Document:

exv4w1

 

Exhibit 4.1

DEED OF AMENDMENT AND RESTATEMENT

DATED 10 May 2006

Between

UPC BROADBAND HOLDING B.V.

and

UPC FINANCING PARTNERSHIP

as Borrowers

and

THE COMPANIES LISTED IN Schedule 1

as Guarantors

and

The Senior Hedging Banks

with

TORONTO DOMINION (TEXAS) LLC

as Facility Agent

relating to a FACILITY AGREEMENT originally dated 16 January 2004

and

relating to a SECURITY DEED originally dated 16 January 2004

TD BANK EUROPE LIMITED

as Existing Security Agent

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	 	 	Page
	1.
	 	Interpretation	 	1
	2.
	 	Amendments	 	2
	3.
	 	Representations and Warranties	 	2
	4.
	 	Accession of Senior Hedging Banks	 	2
	5.
	 	Miscellaneous	 	3
	6.
	 	Counterparts	 	3
	7.
	 	Governing Law	 	3
	 
	 	 	 	 
	Schedule	 	 
	 
	 	 	 	 
	1.
	 	Guarantors	 	4
	2.
	 	Restated New Facility Agreement	 	6
	3.
	 	Restated New Security Deed	 	7
	 
	 	 	 	 
	Signatories	 	8

 

 

THIS
DEED is dated 10 May 2006

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (UPC Broadband) and UPC FINANCING PARTNERSHIP (the US Borrower) as
Borrowers;
	 
	(2)	 	THE COMPANIES whose names and addresses are set out in Schedule 1 (Guarantors) as Guarantors;
	 
	(3)	 	TORONTO DOMINION (TEXAS) LLC as Facility Agent;
	 
	(4)	 	TD BANK EUROPE LIMITED in as Security Agent; and
	 
	(5)	 	THE SENIOR HEDGING BANKS who are a party to this Deed from time to time.

BACKGROUND

	(A)	 	This Deed is supplemental to and amends a credit agreement originally dated 16 January 2004
(the New Facility Agreement), and a security deed originally dated 16 January 2004 (the New
Security Deed), both as amended from time to time, between, among others, the Borrowers, the
Guarantors, the Facility Agent and the Security Agent.

	(B)	 	The Majority Lenders (as defined in the New Facility Agreement) have consented to the
amendments to the New Facility Agreement and the New Security Deed contemplated by this Deed.
Accordingly, the Facility Agent and the Security Agent is authorised to execute this Deed on
behalf of the Finance Parties.

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed:
	 
	 	 	Amendment Effective Date has the meaning given to it in Clause 2(c) (Amendments).
	 
	1.2	 	Construction
	 
	(a)	 	Capitalised terms defined in the New Facility Agreement or the New Security Deed (each as
amended and restated pursuant to this Deed) have, unless expressly defined in this Deed, the
same meaning in this Deed.
	 
	(b)	 	The provisions of Clause 1.2 (Construction) of the New Facility Agreement apply to this Deed
as though they were set out in full in this Deed except that references to the New Facility
Agreement are to be construed as references to this Deed.
	 
	(c)	 	Reference is made to Clause 1.3 of the New Facility Agreement. References in any of the
Finance Documents to the Existing Facility Agreement and the Existing Security Deed shall be
references to the Existing Facility Agreement and the Existing Security Agreement as amended
by a deed of amendment and restatement dated on or about the date of this Deed.

1

 

	2.	 	AMENDMENTS
	 
	(a)	 	The New Facility Agreement will be amended, with effect from the Amendment Effective Date, so
that it reads as if it were restated in the form set out in Schedule 2 (Restated New Facility
Agreement).
	 
	(b)	 	The New Security Deed will be amended, with effect from the Amendment Effective Date, so that
it reads as if it were restated in the form set out in Schedule 3 (Restated New Security
Deed).
	 
	(c)	 	The amendments to be made to the New Facility Agreement and the New Security Deed by this
Deed shall take effect on the date (the Amendment Effective Date) on which the Facility Agent
notifies UPC Broadband and the Lenders that it has received in form and substance satisfactory
to it (acting reasonably):

	 	(i)	 	evidence of the due authorisation and execution of this Deed by each Obligor;
and
	 
	 	(ii)	 	legal opinions in respect of Dutch, English and New York law from Allen & Overy
LLP, English, Dutch and New York legal advisers to the Facility Agent, addressed to the
Finance Parties.

	3.	 	REPRESENTATIONS AND WARRANTIES
	 
	(a)	 	The representations and warranties set out in clause 15 (Representations and Warranties) of
the New Facility Agreement (as amended and restated in Schedule 2 (Restated New Facility
Agreement) to this Deed) (with the exception of clauses 15.6(a) (Consents), 15.10 (Financial
condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings),
15.14 (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.18 (Works
councils), 15.19 (Borrower Group Structure), 15.20 (ERISA) and 15.24 (UPC Financing)) are true
and correct as if made on the date of this Deed, with reference to the facts and circumstances
then existing, and as if each reference to (i) the Finance Documents includes a reference to
this Deed, (ii) the New Facility Agreement is a reference to the New Facility Agreement as
amended and restated by this Deed and (iii) the New Security Deed is a reference to the New
Security Deed as amended and restated by this Deed.
	 
	(b)	 	UPC Broadband represents and warrants to each Finance Party that there has been no material
adverse change in the consolidated financial position of the Borrower Group (taken as a whole)
since the date of the financial statements most recently provided under clause 16.2(a)
(Financial Information) of the New Facility Agreement which would or is reasonably likely to
have a Material Adverse Effect.
	 
	4.	 	ACCESSION OF SENIOR HEDGING BANKS
	 
	(a)	 	As of the Amendment Effective Date, each Senior Hedging Bank agrees that it shall become a
party to the New Security Deed in its capacity as a Senior Hedging Bank and shall observe,
perform and be bound by the terms and provisions of and be entitled to exercise all the rights
set out in the New Security Deed in the capacity of a Senior Hedging Bank.
	 
	(b)	 	Paragraph (a) above constitutes a Senior Hedging Bank’s Deed of Accession in respect of each
Senior Hedging Bank for the purposes of clause 9.7 (Assignment and/or transfer by Senior
Hedging Banks) of the New Security Deed.
	 
	(c)	 	For the purposes of clause 14.1 (Mechanics) of the New Security Deed, the address and
facsimile number of each Senior Hedging Bank will be notified by each Senior Hedging Bank to
the Security Agent prior to the Amendment Effective Date.

2

 

	5.	 	MISCELLANEOUS
	 
	(a)	 	Each of this Deed, the New Facility Agreement, as amended and restated by this Deed and the
New Security Deed, as amended and restated by this Deed, is a Finance Document.
	 
