Document:

Exhibit 4.17

 

EXECUTION
VERSION

 

 

Dated
17 May 2010

 

 

COMPOSITE DEBENTURE

 

 

Between

 

 

THE COMPANIES LISTED IN SCHEDULE 1

as
Chargors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as
Security Trustee

 

 

TABLE
OF CONTENTS

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
  1

  
	
  2.

  	
  SECURED
  OBLIGATIONS

  	
  9

  
	
  3.

  	
  CHARGES

  	
  10

  
	
  4.

  	
  SET-OFF

  	
  15

  
	
  5.

  	
  UNDERTAKINGS

  	
  16

  
	
  6.

  	
  REAL
  PROPERTY: PERFECTION

  	
  18

  
	
  7.

  	
  FURTHER
  ASSURANCE

  	
  19

  
	
  8.

  	
  CERTAIN
  POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

  	
  20

  
	
  9.

  	
  APPOINTMENT
  AND POWERS OF RECEIVER OR ADMINISTRATOR

  	
  22

  
	
  10.

  	
  APPLICATION
  OF PROCEEDS; PURCHASERS

  	
  25

  
	
  11.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
  26

  
	
  12.

  	
  ENFORCEMENT

  	
  27

  
	
  13.

  	
  POWER
  OF ATTORNEY

  	
  28

  
	
  14.

  	
  CONTINUING
  SECURITY AND OTHER MATTERS

  	
  28

  
	
  15.

  	
  CURRENCIES

  	
  31

  
	
  16.

  	
  THE
  SECURITY TRUST AGREEMENT

  	
  32

  
	
  17.

  	
  MISCELLANEOUS

  	
  32

  
	
  18.

  	
  NOTICES

  	
  34

  
	
  19.

  	
  LAW
  AND JURISDICTION

  	
  35

  
	
  SCHEDULE 1 CHARGING COMPANIES

  	
  36

  
	
  SCHEDULE 2 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

  	
  37

  
	
   

  	
  Part 1
  Intercompany Indebtedness

  	
  37

  
	
   

  	
  Part 1A Form of Notice of
  Assignment

  	
  37

  
	
   

  	
  Part 1B Form of Acknowledgement
  of Assignment

  	
  39

  
	
   

  	
  Part 2
  Insurances

  	
  41

  
	
   

  	
  Part 2A Form of Notice of
  Assignment

  	
  41

  
	
   

  	
  Part 2B Form of Acknowledgement
  of Assignment

  	
  44

  
	
  SCHEDULE 3 DETAILS OF CHARGED LAND

  	
  45

  
	
   

  	
  Part 1
  PART 1A Registered Land

  	
  45

  
	
   

  	
  PART 1B
  Unregistered Land

  	
  45

  
	
  SCHEDULE 4 REGISTERED, INTELLECTUAL PROPERTY
  RIGHTS

  	
  46

  
	
  SCHEDULE 5 INTERCOMPANY LOANS

  	
  48

  

 

i

 

THIS COMPOSITE DEBENTURE is dated 17 May 2010 and
made

 

BETWEEN:

 

(1)                                 THE
COMPANIES whose
respective registered names, registered numbers and shareholders are set out in
Schedule 1 (the “Chargors”); and

 

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

 

WHEREAS:

 

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

 

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

 

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

 

(D)                               The board of directors of each
Chargor is satisfied that such Chargor is entering into this Deed for the
purposes of carrying on its business and that its doing so benefits such
Chargor.

 

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

 

NOW THIS DEED  WITNESSES
as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless
the context otherwise requires:

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

Facilities Agreement
has been designated as a Designated Refinancing Facilities Agreement, the “Relevant
Facilities Agreement” shall be the Designated Refinancing Facilities Agreement
immediately prior to such termination.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Senior
Facilities Agreement” means the senior facilities agreement dated 16
March 2010 (as amended, restated, supplemented or novated from time to
time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent,
Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited,
Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and
Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London
Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical
Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit
Agricole Corporate and 

 

5

 

Investment Bank, GE
Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC,
Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of
Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers,
Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London
Branch as Security Trustee and the financial and other institutions named in it
as Lenders;

 

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

 

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

 

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

 

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

 

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

 

1.2                                 Successors
and Assigns

 

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

 

1.3                                 Agreement
Definitions

 

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

 

1.4                                 Headings

 

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

 

6

 

1.5                                 Construction
of Certain Terms

 

In this Deed, unless
the context otherwise requires:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.6                                 Implied
Covenants

 

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

 

(a)                                  the covenants set out in
section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994
shall extend to Clauses 3.1 (Fixed Charge),
3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any 

 

7

 

charges, encumbrances or rights which that person does not and could not
reasonably be expected to know about”; and

 

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

 

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

 

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

 

1.7                                 Nominees

 

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

 

1.8                                 Third
Party Rights

 

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

 

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

 

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

 

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

 

1.9                                 Effect as
a Deed

 

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

 

1.10                           Group
Intercreditor Deed

 

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

 

8

 

1.11         Secured
Obligations

 

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

 

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

 

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

 

