewest Communications
  (South East) Limited

  	
   

  	
  ENG

  	
   

  	
  2270764

  
	
  Telewest Communications
  (South East) Partnership

  	
   

  	
  ENG

  	
   

  	
  —

  
	
  Telewest Communications
  (South Thames Estuary) Limited

  	
   

  	
  ENG

  	
   

  	
  2270763

  
	
  Telewest Communications
  (South West) Limited

  	
   

  	
  ENG

  	
   

  	
  2271287

  
	
  Telewest Communications
  (Southport) Limited

  	
   

  	
  ENG

  	
   

  	
  03085912

  
	
  Telewest Communications (St
  Helens & Knowsley) Limited

  	
   

  	
  ENG

  	
   

  	
  2466599

  
	
  Telewest Communications
  (Taunton & Bridgewater) Limited

  	
   

  	
  ENG

  	
   

  	
  3184760

  
	
  Telewest Communications
  (Telford) Limited

  	
   

  	
  ENG

  	
   

  	
  2389377

  
	
  Telewest Communications
  (Tyneside) Limited

  	
   

  	
  ENG

  	
   

  	
  2407676

  
	
  Telewest Communications
  (Wigan) Limited

  	
   

  	
  ENG

  	
   

  	
  2451112

  
	
  Telewest Communications
  Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2883742

  
	
  Telewest Communications
  Group Limited

  	
   

  	
  ENG

  	
   

  	
  2514287

  
	
  Telewest Communications
  Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2982404

  
	
  Telewest Communications
  Networks Limited

  	
   

  	
  ENG

  	
   

  	
  3071086

  
	
  Telewest Communications
  Services Limited

  	
   

  	
  ENG

  	
   

  	
  2415291

  
	
  Telewest Health Trustees
  Limited

  	
   

  	
  ENG

  	
   

  	
  3936764

  
	
  Telewest Limited

  	
   

  	
  ENG

  	
   

  	
  03291383

  
	
  Telewest Parliamentary
  Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2514316

  
	
  Telewest Share Trust Limited

  	
   

  	
  ENG

  	
   

  	
  02472760

  
	
  Telewest Trustees Limited

  	
   

  	
  ENG

  	
   

  	
  03071066

  
	
  Telewest Workwise Limited

  	
   

  	
  ENG

  	
   

  	
  4055744

  
	
  The Cable Corporation
  Equipment Limited

  	
   

  	
  ENG

  	
   

  	
  2116958

  
	
  The Cable Corporation
  Limited

  	
   

  	
  ENG

  	
   

  	
  2075227

  
	
  The Cable Equipment Store
  Limited

  	
   

  	
  ENG

  	
   

  	
  2693805

  
	
  The North London Channel
  Limited

  	
   

  	
  ENG

  	
   

  	
  02527764

  

 

197

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  
	
  The Yorkshire Cable Group
  Limited

  	
   

  	
  ENG

  	
   

  	
  2782818

  
	
  Theseus No.1 Limited

  	
   

  	
  ENG

  	
   

  	
  02994027

  
	
  Theseus No.2 Limited

  	
   

  	
  ENG

  	
   

  	
  02994061

  
	
  Tyneside Cable Limited
  Partnership

  	
   

  	
  US

  	
   

  	
  —

  
	
  United Cable (London South)
  Limited Partnership

  	
   

  	
  US

  	
   

  	
  —

  
	
  Wakefield Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2400909

  
	
  West Midlands Credit Limited

  	
   

  	
  ENG

  	
   

  	
  2989858

  
	
  Windsor Television Limited

  	
   

  	
  ENG

  	
   

  	
  1745542

  
	
  Yorkshire Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2490136

  
	
  Yorkshire Cable Finance
  Limited

  	
   

  	
  ENG

  	
   

  	
  2993376

  
	
  Yorkshire Cable Limited

  	
   

  	
  ENG

  	
   

  	
  02792601

  
	
  Yorkshire Cable Properties
  Limited

  	
   

  	
  ENG

  	
   

  	
  02951884

  
	
  Yorkshire Cable Telecom
  Limited

  	
   

  	
  ENG

  	
   

  	
  2743897

  

 

198

 

PART 2 - MEMBERS
OF THE FLEXTECH GROUP

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation

  	
   

  	
  Company

  number (if

  applicable)

  
	
  Flextech Broadcasting
  Limited

  	
   

  	
  ENG

  	
   

  	
  04125325

  
	
  UK Living Limited

  	
   

  	
  ENG

  	
   

  	
  02802598

  
	
  Starstream Limited

  	
   

  	
  ENG

  	
   

  	
  01733724

  
	
  Maidstone Broadcasting

  	
   

  	
  ENG

  	
   

  	
  02721189

  
	
  Bravo TV Limited

  	
   

  	
  ENG

  	
   

  	
  02342064

  
	
  Ed Stone Limited

  	
   

  	
  ENG

  	
   

  	
  4170969

  
	
  Flextech Broadband Limited

  	
   

  	
  ENG

  	
   

  	
  04125315

  
	
  UKTV Interactive Limited

  	
   

  	
  ENG

  	
   

  	
  3950210

  
	
  UKTV New Ventures Limited

  	
   

  	
  ENG

  	
   

  	
  04266373

  
	
  UKTV New Ventures Joint
  Venture

  	
   

  	
  ENG

  	
   

  	
  partnership

  
	
  United Artists Investments
  Limited

  	
   

  	
  ENG

  	
   

  	
  2761569

  
	
  Flextech Business News
  Limited

  	
   

  	
  ENG

  	
   

  	
  02954531

  
	
  Continental Shelf 16 Limited

  	
   

  	
  ENG

  	
   

  	
  03005499

  
	
  UK Channel Management
  Limited

  	
   

  	
  ENG

  	
   

  	
  3322468

  
	
  UK Gold Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  3298738

  
	
  TVS Television Limited

  	
   

  	
  ENG

  	
   

  	
  591652

  
	
  TVS Pension Fund Trustees Limited

  	
   

  	
  ENG

  	
   

  	
  1539051

  
	
  Telso Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2067186

  
	
  Screenshop Limited

  	
   

  	
  ENG

  	
   

  	
  3529106

  
	
  Flextech Rights Limited

  	
   

  	
  ENG

  	
   

  	
  2981104

  
	
  Minotaur International Limited

  	
   

  	
  ENG

  	
   

  	
  3059563

  
	
  Flextech Television Limited

  	
   

  	
  ENG

  	
   

  	
  2294553

  
	
  Vis ITV Limited (Joint Venture of FTL)

  	
   

  	
  ENG

  	
   

  	
  4000147

  
	
  Flextech Interactive Limited

  	
   

  	
  ENG

  	
   

  	
  3184754

  
	
  Interactive Digital Sales Limited

  	
   

  	
  ENG

  	
   

  	
  4257717

  
	
  Flextech Satellite
  Investments Limited

  	
   

  	
  ENG

  	
   

  	
  2710978

  
	
  UK Gold Services Limited

  	
   

  	
  ENG

  	
   

  	
  2702737

  
	
  UK Gold Television Limited

  	
   

  	
  ENG

  	
   

  	
  2702652

  
	
  UK Gold Broadcasting Limited

  	
   

  	
  ENG

  	
   

  	
  2702650

  
	
  IVS Cable Holdings Limited

  	
   

  	
  JER

  	
   

  	
  41688

  
	
  Flextech Music Publishing Limited

  	
   

  	
  ENG

  	
   

  	
  3673917

  

 

199

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation

  	
   

  	
  Company

  number (if

  applicable)

  
	
  Flextech (1992) Limited

  	
   

  	
  ENG

  	
   

  	
  1190025

  
	
  Flextech Media Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2678886

  
	
  Flextech (Kindernet Investment) Limited

  	
   

  	
  ENG

  	
   

  	
  1260228

  
	
  Flextech-Flexinvest Limited

  	
   

  	
  ENG

  	
   

  	
  1192945

  
	
  Flextech IVS Limited

  	
   

  	
  ENG

  	
   

  	
  2678882

  
	
  Flextech Family Channel Limited

  	
   

  	
  ENG

  	
   

  	
  2856303

  
	
  Flextech Distribution Limited

  	
   

  	
  ENG

  	
   

  	
  2678883

  
	
  Flextech Childrens Channel Limited

  	
   

  	
  ENG

  	
   

  	
  2678881

  
	
  Flextech Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2588902

  
	
  Flextech (Travel Channel) Limited

  	
   

  	
  ENG

  	
   

  	
  3427763

  
	
  Flextech Digital Broadcasting Limited

  	
   

  	
  ENG

  	
   

  	
  3298737

  
	
  Flextech Living Health
  Limited

  	
   

  	
  ENG

  	
   

  	
  3673915

  
	
  Flextech Video Games Limited

  	
   

  	
  ENG

  	
   

  	
  2670829

  
	
  Action Stations (2000) Limited

  	
   

  	
  ENG

  	
   

  	
  2851455

  
	
  Action Stations (Lakeside) Limited

  	
   

  	
  ENG

  	
   

  	
  2870844

  
	
  Action Stations (Millennium) Limited

  	
   

  	
  ENG

  	
   

  	
  3450308

  
	
  Supporthaven Plc

  	
   

  	
  ENG

  	
   

  	
  2792466

  
	
  Flextech Limited

  	
   

  	
  ENG

  	
   

  	
  2688411

  
	
  Flexmedia Limited

  	
   

  	
  ENG

  	
   

  	
  5217460

  
	
  Flextech Investments (Jersey) Limited

  	
   

  	
  JER

  	
   

  	
  66951

  
	
  Flextech Broadband Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  4197227

  
	
  Flextech Homeshopping Limited

  	
   

  	
  ENG

  	
   

  	
  3156792

  
	
  Multimedia Mapping Limited

  	
   

  	
  ENG

  	
   

  	
  3059563

  
	
  Recommend Limited

  	
   

  	
  ENG

  	
   

  	
  3692064

  
	
  Sit-up Limited

  	
   

  	
  ENG

  	
   

  	
  3877786

  
	
  UK Programme Distribution Limited

  	
   

  	
  ENG

  	
   

  	
  3323782

  
	
  Xrefer.com Limited

  	
   

  	
  ENG

  	
   

  	
  3840990

  

 

200

 

PART 3 - EXCLUDED SUBSIDIARIES

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation

  	
   

  	
  Company

  number (if

  applicable)

  
	
  Telewest Finance Corporation

  	
   

  	
  Delaware

  	
   

  	
   

  

 

201

 

SCHEDULE
10

 

PART 1 - EXISTING ENCUMBRANCES

 

	
  A:

  	
  Existing Encumbrances to be discharged in full within
  10 days of the Closing Date:

  
	
   

  	
   

  
	
   

  	
   

  
	
  I.

  	
  July 2004 Documents

  
	
   

  	
   

  
	
  1.

  	
  New Composite Guarantee and Debenture dated 14 July 2004 granted by
  TCN and certain of its subsidiaries and associated partnerships in favour of
  CIBC World Markets PLC as security trustee to the extent representing the
  obligations of those chargors that are not Original Guarantors.

  
	
   

  	
   

  
	
  2.

  	
  Composite Guarantee and Debenture dated 14 July 2004 granted by
  Flextech Limited, Fleximedia Limited and Telewest Communications Holdco
  Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  3.

  	
  Security Account Charge dated 14 July 2004 granted by TCN in in favour
  of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  4.

  	
  Charge Over Shares dated 14 July 2004 granted by Telewest Global, Inc.
  in favour of CIBC World Markets PLC as security trustee in respect of the
  shares of Telewest UK.

  
	
   

  	
   

  
	
  5.

  	
  New Charge Over Shares dated 14 July 2004 granted by Telewest
  Communications plc in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  6.

  	
  Assignment of Loans dated 14 July 2004 granted by Telewest Global,
  Inc. in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  7.

  	
  New Assignment of Loans dated 14 July 2004 granted by Telewest
  Communications plc in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  8.

  	
  Security Agreement dated 14 July 2004 granted by Birmingham Cable
  Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  9.

  	
  Security Agreement (Jersey) dated 14 July 2004 granted by Birmingham
  Cable Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  10.

  	
  Security Agreement (Jersey) dated 14 July 2004 granted by Flextech
  Broadband Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  11.

  	
  Security Agreement (Jersey) dated 14 July 2004 granted by Flextech
  (1992) Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  12.

  	
  Share Pledge (Scotland) dated 14 July 2004 granted by Telewest Limited
  in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  13.

  	
  Share Pledge (Scotland) dated 14 July 2004 granted by Telewest
  Communications (Scotland Holdings) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  14.

  	
  Deed of Subordination dated 14 July 2004 between Telewest Global Inc.
  and CIBC World Markets PLC as security trustee.

  

 

202

 

	
  15.

  	
  Deed of Subordination dated 14 July 2004 between Telewest UK and CIBC
  World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  16.

  	
  Deed of Subordination dated 14 July 2004 between Flextech Limited,
  Fleximedia Limited and Telewest Communications Holdco Limited and CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  17.

  	
  New Deed of Subordination dated 14 July 2004 between Telewest
  Communications plc and CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  II.

  	
  March 2001 Documents

  
	
   

  	
   

  
	
  1.

  	
  Composite Guarantee and Debenture dated 16 March 2001 granted by TCN,
  Telewest Finance Corporation and certain Subsidiaries and associated
  partnerships of TCN in favour of CIBC World Markets PLC as security trustee,
  to the extent representing the obligations of those chargors that are not
  Original Guarantors.

  
	
   

  	
   

  
	
  2.

  	
  Assignment of Loans dated 16 March 2001 granted by Telewest
  Communications Plc in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  3.

  	
  Share Charge dated 16 March 2001 granted by Telewest Communications
  Plc in favour of CIBC World Markets PLC as security trustee in relation to
  its shares in TCN.

  
	
   

  	
   

  
	
  4.

  	
  Share Pledge (Scotland) dated 16 March 2001granted by Telewest Limited
  in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  5.

  	
  Share Pledge (Scotland) dated 16 March 2001 granted by Telewest
  Communications (Scotland Holdings) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  6.

  	
  Security Agreement (Jersey) dated 16 March 2001 granted by Birmingham
  Cable Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  7.

  	
  Security Agreement (Jersey) dated 16 March 2001 granted by Flextech
  Broadband Limited (formerly Cheltrading 283 Limited) in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  8.

  	
  Security Agreement (Jersey) dated 16 March 2001 granted by Flextech
  (1992) Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  9.

  	
  Charge over Deposit Account dated 27 September 2002 granted by TCN in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  
	
  10.

  	
  Deed of Subordination dated 16 March 2001 between Telewest
  Communications plc and CIBC World Markets PLC as security trustee.

  

 

203

 

	
  B:

  	
  Existing Encumbrances

  
	
   

  	
   

  
	
   

  	
   

  
	
  I.

  	
  July 2004 Documents

  
	
   

  	
   

  
	
  1.

  	
  New Composite Guarantee and Debenture dated 14 July 2004 granted by
  TCN and certain Subsidiaries and associated partnerships of TCN in favour of
  CIBC World Markets PLC as security trustee to the extent representing the
  obligations of those chargors that are Original Guarantors

  
	
   

  	
   

  
	
  2.

  	
  Bond and Floating Charge (Scotland) dated 14 July 2004 granted by
  Telewest Communications (Scotland Holdings) Limited in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  3.

  	
  Bond and Floating Charge (Scotland) dated 14 July 2004 granted by
  Telewest Communications (Scotland) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  4.

  	
  Bond and Floating Charge (Scotland) dated 14 July 2004 granted by
  Telewest Communications (Dundee & Perth) Limited in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  5.