	(b)	 	Subject to the terms of this Deed, the New Facility Agreement and the New Security Deed will
remain in full force and effect.
	 
	(c)	 	Each Obligor confirms:

	 	(i)	 	that the Security Interests granted to the Beneficiaries pursuant to the
Security Documents and its obligations under the Finance Documents shall continue and
remain unaffected by the entry into this Deed;
	 
	 	(ii)	 	in accordance with Article 1278 of the Belgian Civil Code, its duties and
obligations under the share pledge listed in paragraph (i) of Schedule 7 (Security
Documents) of the New Facility Agreement shall not be affected or impaired by the entry
into of this Agreement and that this Deed does not constitute a novation.

	6.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts and by different parties hereto
on separate counterparts each of which, when executed and delivered shall constitute an
original, but all the counterparts together shall constitute but one and the same Deed.
	 
	7.	 	GOVERNING LAW
	 
	 	 	This Deed is governed by English law.

IN WITNESS whereof, the parties to this Deed have caused this Deed to be duly executed on the
date first above written.

3

 

SCHEDULE 1

GUARANTORS

	 	 	 
	Name	 	Address
	 
	UPC Financing Partnership

	 	4643 South Ulster Street

Suite 1300

Denver, Co 80237

United States
	 
	 	 
	UPC Broadband Holding B.V.
(previously called
 UPC
Distribution Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC France Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Austria Holding B.V.
(previously called
 Cable
Network Austria Holding
B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Central Europe Holding
B.V. (previously
 called
Stipdon Investments B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Nederland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

4

 

	 	 	 
	Name	 	Address
	 
	UPC Poland Holding B.V.
(previously called
 UPC
Telecom B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

5

 

SIGNATORIES

Borrowers

UPC BROADBAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FINANCING PARTNERSHIP

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

Guarantors

UPC BROADBAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC HOLDING II B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FINANCING PARTNERSHIP

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FRANCE HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC SCANDINAVIA HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC AUSTRIA HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC CENTRAL EUROPE HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC NEDERLAND B.V.

By:  /s/ D.
Kartsen        /s/ D.E.
Tollenaar

6

 

UPC POLAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC BROADBAND N.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC BROADBAND IRELAND B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

Facility Agent

TORONTO DOMINION (TEXAS) LLC

By:
/s/ Authorized Signatory

Security
Agent

TD BANK
EUROPE LIMITED

By: /s/ Authorized Signatory

Senior Hedging Banks

By: /s/ Authorized Signatory

7

 

SCHEDULE 2

SENIOR SECURED CREDIT FACILITY AGREEMENT

 

 

SENIOR SECURED CREDIT FACILITY AGREEMENT

Dated 16th January 2004 as amended and restated pursuant to a Deed of

Amendment and Restatement dated 10 May 2006

For

UPC BROADBAND HOLDING B.V.

as Borrower

with

TORONTO DOMINION (TEXAS) LLC

acting as Facility Agent

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 
	1.
	 	Interpretation	 	 	4	 
	2.
	 	The Facilities	 	 	33	 
	3.
	 	Purpose	 	 	35	 
	4.
	 	Conditions Precedent	 	 	36	 
	5.
	 	Advances	 	 	37	 
	6.
	 	Repayment	 	 	38	 
	7.
	 	Cancellation and Prepayment	 	 	40	 
	8.
	 	Interest	 	 	45	 
	9.
	 	Payments	 	 	46	 
	10.
	 	Tax Gross-up and Indemnities	 	 	48	 
	11.
	 	Market Disruption	 	 	51	 
	12.
	 	Increased Costs	 	 	53	 
	13.
	 	Illegality and Mitigation	 	 	54	 
	14.
	 	Guarantee	 	 	54	 
	15.
	 	Representations and Warranties	 	 	58	 
	16.
	 	Undertakings	 	 	65	 
	17.
	 	Financial Covenants	 	 	87	 
	18.
	 	Default	 	 	93	 
	19.
	 	Facility Agent, Security Agent and Lenders	 	 	100	 
	20.
	 	Fees	 	 	104	 
	21.
	 	Expenses	 	 	105	 
	22.
	 	Stamp Duties	 	 	105	 
	23.
	 	Indemnities	 	 	105	 
	24.
	 	Evidence and Calculations	 	 	107	 
	25.
	 	Amendments and Waivers	 	 	107	 
	26.
	 	Changes to the Parties	 	 	109	 
	27.
	 	Disclosure of Information	 	 	115	 
	28.
	 	Set-off	 	 	116	 
	29.
	 	Pro Rata Sharing	 	 	116	 
	30.
	 	Severability	 	 	117	 
	31.
	 	Counterparts	 	 	117	 
	32.
	 	Notices	 	 	118	 
	33.
	 	Language	 	 	119	 
	34.
	 	Jurisdiction	 	 	119	 
	35.
	 	Waiver of Immunity	 	 	120	 
	36.
	 	Waiver of Trial by Jury	 	 	121	 
	37.
	 	Governing Law	 	 	121	 

2

 

	 	 	 	 	 	 	 
	Schedule	 	Page	 
	1.
	 	Original Parties	 	 	122	 
	 
	 	Part 1     Original Guarantors	 	 	122	 
	2.
	 	Conditions Precedent Documents	 	 	124	 
	 
	 	Part 1     To be Delivered before the First Advance	 	 	124	 
	 
	 	Part 2     To be Delivered by an Additional Obligor	 	 	127	 
	3.
	 	Mandatory Cost Formulae	 	 	130	 
	4.
	 	Form of Request and Cancellation Notice	 	 	132	 
	 
	 	Part 1     Form of Request	 	 	132	 
	 
	 	Part 2     Form of Cancellation and/or Prepayment Notice	 	 	133	 
	5.
	 	Forms of Accession Documents	 	 	134	 
	 
	 	Part 1     Novation Certificate	 	 	134	 
	 
	 	Part 2     Obligor Accession Agreement	 	 	136	 
	 
	 	Part 3     Additional Facility Accession Agreement	 	 	137	 
	6.
	 	Form of Confidentiality Undertaking	 	 	140	 
	 
	 	Part 1     Form of LMA Confidentiality Undertaking	 	 	140	 
	 
	 	Part 2     Form of LSTA Confidentiality Undertaking	 	 	145	 
	7.
	 	Security Documents	 	 	150	 
	8.
	 	Borrower Group Structure	 	 	152	 
	9.
	 	Shareholders' Agreements	 	 	153	 
	 
	 	 	 	 	 	 
	Signatories	 	 	154	 

3

 

THIS AGREEMENT originally dated 16 January 2004 as amended and restated by an amendment
agreement dated 24 June 2004 and as amended by amendment letters dated 22 July 2004 and 2 December
2004 and subsequently amended and restated on 7 March 2005 and amended by an amendment letter dated
15 December 2005 and as amended and restated on 10 May 2006 and made

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (previously called UPC Distribution Holding B.V.) (UPC Broadband);
	 
	(2)	 	THE COMPANIES identified as guarantors in Schedule 1 (Original Guarantors) (the Original
Guarantors);
	 
	(3)	 	TORONTO DOMINION (TEXAS) LLC as facility agent (the Facility Agent); and
	 
	(4)	 	TD BANK EUROPE LIMITED as security agent for the Finance Parties (in this capacity, the
Security Agent).
	 