2.             SECURED
OBLIGATIONS

 

2.1           Covenant
to Pay

 

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

 

2.2           Statements
of Account

 

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

 

2.3           No
Security

 

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

 

2.4           Payments
by the Chargors

 

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

 

9

 

3.             CHARGES

 

3.1           Fixed
Charge

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(vii)         all of its rights, title, interests and benefits
in, to or in respect of all present and future licences, consents and
authorisations (statutory or otherwise) held in connection with the business of
such Chargor or the use of any asset of such Chargor and the right to recover
and receive 

 

10

 

all compensation which may at any time become payable to it in respect
of any such licence;

 

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

 

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

 

3.2           Assignments

 

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

 

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

 

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

 

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

 

3.3           Non-Assignable
Rights

 

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

 

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

 

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

 

3.4           Floating
Charge

 

Each Chargor with full
title guarantee hereby charges to the Security Trustee by way of first floating
charge and as a continuing security for the payment and discharge of the
Secured Obligations its undertaking and all its property, assets and rights
whatsoever and wheresoever both present and future, other than any property or
assets from time to time effectively charged by way of fixed charge or
assignment pursuant to Clauses 3.1 (Fixed Charge)
and 3.2 (Assignments) and including (without
limitation and whether or not so effectively charged) any of its property and
assets 

 

11

 

situated in Scotland,
provided that, for the avoidance of doubt, the floating charge shall not attach
to any plant or machinery, or any interest therein, which is the subject of a
lease where the title thereto vests in the relevant lessor and not such
Chargor.  The parties to this Deed agree
that the floating charge created by this Clause 3.4 is a qualifying
floating charge for the purposes of paragraph 14 of schedule B1 to the
Insolvency Act 1986.

 

3.5           Automatic
Conversion of Floating Charge

 

Notwithstanding
anything expressed or implied in this Deed, if:

 

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

 

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

 

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

 

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

 

3.6           Conversion
of Floating Charge by Notice

 

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

 

3.7           Subsequent
Encumbrances

 

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

 

12

 

and shall not operate
to reduce the amount due from that Chargor to such Beneficiary at the time when
it received such notice.

 

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

 

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

 

3.9           Blocking
of Accounts

 

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

 

3.10         Dividends
and Voting Rights

 

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

 

3.11         Consents
of Third Parties

 

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

 

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

 

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

 

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

 

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

 

13

 

3.12         Rule 3-16
Limitation

 

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

 

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

 

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

 

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

 

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

 

14

 

extent necessary to release the charge (but only to the extent securing
such Designated Secured Obligations and without prejudice to the charge
securing Secured Obligations referred to in paragraph (a)(ii) of this
Clause 3.12) in favour of the Security Trustee on the relevant Shares and/or
other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.             SET-OFF

 

4.1           Set-off

 

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

 

4.2           Purchase
of Currencies

 

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

 

15

 

5.             UNDERTAKINGS

 

5.1           Undertakings

 

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

 

(a)           Deposit of deeds

 

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

 

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

 

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

 

(b)           Calls, etc

 

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

 

(c)           Provision of information

 

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

 

(d)           Purchase of shares

 

not, save as otherwise
permitted or not restricted under each of the Senior Finance Documents,
(without the prior consent in writing of the Security Trustee) redeem or
purchase any of its own shares or pay any dividend, other than a dividend
permitted or not restricted to be paid under each of the Senior Finance
Documents;

 

(e)           Options

 

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

 

16

 

 

(f)            Notification

 

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

 

(g)           Reports

 

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

 

(h)           Notice of assignment

 

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

 

(i)            Insurances

 

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

 

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

 

(j)            Intellectual Property

 

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

 

5.2           Power to
Remedy

 

If any Chargor at any
time defaults in complying with any of its obligations contained in this Deed,
the Security Trustee shall, without prejudice to any other rights of the
Security Trustee arising as a consequence of such default, be entitled (but not
bound) to make good such default and such Chargor hereby irrevocably authorises
the Security Trustee and its employees and agents by way of security to do all
such things (including, without limitation, entering such Chargor’s property
having given such notice as is reasonable in the circumstances) necessary or
reasonably desirable in 

 

17

 

connection
therewith.  Any moneys so expended by the
Security Trustee shall be repayable by such Chargor to the Security Trustee
within 30 days of demand together with interest at the Default Rate from the
date being 30 days after the date of demand until such repayment, both before
and after judgment.  No exercise by the
Security Trustee of its powers under this Clause 5.2 shall make it or any
of the Beneficiaries liable to account as a mortgagee in possession.

 

6.             REAL PROPERTY:
PERFECTION

 

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

 

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

 

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

 

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

 

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

 

6.2           Notices
of Charge in respect of Charged Land

 

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

 

6.3           Real
Property: Delivery of Documents of Title

 

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

 

18

 

retain, all deeds, certificates and other documents of title relating to
such property.

 

(b)           No Chargor shall be in breach of this
Clause 6.3 if it does not deliver any such documents on account of its not
having possession of the same provided
that it uses all reasonable endeavours to obtain any such document and
delivers such document promptly to the Security Trustee upon receipt.