  	
  Bond and Floating Charge (Scotland) dated 14 July 2004 granted by
  Telewest Communications (Motherwell) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  6.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in Avon Cable Limited
  Partnership.

  
	
   

  	
   

  
	
  7.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in Cotswolds Cable
  Limited Partnership.

  
	
   

  	
   

  
	
  8.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in Edinburgh Cable
  Limited Partnership.

  
	
   

  	
   

  
	
  9.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in Estuaries Cable
  Limited Partnership.

  
	
   

  	
   

  
	
  10

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in Tyneside Cable Limited
  Partnership.

  
	
   

  	
   

  
	
  11.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  TCI/US West Cable Communications Group and others in favour of CIBC World
  Markets PLC as security trustee regarding interests in United Cable (London
  South) Limited Partnership.

  
	
   

  	
   

  
	
  12.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  Theseus No.1 and Theseus No.2 in favour of CIBC World Markets PLC as security
  trustee regarding interests in TCI/US West Cable Communications Group.

  

 

204

 

	
  13.

  	
  Pledge and Security Agreement (US) dated 14 July 2004 granted by
  United Cable (London South) Limited Partnership and Crystal Palace Radio
  Limited in favour of CIBC World Markets PLC as security trustee regarding
  interests in London South Cable Partnership.

  
	
   

  	
   

  
	
  14.

  	
  Amended and Restated Reimbursement and Contribution Agreement dated 14
  July 2004 and made between TCN, Avon Cable Limited Partnership, Cotswolds
  Cable Limited Partnership, Edinburgh Cable Limited Partnership, Estuaries
  Cable Limited Partnership, TCI/US West Cable Communications Group, Tyneside
  Cable Limited Partnership, United Cable (London South) Limited Partnership
  and London South Cable Partnership.

  
	
   

  	
   

  
	
  II.

  	
  March 2001 Documents

  
	
   

  	
   

  
	
  1.

  	
  Composite Guarantee and Debenture dated 16 March 2001 granted by TCN,
  Telewest Finance Corporation and certain Subsidiaries and associated
  partnerships of TCN in favour of CIBC World Markets PLC as security trustee,
  to the extent representing the obligations of those chargors that are
  Original Guarantors.

  
	
   

  	
   

  
	
  2.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Avon Cable Limited Partnership.

  
	
   

  	
   

  
	
  3.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Cotswolds Cable Limited Partnership.

  
	
   

  	
   

  
	
  4.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Edinburgh Cable Limited Partnership.

  
	
   

  	
   

  
	
  5.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Estuaries Cable Limited Partnership.

  
	
   

  	
   

  
	
  6.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Tyneside Cable Limited Partnership.

  
	
   

  	
   

  
	
  7.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in United Cable (London South) Limited
  Partnership.

  
	
   

  	
   

  
	
  8.

  	
  Pledge and Security Agreement (US) dated 16 March 2001 granted by
  Theseus No.1 and Theseus No.2 in favour of CIBC World Markets PLC as security
  trustee regarding interests in TCI/US West Cable Communications Group.

  

 

205

 

	
  9.

  	
  Pledge and Security Agreement (US) dated 16 March 2001, as amended by
  a first amendment dated 14 July 2001, granted by United Cable (London South)
  Limited Partnership and Crystal Palace Radio Limited in favour of CIBC World
  Markets PLC as security trustee regarding interests in London South Cable
  Partnership.

  
	
   

  	
   

  
	
  10.

  	
  Bond and Floating Charge (Scotland) dated 16 March 2001 granted by
  Telewest Communications (Scotland Holdings) Limited in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  11.

  	
  Bond and Floating Charge (Scotland) dated 16 March 2001 granted by
  Telewest Communications (Scotland) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  12.

  	
  Bond and Floating Charge (Scotland) dated 16 March 2001 granted by
  Telewest Communications (Dundee & Perth) Limited in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  
	
  13.

  	
  Bond and Floating Charge (Scotland) dated 16 March 2001 granted by
  Telewest Communications (Motherwell) Limited in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  
	
  III.

  	
  Other 

  
	
   

  	
   

  
	
    

   	
   Charge

   	
    

   	
   Chargor

   	
    

   	
   Details of Encumbrance

   	
    

   	
   Date

   
	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   	
    

   
	
  1.

  	
  Collateral Account Security Assignment in favour of Lloyds (Nimrod)
  Specialist Finance Limited

  	
   

  	
  Cable Corporation Limited (The)

  	
   

  	
  Collateral Account
  Security Assignment in favour of Lloyds (Nimrod) Specialist Finance Limited
  created 18/05/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with any of the Lease documents

  

  SHORT PARTICULARS: The Assignor assigns and agrees
  to assign the Lessor Collateral Account and the deposit (the deposit being
  all sums standing to the credit of the Collateral Account)

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 27/07/1990

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Television House, Clarendon Road, Turnpike Lane L/B
  Haringey T/N: NGL L29756

  	
   

  	
  27/07/90

  

 

206

 

	
  3.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 22/10/1992

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Land at rear of 60/70 Clarendon Road, Hornsey, Haringey,
  London, and known as Car Park No 2

  	
   

  	
  22/10/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Legal Charge in favour of Barclays Bank PLC 

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 22/10/1992

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: Site 14, Clarendon Road Estate, Clarendon Road, Haringey,
  London T/N: NGL 361617

  	
   

  	
  22/10/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 03/01/1995

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: Car Park
  No 1 & No 2 60/70 (inclusive) Clarendon Road, L/B of Haringey

  	
   

  	
  03/01/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Deposit Agreement to Secure own Liabilities in favour of Lloyds TSB
  Bank plc

  	
   

  	
  Eurobell (Holdings) Limited

  	
   

  	
  Deposit Agreement to Secure own Liabilities in favour of Lloyds TSB
  Bank Plc created 01/11/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: The
  deposit (debts on account 7955640 and interest due)

  	
   

  	
  01/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Deposit Agreement to Secure own Liabilities in favour of Lloyds Bank
  plc

  	
   

  	
  Eurobell (South West) Limited

  	
   

  	
  Deposit Agreement to Secure own Liabilities in favour of Lloyds TSB
  Bank Plc created 29/05/1997

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under or in
  connection with the Indemnity

  

  SHORT PARTICULARS: All such
  rights to the repayment of the deposit

  	
   

  	
  29/05/97

  

 

207

 

	
  8.

  	
  Deposit Agreement to secure own liabilities in favour of Lloyds Bank
  plc

  	
   

  	
  Eurobell (Sussex) Limited

  	
   

  	
  Deposit Agreement to secure own liabilities in favour of Lloyds Bank
  plc created 29/05/1997

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under or in
  connection with the Indemnity

  

  SHORT PARTICULARS: All such
  rights to the repayment of the deposit as the Company then had under the
  terms upon which the deposit was made and the provisions contained in the
  Agreement

  	
   

  	
  29/05/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Deposit Agreement to secure own liabilities in favour of Lloyds Bank
  plc

  	
   

  	
  Eurobell (West Kent) Limited

  	
   

  	
  Deposit Agreement to secure own liabilities in favour of Lloyds Bank
  plc created 29/05/1997

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: All such
  rights to the repayment of the deposit

  	
   

  	
  29/05/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Charge on cash deposit in favour of Crosby Sterling Limited

  	
   

  	
  General Cable Limited

  	
   

  	
  Charge on cash deposit in favour of Crosby Sterling Limited created
  25/05/1995

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under the terms
  of the Option Agreement or Charge

  

  SHORT PARTICULARS: The
  Chargor charges the deposit by way of first fixed charge in favour of the
  Chargee.

  	
   

  	
  25/05/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Sheffield Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 24/12/1996

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: L/H
  property K/A, 1 Chippingham Street, Sheffield

  	
   

  	
  24/12/96

  

 

208

 

	
  12.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Sheffield Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 12/11/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: L/Hold
  property known as 1.62 acres of land at Sheffield Technology Park, Chippenham
  Street, Sheffield

  	
   

  	
  12/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Deed of Charge over Credit Balances in favour of Barclays Bank PLC

  	
   

  	
  TCN

  	
   

  	
  Deed of Charge over Credit Balances in favour of Barclays Bank PLC
  created 15/10/2004

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: Fixed
  charge over all the specified deposits together with all interest accruing on
  such deposits. Assignment by the Chargor for the purposes of and to give
  effect to the security over the right of the Chargor to require repayment of
  such deposits and interest thereon

  	
   

  	
  15/10/04

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Deed of Charge in favour of The Toronto Dominion Bank

  	
   

  	
  Telewest Communications (London South) Limited

  	
   

  	
  Deed of Charge in favour of The Toronto Dominion Bank created 12/11/1985

  

  AMOUNT SECURED: All
  monies due or to become due from the Company and/or Crystal Palace Radio
  Limited and/or Colourvision UK Limited Partnership under the terms of the
  Loan and Guarantee Facility Agreement

  

  SHORT PARTICULARS: First
  fixed charge over all its rights, title and interest in and to all monies
  whatsoever from time to time or payable or from time to time accruing from
  the borrowers to the Chargee etc.

  	
   

  	
  12/11/85

  

 

209

 

	
  15.

  	
  Supplemental Deed in favour of The Toronto Dominion Bank (and its
  successors and permitted assigns)

  	
   

  	
  Telewest Communications (London South) Limited

  	
   

  	
  Supplemental Deed in favour of The Toronto Dominion Bank (and its
  successors and permitted assigns) created 13/09/1989

  

  AMOUNT SECURED: All
  monies due or to become due from the Company and/or any of the other
  companies named therein to the Chargee under the terms of this Charge and the
  Agreements defined therein

  

  SHORT PARTICULARS: First
  fixed charge on all or any of the Charged Assets

  	
   

  	
  13/09/89

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Mortgage of Deposited Monies in favour of Electricity Supply Nominees
  Limited

  	
   

  	
  Telewest Communications (South East) Limited

  	
   

  	
  Mortgage of Deposited Monies in favour of Electricity Supply Nominees
  Limited created 21/01/1994

  

  AMOUNT SECURED: The
  obligations covenants and liabilities of the Company to the Chargee under the
  provision of two leases

  

  SHORT PARTICULARS: A book
  debt in the sum of £160,000 standing to the credit of the company’s account

  	
   

  	
  21/01/94

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Deed of Variation and Further Charge in favour of Electricity Supply
  Nominees Limited

  	
   

  	
  Telewest Communications (South East) Limited

  	
   

  	
  Deed of Variation and Further Charge in favour of Electricity Supply
  Nominees Limited created 26/06/1995

  

  AMOUNT SECURED: The
  obligations covenants and liabilities of the Company to the Chargee under a
  lease dated 21 January 1995 as varied by a supplemental lease

  

  SHORT PARTICULARS: The book
  debts in the sum of £160,000 owing by Midland Bank Plc to the Company

  	
   

  	
  26/06/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Collateral Account Security Assignment in favour of Robert Fleming
  Leasing (Number 4) Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of Robert Fleming
  Leasing (Number 4) Limited created 18/05/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under or in
  connection with any of the Lease Documents

  

  SHORT PARTICULARS: The
  Assignor assigns and agrees to assign the Lessor Collateral Account and the
  deposit

  	
   

  	
  18/05/99

  

 

210

 

	
  19.

  	
  Collateral Account Security Assignment in favour of Robert Fleming
  Leasing (Number 4) Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of Robert Fleming
  Leasing (Number 4) Limited created 16/03/2001

  

  AMOUNT SECURED: All
  monies, debts, obligations and liabilities due or to become due from the
  Company to the Chargee under or in connection with any of the Lease
  Agreements to which the Company is a party

  

  SHORT PARTICULARS: All the
  right, title, benefit and interest of the Company in the Lessor Collateral
  Account and the deposit

  	
   

  	
  16/03/01

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Collateral Account Security Assignment in favour of Lloyds (Nimrod)
  Specialist Finance Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of Lloyds (Nimrod)
  Specialist Finance Limited created 18/05/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under or in
  connection with any of the Lease documents

  

  SHORT PARTICULARS: The
  Assignor assigns and agrees the assign the Lessor Collateral Account and the
  deposit

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Collateral Account Security Assignment in favour of Lombard Commercial
  Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of Lombard Commercial
  Limited created 18/05/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee under or in
  connection with any of the Lease documents

  

  SHORT PARTICULARS: The Assignor
  assigns and agrees to assign the Lessor Collateral Account and the deposit

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  Deed as to Deposit Monies in favour of Langley Quay Investments
  Limited

  	
   

  	
  Windsor Television Limited

  	
   

  	
  Deed as to Deposit Monies in favour of Langley Quay Investments
  Limited created 09/07/1999

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: £44,000
  and, in addition, all interest and other accruals from time to time standing
  to the credit of the account opened by the Landlord

  	
   

  	
  09/07/99

  

 

211

 

	
  23.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Properties Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 24/12/1996

  

  AMOUNT SECURED: All
  monies due or to become due from the Company and/or The Yorkshire Cable Group
  Limited to the Chargee on any account

  

  SHORT PARTICULARS: F/H
  Property K/A Units 8 & 9 &10 & adjoining land Mayfair Business
  Park, Broad Lane, Bradford, West Yorkshire T/N: WYK510647

  	
   

  	
  24/12/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 16/06/1992

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: Units 8,
  9, 10 and adjoining land, Mayfair Business Park, Sticker Lane, Bradford, West
  Yorkshire T/N:WYK452168

  	
   

  	
  16/06/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 24/12/1996

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: F/H
  Property K/A Units 4 & 5 Mayfair Business Park, Broad Lane, Bradford,
  West Yorkshire 

  	
   

  	
  24/12/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 24/12/1996

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: L/H
  Property K/A Units 8 & 9 & 10 & adjoining land Mayfair Business
  Park, Broad Lane, Bradford

  	
   

  	
  24/12/96

  

 

212

 

	
  27.

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited 

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created 24/12/1996

  

  AMOUNT SECURED: All
  monies due or to become due from the Company to the Chargee on any account

  

  SHORT PARTICULARS: F/H
  Property K/A Units 6 & 7 Mayfair Business Park, Broad Lane, Bradford,
  West Yorkshire T/N: WYK535713

  	
   

  	
  24/12/96

  

 

213

 

PART 2
- EXISTING LOANS

 

	
  Closing balance in GBP

  	
   

  	
  31 October 04

  	
   

  
	
   

  	
   

  	
  (UK GAAP)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Amount

  	
   

  
	
  Flextech 1992 Limited owing to Yorkshire Cable Communications Ltd.