	 	 	IT IS AGREED as follows:
	 
	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
		 	2006 Amendment Effective Date means the Amendment Effective Date as defined in the Deed
of Amendment and Restatement dated 10 May 2006 between (among others) UPC Broadband, UPC
Financing and the Facility Agent.
	 
	 	 	Accounting Period in relation to any person means any period of approximately three
months or one year for which accounts of such person are required to be delivered pursuant
to this Agreement.
	 
	 	 	Acquisition means the acquisition, whether by one or a series of transactions,
(including, without limitation, by purchase, subscription or otherwise) of all or any part
of the share capital or equivalent of any company or other person (including, without
limitation, any partnership or joint venture) or any asset or assets of any company or other
person (including, without limitation, any partnership or joint venture) constituting a
business or separate line of business of that company or other person.
	 
	 	 	Acquisition Business Plan means, in respect of an Acquisition, a business plan for the
Target to be acquired which has been reviewed by Deloitte & Touche (or such other leading
firm of independent and internationally recognised consultants or accountants appointed by
UPC Broadband) and which sets out the management plan for the period from the date of the
proposed Acquisition (taking into account the Acquisition Cost of such Acquisition and
financial projections relating to the Target) up to and including the Final Maturity Date
and based on assumptions which are no more aggressive (when taken as a whole) than those
used in preparation of the Business Plan.

4

 

	 	 	Acquisition Cost means, in relation to an Acquisition, the value of the consideration
for that Acquisition at the time of completion of the Acquisition and for this purpose:

	 	(a)	 	the value at the time of completion of the Acquisition of any consideration to
be paid or delivered after the time of completion of the Acquisition will be determined
in accordance with GAAP;
	 
	 	(b)	 	if the entity acquired becomes a member of the Borrower Group as a result of
the Acquisition, the aggregate principal amount of Financial Indebtedness of any entity
acquired outstanding at the time of completion of the Acquisition (including without
limitation any Lending Transaction (as defined in Clause 16.14(f) (Loans and
guarantees) made by a member of the Borrower Group in connection with the relevant
Acquisition) will be counted as part of the consideration for that Acquisition;
	 
	 	(c)	 	if the entity acquired does not become a member of the Borrower Group as a
result of the Acquisition, the aggregate principal amount of Financial Indebtedness of
the entity acquired at the time of completion of the Acquisition will be counted as
part of the consideration for that Acquisition to the extent of the aggregate principal
amount of the payment and repayment obligations in respect of such Financial
Indebtedness assumed or guaranteed by any member of the Borrower Group; and
	 
	 	(d)	 	subject to paragraphs (a), (b) and (c) above, the value at the time of
completion of the Acquisition of any non-cash consideration will be determined in
accordance with GAAP,

	 	 	expressed in euros, if required, using the Agent’s Spot Rate of Exchange on the date of
completion of the Acquisition.
	 
	 	 	Additional Borrower means a member of the Borrower Group which becomes an Additional
Borrower in accordance with Clause 26.4 (Additional Obligors).
	 
	 	 	Additional Currency means any currency that is the lawful currency for the time being
of a country in which a member of the Borrower Group is incorporated and/or carries out its
Business.
	 
	 	 	Additional Facility means an additional term loan facility referred to in Clause 2.2
(Additional Facilities) and Additional Facilities means all or any such Additional
Facilities.
	 
	 	 	Additional Facility Accession Agreement means a deed in the form of Part 3 of Schedule
5, with such amendments as the Facility Agent may approve or reasonably require.
	 
	 	 	Additional Facility Availability Period in relation to an Additional Facility means the
period specified in the Additional Facility Accession Agreement for that Additional
Facility.
	 
	 	 	Additional Facility Commitment means in relation to:

	 	(a)	 	an Initial Additional Facility Lender the amount in euros, US Dollars or
relevant Additional Currency set out as the Additional Facility Commitment of a Lender
in the relevant Additional Facility Accession Agreement and the amount of any other
Additional Facility Commitment transferred to it under this Agreement; and
	 
	 	(b)	 	any other Lender, the amount in euros, US Dollars or relevant Additional
Currency (as applicable) transferred to it in accordance with this Agreement,

5

 

	 	 	to the extent not cancelled, reduced or transferred by it in accordance with this
Agreement.
	 
	 	 	Additional Guarantor means:

	 	(a)	 	a Subsidiary of UPC Broadband; and
	 
	 	(b)	 	any UPC Broadband Holdco (other than UPC Holding),

	 	 	which in each case becomes an Additional Guarantor in accordance with Clause 26.4
(Additional Obligors).
	 
	 	 	Additional Obligor means an Additional Borrower or an Additional Guarantor.
	 
	 	 	Advance means an advance made to a Borrower under an Additional Facility.
	 
	 	 	Affiliate means, in respect of a person, a direct or indirect Subsidiary or Holding
Company of that person or any other person which is under common control with that person
(and for this purpose, control has the meaning given to it in section 416 of the Income and
Corporation Taxes Act 1988 in force as at the Signing Date).
	 
	 	 	Agent means the Facility Agent or the Security Agent (or both), as the context
requires.
	 
	 	 	Agent’s Spot Rate of Exchange means the spot rate of exchange as determined by the
Facility Agent for the purchase of US Dollars (or any other relevant currency) in the London
foreign exchange market with euros at or about 11.00 a.m. on a particular day.
	 
	 	 	Amendment Agreement means the agreement dated on or around 24 June 2004 between UPC
Broadband, the Original Guarantors the Facility Agent and the Security Agent, pursuant to
which this Agreement was amended.
	 
	 	 	Annualised EBITDA has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Anti-Terrorism Law means each of:

	 	(a)	 	Executive Order No. 13224 of 23 September 2001 — Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (the Executive Order);
	 
	 	(b)	 	the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as
the USA Patriot Act);
	 
	 	(c)	 	the Money Laundering Control Act of 1986, Public Law 99-570; and
	 
	 	(d)	 	any similar law enacted in the United States of America subsequent to the date
of this Agreement.