 

6.4           Land
Registration

 

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

 

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

 

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

 

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

 

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

 

7.             FURTHER
ASSURANCE

 

7.1           Further
Assurance

 

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

 

7.2           Certain
Documentary Requirements

 

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

 

19

 

clauses for the
benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

7.3           Specific
Security Documents Required

 

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

 

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

 

8.1           The
Investments

 

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

 

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

 

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

 

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

 

(d)           until the Enforcement Date the Security Trustee
will exercise all voting and other rights and powers attached to the
Investments which are given to it pursuant to the Trustee Act 1925 (as referred
to in Clause 8.1(a) of this Deed) or which relate to the Investments
which are transferred to it pursuant to Clause 8.1(b) as the relevant
Chargor may from time to time in writing direct provided that the Security
Trustee shall be under no obligation to comply with any such direction where
compliance would, in the Security Trustee’s reasonable opinion, be prejudicial
to the security created by this Deed or to the interests of the Beneficiaries
in relation to the relevant assets.

 

20

 

8.2           Power of
Sale

 

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

 

8.3           Statutory
Powers

 

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

 

8.4           Law of
Property Act

 

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

 

8.5           Statutory
Power of Leasing

 

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

 

8.6           Distributions

 

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

 

8.7           Realisation
Accounts

 

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

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

8.8           Right of
Appropriation

 

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

 

9.             APPOINTMENT
AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1           Appointment
of Administrator

 

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

 

9.2           Appointment
of Receivers

 

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

 

9.3           Receiver
as Agent

 

A Receiver shall be the
agent of the Chargor in respect of which he is appointed and (subject to the
provisions of this Deed) such Chargor shall be solely responsible for his acts
or defaults and for his remuneration.

 

22

 

9.4           Powers of
Receiver

 

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

 

(a)           Take possession

 

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

 

(b)           Carry on business

 

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

 

(c)           Borrow money

 

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

 

(d)           Dispose of assets

 

without the
restrictions imposed by section 103 Law of Property Act 1925 or the need
to observe any of the provisions of sections 99 and 100 of such Act, sell by
public auction or private contract, let, surrender or accept surrenders, grant licences
or otherwise dispose of or deal with all or any of the Charged Assets or concur
in so doing in such manner for such consideration and generally on such terms
and conditions as he may think fit with full power to convey, let, surrender,
accept surrenders or otherwise transfer or deal with such Charged Assets in the
name and on behalf of the Chargor concerned or otherwise and so that covenants
and contractual obligations may be granted and assumed in the name of and so as
to bind the such Chargor (or other estate owner) if he shall consider it
necessary or expedient so to do; any such sale, lease or disposition may be for
cash, debentures or other obligations, shares, stock, securities or other
valuable consideration and be payable immediately or by instalments spread over
such period as he shall think fit and so that any consideration received or
receivable shall ipso facto forthwith be and become charged with the payment of
all the Secured Obligations; plant, machinery and other fixtures may be severed
and sold separately from the premises 

 

23

 

containing them and the
Receiver may apportion any rent and the performance of any obligations
affecting the premises sold without the consent of such Chargor;

 

(e)           Form Subsidiaries

 

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

 

(f)            Compromise contracts

 

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

 

(g)           Repair and maintain assets

 

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

 

(h)           Appoint employees

 

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

 

(i)            Exercise statutory leasehold powers

 

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

 

(j)            Make calls and legal proceedings

 

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

 

24

 

(k)           Execute documents

 

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

 

(l)            Insolvency Act powers

 

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

 

(m)          General Powers

 

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

 

9.5           Remuneration of Receiver

 

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

 

10.           APPLICATION
OF PROCEEDS; PURCHASERS

 

10.1         Application
of Proceeds

 

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

 

10.2         Insurance
Proceeds

 

With the exception of
those moneys:

 

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

 

25

 

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

 

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

 

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

 

11.           INDEMNITIES;
COSTS AND EXPENSES

 

11.1         Enforcement Costs

 

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

 

11.2         No liability as Mortgagee in Possession

 

None of the
Beneficiaries, the Security Trustee or any Receiver shall be liable to account
as mortgagee or heritable creditor in possession in respect of all or any of
the Charged Assets or be liable for any loss upon realisation or for any
neglect or default of any nature whatsoever for which a mortgagee in possession
may be liable as such 

 

26

 

except in the case of
fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the
Security Trustee or a Receiver (as the case may be).