  	
   

  	
  2,475,596

  	
   

  
	
  Flextech Digital Broadcasting Limited owing to Telewest
  Communications Group Ltd

  	
   

  	
  500

  	
   

  
	
  Flextech Interactive Limited owing to Yorkshire Cable Communications
  Ltd

  	
   

  	
  2,636,998

  	
   

  
	
  Flextech Rights Limited owing to Yorkshire Cable Communications Ltd

  	
   

  	
  125,438,385

  	
   

  
	
  Flextech Television Limited owing to Telewest Communications Networks
  Ltd

  	
   

  	
  193,125,916

  	
   

  
	
  Flextech Television Limited owing to Yorkshire Cable Communications
  Ltd

  	
   

  	
  63,860,409

  	
   

  
	
  HSN Direct International Limited owing to Yorkshire Cable
  Communications Ltd

  	
   

  	
  12,280

  	
   

  
	
  Interactive Digital Sales Limited owing to Telewest Communications
  Group Ltd

  	
   

  	
  862,805

  	
   

  
	
  Minotaur International Limited owing to Yorkshire Cable
  Communications Ltd

  	
   

  	
  3,390

  	
   

  
	
  Screenshop Limited owing to Yorkshire Cable Communications Ltd

  	
   

  	
  12,751

  	
   

  
	
  Smashedatom Limited owing to Yorkshire Cable Communications Ltd

  	
   

  	
  50

  	
   

  
	
  Telewest Communications Holdco Ltd owing to Yorkshire Cable
  Communications Ltd

  	
   

  	
  1,545,208

  	
   

  
	
  Telewest UK Ltd owing to Yorkshire Cable Communications Ltd

  	
   

  	
  2,108,121

  	
   

  
	
  Telewest Global Inc owing to Telewest Communications Networks Ltd

  	
   

  	
  545,108

  	
   

  
	
  Network Gaming Consultancy owing to Yorkshire Cable Communications
  Ltd

  	
   

  	
  67,521

  	
   

  
	
  TVS Television Limited owing to Telewest Communications Group Ltd

  	
   

  	
  3,000

  	
   

  
	
  TVS Television Limited owing to Yorkshire Cable Communications Ltd

  	
   

  	
  765,497

  	
   

  
	
  Blue Yonder Workwise owing to Avon Cable Joint Venture

  	
   

  	
  469,198

  	
   

  
	
  Blue Yonder Workwise owing to Telewest Communications Group Ltd

  	
   

  	
  219,406

  	
   

  
	
  Blue Yonder Workwise owing to Yorkshire Cable Communications

  	
   

  	
  1,379132

  	
   

  
	
  Cable Adnet Ltd owing to Telewest Communications Group Ltd

  	
   

  	
  3,755,437

  	
   

  
	
  Cable Finance Ltd owing to Telewest Communications Group Ltd

  	
   

  	
  369

  	
   

  
	
  Cable Guide Ltd owing to Cable London Ltd

  	
   

  	
  394

  	
   

  
	
  General Cable Programming owing to Yorkshire Cable Communications

  	
   

  	
  23

  	
   

  
	
  Imminus (Ireland) Ltd owing to Telewest Communications Group Ltd

  	
   

  	
  98

  	
   

  
	
  General Cable Programming Ltd owing to Telewest Communications
  Networks Ltd

  	
   

  	
  23,400

  	
   

  
	
  General Cable Programming Ltd. owing to General Cable Ltd.

  	
   

  	
  160,001

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  399,470,993

  	
   

  

 

214

 

PART 3 - EXISTING FINANCIAL INDEBTEDNESS

	
  Closing balance in GBP

  	
   

  	
  31 October 04

  (UK GAAP)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A:

  	
  Existing
  Financial Indebtedness to be repaid in full on the Closing Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financial Indebtedness under
  the Existing Credit Facility

  	
   

  	
  1,840,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B:

  	
  Existing
  Financial Indebtedness:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property
  mortgages

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd Treasury Loan with Barclays Bank

  	
   

  	
  802,549

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sheffield Cable
  Communications Ltd Treasury Loan with Barclays Bank

  	
   

  	
  3,075,268

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sheffield Cable
  Communications Ltd Treasury Loan with Barclays Bank

  	
   

  	
  1,058,466

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable Communications
  Ltd Commercial Mortgage with Barclays Bank

  	
   

  	
  528,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cable London Ltd Medium Term
  Loan with Barclays Bank

  	
   

  	
  515,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Teleinvest loan

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Finance lease creditors
  (details set out in Schedule 15)

  	
   

  	
  127,506,116

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Flextech loan stock

  	
   

  	
  28,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Intercompany
  Indebtedness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Bravo TV Limited

  	
   

  	
  176,193

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Bravo TV Limited

  	
   

  	
  30,102,631

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Continental Shelf 16 Limited

  	
   

  	
  860,153

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Ed Stone Limited

  	
   

  	
  4,319

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to Flextech (Travel Channel) Limited

  	
   

  	
  19,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Flextech 1992 Limited

  	
   

  	
  1,013,798

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to Flextech Communications Limited

  	
   

  	
  147,330,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to Flextech Digital Broadcasting Limited

  	
   

  	
  363,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Flextech Digital Broadcasting Limited

  	
   

  	
  6,671,719

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to Flextech Family Channel Limited

  	
   

  	
  197,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Limited owing to Flextech Interactive Limited

  	
   

  	
  673,721

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Limited owing to Flextech Living Health Limited

  	
   

  	
  8,983

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Flextech Living Health Limited

  	
   

  	
  1,225,556

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Flextech Rights Limited

  	
   

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Flextech Television Limited

  	
   

  	
  29,118,569

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to Flextech Video Games Limited

  	
   

  	
  261,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Interactive Digital Sales Limited

  	
   

  	
  114,768,672

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Maidstone Broadcasting

  	
   

  	
  70,673

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Communications
  Group Ltd owing to Maidstone Broadcasting

  	
   

  	
  23,754,374

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to Starstream Limited

  	
   

  	
  63,077

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to Starstream Limited

  	
   

  	
  25,621,749

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group
  Ltd owing to UK Living Limited

  	
   

  	
  6,051,381

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable
  Communications Ltd owing to UK Living Limited

  	
   

  	
  68,003,152

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications
  Networks Limited owing to United Artists Investments Limited

  	
   

  	
  856,830,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Workwise Limited
  owing to Telewest Communications Holdco Ltd

  	
   

  	
  2,694,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4,134,756,219

  	
   

  

 

215

 

PART 4 - EXISTING PERFORMANCE BONDS

 

	
  Beneficiary/

  Customer

  	
   

  	
  Date Issued

  	
   

  	
  Expiry Date

  	
   

  	
  Amount

  (in GBP)

  	
   

  	
  Bank

  	
   

  	
  Secured with

  cash deposit

  
	
  ACE Insurance S.A. – N.V.

  	
   

  	
  29/09/2004

  	
   

  	
  29/09/2005

  	
   

  	
  700,000.00

  	
   

  	
  Barclays

  	
   

  	
  Yes in full

  
	
  Basildon Council + others

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Birmingham City Council

  	
   

  	
  30/11/2000

  	
   

  	
   

  	
   

  	
  75,000.00

  	
   

  	
  The Royal Bank of Scotland

  	
   

  	
  No

  
	
  Blackpool Borough Council

  	
   

  	
  04/03/1998

  	
   

  	
   

  	
   

  	
  112,406.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Borough of Croydon

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Borough of Kingston &
  Richmond

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Boroughs of Merton & Sutton

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Carmock Council & Others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Cheltenham Borough Council

  	
   

  	
  26/06/1997

  	
   

  	
  25/06/2001

  	
   

  	
  225,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Council + 5

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  104,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Dudley Council & Others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Edinburgh + Lothian Councils

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Essex County Council

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Fife Council + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Fylde Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Gloucestershire County Council

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  HM Customs and Excise

  	
   

  	
  13/11/2000

  	
   

  	
  continuous

  	
   

  	
  20,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Islington Council

  	
   

  	
  27/10/2000

  	
   

  	
  30/04/2004

  	
   

  	
  50,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Liverpool & Sefton Councils

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Liverpool City Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Local authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  154,498.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  

 

216

 

	
  Beneficiary/

  Customer

  	
   

  	
  Date Issued

  	
   

  	
  Expiry Date

  	
   

  	
  Amount

  (in GBP)

  	
   

  	
  Bank

  	
   

  	
  Secured with

  cash deposit

  
	
  Local authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  194,643.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  
	
  Local authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  143,549.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  
	
  Lothian Council + others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Rent guarantee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  103,483.10

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  
	
  Sefton Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Slough Borough Council

  	
   

  	
  05/07/2002

  	
   

  	
  July-05

  	
   

  	
  35,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  South Glous + North Somerset Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  St Helens & Knowsley Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Staffordshire Council & Others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Strathclyde Council + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Strathclyde Council + others (#4)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Tayside Council + others (#1)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Tayside Council + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  The appropriate authorities – Telecoms Act
  84/ Licence

  	
   

  	
  01/06/2002

  	
   

  	
  25/07/2005

  	
   

  	
  1,500,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  W. Dunbartonshire Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  West Lancs Council & others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  West Midlands Police Authority

  	
   

  	
  31/08/2001

  	
   

  	
  30/09/2005

  	
   

  	
  250,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  
	
  Wigan Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  

 

217

 

PART 5 - EXISTING LOAN STOCK

 

1.             The variable rate unsecured loan stock in a principal amount of
£97,000,000 issued to Flextech Digital Broadcasting Limited by the BBC Joint
Venture (UK Channel Management Limited).

 

2.             The floating rate redeemable unsecured loan stock issued by UK Gold in a
principal amount of £12,517,000 to Cox Programming Limited ((now Flextech
Satellite Investments Limited) and transferred to Flextech IVS Limited and then
subsequently transferred to United Artists Investments Limited) and in a
principal amount of £8,942,653 to United Artists Investments Limited.

 

3.             The floating rate redeemable unsecured loan stock issued by UK Living in
a principal amount of £8,271,047 to United Artists Investments Limited and in a
principal amount of £11,579,556.00 to Cox Programming Limited ((now Flextech
Satellite Investments Limited) and transferred to Flextech IVS Limited and then
subsequently transferred to United Artists Investments Limited).

 

4.             The non-interest bearing unsecured loan stock in a principal amount of
£18,000,000 issued by the UK Gold Joint Venture (UK Gold Holdings Limited) to
Flextech Limited (formerly Flextech plc) (and transferred to United Artists
Investments Limited).

 

5.             The variable rate first call option unsecured loan stock in a principal
amount of £32,208,000 and the split rate second call option unsecured loan
stock in a principal amount of £20,300,000 in each case issued by the UK Gold
Joint Venture (UK Gold Holdings Limited) to Flextech Limited (formerly Flextech
plc) (and, in each case, transferred to United Artists Investments Limited).

 

6.             The variable rate unsecured loan stock of a principal amount of
£36,000,000 issued by the UK Gold Joint Venture (UK Gold Holdings Limited) to
Flextech Limited (formerly Flextech plc) (and transferred to United Artists
Investments Limited).

 

7.             The variable rate unsecured loan stock issued, or to be issued, to
United Artists Investments Limited by the UK Gold Joint Venture (UK Gold
Holdings Limited) in connection with the funding from time to time of the UK
Gold Joint Venture.

 

8.             The £50 million unsecured variable rate loan stock to be issued to
Flextech Broadband Limited pursuant to the loan stock instrument constituted in
respect of UKTV New Ventures dated 15 July 2004.

 

9.             The £21 million loan stock contemplated by the 15 July 2004 letter
agreement between Flextech Broadband Limited and BBC Worldwide Limited to be
issued to Flextech Broadband Limited by UKTV Interactive Limited.

 

10.           £20 million Cumulative and £13.75 million non-cumulative, non-voting
preference shares issued by UK Gold Holdings Limited.

 

218

 

SCHEDULE
11

 

FORM OF L/C BANK ACCESSION CERTIFICATE

To:          [      ]

 

cc:           Telewest Communications Networks Limited

 

From:      [L/C Bank]

 

Date:

 

 

Dear Sirs

 

1.             We refer to the facilities agreement dated [•] (as from time to time amended, varied, novated or supplemented, the “Facilities Agreement”) and made between
Telewest UK Limited, Telewest Communications Networks Limited, Barclays
Capital, BNP Paribas, Citigroup Global Markets Limited, Deutsche Bank AG
London, GE Capital Structured Finance Group Limited and The Royal Bank of
Scotland plc as Mandated Lead Arrangers, Barclays Bank PLC as Facility Agent,
US Paying Agent and Security Trustee, GE Capital Structured Finance Group
Limited as Administrative Agent and the financial and other institutions named
in it as Lenders.  Terms defined in the
Facilities Agreement shall have the same meanings in this Agreement.

 

2.             This L/C Bank Accession Certificate
is delivered pursuant to Clause 5.10 (Appointment and Change of
L/C Bank) of the Facilities Agreement.

 

3.             [Name of L/C Bank] undertakes, upon its becoming an
L/C Bank, to perform all the obligations expressed to be undertaken under the
Facility Agreement and the Finance Documents by an L/C Bank and agrees that it
shall be bound by the Facilities Agreement and the other Finance Documents in
all respects as if it had been an original party to it as an L/C Bank.

 

4.             [Name of L/C Bank]’s administrative details are as
follows:

 

Address:

 

Fax No:

 

Contact:

 

[and the address of the office having the
beneficial ownership of our participation in the Facilities Agreement (if
different from the above) is:

 

Address:

 

Fax No:

 

Contact:                             ]

 

219

 

5.             This L/C Bank Accession Certificate
shall be governed by English law.

 

                                            

 

For and on behalf of

[Name of L/C Bank]

 

220

 

SCHEDULE
12

 

FORM OF DOCUMENTARY CREDIT

 

[L/C
Bank’s Letterhead]

 

To:          [Beneficiary]

(the “Beneficiary”)

 

Non-transferable Irrevocable Documentary Credit No. [•]

 

At the request of Telewest Communications Networks Limited, [L/C Bank] (the “L/C Bank”)
issues this irrevocable non-transferable documentary credit (“Documentary Credit”) in your favour on the
following terms and conditions:

 

1.             Definitions

 

In this Documentary Credit:

 

“Business Day” means a day
(other than a Saturday or a Sunday) on which banks are open for general
business in [London].
(11)

 

“Demand” means a demand for
payment under this Documentary Credit in the form of the schedule to this
Documentary Credit.

 

“Expiry Date” means [•].

 

“Total L/C Amount” means £[•].

 

2.             L/C Bank’s
Agreement

 

(a)           The Beneficiary may request a drawing or
drawings under this Documentary Credit by giving to the L/C Bank a duly
completed Demand.  A Demand must be
received by the L/C Bank on or before [•] p.m. ([London] time) on the
Expiry Date.

 

(b)           Subject to the terms of this Documentary
Credit, the L/C Bank unconditionally and irrevocably undertakes to the
Beneficiary that, within [10] Business Days of receipt by it of a Demand, it will pay to
the Beneficiary the amount demanded in that Demand.

 

(c)           The L/C Bank will not be obliged to make a
payment under this Documentary Credit if as a result the aggregate of all
payments made by it under this Documentary Credit would exceed the Total L/C
Amount.

 

3.             Expiry

 

(a)           The L/C Bank will be released from its
obligations under this Documentary Credit on the date (if any) notified by the
Beneficiary to the L/C Bank as the date upon which the obligations of the L/C
Bank under this Documentary Credit are released.

 

(b)           Unless previously released under paragraph (a)
above, at [•] p.m. ([London] time) on the Expiry Date the obligations of the L/C Bank
under this Documentary Credit will cease with 

 

(11)         This may need to be amended depending on the currency of payment
under the Documentary Credit.

 

221

 

no
further liability on the part of the L/C Bank except for any Demand validly
presented under the Documentary Credit before that time that remains unpaid.

 

(c)           When the L/C Bank is no longer under any
further Obligations under this Documentary Credit, the Beneficiary must
promptly return the original of this Documentary Credit to the L/C Bank.

 

4.             Payments

 

All payments under this Documentary Credit shall be made in Sterling and for value on the due date
to the account of the Beneficiary specified in the Demand.

 

5.             Delivery of Demand

 

Each Demand shall be in writing, and, unless otherwise stated, may be
made by letter, fax or telex and must be received in legible form by the L/C
Bank at its address and by the particular department or officer (if any) as
follows:

 

[•]

 

6.             Assignment

 

The Beneficiary’s rights under this Documentary Credit may not be
assigned or transferred.