	 	 	Approved Stock Options means any options, warrants, rights to purchase or other
equivalents (however designated) issued or granted by a member of the Borrower Group to any
former, present or future officers, consultants, directors and/or employees of any member of
the Borrower Group or its Associated Companies to subscribe for share capital or similar
rights of ownership in that member of the Borrower Group provided that the maximum aggregate
amount of such options, warrants, rights to purchase or other equivalents (however
designated) shall not exceed (i) 8 per cent. of its issued share capital, in the case of UPC

6

 

	 	 	Central Europe Holding B.V. and any Subsidiary of UPC Central Europe Holding B.V. (provided
that the aggregate amount of such options, warrants, rights to purchase or other equivalents
issued by UPC Central Europe Holding B.V. and its Subsidiaries does not exceed 8 per cent.
of the issued share capital of UPC Central Europe Holding B.V.) and (ii) 7.5 per cent. of
its issued share capital or similar rights of ownership, in the case of each other member of
the Borrower Group.

	 	 	Associated Company of a person means:

	 	(a)	 	any other person which is directly or indirectly Controlled by, under common
Control with or Controlling such person; or
	 
	 	(b)	 	any other person owning beneficially and/or legally directly or indirectly 10
per cent. or more of the equity interest in such person or 10 per cent. of whose equity
is owned beneficially and/or legally directly or indirectly by such person.

	 	 	Auditors means KPMG or such other leading firm of independent and internationally
recognised accountants appointed by UPC Broadband as its auditors for the purposes of
preparing the audited consolidated accounts of UPC Broadband.
	 
	 	 	Beneficiaries has the meaning given to it in the Security Deed.
	 
	 	 	Borrower means UPC Broadband and any Additional Borrower.
	 
	 	 	Borrower Group means:

	 	(a)	 	UPC Broadband and its Subsidiaries from time to time excluding Unrestricted
Subsidiaries; and
	 
	 	(b)	 	UPC Financing.

	 	 	Borrower Group Business Plan means, in respect of an Acquisition, a business plan for
the Borrower Group (including the Target to be acquired) which has been certified by a
director of UPC Broadband and which sets out the management plan for the period from the
date of the proposed Acquisition (taking into account the Acquisition Cost of such
Acquisition and financial projections relating to the Target) up to and including the Final
Maturity Date and based on assumptions which are no more aggressive (when taken as a whole)
than those used in preparation of the Business Plan.
	 
	 	 	Break Costs means the amount (if any) by which:

	 	(a)	 	the amount of interest (excluding the Margin and any Mandatory Costs) which a
Lender should have received for the period from the date of receipt of all or any part
of its participation in an Advance or Unpaid Sum to the last day of the current
Interest Period in respect of that Advance or Unpaid Sum, had the principal amount or
Unpaid Sum received been paid on the last day of that Interest Period,
	 
	 	 	 	exceeds:
	 
	 	(b)	 	the amount of interest which that Lender would be able to obtain by placing an
amount equal to the principal amount or Unpaid Sum received by it on deposit with a
leading bank in the London interbank market for a period starting on the Business Day
following receipt or recovery and ending on the last day of the current Interest
Period.

7

 

	 	 	Business means any business of the Borrower Group:

	 	(a)	 	that consists of the upgrade, construction, creation, development, marketing,
acquisition (to the extent permitted under this Agreement), operation, utilisation and
maintenance of networks that use existing or future technology for the transmission,
reception and delivery of voice, video and/or other data (including networks that
transmit, receive and/or deliver services such as multi-channel television and radio,
programming, telephony, Internet services and content, high speed data transmission,
video, multi-media and related activities); or
	 
	 	(b)	 	that supports, is incidental to or is related to any such business; or
	 
	 	(c)	 	that comprises being a Holding Company of one or more persons engaged in such
business,

	 	 	and references to business or ordinary course of business shall be similarly construed.
	 
	 	 	Business Day means:

	 	(a)	 	a day (other than a Saturday or Sunday) on which banks are open for general
business in:

	 	(i)	 	London and Amsterdam;
	 
	 	(ii)	 	in relation to a transaction involving US Dollars, New York;
and
	 
	 	(iii)	 	in relation to a transaction involving an Additional Currency,
the principal financial centre of the country of that currency; or

	 	(b)	 	in relation to a rate fixing day or a payment date for euros, a TARGET Day.

	 	 	Business Plan means the business plan for the Borrower Group for the period from the
Effective Date to, as a minimum, the Final Maturity Date as provided to the Facility Agent
prior to the Effective Date.
	 
	 	 	Cancellation Notice means a notice of cancellation and/or prepayment substantially in
the form of Part 2 of Schedule 4 (Form of Cancellation and/or Prepayment Notice).
	 
	 	 	Capital Expenditure means any expenditure which is or will be treated as a capital
expenditure in the audited consolidated financial statements of the Borrower Group in
accordance with GAAP.
	 
	 	 	Cash Flow means, for any period, as set out in the most recent relevant management
accounts of or in respect of the Target for that period, EBITDA of or relating to the Target
for such period:

	 	(a)	 	minus Capital Expenditure of or relating to the Target for such period;
	 
	 	(b)	 	minus all Taxes actually paid and/or falling due for payment by or in respect
of the Target during such period;
	 
	 	(c)	 	minus the amount of all dividends, redemptions and other distributions payable
by the Target during such period on, or in respect of any of its share capital not held
by a member of the Borrower Group;

8

 

	 	(d)	 	minus any increase or plus any decrease in working capital of or in respect of
the Target for such period;
	 
	 	(e)	 	minus the aggregate of (i) Interest payable by or in respect of the Target
during such period and (ii) an amount equal to the Interest that would have been
payable in respect of an Advance made during such period in an amount equal to the
principal amount of Financial Indebtedness incurred in connection with the Acquisition
of the Target, and plus any Interest that was received by the Target during such
period; and
	 
	 	(f)	 	minus all extraordinary or exceptional items (including one off restructuring
costs) which were paid by the Target during such period on (net of any cash proceeds of
insurance or warranty claims which relate to such items) and plus all extraordinary or
exceptional items which were received by or in respect of the Target during such
period.

	 	 	For the purposes of the above calculation no item shall be effectively deducted or
credited more than once.
	 
	 	 	Cash Flow Hedging Agreement has the meaning given to it in Clause 16.17 (Hedging).
	 
	 	 	Change of Control has the meaning given to it in Clause 7.4(a) (Change of Control).
	 
	 	 	Code means the United States Internal Revenue Code of 1986, as amended and any rule or
regulation issued thereunder from time to time in effect.
	 
	 	 	Commitments means Additional Facility Commitments.
	 
	 	 	Confidentiality Undertaking means a confidentiality undertaking substantially in the
recommended form of either the LMA as set out in Part 1 of Schedule 6 (Form of LMA
Confidentiality Undertaking) or the LSTA as set out in Part 2 of Schedule 6 (Form of LSTA
Confidentiality Undertaking) or in any other form agreed between UPC Broadband and the
Facility Agent.
	 