 

11.3         Indemnity from Charged Assets

 

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

 

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

 

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

 

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

 

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

 

11.4         Powers of the Security Trustee

 

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

 

12.           ENFORCEMENT

 

12.1         When Enforceable

 

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

 

12.2         Authority

 

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

 

27

 

13.           POWER OF
ATTORNEY

 

13.1         Power of Attorney

 

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

 

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

 

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

 

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

 

13.2         Ratification

 

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

 

13.3         General Power

 

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

 

14.           CONTINUING
SECURITY AND OTHER MATTERS

 

14.1         Continuing Security

 

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

 

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

 

28

 

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

 

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

 

14.2         Security Documents

 

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

 

14.3         New Accounts

 

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

 

14.4         Settlements Conditional

 

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

 

29

 

14.5         No Release

 

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

 

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

 

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

 

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

 

14.6         Restriction of the Chargors’ Rights

 

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

 

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

 

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

 

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

 

(d)           claim any set-off or
counter-claim in respect of any such obligations or liabilities against any
other Security Provider or claim or prove in competition with the Security
Trustee or any of the Beneficiaries in the bankruptcy, liquidation or
administration of any other Security Provider or have the benefit of, or share
in, any payment from or composition with any Security Provider or other
Security Document now or hereafter held by the Security Trustee or any of the
Beneficiaries for any obligations or liabilities of any Security 

 

30

 

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

 

14.7         Recoveries by the Chargor

 

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

 

14.8         Treatment of “claims”

 

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

 

15.           CURRENCIES

 

15.1         Conversion of Currencies

 

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

 

15.2         Currency Indemnity

 

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

 

31

 

16.           THE
SECURITY TRUST AGREEMENT

 

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

 

17.           MISCELLANEOUS

 

17.1         Exchange
of Information

 

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

 

17.2         Remedies
Cumulative

 

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

 

17.3         Representations
and Warranties

 

Each Chargor represents
and warrants to the Security Trustee that:

 

(a)           Shareholders

 

that it has as its
shareholders those persons set out in Schedule 1 (Charging
Companies) and no others;

 

(b)           Assets charged

 

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

 

(c)           Repetition

 

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

 

32

 

17.4         No Breach
of Memorandum and Articles of Association

 

It is hereby certified
by each Chargor that neither the execution of this Deed nor the creation of the
charges contained in this Deed contravenes any of the provisions of the
Memorandum and Articles of Association of such Chargor (as the case may be).

 

17.5         Statutory
Power of Leasing

 

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

 

17.6         Successors

 

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

 

17.7         Consolidation

 

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

 

17.8         Reorganisation

 

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

 

17.9         Unfettered Discretion

 

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

 

17.10       Provisions Severable

 

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

 

33

 

17.11       Law of Property (Miscellaneous Provisions) Act
1989

 

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

 

17.12       No Assignment by the Chargors

 

None of the Chargors
may assign or transfer any of its rights or obligations under this Deed.

 

17.13       Joint and Several Liabilities

 

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

 

17.14       Liabilities Survive Deficiencies and Releases

 

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

 

17.15       Letters of Non-crystallisation

 

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

 

17.16       Release

 

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

 

18.           NOTICES

 

18.1         Mode of Service

 

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

 

34

 

18.2         Notices Conclusive

 

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

 

19.           LAW AND
JURISDICTION

 

19.1         Governing Law

 

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

 

19.2         Submission to Jurisdiction

 

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

 

19.3         Inconvenient Forum

 

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

 

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

 

35

 

SCHEDULE 1

 

CHARGING COMPANIES

 

	
  COMPANY
  NAME

  	
   

  	
  COMPANY 

  NUMBER

  	
   

  	
  NAME OF 

  SHAREHOLDER(S)

  	
   

  	
  NO. OF SHARES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Cable Investments Limited

  	
   

  	
  02885920

  	
   

  	
  General Cable Limited

  	
   

  	
  100,000,002 Ordinary Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NTL Funding Limited

  	
   

  	
  05333722

  	
   

  	
  Virgin Media Wholesale Limited

  	
   

  	
  2 Ordinary Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Holdco Limited

  	
   

  	
  03761983

  	
   

  	
  Telewest UK Limited

  	
   

  	
  374,776,689 Ordinary Shares

  

 

 

36

 

 

SCHEDULE 2

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:          [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

37

 

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

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

	
   

  	
   

  
	
  Authorised Officer

  	
   

  

 

38

 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

 

[Date]

 

Dear Sirs,

 

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

 

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

 

3.             We hereby:

 

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

 

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

 

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

 

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

 

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

 

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

 

39

 

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

 

Yours faithfully,

 

 

For and on behalf of

[·]

 

 

	
   

  	
   

  
	
  Authorised Officer

  	
   

  

 

40

 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:          [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

41

 

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

 

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

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

	
   

  	
   

  
	
  Authorised Officer

  	
   

  

 

42

 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

None

 

Part 2

 

Beneficiaries

 

None

 

43

 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

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

 

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

 

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

 

Yours faithfully,

 

 

	
   

  	
   

  
	
  (Authorised
  Signatory)

  	
   

  

 

[INSURER]

 

Date:

 

44

 

SCHEDULE 3

 

DETAILS OF CHARGED LAND

 

Part 1

 

PART 1A

Registered Land

 

	
  NAME OF

  CHARGOR

  	
   

  	
  ADDRESS

  	
   

  	
  FREEHOLD
  /

  LEASEHOLD

  	
   

  	
  TITLE

  NUMBER

  	
   

  	
  TERM
  (IF

  LEASEHOLD)

  	
   

  	
  DATE
  OF

  LEASE (IF

  LEASEHOLD)

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

PART 1B

 

Unregistered Land

 

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

 

	
  CHARGOR

  	
   

  	
  ADDRESS

  	
   

  	
  FREEHOLD/LEASEHOLD

  	
   

  	
  DATE OF LEASE

  (IF

  LEASEHOLD)

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

45

 

SCHEDULE 4

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

	
  Mark

  	
   

  	
  App./Reg.