 

7.             UCP

 

Except to the extent it is inconsistent with the express terms of this
Documentary Credit, this Documentary Credit is subject to the Uniform Customs
and Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500.

 

8.             Governing Law

 

This Documentary Credit is governed by English law.

 

9.             Jurisdiction

 

The courts of England have exclusive jurisdiction to settle any disputes
arising out of or in connection with this Documentary Credit.

 

Yours faithfully,

 

 

[L/C
Bank]

 

By:

 

222

 

FORM OF DEMAND

 

To:          [L/C Bank]

 

 

Dear Sirs,

 

Non-transferable Irrevocable Documentary Credit No. [•] issued in favour of [name of
beneficiary] (the “Documentary Credit”)

 

We refer to the Documentary Credit. 
Terms defined in the Documentary Credit have the same meaning when used
in this Demand.

 

1.             We certify that the sum of [•] is due [and has remained unpaid for at least [•] Business
Days]  [under [set out underlying contract or agreement]].  We therefore
demand payment of the sum of [•].

 

2.             Payment should be made to the following
account:

 

Name:

 

Account Number:

 

Bank:

 

3.             The date of this Demand is not later than the
Expiry Date.

 

Yours faithfully,

 

 

	
  (Authorised Signatory)

  	
  (Authorised Signatory)

  

 

For

[Beneficiary]

 

223

 

SCHEDULE
13

 

PRO FORMA PARI
PASSU INTERCREDITOR AGREEMENT

 

 

[Signing Date]

 

 

(1)  THE TCN
GROUP LENDERS

 

(2)  THE TCN
GROUP HEDGE COUNTERPARTIES

 

(3) THE TCN GROUP AGENT

 

(4)  THE TCN
GROUP SECURITY TRUSTEE

 

(5)  THE TARGET
GROUP LENDERS

 

(6)  THE TARGET
GROUP HEDGE COUNTERPARTIES

 

(7) THE TARGET GROUP AGENT

 

(8) THE TARGET GROUP SECURITY TRUSTEE

 

(9) THE MEMBERS OF THE TCN GROUP

 

(10) THE MEMBERS OF THE TARGET GROUP

 

 

PARI PASSU

EXISTING CREDITORS INTERCREDITOR DEED

 

 

5 Old Broad Street

London EC2N 1DW

 

224

 

INDEX

 

	
  Clause

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
  2.

  	
  RECIPROCITY

  	
   

  
	
  3.

  	
  PRIORITIES ON ENFORCEMENT

  	
   

  
	
  4.

  	
  TURNOVER

  	
   

  
	
  5.

  	
  ENFORCEMENT OF SECURITY

  	
   

  
	
  6.

  	
  DISPOSALS AND CLAIMS

  	
   

  
	
  7.

  	
  CERTAIN PAYMENTS

  	
   

  
	
  8.

  	
  CHANGES TO FINANCE
  DOCUMENTS

  	
   

  
	
  9.

  	
  MISCELLANEOUS

  	
   

  
	
  10.

  	
  LOSS SHARING

  	
   

  
	
  11.

  	
  ACKNOWLEDGEMENTS

  	
   

  
	
  12.

  	
  CHANGE OF PARTY

  	
   

  
	
  13.

  	
  NOTICES

  	
   

  
	
  14.

  	
  REMEDIES,
  WAIVERS & AMENDMENTS

  	
   

  
	
  15.

  	
  ENGLISH
  LANGUAGE

  	
   

  
	
  16.

  	
  THIRD
  PARTY RIGHTS

  	
   

  
	
  17.

  	
  COUNTERPARTS

  	
   

  
	
  18.

  	
  GOVERNING
  LAW

  	
   

  
	
  19.

  	
  JURISDICTION

  	
   

  
	
  SCHEDULE 1

  	
   

  	
   

  
	
  PART I - THE TCN GROUP LENDERS

  	
   

  	
   

  
	
  PART
  II - THE TARGET GROUP LENDERS

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  	
   

  
	
  PART I - TCN GROUP OBLIGORS

  	
   

  	
   

  
	
  PART II -
  TARGET GROUP OBLIGORS

  	
   

  	
   

  
	
  SCHEDULE 3

  	
   

  	
   

  
	
  PART I - TCN GROUP SECURITY

  	
   

  	
   

  
	
  PART II -
  TARGET GROUP SECURITY

  	
   

  	
   

  
	
  SCHEDULE 4 DEED OF ACCESSION

  	
   

  	
   

  
	
  SCHEDULE 5

  	
   

  	
   

  
				

 

225

 

THIS
DEED is made
on [     ]

 

BETWEEN:

 

(1)           THE TCN GROUP LENDERS (as defined herein);

 

(2)           THE TCN GROUP HEDGE
COUNTERPARTIES (as
defined herein);

 

(3)           [       ] (as facility agent for and on behalf of the TCN
Group Senior Lenders, the “TCN Group Senior Agent”);

 

(4)           [       ] (as security trustee for and on behalf of the
TCN Group Lenders, the “TCN Group Security Trustee”);

 

(5)           THE TARGET GROUP LENDERS (as defined herein);

 

(6)           THE TARGET GROUP HEDGE
COUNTERPARTIES (as
defined herein);

 

(7)           [          ]
(as facility agent
for and on behalf of the Target Group Lenders, the “Target Group
Agent”);

 

(8)           [          ] (as security trustee for and on
behalf of the Target Group Lenders, the “Target Group Security
Trustee”);

 

(9)           THE TCN GROUP OBLIGORS (as defined herein);

 

(10)         THE TARGET GROUP OBLIGORS (as defined herein); and

 

(11)         The other parties signatories
hereto.

 

IT
IS AGREED as
follows:-

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

In this Deed the following words and expressions shall have the
following meanings:

 

“Accession Deed” means a deed of
accession substantially in the form set out in Schedule 4 or in such other form
as the TCN Group Senior Agent, the Target Group Agent, TCN and the Target shall
agree.

 

“Calculation Date” means any date upon
which any calculation of Pari Passu Basis is required to be made under this
Deed.

 

“Credit Agreements” means the TCN Group
Credit Agreements and the Target Group Credit Agreement.

 

“Encumbrance” means a mortgage, charge,
pledge, lien, encumbrance or other security interest securing any obligation of
any person.

 

“Enforcement Action” means:

 

(a)           the acceleration of any Liabilities or any
declaration that any Liabilities are prematurely due and payable (other than as
a result of it becoming unlawful for a Lender to perform its obligations under,
or of any mandatory prepayment arising 

 

226

 

under the Finance Documents)
or any declaration that any Liabilities are payable on demand (save where such
declaration is capable of being made and is made in circumstances where there
is no default by any member of the Group);

 

(b)           the taking of any steps to enforce or require
the enforcement of any Security;

 

(c)           the making of any demand against any member of
the Group in relation to any guarantee, indemnity or other assurance against
loss in respect of any Liabilities or exercising any right to require any
member of the Group to acquire any Liability;

 

(d)           the exercise of any right of set-off against
any member of the Group in respect of any Liabilities (save where such right is
capable of being exercised and is exercised in circumstances where there is no
default by any member of the Group );

 

(e)           the suing for, commencing or joining of any
legal or arbitration proceedings against any member of the Group to recover any
Liabilities;

 

(f)            the entering into of any composition,
assignment or similar or analogous arrangement with any member of the Group
with respect to any Liability, or any analogous procedure or step in any
jurisdiction; or

 

(g)           the petitioning, applying or voting for, or the
taking of any steps by any Finance Party in its capacity as such (including,
without limitation, corporate action, procedural or formal steps or legal
proceedings, or the appointment of any liquidator, receiver, administrator or
similar officer) in relation to, the winding up, dissolution or administration
or bankruptcy of any member of the Group or any analogous procedure or step in
any jurisdiction.

 

“Enforcement Date” means the first date
on which an Enforcement Action is taken by any of the Finance Parties.

 

“Excluded Subsidiary” shall have the
meaning given to it in the TCN Group Senior Credit Agreement.

 

“Facilities” means the TCN Group
Facilities and the Target Group Facilities.

 

“Facility Agents” means the TCN Group
Agent and the Target Group Agent.

 

“Finance Documents” means the TCN Group
Finance Documents and the Target Group Finance Documents.

 

“Finance Parties” means the TCN Group
Finance Parties and the Target Group Finance Parties.

 

“Group” means [name of
ultimate holding company of TCN Group and Target Group] and its Subsidiaries from time to time.

 

“Guarantees” means the TCN Group Guarantees
and the Target Group Guarantees.

 

“Hedge Counterparties” means the TCN
Group Hedge Counterparties and the Target Group Hedge Counterparties.

 

“Lenders” means the TCN Group Lenders
and the Target Group Lenders.

 

“Liabilities” means the TCN Group Liabilities
and the Target Group Liabilities.

 

227

 

“Pari Passu Basis” means:

 

(a)           in relation to priority of liabilities, such liabilities shall be equal
and rateable with no liability having any priority over the other,

 

(b)           in relation to a calculation of a repayment to be made by reference to
TCN Group Pari Passu Debt and Target Group Pari Passu Debt or the TCN Group
Facilities and the Target Group Facilities on or after the Enforcement Date,
that such repayment shall be made pro rata in the proportion which the amount
of each such debt at the Enforcement Date bears to the aggregate Pari Passu
Debt at the Enforcement Date, and

 

(c)           in relation to a calculation of a payment or repayment to be made by
reference to the TCN Group Facilities and the Target Group Facilities before
the Enforcement Date, that such payment or repayment shall be made pro rata in
the proportion which the amount of each such debt at the Calculation Date bears
to the aggregate Pari Passu Debt at such Calculation Date;

 

(d)           in relation to any calculations made by reference to commitments,
drawings or repayments under any revolving or similar facility in the TCN Group
Credit Agreement or the Target Group Credit Agreements on a Calculation Date,
the calculation thereof shall be made pro rata in the proportion that the
maximum amount of credit which may be utilised under each such facility at such
Calculation Date bears to the aggregate amount available to be utilised under
such facilities in all Credit Agreements.

 

“Pari Passu Debt” means the TCN Group
Pari Passu Debt and the Target Group Pari Passu Debt.

 

“Principal Intercreditor Deed”
means the intercreditor agreement dated on or about the date of the TCN Group
Senior Credit Agreement between certain of the TCN Group Obligors, the TCN
Group Finance Parties and others.

 

“Security” means the TCN Group Security
and the Target Group Security.

 

“Security Trustees” means the TCN Group
Security Trustee and the Target Group Security Trustee.

 

“Subsidiary” of a company shall mean (i)
in relation to any member of the TCN Group, a “Subsidiary” of such company as
defined in the TCN Group Senior Credit Agreement and (ii) in relation to any
member of the Target Group, a “Subsidiary” of such company as defined in the
Target Group Credit Agreement.

 

“Target” means
[   ].

 

“Target Group” means [to identify those companies which are designated as members of the
Target Group at the date of execution of this Deed and thereafter].

 

“Target Group Credit Agreement” means
the credit agreement dated [     ] whereby certain
facilities were made available to [specify members of the
Target Group] by a group of banks and other financial institutions
on whose behalf the Target Group Agent acts as facility agent.

 

“Target Group Debt” means all present
and future obligations and liabilities (whether actual or contingent and
whether owed jointly or severally or in any other capacity whatsoever) of 

 

228

 

any member of the Target Group to any of the Target Group Finance
Parties in respect of Target Group Liabilities.

 

“Target Group Facilities” means the
facilities provided by the Target Group Lenders under the Target Group Credit
Agreement.

 

“Target Group Finance Documents” means
the Target Group Credit Agreement, the Target Group Security, the Target Group
Guarantees and each of the other [Finance Documents] (as defined in the Target
Group Credit Agreement).

 

“Target Group Finance Parties” means the
Target Group Agent, the Target Group Security Trustee, the Target Group
Lenders, the Target Group Hedge Counterparties and any other [Finance Parties]
(as defined in the Target Group Credit Agreement).

 

“Target Group Guarantees” means the
guarantees granted in favour of any of the Target Group Finance Parties by any
member of the Group in respect of all or any part of the Target Group
Liabilities.

“Target Group Hedge Counterparties”
means any counterparty which has entered into a hedging agreement with any
member of the Target Group and has executed or acceded to this Deed in such
capacity.

 

“Target Group Instructing Group” means
an [Instructing Group] (as defined in the Target Group Credit Agreement).

 

“Target Group Lender” means:

 

(a)           a bank or financial institution or other person
named in Part II of Schedule 1 (unless it has ceased to be a party hereto in
accordance with the terms hereof); or

 

(b)           a bank or financial institution or other person
which has become (and remains) a party hereto as a Target Group Lender in
accordance with the provisions of Clause 11.5 hereof and in accordance with the
provisions of the Target Group Credit Agreement.

 

“Target Group Liabilities” means all
present and future liabilities and obligations at any time of any member of the
Group to any Target Group Finance Party under or in connection with the Target
Group Finance Documents, both actual and contingent and whether incurred solely
or jointly or in any other capacity together with any of the following matters
relating to or arising in respect of those liabilities and obligations:

 

(a)           any refinancing, novation, deferral or extension;

 

(b)           any claim for damages or restitution; and

 

(c)           any claim as a result of any
recovery by any member of the Group of a payment or discharge on the grounds of
preference,

 

and any amounts which would be included in any of the above but for any
discharge, non-provability or unenforceability of those amounts in any
insolvency or other proceedings.

 

“Target Group Obligors” means all of the
companies specified in Part II of Schedule 2 and any company which has become a
party hereto  (for as long as such
company remains party hereto) in such capacity in accordance with the
provisions of Clause 11.6 hereof.

 

“Target Group Pari Passu Debt” means the
aggregate principal amount of the Target Group Debt not exceeding
£2,425,000,000 (or its equivalent in other currencies) (or such greater 

 

229

 

amount as shall be agreed in writing by the TCN Group Instructing Group)
together with any interest (including default interest) accruing on such amount
and commitment commission, fees, charges and any costs and expenses, in each
case, payable under the terms of the Target Group Finance Documents.

 

“Target Group Security” means the
Encumbrances constituted by each document listed in Part II of Schedule 3
together with all collateral, additional or substituted Encumbrance which is
granted in favour of any of the Target Group Finance Parties by any member of
the Group after the date of this Deed in respect of all or any part of the
Target Group Debt.

 

“TCN” means Telewest
Communications Networks Limited.

 

“TCN Group” has the meaning set out in
the TCN Group Senior Credit Agreement, provided that for the purposes of this
definition, “Subsidiaries” shall exclude any member of the Target Group which
would otherwise be a member of the TCN Group.

 

“TCN Group Credit Agreements” means the
TCN Group Senior Credit Agreement and each other credit facility listed in
Schedule 6 hereto.

 

“TCN Group Debt” means all present and
future obligations and liabilities (whether actual or contingent and whether
owed jointly or severally or in any other capacity whatsoever) of any member of
the TCN Group to any of the TCN Group Finance Parties in respect of TCN Group
Liabilities.

 

“TCN Group Facilities” means the
facilities provided by the TCN Group Lenders under the TCN Group Credit
Agreement.

 

“TCN Group Finance Documents” means the
TCN Group Credit Agreement, the TCN Group Security, the TCN Group Guarantees
and each of the other Finance Documents (as defined in the TCN Group Credit
Agreement).

 

“TCN Group Finance Parties” means the
TCN Group Agent, the TCN Group Security Trustee, the TCN Group Lenders and the
TCN Group Hedge Counterparties.