	 	 	Control means the power of a person:

	 	(a)	 	by means of the holding of shares or the possession of voting power in or in
relation to any other person; or
	 
	 	(b)	 	by virtue of any powers conferred by the articles of association or other
documents regulating any other person,

	 	 	to direct or cause the direction of the management and policies of that other person,
	 
	 	 	and Controlled and Controlling have a corresponding meaning.
	 
	 	 	Current Assets means, at any relevant time, the aggregate of the current assets
(excluding cash) of the Borrower Group at such time which would be included as current
assets in a consolidated balance sheet of the Borrower Group drawn up at such time in
accordance with GAAP.
	 
	 	 	Current Liabilities means, at any relevant time, the aggregate of the current
liabilities (excluding short term debt and overdrafts) of the Borrower Group at such time
which would be included as current liabilities in a consolidated balance sheet of the
Borrower Group drawn up at each time in accordance with GAAP.

9

 

	 	 	Dangerous Substance means any radioactive emissions and any natural or artificial
substance (whether in solid or liquid form or in the form of a gas or vapour and whether
alone or in combination with any other substance) which, taking into account the
concentrations and quantities present and the manner in which it is being used or handled,
it is reasonably foreseeable will cause harm to man or any other living organism or damage
to the Environment including any controlled, special, hazardous, toxic, radioactive or
dangerous waste.
	 
	 	 	Default means an Event of Default or any event or circumstances specified in Clause 18
(Default) which would (with the expiry of a grace period or the giving of notice) be an
Event of Default.
	 
	 	 	Designated Party means any person listed:

	 	(a)	 	in the Annex to the Executive Order;
	 
	 	(b)	 	on the “Specially Designated Nationals and Blocked Persons” list maintained by
the Office of Foreign Assets Control of the United States Department of the Treasury;
or
	 
	 	(c)	 	in any successor list to either of the foregoing.

	 	 	Distribution Business means:

	 	(a)	 	the business of upgrading, constructing, creating, developing, acquiring,
operating, owning, leasing and maintaining cable television networks (including for
avoidance of doubt master antenna television, satellite master antenna television,
single and multi-channel microwave single or multi-point distribution systems and
direct-to-home satellite systems) for the transmission, reception and/or delivery of
multi-channel television and radio programming, telephony and internet and/or data
services to the residential markets; or
	 
	 	(b)	 	any business which is incidental to or related to and, in either case, material
to such business.

	 	 	Dutch Banking Act means the Dutch Act on the Supervision of the Credit System 1992 (Wet
toezicht Kredietwezen 1992), including the Dutch Exemption Regulation.
	 
	 	 	Dutch Borrower means a Borrower incorporated in the Netherlands.
	 
	 	 	Dutch Civil Code means the Burgerlijk Wetboek.
	 
	 	 	Dutch Exemption Regulation means the Exemption Regulation of the Minister of Finance
(Vrijstellingsregeling Wtk 1992).
	 
	 	 	Eastern Europe means Europe other than Western Europe.
	 
	 	 	Eastern European Acquisition means an acquisition (including, without limitation, by
purchase, subscription or otherwise) of:

	 	(a)	 	all or any part of the share capital or equivalent of a person or company
(including, without limitation any partnership or joint venture) incorporated or
carrying on a material part of its business in Eastern Europe; or

10

 

	 	(b)	 	any asset or assets constituting a business or separate line of business, a
material part of which is being carried on in Eastern Europe,

	 	 	but excluding any such acquisition in relation to an entity which is a Subsidiary of
UPC on the Signing Date and is incorporated or carries on business in Poland on the Signing
Date.
	 
	 	 	EBITDA has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Effective Date has the meaning given to it in Clause 4.1 (Documentary conditions
precedent).
	 
	 	 	Environment means the media of air, water and land (wherever occurring) and in relation
to the media of air and water includes, without limitation, the air and water within
buildings and the air and water within other natural or man-made structures above or below
ground and any water contained in any underground strata.
	 
	 	 	Environmental Claim means any claim by any person:

	 	(a)	 	in respect of any loss or liability suffered or incurred by that person as a
result of or in connection with any violation of Environmental Law; or
	 
	 	(b)	 	that arises as a result of or in connection with Environmental Contamination
and that could give rise to any remedy or penalty (whether interim or final) that may
be enforced or assessed by private or public legal action or administrative order or
proceedings including, without limitation, any such claim that arises from injury to
persons or property.

	 	 	Environmental Contamination means each of the following and their consequences:

	 	(a)	 	any release, emission, leakage or spillage of any Dangerous Substance at or
from any site owned or occupied by any member of the Borrower Group into any part of
the Environment; or
	 
	 	(b)	 	any accident, fire, explosion or sudden event at any site owned or occupied by
any member of the Borrower Group which is directly caused by or attributable to any
Dangerous Substance; or
	 
	 	(c)	 	any other pollution of the Environment arising at or from any site owned or
occupied by any member of the Borrower Group.

	 	 	Environmental Law means all legislation, regulations or orders (insofar as such
regulations or orders have the force of law) to the extent that it relates to the protection
or impairment of the Environment or the control of Dangerous Substances (whether or not in
force at the date of this Agreement) which are capable of enforcement in any applicable
jurisdiction by legal process.
	 
	 	 	Environmental Licence means any permit, licence, authorisation, consent, filing,
registration or other approval required by any Environmental Law.
	 
	 	 	ERISA means the United States Employee Retirement Income Security Act of 1974, as
amended.
	 
	 	 	ERISA Affiliate means each trade or business, whether or not incorporated, that would
be treated as a single employer with any member of the Borrower Group under section 414 of
the United States Internal Revenue Code of 1986, as amended. When any provision of this

11

 

	 	 	Agreement relates to a past event, the term ERISA Affiliate includes any person that was an
ERISA Affiliate of a member of the Borrower Group at the time of that past event.

	 	 	EURIBOR means in relation to any Advance or Unpaid Sum denominated in euros:

	 	(a)	 	the applicable Screen Rate for deposits in the currency of the relevant Advance
or Unpaid Sum for a period equal or comparable to the required period at or about 11.00
a.m. (Brussels time) on the applicable Rate Fixing Day; or
	 
	 	(b)	 	if the rate cannot be determined under paragraph (a) above, the arithmetic mean
(rounded upwards, if necessary, to the nearest four decimal places) of the respective
rates, as supplied to the Facility Agent at its request, quoted by the Reference Banks
to leading banks for the offering of deposits in euros for the required period in the
London interbank market at or about 11.00 a.m. on the Rate Fixing Day for such period,

	 	 	and for the purposes of this definition, required period means the Interest Period of
an Advance or the period in respect of which EURIBOR falls to be determined in relation to
any Unpaid Sum.

	 	 	€, euro or euros means the single currency of the Participating Member States.
	 
	 	 	Event of Default means an event specified as such in Clause 18 (Default).
	 