  No.

  	
   

  	
  App./Reg.

  Date

  	
   

  	
  Class(es)

  	
   

  	
  Proprietor

  	
   

  	
  Status

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

B.            COMMUNITY TRADE MARKS

 

	
  Mark

  	
   

  	
  App./Reg.

  No.

  	
   

  	
  App./Reg.

  Date

  	
   

  	
  Class(es)

  	
   

  	
  Proprietor

  	
   

  	
  Status

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

EP
PATENTS

 

	
  PATENT
  NUMBER

  	
   

  	
  TITLE

  	
   

  	
  DATE
  OF FILING

  	
   

  	
  STATUS

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

46

 

GB
PATENTS

 

	
  PATENT
  NUMBER

  	
   

  	
  TITLE

  	
   

  	
  DATE
  OF FILING

  	
   

  	
  STATUS

  	
   

  
	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

47

 

SCHEDULE 5

 

INTERCOMPANY LOANS

 

	
  Company name (Creditor)

  	
   

  	
  Company name (Debtor)

  	
   

  	
  Balances in GBP

  as at 31 March

  2010

  (US GAAP)

  	
   

  
	
  Telewest Communications
  Holdco Limited

  	
   

  	
  Telewest Workwise Limited

  	
   

  	
  2,694,000.00

  	
   

  
	
  Telewest Communications
  Holdco Limited

  	
   

  	
  Rapid Travel Solutions Limited

  	
   

  	
  995,000.00

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
  3,689,000.00

  	
   

  

 

48

 

SIGNATORIES

 

 

Executed
as a deed by GENERAL CABLE INVESTMENTS
LIMITED  

acting by Robert Mackenzie, a director

 

	
  /s/ ROBERT MACKENZIE

  	
   

  
	
   

  	
   

  
	
  in the presence of:

  	
   

  

 

	
  /s/ LISA GARFIELD

  	
   

  
	
  Name: Lisa Garfield

  	
   

  
	
  Address:
  [intentionally omitted]

  	
   

  
	
  Occupation: Paralegal

  	
   

  

 

 

Executed
as a deed by NTL FUNDING LIMITED

acting by Robert Mackenzie, a director

 

	
  /s/ ROBERT MACKENZIE

  	
   

  
	
   

  	
   

  
	
  in the presence of:

  	
   

  
	
   

  	
   

  
	
  /s/ LISA GARFIELD

  	
   

  
	
  Name: Lisa Garfield

  	
   

  
	
  Address:
  [intentionally omitted]

  	
   

  
	
  Occupation: Paralegal

  	
   

  

 

 

Executed
as a deed by TELEWEST COMMUNICATIONS HOLDCO
LIMITED

acting by Robert Mackenzie, a director

 

	
  /s/ ROBERT MACKENZIE

  	
   

  
	
   

  	
   

  
	
  in the presence of:

  	
   

  
	
   

  	
   

  
	
  /s/ LISA GARFIELD

  	
   

  
	
  Name: Lisa Garfield

  	
   

  
	
  Address:
  [intentionally omitted]

  	
   

  
	
  Occupation: Paralegal

  	
   

  

 

 

THE
SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON
BRANCH

 

	
  /s/ NICOLA DAWES

  	
   

  	
  /s/ CRAIG HOEPAL

  
	
   

  	
   

  	
   

  
	
  By: Nicola Dawes

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: Craig Hoepal

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention: Nicola
  DawesExhibit
4.18

 

Execution Version

 

Dated 17 May 2010

 

VM
SUNDIAL LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

ASSIGNMENT OF LOANS

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  INTERPRETATION

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.

  	
  COVENANT TO PAY

  	
  9

  
	
   

  	
   

  	
   

  
	
  3.

  	
  ASSIGNMENT

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.

  	
  UNDERTAKINGS

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.

  	
  FURTHER
  ASSURANCE

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CERTAIN
  POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

  	
  13

  
	
   

  	
   

  	
   

  
	
  7.

  	
  APPOINTMENT
  AND POWERS OF A RECEIVER

  	
  14

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
  15

  
	
   

  	
   

  	
   

  
	
  9.

  	
  ENFORCEMENT

  	
  16

  
	
   

  	
   

  	
   

  
	
  10.

  	
  POWER OF
  ATTORNEY

  	
  17

  
	
   

  	
   

  	
   

  
	
  11.

  	
  CONTINUING
  SECURITY AND OTHER MATTERS

  	
  17

  
	
   

  	
   

  	
   

  
	
  12.

  	
  CURRENCIES

  	
  20

  
	
   

  	
   

  	
   

  
	
  13.