 

“TCN Group Guarantees” means the
guarantees granted in favour of any of the TCN Group Finance Parties by any
member of the Group in respect of all or any part of the TCN Group Liabilities.

 

“TCN Group Hedge Counterparties” means
any counterparty which has entered into a hedging agreement with any member of
the TCN Group and has executed or acceded to (and remains a party to) this Deed
in such capacity.

 

“TCN Group Instructing Group” means an
Instructing Group (as defined in the TCN Group Senior Credit Agreement, subject
to the terms of any applicable intercreditor agreement).

 

“TCN Group Lender” means the parties
from time to time party to the TCN Group Credit Agreement as Lenders which have
acceded to (and remain party to) this Deed in accordance with the provisions of
the TCN Group Credit Agreement.

 

“TCN Group Liabilities” means all
present and future liabilities and obligations at any time of any member of the
Group to any TCN Group Finance Party under or in connection with the TCN Group
Finance Documents, both actual and contingent and whether incurred solely or
jointly or in any other capacity together with any of the following matters
relating to or arising in respect of those liabilities and obligations:

 

230

 

(a)           any refinancing, novation, deferral or extension;

 

(b)           any claim for damages or restitution; and

 

(c)           any claim as a result of any
recovery by any member of the Group of a payment or discharge on the grounds of
preference,

 

and any amounts which would be included in any of the above but for any
discharge, non-provability or unenforceability of those amounts in any
insolvency or other proceedings.

 

“TCN Group Obligors” means all of the
companies specified in Part I of Schedule 2 and any company which has become a
party hereto (for as long as such company remains party hereto) in such
capacity in accordance with the provisions of Clause 11.6 hereof.

 

“TCN Group Pari Passu Debt” means the
aggregate principal amount of the TCN Group Debt not exceeding £[principal amount committed under the TCN Group Credit Agreement upon
execution of this Deed] (or its equivalent in other currencies) in
aggregate principal amount (or such greater amount as shall be agreed in
writing by the Target Group Instructing Group) together with any interest
(including default interest) accruing on such amount and commitment commission,
fees, charges and any costs and expenses, in each case, payable under the terms
of the TCN Group Finance Documents.

 

“TCN Group Security” means the
Encumbrances constituted by each document listed in Part I of Schedule 3
together with all collateral, additional or substituted Encumbrance which is
granted in favour of any of the TCN Group Finance Parties by any member of the
Group after the date of this Deed in respect of all or any part of the TCN
Group Debt.

 

“TCN Group Senior Credit Agreement”
means the credit agreement dated [  ]
whereby certain facilities are made available to TCN and the US Borrower by a
group of banks and other financial institutions on whose behalf the TCN Group
Senior Agent acts as facility agent.

 

“US Borrower” means
Telewest Global Finance LLC, a Delaware limited liability company.

 

1.2          Interpretation

 

(a)           For the purpose of this Deed any amount of Pari Passu Debt denominated
in a currency other than sterling shall be notionally converted into sterling
by reference to the amount of sterling which could be purchased with the
relevant currency using the TCN Group Agent’s spot rate of exchange at 11 a.m.
(London time) on each relevant Calculation Date or, if such market is then
closed, at 11 a.m. (London time) on the day such market was then last open.

 

(b)           The headings in this Deed are inserted for convenience only and shall be
ignored in construing this Deed.

 

(c)           References to Clauses, paragraphs or Schedules are to paragraphs of
Clauses and Clauses of or Schedules to this Deed unless otherwise stated.

 

(d)           Any reference in this Deed to (or to any provisions of or definition
contained in) any other document shall be construed as a reference to this Deed
or that provision, definition or document as in force for the time being and as
amended, supplemented, varied and/or novated from time to time but only to the
extent that any such amendment, supplement, variation or novation has been made
in accordance with the terms of this Deed.

 

231

 

(e)           Any reference in this Deed to any party to this Deed shall be construed
so as to include such party’s and any subsequent successors, transferees and
assigns in accordance with their respective interests.

 

(f)            Any reference in this Deed to the
singular shall include the plural and vice versa.

 

2.             RECIPROCITY

 

2.1          Reciprocal Security

 

Each of the Finance Parties and each member of the Group which is party
to this Deed agrees that it is intended that the TCN Group Finance Parties and
the Target Group Finance Parties shall share the benefits of all security
arrangements and guarantees granted by members of the TCN Group and Target
Group in relation to the Liabilities so as to guarantee and secure the
Liabilities in such a manner as shall ensure that the TCN Group Liabilities and
the Target Group Liabilities shall rank on a Pari Passu Basis provided that, at
TCN’s discretion, this intention shall be effected by either:

 

(a)          (i)                                         members of the TCN Group granting
guarantees and Encumbrances in favour of the Target Group Finance Parties (or
the Target Group Security Trustee on their behalf) in substantially similar
form to the guarantees and Encumbrances granted to the TCN Group Finance Parties
in respect of the TCN Group Liabilities to guarantee and secure the Target
Group Liabilities; and

 

(ii)                                  members of the Target Group granting
guarantees and Encumbrances in favour of the TCN Group Finance Parties (or the
TCN Group Security Trustee on their behalf) in substantially similar form to
the guarantees and Encumbrances granted to the Target Group Finance Parties in
respect of the Target Group Liabilities to guarantee and secure the TCN Group
Liabilities; or

 

(b)          (i)                                        each of the TCN Group Finance
Parties which has been granted a guarantee or an Encumbrance by a member of the
TCN Group in respect of the TCN Group Liabilities prior to the date of this
Deed entering into such amendments to such guarantees or the security documents
effecting such Encumbrances or the security trust arrangements under which they
or the TCN Group Security Trustee holds the benefit of any such guarantees or
Encumbrances with, in each case, the members of the Group which are party to
such documents and arrangements so as to procure (insofar as legally possible)
that the Target Group Liabilities are guaranteed and secured by such documents
in the same manner as the TCN Group Liabilities; and

 

(ii)                                  each of the Target Group Finance
Parties which has been granted a guarantee or an Encumbrance by a member of the
Target Group in respect of the Target Group Liabilities prior to the date of
this Deed entering into such amendments to such guarantees or the security
documents effecting such Encumbrances or the security trust arrangements under
which they or the Target Group Security Trustee holds the benefit of any such
guarantees or Encumbrances with, in each case, the members of the Group which
are party to such documents and arrangements so as to procure (insofar as
legally possible) that the TCN Group Liabilities are guaranteed and secured by
such documents in the same manner as the Target Group Liabilities; and

 

232

 

(whether TCN exercises its discretion to select the
option in paragraph (a) or paragraph (b) above):

 

(i)            each of the TCN Group Finance Parties which has been granted a guarantee
or an Encumbrance by a member of the TCN Group to guarantee/secure the TCN
Group Liabilities shall enter into this Deed and the Principal Intercreditor
Deed in the appropriate capacity in order to share the proceeds of enforcement
of such guarantees and Encumbrances with the Target Group Finance Parties in
the manner set forth herein or therein; and

 

(ii)           each of the Target Group Finance Parties which
has been granted a guarantee or an Encumbrance by a member of the Target Group
to guarantee/secure the Target Group Liabilities shall enter into this Deed and
the Principal Intercreditor Deed in the appropriate capacity in order to share
the proceeds of enforcement of such guarantees and Encumbrances with the TCN
Group Finance Parties in the manner set forth herein or therein; and

 

(iii)          each of the Finance Parties and each member of
the Group which is party to this Deed agrees to execute and deliver any such
accession deeds or other instruments and do all such acts or things as may be
required to ensure that the option selected by the TCN is effected.

 

2.2          Reciprocal subordination

 

Each of the Finance Parties and each member of the Group which is party
to this Deed agrees that (i) it is intended that the Target Group Finance
Parties and the TCN Group Finance Parties are to benefit equally (or to the
extent that any proceeds are realised from such subordination or similar
arrangements on a Pari Passu Basis) from any subordination or similar
arrangements which they benefit from in relation to the Liabilities and (ii) it
shall execute and deliver any such accession deeds or other instruments and do
all such acts or things as may be required in order that:

 

(a)           the Target Group Finance Parties receive the benefit of any existing
subordination provisions of any intercreditor agreements or other existing
subordination arrangements to which the TCN Group Finance Parties are party or
as to which they receive the benefit in each case in relation to the TCN Group
Liabilities;

 

(b)           the TCN Group Finance Parties receive the benefit of any existing
subordination provisions of any intercreditor agreements or other existing
subordination arrangements to which the Target Group Finance Parties are party
or as to which they receive the benefit in each case in relation to the Target
Group Liabilities;

 

(c)           the Target Group Obligors confer (to the extent they are able) to the
TCN Group Finance Parties the benefit of any existing subordination provisions
of any intercreditor agreements or other existing subordination arrangements to
which the Target Group Obligors are party in each case in relation to the
Target Group Liabilities; and

 

(d)           the TCN Group Obligors confer (to the extent they are able) to the
Target Group Finance Parties the benefit of any existing subordination
provisions of any intercreditor agreements or other existing subordination
arrangements to which the Target Group Obligors are party in each case in relation
to the TCN Group Liabilities,

 

233

 

in each case so as to ensure that the TCN Group Finance Parties have the
same ranking in respect of the TCN Group Liabilities as the Target Group
Finance Parties have in respect of the Target Group Liabilities and vice versa.

 

2.3          Authorisation of Facility
Agents and Security Trustees

 

Each of the Facility Agents and Security Trustees acting on behalf of
the Target Group Finance Parties and TCN Group Finance Parties are hereby
authorised and empowered to take all actions necessary or advisable in their
opinions (including signing any documents on behalf of such Finance Parties) to
effectuate the foregoing clauses 2.1 and 2.2

 

3.             PRIORITIES ON ENFORCEMENT

 

3.1          Priorities

 

Each of the parties to this Deed hereby agrees that for the purpose of
this Deed the following order of priorities shall apply to the Liabilities and
(save as agreed to the contrary in the Principal Intercreditor Deed) the
Finance Parties shall apply any monies received by them on account of the
Liabilities on or after the Enforcement Date in such order, including without
limitation all moneys derived from the Guarantees or the Security on or after
the Enforcement Date however realised:-

 

FIRST in or towards payment pari passu to:

 

(i)            the TCN Group Security Trustee in respect of any amounts payable to it
in its personal capacity (and all interest thereon as provided for in the TCN
Group Finance Documents) and any Receiver, attorney or agent under or in connection
with this Deed or any of the TCN Group Security Documents (including without
limitation, in connection with the perfection, preservation or enforcement of
the Security); and

 

(ii)           the Target Group Security Trustee in respect of
any amounts payable to it in its personal capacity (and all interest thereon as
provided for in the Target Group Finance Documents) and any Receiver, attorney
or agent under or in connection with this Deed or any of the Target Group
Security Documents (including without limitation, in connection with the
perfection, preservation or enforcement of the Security);

 

SECOND in payment and discharge of the TCN Group Pari
Passu Debt and the Target Group Pari Passu Debt on a Pari Passu Basis;

 

THIRD in payment and discharge of any TCN Group Debt
and/or Target Group Debt not repaid and discharged in full pursuant to the
FIRST paragraph; and

 

FOURTH the balance thereof to the person next entitled
under the Principal Intercreditor Deed or otherwise.

 

3.2          Priorities not affected

 

The order of priorities set out in Clause 3.1 shall apply
irrespective of (a) the date on which this Deed or any of the Finance Documents
was executed, registered or notice thereof was given to any person and (b)
except where such reduction, increase, amendment or variation is undertaken in
breach of this Deed, any reduction or increase in any of the TCN Group Debt or
the Target Group Debt or any amendment or variation of any of the TCN Group
Finance Documents or the Target Group Finance Documents.

 

234

 

3.3          Liabilities not affected

 

Each of the parties to this Deed hereby agrees that notwithstanding any
term of this Deed, the TCN Group Debt and the Target Group Debt shall, as
between the member of the Group by whom it is owed and the Finance Party to
whom it is owed, remain owing in accordance with the terms of the TCN Group
Finance Documents or the Target Group Finance Documents, as the case may be,
and interest and default interest will accrue accordingly.

 

3.4          Sharing

 

Each of the Finance Parties agrees to ensure that the order of
application referred to in Clause 3.1 is observed by making payments in
accordance with Clause 4.1 and, with respect to any such payment, as between
the party making such payment and the relevant member of the Group such payment
shall be treated as not having been received by the party making such payment.

 

3.5          Refunds

 

For the purposes of this Clause 3, none of the Finance Parties shall be
treated as having received an amount if it is required to repay such amount
because of any law or provision relating to insolvency or liquidation.

 

3.6          Receipts by insolvency
practitioners

 

Monies received by an administrator, receiver, administrative receiver,
examiner or similar officer (however appointed) of any member of the Group
(after payment of his remuneration and receivership expenses and after
providing for all costs, charges, expenses and liabilities and other payments
ranking in priority to the Finance Parties) whether under any of the Security or
otherwise shall be applied in accordance with the terms of this Clause 3.

 

4.             TURNOVER

 

4.1          Turnover

 

Each Finance Party (other than the TCN Group Security Trustee) agrees to
make any payments required to be made by it to comply with Clause 3.1 to the TCN
Group Security Trustee who shall distribute any payments made to it in
accordance with the terms of this Deed and due to any of the TCN Group Finance
Parties in accordance with the TCN Group Finance Documents and who shall
distribute any payments due to any of the Target Group Finance Parties to the
Target Group Security Trustee.

 

4.2          Undertaking to the TCN Group
Security Trustee

 

Each Finance Party and each member of the Group party to this Deed gives
the following undertakings to the TCN Group Security Trustee:

 

(a)           it shall provide the TCN Group Security Trustee with all directions and
information as the TCN Group Security Trustee may reasonably require for the
purposes of carrying out its duties and obligations under this Clause 4; and

 

(b)           it shall not take any proceedings or seek to assert any claim against
any director, officer, employee or agent of the TCN Group Security Trustee in
respect of any claim it might have against the TCN Group Security Trustee or in
respect of any act or omission of any kind (including gross negligence or
wilful misconduct) by that director, officer, employee or agent in relation to
any Finance Document,

 

235

 

and acknowledges that the TCN Group Security Trustee has entered into
this Deed in reliance on the undertakings set out in this Clause 4.2.

 

5.             ENFORCEMENT OF SECURITY

 

5.1          Enforcement of Security

 

Except as expressly agreed in the deeds and instruments referred to
Clause 2, or in any other agreement entered into by or for the benefit of the
TCN Group Finance Parties and the Target Group Finance Parties, none of the TCN
Group Finance Parties shall, without the prior written consent of the Target
Group Agent and none of the Target Group Finance Parties shall, without the
prior written consent of the TCN Group Agent, exercise its power of sale or any
other power over any part of the undertaking, property, assets or revenues of
any member of the Group subject to the Security or otherwise have recourse to
the same except through an administrator, receiver, administrative receiver,
examiner or similar officer appointed pursuant to Clause 5.2 below.

 

5.2          Consultation

 

Subject to Clause 5.3, if any TCN Group Finance Party wishes to appoint
an administrator, receiver, administrative receiver, examiner or similar
officer to any member of the Group or to exercise its power of sale or
otherwise enforce any of the Security, it shall promptly inform the Target
Group Agent of its intention and if any Target Group Finance Party wishes to
appoint any such officer to any member of the Group or to exercise its power of
sale or otherwise enforce any of the Security, it shall promptly inform the TCN
Group Agent of its intention.  The
Finance Parties shall endeavour to agree on the method by which the Security
shall be enforced, and where appropriate, upon a suitable person to be
appointed as such officer and shall co-operate with each other in realising the
assets secured in their favour and in ensuring that the net proceeds, after
deduction of the expenses of realisation, are paid in accordance with the
provisions of this Deed.  No member of
the Group shall have any right to be consulted in relation to any enforcement
or other action by any of the Finance Parties in relation to the Finance
Documents.