	 	 	Excess Cash Flow means the aggregate consolidated EBITDA of the Borrower Group
calculated for the most recently ended financial year (beginning with the financial year
ending on 31 December 2004), as shown in the quarterly management accounts delivered to the
Facility Agent pursuant to Clause 16.2(b) (Financial information) in respect of the
financial quarter ending on 31 December in any relevant year:

	 	(a)	 	less:

	 	(i)	 	any interest and other charges in respect of Financial
Indebtedness of the Borrower Group paid during such financial year;
	 
	 	(ii)	 	repayments and/or prepayments of any Financial Indebtedness of
the Borrower Group paid during such financial year; and
	 
	 	(iii)	 	capital expenditure of the Borrower Group incurred during such
financial year; and

	 	(b)	 	either (i) plus any amount by which Net Working Capital at the commencement of
such financial year exceeds Net Working Capital at the close of such financial year or,
as appropriate, (ii) minus any amount by which Net Working Capital at the end of such
financial year exceeds Net Working Capital at the beginning of such financial year.

	 	 	For the purposes of this definition of “Excess Cash Flow”, Net Working Capital means,
at any time, the aggregate of the Current Assets of the Borrower Group at such time less the
aggregate of the Current Liabilities of the Borrower Group at such time.
	 
	 	 	Existing Beneficiaries means Beneficiaries as defined in the Existing Security Deed.

12

 

	 	 	Existing Facility means a facility made available to a borrower under the Existing
Facility Agreement.
	 
	 	 	Existing Facility Agent means Toronto Dominion (Texas) LLC as facility agent under the
Existing Facility.
	 
	 	 	Existing Facility Agents means the facility agents under the Existing Facility.
	 
	 	 	Existing Facility Agreement means the senior secured credit facility dated 26 October
2000 made between, inter alia, UPC Broadband, UPC Financing and Toronto Dominion (Texas) LLC
as facility agent and the banks and financial institutions listed therein, as amended from
time to time.
	 
	 	 	Existing Finance Document means a Finance Document as defined in the Existing Facility
Agreement.
	 
	 	 	Existing Lender has the meaning given to it in Clause 26.2 (Transfers by Lenders).
	 
	 	 	Existing Security Deed means the security deed dated 26 October 2000 between, among
others, UPC Broadband, UPC Financing, UPC, UPC Holding, the Existing Facility Agents, TD
Bank Europe as security agent, the lenders and financial institutions listed therein, the
senior hedging banks, the High Yield Hedging Banks and each Subordinated Creditor (as
defined in the Existing Security Deed) and includes each Deed of Accession (as defined in
the Existing Security Deed) entered into in relation to the Existing Security Deed.
	 
	 	 	Existing Security Documents means:

	 	(a)	 	the Security Documents as defined in paragraph (a) of the definition of
Security Documents in the Existing Facility Agreement; and
	 
	 	(b)	 	any other Security Documents as defined in paragraph (b) of the definition of
Security Documents in the Existing Facility Agreement provided that the Security
Interest(s) granted under any such Security Document are simultaneously granted on the
same terms (save for variations directly attributable to the identity of the parties
and the loan amounts) to the Security Agent on behalf of Beneficiaries to secure the
Secured Obligations (as defined in the Security Deed).

	 	 	Facility means each Additional Facility.
	 
	 	 	Facility A means Facility A as defined in the Existing Facility Agreement.
	 
	 	 	Facility I Advance means an advance under the Additional Facility under the Additional
Facility Accession Agreement dated 9 March 2005.
	 
	 	 	Facility Office means the office(s) notified by a Lender to the Facility Agent:

	 	(a)	 	on or before the date it becomes a Lender; or
	 
	 	(b)	 	by not less than five Business Days’ notice,

	 	 	as the office(s) through which it will perform all or any of its obligations under this
Agreement.

13

 

	 	 	Fee Letter means the letter between the Facility Agent and UPC Broadband, dated on or
about the Signing Date, setting out the amount of agency fees referred to in Clause 20.2
(Agent’s fees).
	 
	 	 	Final Maturity Date means the date falling after 30 June 2009 specified in the relevant
Additional Facility Accession Agreement or, if that day is not a Business Day, the
immediately preceding Business Day (and without any such designation means the latest such
date).
	 
	 	 	Finance Document means this Agreement, a Security Document, the Security Deed, a Fee
Letter, an Obligor Accession Agreement, a Novation Certificate, an Additional Facility
Accession Agreement, the Intercreditor Agreement and any other document designated in
writing as such by the Facility Agent and UPC Broadband.
	 
	 	 	Finance Party means a Lender, the Facility Agent or the Security Agent.
	 
	 	 	Financial Indebtedness means, without double counting, indebtedness in respect of:

	 	(a)	 	money borrowed or raised and debit balances at banks;
	 
	 	(b)	 	any bond, note, loan stock, debenture or similar debt instrument;
	 
	 	(c)	 	acceptance or documentary credit facilities;
	 
	 	(d)	 	receivables sold or discounted (otherwise than on a non-recourse basis and
other than in the normal course of business for collection);
	 
	 	(e)	 	payments for assets acquired or services supplied deferred for a period of over
180 days (or 360 days if such deferral is in accordance with the terms pursuant to
which the relevant assets were or are to be acquired or services were or are to be
supplied) after the relevant assets were or are to be acquired or the relevant services
were or are to be supplied;
	 
	 	(f)	 	finance leases and hire purchase contracts to the extent that they constitute
capital leases within the meaning of GAAP, provided that indebtedness in respect of
network leases shall only be included in this paragraph (f) for the purposes of the
definition of Excess Cash Flow and Clause 18.5 (Cross default);
	 
	 	(g)	 	any other transaction (including without limitation forward sale or purchase
agreements) having the commercial effect of a borrowing or raising of money or any of
(b) to (f) above;
	 
	 	(h)	 	(for the purposes of Clause 18.5 (Cross default) only) any derivative
transaction entered into in connection with protection against or benefit from
fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the marked-to-market value shall be taken into account); and
	 
	 	(i)	 	guarantees in respect of indebtedness of any person falling within any of
paragraphs (a) to (g) above (including for the avoidance of doubt, without double
counting, guarantees given by a member of the Borrower Group for the indebtedness of
the type falling within (a) to (g) above of another member of the Borrower Group),

	 	 	provided that indebtedness which has been cash-collateralised shall not be included in
any calculation of Financial Indebtedness to the extent so cash-collateralised and
indebtedness

14

 

	 	 	which is in the nature of equity (other than redeemable shares) shall not be regarded as
Financial Indebtedness.

	 	 	GAAP means generally accepted accounting principles and practices in the United States.
	 
	 	 	Guaranteed Document means each Finance Document and the High Yield Hedging Agreements.
	 