  	
  THE
  SECURITY TRUST AGREEMENT

  	
  21

  
	
   

  	
   

  	
   

  
	
  14.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  21

  
	
   

  	
   

  	
   

  
	
  15.

  	
  MISCELLANEOUS

  	
  23

  
	
   

  	
   

  	
   

  
	
  16.

  	
  NOTICES
  AND OTHER MATTERS

  	
  24

  
	
   

  	
   

  	
   

  
	
  17.

  	
  GOVERNING
  LAW

  	
  25

  
	
   

  	
   

  	
   

  
	
  18.

  	
  JURISDICTION

  	
  25

  
	
   

  	
   

  
	
  SCHEDULE 1 FORM OF NOTICE OF ASSIGNMENT

  	
  27

  
	
   

  	
   

  
	
  SCHEDULE 2 FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

  	
  29

  

 

2

 

THIS
ASSIGNMENT dated17
May 2010 and made BETWEEN:

 

(1)                                  VM SUNDIAL LIMITED registered at Companies
House with registered number 7251197 whose registered office is at 160 Great
Portland Street, London W1W 5QA (the “Company”); and

 

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

 

WHEREAS:

 

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

 

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

 

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

 

(D)                               The
Company is a guarantor of the liabilities and obligations of certain Group
companies under both the Senior Facilities Agreement and the Senior Secured
Notes and this Assignment is given by the Company in favour of the Security
Trustee pursuant to such guarantees.

 

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

 

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

 

NOW THIS
DEED  WITNESSES
as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Event of Default”
means each of:

 

(a)           a Senior Default; and

 

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

 

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

 

“Guarantee”
means the guarantee agreement between the Company and the Security Trustee
dated on or about the date of this Assignment.

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.2                               Successors and Assigns

 

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

 

6

 

1.3                               Agreement Definitions

 

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

 

1.4                               Headings

 

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

 

1.5                               Construction of Certain Terms

 

In this Assignment, unless
the context otherwise requires:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

1.6                               Implied Covenants

 

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

 

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

 

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

 

(c)                                  section
6(2).

 

1.7                               Third Party Rights

 

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

 

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

 

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

 

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

 

1.8                               Effect as a Deed

 

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

 

1.9                               Certificates

 

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

 

1.10                        Statutes

 

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

 

8

 

1.11                           Group Intercreditor Deed

 

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

 

1.12                           Secured Obligations

 

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

 

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

 

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

 

2.                                      COVENANT TO PAY

 

2.1                               Covenant to Pay

 

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

 

2.2                                 Payments

 

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

 

3.                                      ASSIGNMENT

 

3.1                               Assignment

 

The Company (save as provided in Clause 11.4 (Settlements Conditional)),
subject to reassignment upon payment and discharge of the Secured Obligations
and there no longer being any obligation on any Beneficiary to make any of the
Secured Obligations available and subject to the Group Intercreditor Deed,
hereby assigns with full title guarantee the Assigned Rights to the Security
Trustee as a continuing security for the payment and discharge of the Secured
Obligations to hold the same on trust for the Beneficiaries in each case on the
terms set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

3.2                               Non-Assignable Rights

 

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

 

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

 

9

 

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

 

3.3                               Notice of Assignment

 

As soon as practicable
after the execution of this Assignment, the Company shall deliver a Notice of
Assignment to each Intercompany Debtor which is a debtor in respect of
Intercompany Indebtedness of the Company.

 

3.4                               Acknowledgement of Assignment

 

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

 

3.5                               Restrictions on dealing with Assigned Rights

 

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

 

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

 

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

 

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

 

3.6                               Suspense Accounts

 

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

 

10

 

Intercreditor Deed and the
Security Trust Agreement notwithstanding any appropriation (or purported
appropriation) by the Company.

 

3.7                               Interest and Principal

 

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

 

3.8                               Rule 3-16
Limitation

 

(a)                                  Clause 3.1 (Assignment) and Clause 3.2 (Non-Assignable Rights) of this Assignment notwithstanding,
the Excluded Charged Assets are not assigned under this Assignment to secure
the Designated Secured Obligations.  For
the avoidance of doubt,

 

(i)                                     all other Assigned Rights remain assigned or held on
trust for the Security Trustee (as the case may be) under this Assignment to
secure all Secured Obligations, including without limitation the Designated
Secured Obligations; and

 

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

 

(b)                                 “Excluded Charged Assets” in relation to any
Designated Secured Obligations means any securities of a Subsidiary of Virgin
Media Inc. (excluding the securities issued by Virgin Media Investments Limited
and Virgin Media Investment Holdings Limited or, in each case, any successor
entity upon any merger, reorganisation or other restructuring effecting it)
that are owned by the Company to the extent that providing security over such
securities under this Assignment to secure such Designated Secured Obligations
would result in Rule 3-16 requiring separate financial statements of such
Subsidiary to be filed with the SEC, but (i) only to the extent necessary
to not be subject to such requirement, (ii) only for so long as such
requirement is in existence and (iii) only if no member of the Group files
or is otherwise required to file separate financial statements of such
Subsidiary with the SEC under a separate rule or regulation; provided that no securities will constitute Excluded Charged
Assets if any member of the Group takes any action in the form of a
reorganisation, merger or other restructuring, a principal purpose of which is
to provide for the limitation of the security on any securities pursuant to
Clause 3.8(a).