 

5.3          Appointment of Insolvency
Practitioner

 

(a)           Notwithstanding the provisions of Clause 5.2 any Finance Party may
appoint an administrator, receiver, administrative receiver, examiner or
similar officer to any member of the Group without notice to the relevant
Facility Agent where the appointor reasonably believes that the immediate
appointment of such officer is necessary to protect the interests of the
Finance Parties in respect of the Security. 
As soon as practicable thereafter the appointor shall inform the
relevant Facility Agent of such appointment and shall consult with the relevant
Facility Agent with a view to the retention in office of such officer or (if
not agreed) to the appointment of others to act jointly with him.

 

(b)           To the extent permitted under applicable law, each of the members of the
Group which are party to this Deed waives all rights it may otherwise have to
require that any Guarantee or Security be enforced in any particular order or
manner or at any particular time or that any sum received or recovered from any
person, or by virtue of the enforcement of any of any Guarantee or Security or
of any other security interest, which is capable of being applied in or towards
discharge of any of the Liabilities is so applied.

 

236

 

6.             DISPOSALS AND CLAIMS

 

6.1          Disposal after Enforcement
Action

 

If any assets are properly sold or otherwise disposed of in compliance
with the provisions of this Deed and the relevant Security by a Finance Party
(or by a member of the Group at the request of a Finance Party) either as a
result of the enforcement of the Security or a disposal by a member of the
Group after any Enforcement Action, to the extent necessary to enable such
assets to be disposed of free of the Security, each Security Trustee shall
release those assets from the Security and shall execute or enter into, on
behalf of and, without the need for any further authority from any of the
Finance Parties:

 

(a)           any release of the Security or any other claim over that asset; and

 

(b)           if the asset which is disposed of consists of all of the shares (which
are held by a member of the Group) in the capital of a member of the Group or
any holding company of a member of the Group, any release of such member of the
Group or holding company and any subsidiary of such member of the Group or
holding company from all liabilities it may have to any Finance Party, both
actual and contingent in its capacity as a guarantor or borrower (including any
guarantee or liability arising under or in respect of any Finance Document) and
a release of any Security granted by such member of the Group or holding
company and any subsidiary of such member of the Group or holding company over
any of its assets under any of the Security.

 

6.2          Releases

 

The Finance Parties shall execute any assignments, transfers, releases
or other documents that each Security Trustee may consider to be necessary to
give effect to these releases or disposals provided that
the proceeds of those disposals or claims are applied as if they were the
proceeds of enforcement of the Security.

 

7.             CERTAIN PAYMENTS

 

7.1          Revolving Facilities

 

Any revolving or similar facility comprising a portion of the TCN Group
Facilities or Target Group Facilities shall be repaid and utilised so that:

 

(a)           on the date of this Deed, there shall be borrowings and repayments of
outstandings under all such revolving facilities such that the amounts
thereunder shall be outstanding on a Pari Passu Basis; and

 

(b)           all borrowings and repayments shall be effected across all such
revolving facilities such that the amounts thereunder shall always remain
outstanding on a Pari Passu Basis;

 

and provided further that:

 

(c)           no member of the TCN Group shall voluntarily cancel any commitments
under any revolving or similar facility made available as part of the TCN Group
Facilities unless a corresponding voluntary cancellation calculated on a Pari
Passu Basis is made by a member of the Target Group to any revolving or similar
facility made available as part of the Target Group Facilities in accordance
with paragraph (f) below;

 

237

 

(d)           no member of the Target Group shall voluntarily cancel any commitments
under any revolving or similar facility made available as part of the Target
Group Facilities unless a corresponding voluntary cancellation calculated on a
Pari Passu Basis is made by a member of the TCN Group to any revolving or
similar facility made available as part of the TCN Group Facilities in
accordance with paragraph (f) below;

 

(e)           any cancellations required to be made under paragraphs (c) or (d) above
shall be made in the manner determined by the relevant Credit Agreement or, if
the relevant Group member is permitted a discretion in determining when such
cancellation is made, such cancellation shall be made within 10 Business Days
of the corresponding cancellation;

 

(f)            in the event any mandatory reductions to unutilised commitment are
required to be made under any revolving or similar facility under one of the
Facilities, the borrowers of any revolving or similar facility under the other
Facilities shall make a voluntary reduction to the commitment under any
revolving or similar facility under the other Facilities such that the
commitments under both facilities are on a Pari Passu Basis.

 

7.2          Voluntary Prepayments of Term
Facilities

 

(a)           Except as otherwise provided in the Principal Intercreditor Deed, no
member of the TCN Group shall make any voluntary prepayment of the TCN Group
Facilities unless a corresponding amount calculated on a Pari Passu Basis is
applied by a member of the Target Group in voluntary prepayment of the Target
Group Facilities in accordance with paragraphs (c) and (d) below.

 

(b)           No member of the Target Group shall make any voluntary prepayment of the
Target Group Facilities unless a corresponding amount calculated on a Pari
Passu Basis is applied by a member of the TCN Group in voluntary prepayment of
the TCN Group Facilities in accordance with paragraphs (c) and (d) below.

 

(c)           Any prepayment required to be made under paragraph (a) or (b) above
shall be applied in repayment of the relevant tranches of the Facilities in the
manner determined by the relevant Credit Agreement, or if the relevant Group
member is permitted a discretion in determining which of such tranches is
repaid by such payment, in accordance with that Group member’s discretion.

 

(d)           Any prepayment required to be made under paragraph (a) or (b) above
shall be applied upon the dates determined by the relevant Credit Agreement, or
if the relevant Group member is permitted a discretion in determining the date
upon which such Facilities are repaid, shall be applied on such date or dates
immediately after the corresponding prepayment as will minimise any break costs
payable under the relevant Facilities.

 

7.3          Certain Mandatory Prepayments
of Facilities

 

The following proceeds required to be applied in mandatory prepayments
under the Facilities shall be applied as follows:

 

(a)           to the extent any specified percentage of the proceeds of equity raised
by any member of the Group (which is not a member of the TCN Group or Target
Group) is required to be applied to repay the Facilities under the Credit
Agreements an amount calculated by applying the higher of the applicable
percentages specified in the Credit Agreements (if such percentages differ) to
the proceeds of equity raised by such member of the Group shall be applied to
prepay outstandings under the TCN Group 

 

238

 

Facilities on one hand and the
Target Group Facilities on the other hand on a Pari Passu Basis,

 

(b)           to the extent any specified percentage of the proceeds of financial
indebtedness incurred by members of the Group which are not members of the TCN
Group or Target Group is required to be applied to repay Facilities under the
Credit Agreements an amount calculated by applying the higher of the applicable
percentages specified in the Credit Agreements (if such percentages differ) to
the proceeds of financial indebtedness incurred by such member of the Group
shall be applied to prepay outstandings under the TCN Group Facilities on one
hand and the Target Group Facilities on the other hand on a Pari Passu Basis,

 

(c)           any proceeds of disposals or insurance recoveries or similar
transactions made by any member of the Group and which are required to be
applied to repay the Facilities under the Credit Agreements shall be applied
only in repayment of the Facilities made available to members of the part of
the Group to which the Group member receiving those proceeds or recoveries
belonged immediately prior to the Integrated Merger Event (or, if such person
was not a member of any part of the Group at the date of the Integrated Merger
Event, in repayment of the Facilities made available to that part of the Group
to which such person would have belonged had the Integrated Merger Event not
occurred), and

 

(d)           any proceeds constituted by excess cash flow generated by any member of
the TCN Group or the Target Group or book debts subject to any securitisation
or factoring transaction and required to be repaid under, or in cancellation
of, the TCN Group Facilities or the Target Group Facilities under the relevant
Credit Agreement, as the case may be shall be applied only in repayment or
cancellation of the Facilities made available to members of the part of the
Group to which the Group member generating such book debts belonged immediately
prior to the Integrated Merger Event (or, if such person was not a member of
any part of the Group at the date of the Integrated Merger Event, in repayment
of the Facilities made available to that part of the Group to which such person
would have belonged had the Integrated Merger Event not occurred).

 

7.4          Conflict

 

To the extent any member of the Group complies with the provisions of
this Clause 7 it shall be deemed to be in compliance with any provisions
relating to mandatory prepayments of any proceeds referred to in this Clause 7
under the TCN Group Credit Agreements or Target Group Credit Agreement and
related finance documents and, for the avoidance of doubt, any cashflow
generated by any member of the Target Group shall not count in the calculation
of Consolidated TCN Group Cash Flow under any TCN Group Credit Agreement (as
defined therein) for the purposes of any provisions therein relating to
mandatory repayment from excess cash flow.

 

8.             CHANGES TO FINANCE DOCUMENTS

 

Irrespective of the terms of the Finance Documents, no Finance Party
shall:

 

(a)           increase the principal amount of the Facilities, other than by the
rolling-up or capitalisation of interest (if relevant) (by reference to the
amount thereof as at the date of the Deed);

 

(b)           increase the rate of interest, fees or commission applicable to the
Facilities (save for any increase in interest or commission happening
automatically under the terms of the

 

239

 

Credit Agreements as in place
on the date of this Deed or any waiver or amendment fee provided that any such
fee is applied on a Pari Passu Basis between the Facilities),

 

unless in the case of any such increase in respect of the TCN Group
Facilities or the TCN Group Finance Documents, the consent of a Target Group Instructing
Group has been obtained and unless such consent has been confirmed in writing
by the Target Group Agent to the TCN Group Agent, and, in the case of any such
increase in respect of the Target Group Facilities or the Target Group Finance
Documents, unless the consent of a TCN Group Instructing Group has been
obtained and unless such consent has been confirmed in writing by the TCN Group
Agent to the Target Group Agent.

 

9.             MISCELLANEOUS

 

9.1          Waiver of defences

 

Without prejudice to Clause 8 of this Deed, the provisions of this Deed
will not be affected by an act, omission, matter or thing which, but for this
Clause, would reduce, release or prejudice the subordination and priorities in
this Deed including:

 

(a)           any time, waiver or consent granted to, or composition with any person;

 

(b)           the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, any member of the Group or any non-presentation or
non-observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any Security in each
case prior to the Enforcement Date;

 

(c)           any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of any person;

 

(d)           any amendment (however fundamental) or replacement of a Finance Document
or any other document or security;

 

(e)           any unenforceability, illegality or invalidity of any obligation of any
person under any Finance Document or any other document or security; or

 

(f)            any intermediate payment or discharge of any of the Liabilities in whole
or in part.

 

9.2          Priorities not affected

 

Except as otherwise provided in this Deed the priorities referred to in
Clause 3 will:

 

(a)           not be affected by any amendment or variation to any of the Finance
Documents, or by any variation or satisfaction of, any of the Liabilities;

 

(b)           apply regardless of the order in which or dates upon which the Finance
Documents and this Deed are executed or registered or notice of them is given
to any person;

 

(c)           secure the Liabilities in the order specified, regardless of the date
upon which any of the Liabilities arise or of any fluctuations in the amount of
any of the Liabilities outstanding; and

 

(d)           not postpone or subordinate the Liabilities (or any part thereof) to any
other liabilities of any member of the Group.

 

240

 

9.3          Dealing with Purchaser

 

No purchaser dealing with any Finance Party or any administrator,
receiver, administrative receiver, examiner or similar officer appointed by any
Finance Party shall be concerned in any way with the provisions of this Deed
but shall assume that, the relevant Finance Party or any such administrator,
receiver, administrative receiver, examiner or similar officer as the case may
be are acting in accordance with the provisions of this Deed.

 

9.4          No effect

 

Nothing contained in this Deed shall prejudice or affect the rights of
any Finance Party under any guarantee, lien, bill, note, charge or other
security from any party other than any member of the Group now or hereafter
held by it in respect of any Liabilities. 
Each Finance Party may (without limitation) apply any moneys recovered
under such guarantee, lien, bill, note, charge or other security in or towards
payment of any Liabilities or may hold such moneys in a suspense account for
such period as it may in its absolute discretion think fit.

 

9.5          Noting

 

The parties to this Deed apply to the Registrar to note, in the
appropriate manner, at H.M. Land Registry the priority arrangements agreed in
this Deed in so far as the same affect any registered land subject to the
Security.

 

9.6          Appropriation

 

If the total liability of members of the Group to the TCN Group Finance
Parties or the Target Group Finance Parties exceeds the TCN Group Pari Passu
Debt or the Target Group Pari Passu Debt respectively, the TCN Group Finance
Parties and the Target Group Finance Parties shall be entitled to determine
conclusively what part of such total liability shall be comprised in their own
Pari Passu Debt and what part shall be deemed not to be so comprised.

 

9.7          Consent

 

The TCN Group Finance Parties and the Target Group Finance Parties
hereby consent to the creation of the Guarantees and Security granted in each
others favour.

 

9.8          Conflicts

 

To the extent the TCN Group Security and the Target Group Security
empowers any TCN Group Finance Party and any Target Group Finance Party to
exercise a discretion in relation to the subject matter of such Security, the
TCN Group Finance Party may exercise such discretion in relation to any
Security granted by a member of the TCN Group which is not a member of the
Target Group and the Target Group Finance Party may exercise such discretion in
relation to any Security granted by a member of the Target Group which is not a
member of the TCN Group.

 

10.          LOSS SHARING

 

10.1         If for any reason after the distribution of the
monies referred to in Clause 3.1 any of the TCN Group Liabilities remain
undischarged and any resulting losses are not being borne by the TCN Group
Finance Parties pro rata to the amount which their respective commitments bore
to the total commitments as at the Enforcement Date, the TCN Group Finance
Parties shall make such payments between themselves as the TCN Group Agent
shall require to ensure that 

 

241

 

after taking into account such
payments such losses are borne by the TCN Group Finance Parties pro rata to
their commitments under the TCN Group Credit Agreements.

 

10.2         For the purpose of this Clause 10, (i) the
total commitments under the TCN Group Credit Agreements will be notionally
increased by an aggregate amount calculated in accordance with Schedule 5 (Notional Amount of Hedging Liabilities) with respect to any
Hedging Counterparty’s interest in the Hedging Liabilities on the Enforcement
Date and (ii) each Hedge Counterparty (if also a TCN Group Lender) shall be
deemed to have the aggregate amount of its commitments increased by, or (if it
is not a TCN Group Lender), to have a commitment in, the amount calculated in
accordance with Schedule 5 (Notional Amount of Hedging
Liabilities) with respect to the Hedging Liabilities owed to it.

 

10.3         If for any reason after the distribution of the
monies referred to in Clause 3.1 any of the Target Group Liabilities remain
undischarged and any resulting losses are not being borne by the Target Group
Finance Parties pro rata to the amount which their respective commitments bore
to the total commitments as at the Enforcement Date, the Target Group Finance
Parties shall make such payments between themselves as the Target Group Agent
shall require to ensure that after taking into account such payments such
losses are borne by the Target Group Finance Parties pro rata to their
commitments under the Target Group Credit Agreement.