	 	 	Guarantor means each Original Guarantor and each Additional Guarantor.
	 
	 	 	High Yield Hedging Agreements has the meaning given to it in the Security Deed.
	 
	 	 	High Yield Hedging Bank means a Lender or its Affiliate or a Lender or its Affiliate as
defined in the Existing Facility Agreement which is or becomes a party to the Existing
Security Deed and/or the Security Deed as a High Yield Hedging Bank.
	 
	 	 	High Yield Hedging Counterparty means any member of the UGCE Borrower Group that enters
into a High Yield Hedging Agreement.
	 
	 	 	High Yield Notes means high yield debt securities or other instruments not mandatorily
convertible into equity, in each case issued by a company which is a member of the UGCE
Borrower Group.
	 
	 	 	Holding Company means, in relation to a person, an entity of which that person is a
Subsidiary.
	 
	 	 	Initial Additional Facility Lender means a person which becomes a Lender under an
Additional Facility pursuant to Clause 2.2 (Additional Facilities).
	 
	 	 	Intellectual Property Rights means all know-how, patents, trade marks, designs and
design rights, trading names, copyrights (including any copyright in computer software),
database rights and other intellectual property rights anywhere in the world (in each case
whether registered or not and including all applications for the same).
	 
	 	 	Interconnect Agreements means each interconnection agreement, network contract,
franchise agreement, telecommunications service agreement and any agreement of a similar
nature entered into by any member of the Borrower Group in connection with the conduct of
its business as may be permitted by the terms of this Agreement (including any interconnect
agreements maintained pursuant to Clause 16.20 (Inter-connection and chello)).
	 
	 	 	Intercreditor Agreement means the intercreditor deed entered into on or about the date
of this Agreement between, among others, the Facility Agent and the Security Agent, the
facility agent and security agent under the Existing Facility Agreement and UPC Broadband.
	 
	 	 	Interest has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Interest Date means the last day of an Interest Period.
	 
	 	 	Interest Period means each period determined in accordance with Clause 8 (Interest).
	 
	 	 	Lender means:

	 	(a)	 	an Initial Additional Facility Lender; and

15

 

	 	(b)	 	any person which has become a New Lender (as defined in Clause 26.2 (Transfers
by Lenders) under an Additional Facility in accordance with Clause 26 (Changes to the
Parties),

	 	 	which in each case has not ceased to be a Party in accordance with the terms of this
Agreement.
	 
	 	 	LGEF means Liberty Global Europe Financing B.V., a private limited liability company
incorporated under the laws of The Netherlands and, as of the Signing Date, with its
registered office at Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol
Rijk, Amsterdam, The Netherlands.
	 
	 	 	LIBOR means in relation to any Advance or Unpaid Sum denominated in US Dollars or in an
Additional Currency (other than euros):

	 	(a)	 	the applicable Screen Rate for deposits in the currency of the relevant Advance
or Unpaid Sum for a period equal or comparable to the required period at or about 11.00
a.m. on the applicable Rate Fixing Day; or
	 
	 	(b)	 	(if no Screen Rate is available for the required currency or required period of
that Advance or Unpaid Sum) the arithmetic mean (rounded upwards, if necessary, to the
nearest four decimal places) of the respective rates, as supplied to the Facility Agent
at its request, quoted by the Reference Banks to leading banks for the offering of
deposits in the required currency and for the required period in the London interbank
market at or about 11.00 a.m. on the Rate Fixing Day for such period,

	 	 	and for the purposes of this definition, required period means the applicable Interest
Period of an Advance or the period in respect of which LIBOR falls to be determined in
relation to any Unpaid Sum.
	 
	 	 	Licence means each approval, consent, authorisation and licence from, and all filings,
registrations and agreements with any governmental or regulatory authority, in each case
granted, issued, made or entered into pursuant to any Telecommunications and Cable Law
necessary in order to enable each member of the Borrower Group to carry on its business as
may be permitted by the terms of this Agreement.
	 
	 	 	LMA means the Loan Market Association.
	 
	 	 	Majority Acquisition has the meaning given in paragraph (c) of the definition of
Permitted Acquisition.
	 
	 	 	Majority Lenders means, at any time Lenders the aggregate of whose undrawn Additional
Facility Commitments (translated into euros, where such Additional Facility Commitment is
denominated in US Dollars or an Additional Currency, on the basis of the Agent’s Spot Rate
of Exchange on the date of the Additional Facility Accession Agreement) and participations
in outstanding Advances (calculated by reference to the Original Euro Amount of such
Advances) exceeds 662/3 per cent. of the aggregate undrawn Total
Commitments and the Original Euro Amount of outstanding Advances.
	 
	 	 	Management Fees means any management, consultancy or similar fees payable by any member
of the Borrower Group to any Restricted Person.
	 
	 	 	Mandatory Cost means the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 3 (Mandatory Cost Formulae).

16

 

	 	 	Margin means the amount specified in and, if applicable, adjusted in accordance with
the Additional Facility Accession Agreement.
	 
	 	 	Material Adverse Effect means any event or circumstance which has a material adverse
effect on the ability of the Obligors (taken as a whole) to perform their payment or other
material obligations under any of the Finance Documents.
	 
	 	 	Material Contracts means:

	 	(a)	 	the Interconnect Agreements;
	 
	 	(b)	 	the Priority Pledge;
	 
	 	(c)	 	the Shareholders’ Agreements as from time to time amended, varied, restated or
replaced, in each case in a manner that does not constitute an Event of Default under
Clause 18.18 (Material Contracts); and
	 
	 	(d)	 	each other agreement agreed as such by the Facility Agent and UPC Broadband.

	 	 	Material Subsidiary means any Subsidiary of UPC Broadband which accounts for more than
five per cent. of consolidated EBITDA of the Borrower Group as shown in the financial
statements most recently delivered under Clause 16.2(a) or (b) (Financial information)
(except that for purposes of determining the consolidated EBITDA of the Borrower Group in
respect of the financial statements delivered under Clause 16.2(b) (Financial information),
the amount of such EBITDA shall equal two times the consolidated EBITDA of the Borrower
Group during the relevant Ratio Period ending on the date to which such financial statements
are prepared).
	 
	 	 	If a Subsidiary which is not a Material Subsidiary on the basis of the most recent such
financial statements most recently delivered receives on any date (the Relevant Date) a
transfer of assets or the right to receive any earnings which, taken together with the
existing earnings of that Subsidiary, would satisfy the test above, then that Subsidiary
shall also be a Material Subsidiary on and from the Relevant Date. If a Material Subsidiary
disposes of any assets or the right to receive any earnings such that it would on the basis
of the most recent such financial statements most recently delivered cease to be a Material
Subsidiary, then it shall be excluded as a Material Subsidiary on and from the date it makes
such disposal.
	 