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by
the SEC to require (or is replaced with another rule or regulation, or any
other law, rule or regulation is adopted, which would require) the filing
with the SEC (or any other United States federal or state governmental agency)
of separate financial statements of any such Subsidiary due to the fact that
such Subsidiary’s securities secure any Designated Secured Obligations, then
such securities (as 

 

11

 

applicable) of such Subsidiary shall automatically be
deemed to be Excluded Charged Assets for such Designated Secured Obligations
but (i) only to the extent necessary to not be subject to any such
financial statement requirement, (ii) only for so long as such financial
statement requirement would otherwise have been applicable to such Subsidiary
and (iii) only if no member of the Group files or is otherwise required to
file separate financial statements of such Subsidiary with the SEC or such
other governmental agency under a separate rule or regulation. If the
circumstances described in this paragraph (c) apply, this Assignment may
be amended or modified, without the consent of any Senior Finance Party, to the
extent necessary to release the assignment (but only to the extent securing
such Designated Secured Obligations and without prejudice to the assignment
securing Secured Obligations referred to in paragraph (a)(ii) of this
Clause 3.8) in favour of the Security Trustee on the relevant securities that
are so deemed to constitute Excluded Charged Assets.

 

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

 

4.                                      UNDERTAKINGS

 

4.1                               Undertakings

 

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

 

(1) Information

 

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

 

(2) Claims

 

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

 

12

 

(3) Variation,
amendment, etc

 

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

 

5.                                      FURTHER ASSURANCE

 

5.1                               Further Assurance

 

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

 

5.2                               Certain Documentary Requirements

 

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

 

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

 

6.1                               Enforcement Powers

 

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

 

13

 

6.2                               Statutory Powers

 

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

 

6.3                               Law of Property Act

 

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

 

6.4                               Subsequent Encumbrances

 

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

 

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

 

7.                                      APPOINTMENT AND POWERS OF A RECEIVER

 

7.1                               Appointment

 

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

 

7.2                               Receiver as Agent

 

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

 

7.3                               Powers of Receiver

 

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

 

14

 

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

 

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

 

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

 

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

 

7.4                                 Remuneration

 

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

 

7.5                                 Application of proceeds

 

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

 

8.                                      INDEMNITIES; COSTS AND EXPENSES

 

8.1                               Enforcement costs

 

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

 

8.2                               No liability as Mortgagee in Possession

 

None of the Beneficiaries,
the Security Trustee or any Receiver shall be liable to account as mortgagee or
heritable creditor in possession in respect of all or any of the Assigned
Rights or be liable for any loss upon realisation or for any neglect or default
of any nature whatsoever for which a mortgagee in possession may be liable as
such 

 

15

 

except in the case of
fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the
Security Trustee or a Receiver (as the case may be).

 

8.3                               Indemnity from Assigned Rights

 

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

 

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

 

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

 

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

 

8.4                               Powers of the Security Trustee

 

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

 

9.                                      ENFORCEMENT

 

9.1                               When Enforceable

 

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

 

9.2                               Authority

 

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

 

16

 

10.                               POWER OF ATTORNEY

 

10.1                        Power of Attorney

 

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

 

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

 

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

 

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

 

10.2                        Ratification

 

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

 

10.3                        General Power

 

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

 

11.                               CONTINUING SECURITY AND OTHER MATTERS

 

11.1                        Continuing Security

 

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

 

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

 

(b)                                 be
in addition to, and not merge with or otherwise prejudice or affect, any
present or future Security Document, Encumbrance, right or remedy held by or 

 

17

 

available to the Beneficiaries or any of them and/or
the Security Trustee and may be enforced notwithstanding the same; and

 

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

 

11.2                        Security Documents

 

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

 

11.3                        New Accounts

 

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

 

11.4                        Settlements Conditional

 

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

 

11.5                        No Release

 

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

 

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

 

18

 

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

 

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

 

11.6                        Restriction of the Company’s Rights

 

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

 

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

 

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

 

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

 

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

 

19

 

11.7                        No Security

 

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

 

11.8                        Recoveries by the Company

 

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

 

11.9                        Statements of Account

 

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

 

12.                               CURRENCIES

 

12.1                        Conversion of Currencies

 

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

 

12.2                        Currency Indemnity

 

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

 

20

 

13.                               THE SECURITY TRUST AGREEMENT

 

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

 

14.                               REPRESENTATIONS AND WARRANTIES

 

14.1                        Representations

 

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

 

(a)                                  Due incorporation

 

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

 

(b)                                 Power of the Company

 

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

 

(c)                                  Binding obligations

 

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

 

(d)                                 No conflict with other obligations

 

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

 

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

 

21

 

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

 

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

 

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

 

(e)                                  No litigation

 

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

 

(f)                                    No filing required

 

It is
not necessary to ensure the legality, validity, enforceability or admissibility
in evidence of this Assignment that this Assignment or any other instrument be
notarised, filed, recorded, registered or enrolled in any court or public office
in the United Kingdom (save for registration pursuant to section 860 of the Companies Act 2006) or that any stamp, registration
or similar tax or charge be paid in the United Kingdom on or in relation to
this Assignment;

 

(g)                                 Choice of law

 

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

 

(h)                                 Consents obtained

 

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

 

22

 

or admissibility in
evidence of this Assignment or the performance by such Company of its
obligations under this Assignment; and

 

(i)                                     Title to Assigned Assets

 

It is
the beneficial owner of and has good and marketable title to the Assigned
Assets (except in the event of a sale, transfer or assignment permitted by
Clause 3.6(b)).