 

10.4         For the purpose of this Clause 10, (i) the
total commitments under the Target Group Credit Agreement will be notionally
increased by an aggregate amount calculated in accordance with Schedule 5 (Notional Amount of Hedging Liabilities) with respect to any
Hedging Counterparty’s interest in the hedging liabilities on the Enforcement
Date and (ii) each Hedge Counterparty (if also a Target Group Lender) shall be
deemed to have the aggregate amount of its commitments increased by, or (if it
is not a Target Group Lender), to have a commitment in, the amount calculated
in accordance with Schedule 5 (Notional Amount of Hedging
Liabilities) with respect to the hedging liabilities owed to it.

 

11.          ACKNOWLEDGEMENTS

 

Each of the member of the Group joins in this Deed for the purpose of
acknowledging the priorities recorded in this Deed and undertakes with each
Lender, each Facility Agent and each Security Trustee to observe the provisions
of this Deed at all times.

 

12.          CHANGE OF PARTY

 

12.1        Change of Party

 

No party to this Deed may assign any of its rights and benefits or
transfer any of its rights, benefits and obligations in respect of any Finance
Documents or the Liabilities except as permitted by this Clause 11.

 

12.2        Change of Lender

 

A TCN Group Lender or Target Group Lender may assign any of its rights
and benefits or transfer any of its rights, benefits and obligations in respect
of any Finance Documents or the Liabilities if that assignment or transfer is
in accordance with the terms of the Credit Agreement to which it is a party and
any assignee or transferee has executed and delivered to each Facility Agent an
Accession Deed.

 

242

 

12.3        Change of Facility Agent

 

Any person which becomes a Facility Agent in accordance with the terms
of the relevant Credit Agreement, shall at the same time accede to this Deed by
executing and delivering to the other Facility Agent an Accession Deed.

 

12.4        Change of Security Trustee

 

Any person which becomes a Security Trustee in accordance with the terms
of the relevant Finance Documents shall at the same time accede to this Deed by
executing and delivering to the TCN Group Agent (in the case of a new Target
Group Security Trustee) or to the Target Group Agent (in the case of a new TCN
Group Security Trustee) an Accession Deed.

 

12.5        Bank Accession Undertaking

 

With effect from the date of acceptance by the Facility Agents or
relevant Facility Agent (as the case may be) of an Accession Deed (which shall
in each case be accepted as soon as reasonably practicable after receipt by it
of a duly completed an Accession Deed) or, if later the date specified in that
Accession Deed:

 

(a)           any party ceasing entirely to be a Lender or Facility Agent or Security
Trustee  or other Finance Party shall be
discharged from further obligations towards the other parties under this Deed
and their respective rights against one another shall be cancelled (except in
each case for those rights which arose prior to that date); and

 

(b)           as from that date, the replacement or new Lender or Facility Agent or
Security Trustee or other Finance Party shall assume the same obligations, and
become entitled to the same rights, as if it had been an original party to this
Deed in such capacity.

 

12.6        New member of the
Group

 

(a)           If any subsidiary of any member of the TCN Group (which is not also a
member of the Target Group) or any member of the Target Group gives any
security, guarantee, indemnity or other assurance against loss in respect of
any of the Liabilities or otherwise becomes liable in respect of any
Liabilities, the other members of the Group party to this Deed will procure
that the person giving that assurance  or
becomes so liable becomes a party to this Deed as a TCN Group Obligor or Target
Group Obligor (as the case may be) by executing and delivering to each Facility
Agent an Accession Deed.

 

(b)           With effect from the date of acceptance by each Facility Agent of an
Accession Deed (which shall in each case be accepted as soon as reasonably
practicable after receipt thereof) or, if later the date specified in the
Accession Deed, the relevant member of the TCN Group or Target Group (as the
case may be) shall assume the same obligations and become entitled to the same
rights as if it had been an original party to this Deed as a TCN Group Obligor
or Target Group Obligor (as the case may be).

 

12.7        Refinancing

 

If the facilities made available under the TCN Group Credit Agreement or
the Target Group Credit Agreement are refinanced the Borrower may designate any
credit agreement under which facilities are made available to refinance such
Credit Agreement as a new TCN Group Credit Agreement or Target Group Credit
Agreement (as the case may be) and the parties to this Deed shall accept any
Accession Deeds necessary to allow the finance parties party to 

 

243

 

such new Credit Agreement to assume the same rights and obligations as
the Finance Parties party to the Credit Agreement being refinanced have under
this Deed.

 

13.          NOTICES

 

13.1        Communication of Notices

 

Each communication to be made hereunder shall be made in writing and
unless otherwise stated shall be made by fax or letter.

 

13.2        Delivery of Notices

 

Any communication or document to be made or delivered by one person to
another pursuant to this Deed shall (unless that other person has by 10
Business Days’ prior written notice to the TCN Group Agent and the Target Group
Agent specified another address) be made or delivered to that other person at
the address specified in respect of such person on the signing pages of this
Deed or, in the case of any other person becoming party hereto after the date
hereof, in the Deed of Accession or other acceding or amendment and restatement
document executed by it and shall be deemed to have been made or delivered when
dispatched (in the case of any communication made by fax) or (in the case of
any communication made by letter) when left at that address or (as the case may
be) five Business Days after being deposited in the post, postage prepaid, in
an envelope addressed to it at that address provided that any communication or
document to be made or delivered to the TCN Group Senior Agent or the Target
Group Agent shall be effective only when received by the TCN Group Senior Agent
or the Target Group Agent, as the case may be, and then only if the same is
expressly marked for the attention of the department or officer identified with
its signature below (or such other department or officer as the TCN Group
Senior Agent or the Target Group Agent, as the case may be, shall from time to
time specify for this purpose).

 

14.          REMEDIES, WAIVERS &
AMENDMENTS

 

14.1        No Waiver

 

No failure to exercise, nor any delay in exercising, on the part of any
Finance Party 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 herein
provided are cumulative and not exclusive of any rights or remedies provided by
law.

 

14.2        Partial Invalidity

 

If at any time any provision hereof is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, such
illegality, invalidity or unenforceability shall not affect or impair the
legality, validity or enforceability of the remaining provisions hereof or the
legality, validity or enforceability of such provision under the law of any
other jurisdiction.

 

14.3        Amendments

 

The TCN Group Agents and the Target Group Agent may, from time to time,
agree to amend this Deed and any amendments so made shall be binding on all the
parties hereto, provided that any amendment which would:

 

244

 

(a)           materially and adversely affect any rights of the TCN Group Finance
Parties or impose or vary any obligation on the TCN Group Finance Parties may
not be made without the prior written consent of a TCN Group Instructing Group;

 

(b)           materially and adversely affect the rights of the Target Group Finance
Parties or impose or vary any obligation on the Target Group Finance Parties,
may not be made without the prior written consent of a Target Group Instructing
Group;

 

(c)           adversely affect any right, or impose or vary any obligation, of any
other party hereto may not be made without the consent of that party.

 

15.          ENGLISH LANGUAGE

 

Each communication and document made or delivered by one person to
another pursuant to this Deed shall be in the English language or accompanied
by a translation thereof into English certified (by an officer of the person
making or delivering the same) as being a true and accurate translation thereof.

 

16.          THIRD PARTY RIGHTS

 

It is agreed that otherwise than in circumstances where the requirements
of this Deed with regard to assignments and transfers are satisfied, a person
who is not a party to this Deed shall have no rights to enforce any of the terms
or provisions of this Deed other than those it would have had if the Contracts
(Rights of Third Parties) Act 1999 had not come into force.

 

17.          COUNTERPARTS

 

This Deed may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

18.          GOVERNING LAW

 

This Deed is governed by, and shall be construed in accordance with,
English law.

 

19.          JURISDICTION

 

19.1        Courts of England

 

Each of the members of the Group party to this Deed and the Finance
Parties irrevocably agrees for the benefit of each of the Finance Parties that
the courts of England shall have exclusive jurisdiction to hear and determine
any suit, action or proceedings, and to settle any disputes, which may arise out
of or in connection with this Deed (respectively “Proceedings”
and “Disputes”) and,
for such purposes, irrevocably submits to the jurisdiction of such courts.

 

19.2        Waiver of Indemnity

 

Each of the members of the Group party to this Deed and the Finance Parties
irrevocably waives any objection which it might now or hereafter have to
Proceedings being brought or Disputes being settled in the courts of England
and agrees not to claim that any such court is an inconvenient or appropriate
forum.

 

19.3        Proceedings in Other
Jurisdictions

 

The submissions to the jurisdiction of the courts of England shall not
(and shall not be construed so as to) limit the right of any of the Finance
Parties to take Proceedings against any of the members of the Group or any
Finance Party in any other court of competent 

 

245

 

jurisdiction nor shall the taking of Proceedings in any one or more
jurisdictions preclude the taking of Proceedings in any other jurisdiction
(whether concurrently or not) if and to the extent permitted by applicable law.

 

19.4        General Consent

 

Each of the members of the Group and the Finance Parties hereby consents
generally in respect of any Proceedings to the giving of any relief or the
issue of any process in connection with such Proceedings including the making,
enforcement or execution against any property whatsoever (irrespective of its
use or intended use) of any order or judgement which may be made or given in
such Proceedings.

 

19.5        Waiver of Immunity

 

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

 

IN
WITNESS
whereof this Deed has been entered into the day and year first above written
and executed in the manner hereinafter appearing.

 

246

 

SCHEDULE 1

 

PART I - THE
TCN GROUP LENDERS

 

 

PART II - THE TARGET GROUP
LENDERS

 

247

 

SCHEDULE 2

 

PART I - TCN
GROUP OBLIGORS

 

 

PART II - TARGET GROUP
OBLIGORS

 

248

 

SCHEDULE 3

 

PART I - TCN
GROUP SECURITY

 

 

PART II - TARGET GROUP
SECURITY

 

249

 

SCHEDULE 4

 

DEED OF ACCESSION

 

This Deed of Accession dated [     ] is
supplemental to an intercreditor deed (the “Intercreditor
Deed”) dated [     ] 2004 between the TCN
Group Lenders, the TCN Group Hedge Counterparties, the TCN Group Agent, the TCN
Group Security Trustee, the Target Group Lenders, the Target Group Hedge
Counterparties, the Target Group Agent, the Target Group Security Trustee and
members of the Group (as each such term is defined therein) (as may be further
amended, supplemented, varied or novated from time to time).

 

Terms defined in the Intercreditor Deed shall have the same meaning when
used in this Deed.

 

[Name of new member of the Group/new Lender/new
Hedge Counterparty/new Facility Agent/new Security Trustee] of [address] hereby agrees with each other person who is or who
becomes a party to the Intercreditor Deed in accordance with the terms thereof
that with effect on and from the date hereof or on
[          ] it will be bound
by the Intercreditor Deed as [a member of the TCN
Group/Target Group/TCN Group Lender/Target Group Lender/TCN Group Hedge
Counterparty/Target Group Hedge Counterparty/TCN Group Agent/Target Group
Agent/TCN Group Security Trustee/Target Group Security Trustee] as
if it had been an original party to the Intercreditor Deed in such capacity.

 

Address for notices of [name of new member of the
Group etc.] for the purposes of Clause [   ] of
the Intercreditor Deed is:

 

Address:

 

Telephone Number:

 

Facsimile Number:

 

 

This Deed is governed by and shall be construed in accordance with
English law.

 

IN
WITNESS
whereof this Deed of Accession has been executed as a deed by the party hereto,
and is delivered on the date written above.

 

 

EXECUTED
AND DELIVERED AS A DEED by

[Name of Party]

 

	
  Agreed and Accepted by:

  
	
   

  
	
   

  	
   

  
	
  For and on behalf of

  
	
  [TCN Group Agent]

  
	
   

  
	
   

  	
   

  
	
  For and on behalf of

  
	
  [Target Group Agent]

  

 

250

 

SCHEDULE 5

 

NOTIONAL AMOUNT OF HEDGING LIABILITIES

 

For hedging transactions, the notional amount of the Liabilities in
relation to such transactions shall be the mark-to-market calculation of such
Liabilities as determined in accordance with the International Swap Derivatives
Association Inc. 1992 or 2002 Master Agreement (Multicurrency-Cross Border).

 

251

 

SCHEDULE 6

 

EXISTING TCN GROUP CREDIT FACILITIES

 

	
  TCN GROUP LENDERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory

  	
   

  
	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory

  	
   

  
	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TCN GROUP HEDGE COUNTERPARTY

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory

  	
   

  
	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  

 

252

 

	
  TCN GROUP AGENT

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory

  	
   

  
	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TCN GROUP SECURITY TRUSTEE

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Authorised Signatory

  	
   

  
	
  Authorised Signatory

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
  TARGET GROUP LENDERS

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  

 

253

 

	
  TARGET GROUP HEDGE COUNTERPARTY

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TARGET GROUP AGENT

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TARGET GROUP SECURITY TRUSTEE

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TCN GROUP

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  

 

254

 

	
  TARGET GROUP

  	
   

  
	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  
	
  [     ]

  	
  )

  
	
  acting by:

  	
  )

  
	
   

  	
   

  
	
  Director

  	
   

  
	
  Director/Secretary

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
  Fax No.

  	
   

  
	
  Attention of:

  	
   

  

 

255

 

SCHEDULE
14

 

HEDGING
AGREEMENTS

 

	
  Existing
  Hedge Counterparty/Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
  JPMorgan Chase Bank

  125 London Wall

  London EC2Y 5AJ

  

  Tel:                         +44(0)207 777 3250

  

  Fax:                         +44(0)207 777 3459

  

  Attention:              Mike Wharrad

  	
   

  	
  •      ISDA Master Agreement dated 15 July 2004 made
  between JP Morgan Chase Bank and TCN.

  •      Confirmation with trade date 20 July 2004
  relating to a fixed for floating rate swap with a notional amount of £256
  million.

  
	
   

  	
   

  	
   

  
	
  Calyon

  Broadwalk House

  5 Appold Street

  London EC2A 2DA

  Tel:                         +44(0)207 214 7009

   

  Fax:                         +44(0)207 214 7159

   

  Attention:              Steve Tubb

  	
   

  	
  •      ISDA Master Agreement dated 15 July 2004 made
  between Calyon and TCN

  •      Confirmation with trade date 21 July 2004
  relating to a fixed for floating rate swap with a notional amount of £322
  million.

  
	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland plc

  Corporate Restructuring Unit

  Specialised Lending Services

  10th Floor

  280 Bishopsgate

  London EC2M 4RB

  Tel:                         0207 672 0269/0207 672 1827

  Fax:                         0207 672 0324

  Attention:              Neil Wright / Mike Birch

  	
   

  	
  •      ISDA Master Agreement dated 15 July 2004 made
  between The Royal Bank of Scotland plc and TCN.

  •      Confirmation with trade date 19 July 2004
  relating to a fixed for floating rate swap with a notional amount of £355
  million.

  •      Confirmation with trade date 7 March 2002 relating
  to a fixed for floating rate swap with a notional amount of £100 million.

  
	
   

  	
   

  	
   

  
	
  The Bank of New York

  One Canada Square

  Canary Wharf

  London E14 5AL

  Tel:                         +44(0)207 570 0892

  Fax:                         +44(0)207 964 6034

  Attention:              Stuart Pitfieldand:

  Tel:                         +44(0)207 964 6533

  Fax:                         +44(0)207 964 6193

  Attention:              Jason Garwood

   

  With copy to:

  The Bank of New York

  Derivatives Desk

  Global Markets Division

  	
   

  	
  •      ISDA Master Agreement dated 15 July 2004 made
  between The Bank of New York and TCN.

  •      Confirmation with trade date 19 July 2004
  relating to a fixed for floating rate swap with a notional amount of £66
  million.

  

 

256

 

	
  Existing
  Hedge Counterparty/Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
  32 Old Slip

  15th Floor

  New York

  Tel:                         +1 (212) 804 2137

  Fax:                         +1 (212) 495 1015

  Attention:              James G. McAuliffe

  The Bank of New York

  Legal Department

  One Wall Street

  10th FloorNY 10286

  Tel:                         +1 (212) 635 1688

  Fax:                         +1 (212) 635 1958

  Attention:              General Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bayerische Landesbank Girozentrale

  acting through its London branch

  Bavaria House13/14

  Appold Street

  London EC2A 2NB

  Tel:                         +44 (0)207 955 5173

  Fax:                         +44 (0)207 247 0056

  Attention:              Loans Administration

  	
   

  	
  •       ISDA Master Agreement dated June 11, 2001
  made between Bayerische Landesbank Girozentrale and TCN.

  •       Confirmation with trade date 11 June 2001
  relating to a fixed for floating rate swap with a notional amount of £150
  million.

  
	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  Murray Bouse

  1 Royal Mint Court

  London EC3N 4HH

  Tel:                         +44 (0)171 696 2700

  Fax:                         +44 (0) 171 696 3228

  Attention:              Operations BZW Debt Capital Markets

  	
   

  	
  •       ISDA Master Agreement dated September 3, 1996
  made between Barclays Bank PLC and TCN.

  •       Confirmation with trade date 11 June 2001
  relating to a fixed for floating rate swap with a notional amount of £50
  million.

  •       Confirmation with trade date 11 June 2001
  relating to a fixed for floating rate swap with a notional amount of £100
  million.

  

 

257

 

SCHEDULE
15

 

VENDOR
FINANCING ARRANGEMENTS

 

	
  Lessor

  	
   

  	
  Type of Vendor

  Financing

  	
   

  	
  Closing Balance in GBP

  October 31,
  2004

  (UK GAAP)

  	
   

  
	
  HBOS – Bank
  of Scotland

  	
   

  	
  Switches

  	
   

  	
  (1,975,941

  	
  )

  
	
  Capital
  Asset Finance

  	
   

  	
  Vehicles

  	
   

  	
  (5,739

  	
  )

  
	
  Cisco

  	
   

  	
  Network Hardware

  	
   

  	
  (7,457,515

  	
  )

  
	
  GE Capital

  	
   

  	
  IT

  	
   

  	
  (1,190,623

  	
  )

  
	
  Hewlett Packard

  	
   

  	
  IT

  	
   

  	
  (42,718

  	
  )

  
	
  IBM

  	
   

  	
  Switches

  	
   

  	
  (4,230,611

  	
  )

  
	
  IBM

  	
   

  	
  IT

  	
   

  	
  (295,671

  	
  )

  
	
  Ing Car
  Lease

  	
   

  	
  Vehicles

  	
   

  	
  (937,341

  	
  )

  
	
  Interleasing

  	
   

  	
  Vehicles

  	
   

  	
  2,587

  	
   

  
	
  Lombard

  	
   

  	
  Vehicles

  	
   

  	
  (970,404

  	
  )

  
	
  Marshall

  	
   

  	
  Vehicles

  	
   

  	
  (10,433

  	
  )

  
	
  RBC-Royal
  Bank

  	
   

  	
  Switches

  	
   

  	
  (42,306,051

  	
  )

  
	
  The Royal
  Bank of Scotland

  	
   

  	
  Switches

  	
   

  	
  (28,286,706

  	
  )

  
	
  Capital Bank

  	
   

  	
  Vehicles

  	
   

  	
  (2,344,695

  	
  )

  
	
  Societe
  Europeenne des Satellites

  	
   

  	
  Transponders

  	
   

  	
  (21,068,814

  	
  )

  
	
  Crown Castle
  UK Limited

  	
   

  	
  Spectrum

  	
   

  	
  (16,385,440

  	
  )

  

 

258

 

SIGNATORIES

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  160 Great Portland Street

  
	
   

  	
  London

  
	
   

  	
  W1W 5QA

  
	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0) 20 7299 6400

  
	
   

  	
   

  
	
  With a copy to:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Telefax:

  	
  +44(0) 20 7299 5495

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE PARENT

  	
   

  
	
   

  	
   

  
	
  TELEWEST UK LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  160 Great Portland Street

  
	
   

  	
  London

  
	
   

  	
  W1W 5QA

  
	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7299 6400

  
	
   

  	
   

  
	
  With a copy to:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299 5495

  

 

 

THE MANDATED LEAD ARRANGERS

 

	
  BARCLAYS CAPITAL

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  5 The North Colonnade

  
	
   

  	
  Canary Wharf

  
	
   

  	
  London E14 4BB

  
	
   

  	
   

  
	
  Attention:

  	
  Neil McKenzie

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773 1840

  
	
   

  	
   

  
	
  Tel:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ François
  Artignan  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  10 Harewood Avenue

  
	
   

  	
  London NW1 6AA

  
	
   

  	
   

  
	
  Attention:

  	
  Louis Kenna / Claire Guglielmi

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7595 5019

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7595 2475 / 7595 4381

  
	
   

  	
   

  
	
   

  	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Citigroup Centre

  
	
   

  	
  33 Canada Square

  
	
   

  	
  Canary Wharf

  
	
   

  	
  London E14 5LF

  
	
   

  	
   

  
	
  Attention:

  	
  Michael Llewelyn - Jones

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7986 2331

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7986 5855

  

 

 

	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  
	
  By:

  	
  /s/
                      
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  1 Cabot Square

  
	
   

  	
  London E14 4QJ

  
	
   

  	
   

  
	
  Attention:

  	
  Kamlesh Vara (kamlesh.vara@csfb.com)

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7888 4155

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7888 8316

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Winchester House

  
	
   

  	
  1 Great Winchester Street

  
	
   

  	
  London EC2N 2DB

  
	
   

  	
   

  
	
  Attention:

  	
  Paul Gaines

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7545 4638

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7545 7191

  
	
   

  	
   

  
	
   

  	
   

  
	
  GE CAPITAL STRUCTURED FINANCE GROUP LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gaurav Raniwala

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  6-12 Clarges Street

  
	
   

  	
  London W1J8DH

  
	
   

  	
   

  
	
  Attention:

  	
  Gaurav Raniwala

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7302 6835

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7302 6326

  

 

 

	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  135 Bishopsgate

  
	
   

  	
  London EC2M 3UR

  
	
   

  	
   

  
	
  Attention:

  	
  Mike Cunningham

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7375 8549

  
	
   

  	
   

  
	
  Tel:

  	
  +44(0)20 7375 8941

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE FACILITY AGENT AND SECURITY TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  5 The North Colonnade

  
	
   

  	
  Canary Wharf

  
	
   

  	
  London E14 4BB

  
	
   

  	
   

  
	
  Attention:

  	
  Frank Rogers

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773 4893

  
	
   

  	
   

  
	
  Tel:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE US PAYING AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  5 The North Colonnade

  
	
   

  	
  Canary Wharf

  
	
   

  	
  London E14 4BB

  
	
   

  	
   

  
	
  Attention:

  	
  Frank Rogers

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773 4893

  
	
   

  	
   

  
	
  Tel:

  	
   

  

 

 

	
  THE ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
  GE CAPITAL STRUCTURED FINANCE GROUP LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gaurav Raniwala

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  6-12 Clarges Street

  
	
   

  	
  London W1J8DH

  
	
   

  	
   

  
	
  Attention:

  	
  Gaurav Raniwala

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7302 6835

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7302 6326

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE LENDERS

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BARCLAYS BANK PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  5 The North Colonnade

  
	
   

  	
  Canary Wharf

  
	
   

  	
  London E14 4BB

  
	
   

  	
   

  
	
  Attention:

  	
  John Atkinson

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773 1840

  
	
   

  	
   

  
	
  Tel:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ François
  Artignan  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  10 Harewood Avenue

  
	
   

  	
  London NW1 6AA

  
	
   

  	
   

  
	
  Attention:

  	
  Louis Kenna / Claire Guglielmi

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7595 5019

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7595 2475 / 7595 4381

  

 

 

	
  CITIBANK, N.A.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Citigroup Centre

  
	
   

  	
  33 Canada Square

  
	
   

  	
  London E14 5LB

  
	
   

  	
   

  
	
  Attention:

  	
  Jillian Hanley

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7942 7512

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7500 1093

  
	
   

  	
   

  
	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  
	
  By:

  	
  /s/
                      
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  1 Cabot Square

  
	
   

  	
  London E14 4QJ

  
	
   

  	
   

  
	
  Attention:

  	
  Kamlesh Vara (kamlesh.vara@csfb.com)

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7888 4155

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7888 8316

  
	
   

  	
   

  
	
   

  	
   

  
	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Winchester House

  
	
   

  	
  1 Great Winchester Street

  
	
   

  	
  London EC2N 2DB

  
	
   

  	
   

  
	
  Attention:

  	
  Paul Gaines

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7545 4638

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7545 7191

  

 

 

	
  GE CAPITAL STRUCTURED FINANCE GROUP LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gaurav Raniwala

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  6-12 Clarges Street

  
	
   

  	
  London W1J8DH

  
	
   

  	
   

  
	
  Attention:

  	
  Gaurav Raniwala

  
	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7302 6835

  
	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7302 6326

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Level 8

  
	
   

  	
  135 Bishopsgate

  
	
   

  	
  London EC2M 3UR

  
	
   

  	
   

  
	
  Attention:

  	
  Mike Cunningham/Gerard McHugh

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7375 8549

  
	
   

  	
   

  
	
  Tel:

  	
  +44(0)20 7375 8941

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE L/C BANK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  135 Bishopsgate

  
	
   

  	
  London EC2M 3UR

  
	
   

  	
   

  
	
  Attention:

  	
  Mike Cunningham

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7375 8549

  
	
   

  	
   

  
	
  Tel:

  	
  +44(0)20 7375 8941

  

 

 

	
  THE ORIGINAL GUARANTORS

  
	
   

  
	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS NETWORKS LIMITED

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  160 Great Portland Street

  
	
   

  	
  London

  
	
   

  	
  W1W 5QA

  
	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7299 6400

  
	
   

  	
   

  
	
  With a copy to:

  	
  Group Treasurer

  
	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299 5495

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
   

  

 

For an on behalf of

 

BIRMINGHAM
CABLE CORPORATION LIMITED

BIRMINGHAM
CABLE FINANCE LIMITED

BIRMINGHAM
CABLE LIMITED

CABLE CAMDEN
LIMITED

CABLE ENFIELD
LIMITED

CABLE HACKNEY
& ISLINGTON LIMITED

CABLE
HARINGEY LIMITED

CABLE LONDON
LIMITED

CENTRAL CABLE
HOLDINGS LIMITED

CRYSTAL
PALACE RADIO LIMITED

FILEGALE
LIMITED

GENERAL CABLE
GROUP LIMITED

GENERAL CABLE
HOLDINGS LIMITED

GENERAL CABLE
LIMITED

IMMINUS
LIMITED

MIDDLESEX
CABLE LIMITED

SHEFFIELD
CABLE COMMUNICATIONS LIMITED

SOUTHWESTERN
BELL INTERNATIONAL HOLDINGS LIMITED

TELEWEST
COMMUNICATIONS (CENTRAL LANCASHIRE) LIMITED

TELEWEST
COMMUNICATIONS (COTSWOLDS) LIMITED

TELEWEST
COMMUNICATIONS (DUNDEE & PERTH) LIMITED

TELEWEST
COMMUNICATIONS (LIVERPOOL) LIMITED

TELEWEST
COMMUNICATIONS (LONDON SOUTH) LIMITED

TELEWEST
COMMUNICATIONS (MIDLANDS AND NORTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (MIDLANDS) LIMITED

TELEWEST
COMMUNICATIONS (MOTHERWELL) LIMITED

TELEWEST
COMMUNICATIONS (NORTH EAST) LIMITED

TELEWEST
COMMUNICATIONS (NORTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

TELEWEST
COMMUNICATIONS (SCOTLAND) LIMITED

 

 

TELEWEST
COMMUNICATIONS (SOUTH EAST) LIMITED

TELEWEST
COMMUNICATIONS (SOUTH THAMES ESTUARY) LIMITED

TELEWEST
COMMUNICATIONS (SOUTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (ST. HELENS & KNOWSLEY) LIMITED

TELEWEST
COMMUNICATIONS (TYNESIDE) LIMITED

TELEWEST
COMMUNICATIONS (WIGAN) LIMITED

TELEWEST
COMMUNICATIONS CABLE LIMITED

TELEWEST
COMMUNICATIONS GROUP LIMITED

TELEWEST
COMMUNICATIONS HOLDINGS LIMITED

TELEWEST
COMMUNICATIONS (NOMINEES) LIMITED

TELEWEST
LIMITED

TELEWEST
PARLIAMENTARY HOLDINGS LIMITED

THE CABLE
CORPORATION LIMITED

THESEUS NO. 1
LIMITED

THESEUS NO. 2
LIMITED

WINDSOR
TELEVISION LIMITED

YORKSHIRE
CABLE COMMUNICATIONS LIMITED

THE YORKSHIRE
CABLE GROUP LIMITED

EUROBELL
(HOLDINGS) LIMITED

EUROBELL
(SUSSEX) LIMITED

EUROBELL
(SOUTH WEST) LIMITED

EUROBELL
(WEST KENT) LIMITED

EUROBELL
(IDA) LIMITED

EUROBELL
INTERNET SERVICES LIMITED

EUROBELL CPE
LIMITED

EUROBELL
LIMITED

EMS
INVESTMENTS LIMITED

EUROBELL
(NO.2) LIMITED

EUROBELL
(NO.3) LIMITED

EUROBELL
(NO.4) LIMITED

 

 

	
  The Colorado Limited Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  AVON CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  COTSWOLDS CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

 

	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  EDINBURGH CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  ESTUARIES CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

 

	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  UNITED CABLE (LONDON

  	
  )

  	
   

  	
   

  
	
  SOUTH) LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Colorado General Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  LONDON SOUTH CABLE

  PARTNERSHIP

  by its
  managing partner

  UNITED CABLE (LONDON SOUTH)

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  CRYSTAL PALACE RADIO LIMITED          

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TCI/US WEST CABLE

  COMMUNICATIONS GROUP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  

 

 

	
  English Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Avon Cable Joint Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  AVON CABLE

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (SOUTH WEST) LIMITED                

  	
  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Telewest Communications

  (London South) Joint Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  LONDON SOUTH CABLE

  PARTNERSHIP

  by its managing partner

  UNITED CABLE (LONDON

  SOUTH) LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (LONDON SOUTH) LIMITED

  	
  )

  )

  	
   

  	
   

  

 

 

	
  The Partners of Telewest Communications
  (Scotland)

  Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  EDINBURGH CABLE

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (SCOTLAND) LIMITED

  	
  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Telewest Communications
  (Cotswolds)

  Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  COTSWOLDS CABLE

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (COTSWOLDS) LIMITED

  	
  )

  )

  	
   

  	
   

  

 

 

	
  The Partners of Telewest
  Communications 

  (South East) Partnership

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  ESTUARIES CABLE

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (SOUTH EAST) LIMITED

  	
  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (SOUTH THAMES ESTUARY) LIMITED

  	
  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Telewest
  Communications 

  (North East) Partnership

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  LIMITED PARTNERSHIP

  by its general partner

  THESEUS NO.1 LIMITED

  

  

  and by its general partner

  THESEUS NO.2 LIMITED

  	
  )

  )

  )

  )

  

  

  )

  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (NORTH EAST) LIMITED 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  (TYNESIDE) LIMITED

  	
  )

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]