 

14.2                        Repetition

 

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

 

15.                               MISCELLANEOUS

 

15.1                        Exchange of Information

 

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

 

15.2                        Remedies Cumulative

 

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

 

15.3                        Successors and Assigns

 

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

 

15.4                        Consolidation

 

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

 

15.5                        Reorganisation

 

This Assignment shall
remain binding on the Company notwithstanding any change in the constitution of
the Security Trustee or any Beneficiary or its absorption in, or amalgamation
with, or the acquisition of all or part of its undertaking by, any other 

 

23

 

person, or any
reconstruction or reorganisation of any kind. The security granted by this
Assignment shall remain valid and effective in all respects in favour of the
Security Trustee as trustee for the Beneficiaries.

 

15.6                        Unfettered Discretion

 

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

 

15.7                        Provisions Severable

 

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

 

15.8                        No Assignment by the Company

 

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

 

15.9                        Counterparts

 

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

 

15.10                 Release

 

Upon the earlier of (i) the
satisfaction in full of all of the Secured Obligations owed to the
Beneficiaries and there no longer being any obligation on any Beneficiary to
make any of the Secured Obligations available; and (ii) the discharge of
the Guarantee in accordance with its terms and provided that the Security
Trustee is satisfied that the security constituted hereby is no longer required
under clause 24.12(f)(iii) of the Senior Facilities Agreement, the
Security Trustee shall, at the request and cost of the Company and in
accordance with the relevant terms of the Senior Finance Documents (including
section 11.08 of the Senior Secured Notes Indenture), execute and do all such
deeds, acts and things as may be necessary to release the Assigned Rights from
the security constituted, and to reassign the property and assets assigned to
the Security Trustee, hereby.

 

16.                               NOTICES AND OTHER MATTERS

 

16.1                        Mode of Service

 

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

 

24

 

16.2                        Notices Conclusive

 

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

 

17.                               GOVERNING LAW

 

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

 

18.                               JURISDICTION

 

18.1                        Courts of England

 

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

 

18.2                        Appropriate Forum

 

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

 

18.3                        Proceedings in Other Jurisdictions

 

Nothing in Clause 18.1 (Courts
of England) shall (and nor shall it be construed so as to) limit the
right of the Finance Parties to take Proceedings against the Company in any
other court of competent jurisdiction nor shall the taking of Proceedings in
anyone or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction (whether concurrently or not) if and to the extent permitted by
applicable law.

 

18.4                        General Consent

 

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

 

18.5                        Waiver of Immunity

 

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

 

25

 

irrevocably waives, such
immunity to the full extent permitted by the laws of such jurisdiction.

 

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

 

26

 

SCHEDULE 1

FORM OF NOTICE OF ASSIGNMENT

 

To: [specify relevant Intercompany Debtor]

 

Dear Sirs,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

Yours faithfully,

 

 

	
   

  	
   

  
	
  For and on behalf of

  	
   

  
	
  [COMPANY]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  for and on behalf of

  	
   

  
	
  [SECURITY TRUSTEE]

  	
   

  
	
  as security trustee]

  	
   

  

 

28

 

SCHEDULE 2

FORM OF ACKNOWLEDGEMENT OF
ASSIGNMENT

 

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

 

To:                              [                                        ]

 

as Security Trustee

[Address]

Attention:

 

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

 

We further agree and
confirm that:

 

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

 

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

 

Yours faithfully,

 

For and on behalf of

[Intercompany Debtor]

 

By:

 

Date:

 

29

 

SIGNATORIES

 

	
   

  	
  Executed as a deed by VM SUNDIAL LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  acting by Robert
  Mackenzie, a director  

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ ROBERT MACKENZIE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  in the presence of:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ LISA GARFIELD

  	
   

  
	
   

  	
  Name: Lisa Garfield

  Address: [intentionally
  omitted]

  	
   

  
	
   

  	
  Occupation: Paralegal

  	
   

  

 

30

 

THE
SECURITY TRUSTEE

 

DEUTSCHE
BANK AG, LONDON BRANCH

 

	
  /s/ NICOLA DAWES

  	
   

  	
  /s/ CRAIG HOEPAL

  
	
   

  	
   

  	
   

  
	
  By: Nicola Dawes

  	
   

  	
  Craig
  Hoepal

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax
  Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention: Nicola Dawes

  	
   

  	
   

  

 

31

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