	 	 	Mid-Interest Period Transfer means an assignment, transfer or novation by an Existing
Lender of all or any of its rights and/or obligations in respect of an Advance under this
Agreement in accordance with Clause 26.2 (Transfers by Lenders) where such assignment,
transfer or novation:

	 	(a)	 	includes the assignment or transfer of the right to receive an amount of
principal and interest under this Agreement; and
	 
	 	(b)	 	is made on a day other than the last day of an Interest Period.

	 	 	Necessary Authorisations means all material approvals, consents, authorisations and
licences (other than the Licences) from, all rights granted by and all filings,
registrations and agreements with, any government or other regulatory authority necessary in
order to enable each member of the Borrower Group to carry on its business as may be
permitted by the terms of this Agreement as carried on by it at the relevant time.

17

 

	 	 	Net Proceeds means the aggregate cash (or cash equivalent) proceeds received by any
member of the Borrower Group in consideration for or otherwise in respect of a relevant
disposal, net of all Taxes applicable on, or to any gain resulting from, that disposal and
of all reasonable costs, fees and expenses properly incurred by continuing members of the
Borrower Group in arranging and effecting that disposal.
	 
	 	 	Network means the networks operated from time to time by any member of the Borrower
Group pursuant to the Licences and in accordance with this Agreement.
	 
	 	 	New Lender has the meaning given to it in Clause 26.2 (Transfers by Lenders).
	 
	 	 	non-Distribution Business Assets has the meaning given to it in Clause 16.10(b)(viii)
(Disposals).
	 
	 	 	Novation Certificate has the meaning given to it in Clause 26.3(a)(i) (Procedure for
novations).
	 
	 	 	Obligor means a Borrower or a Guarantor including, for the purposes of Clause 18
(Default), any Subsidiary of UPC Broadband that is required to become a Guarantor under
Clause 26.4 (Additional Obligors) but has not yet become a Guarantor.
	 
	 	 	Obligor Accession Agreement means a deed in the form of Part 2 of Schedule 5 (Obligor
Accession Agreement), with such amendments as the Facility Agent may approve or reasonably
require (including, without limitation, any limitation on the obligations of the relevant
Additional Guarantor which has been approved by the Facility Agent pursuant to Clause
26.4(a)(vi) (Additional Obligors).
	 
	 	 	Obligor Pledge of Shareholder Loans means the deeds of pledge of shareholder loans
entered into between certain Obligors and the Security Agent listed in subparagraphs 1)a)i),
(c), (d), (e), (f) and (g) of Schedule 7 (Security Documents) and any other deed of pledge
of shareholder loans in substantially the same form entered into by an Obligor pursuant to
any such deed of pledge or Clause 16.14(a) (Loans and guarantees) or Clause 26.4 (Additional
Obligors).
	 
	 	 	Obligors’ Framework Agreement means the Framework Agreement (as defined in any Obligor
Pledge of Shareholder Loans).
	 
	 	 	Original Borrower Group Financial Statements means the financial statements of the
Borrower Group for the Accounting Period ended 31 March 2003 (comprising the unaudited
compiled financial statements of each of the Obligors for the Accounting Period ended 31
March 2003 and a combination of those financial statements).
	 
	 	 	Original Euro Amount means:

	 	(a)	 	the principal amount of an Advance (as applicable) denominated in euros; or
	 
	 	(b)	 	the principal amount of an Advance denominated in US Dollars or an Additional
Currency translated into euros on the basis of the Agent’s Spot Rate of Exchange on the
date of receipt by the Facility Agent of the Request for the relevant Advance.

	 	 	Participating Member State means a member state of the European Community that adopts
or has adopted the euro as its lawful currency in accordance with legislation of the
European Community for Economic Monetary Union.

18

 

	 	 	Party means a party to this Agreement.
	 
	 	 	Permitted Acquisition means:

	 	(a)	 	any Acquisition of a member of the Borrower Group by any other member of the
Borrower Group as part of the solvent reorganisation of the Borrower Group;
	 
	 	(b)	 	any Acquisition where, upon completion of the Acquisition, the person acquired
will be a Subsidiary of UPC Broadband or where UPC Broadband or one of its Subsidiaries
which is a member of the Borrower Group will own directly or indirectly greater than a
50 per cent. interest in the asset or assets constituting the acquired business (a
Majority Acquisition) and where:

	 	(i)	 	the business of the acquired entity or the business acquired,
as the case may be, is of the same nature as the business of the Borrower Group
as at the Effective Date and is carried out principally in Europe (other than
Great Britain or Germany);
	 
	 	(ii)	 	in the case of any Majority Acquisition where the Acquisition
Cost is €40,000,000 or greater, UPC Broadband delivers to the Facility Agent:

	 	(A)	 	a Borrower Group Business Plan which must:

	 	I.	 	contain cash flow projections which show that the sum of
the undrawn Total Facility A Commitments (as defined under
the Existing Facility Agreement), any undrawn Additional
Facility Commitments that are available to be drawn for the
general corporate and working capital purposes of the
Borrower Group, and Unrestricted Cash, taking into account
the proposed Majority Acquisition, is projected to be
greater than €100,000,000 on the date on which financial
covenants relating to the eleventh quarterly Accounting
Period after the quarterly Accounting Period in which the
Acquisition is made are tested under Clause 17 (Financial
Covenants); and
	 
	 	II.	 	contain financial projections which demonstrate that the
Borrowers will be in compliance with the undertakings set
out in Clause 17 (Financial Covenants) for the period from
completion of the Acquisition (taking into account the
Acquisition Cost of such Acquisition) to the Final Maturity
Date; and

	 	(B)	 	an Acquisition Business Plan;

	 	(iii)	 	UPC Broadband delivers to the Facility Agent the most recent
six-months management accounts of or relating to the Target, together with a
certificate signed by two managing directors or the sole managing director, as
the case may be, of UPC Broadband certifying the amount of the Cash Flow of the
Target for the most recent six months and setting out the supporting
calculations;
	 
	 	(iv)	 	no Default has occurred and is continuing or would be caused by
the Majority Acquisition; and

19

 

	 	(v)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which certifies that, if the ratio of Senior Debt to Annualised EBITDA of the
Borrower Group was re-calculated for the most recent Ratio Period ending prior
to the date of the Acquisition for which financial statements have been
delivered pursuant to Clause 16.2(a) or (b) (Financial information) (the
Relevant Ratio Period) but adding to the:

	 	(A)	 	amount of Senior Debt used in such calculation
any net increase in the Senior Debt of the Borrower Group since the end
of the Relevant Ratio Period or subtracting from the amount of Senior
Debt used in such calculation any net deduction in the Senior Debt of
the Borrower Group (in each case taking into account the amount of
Senior Debt used to fund the Acquisition Cost); and
	 
	 	(B)	 	Annualised EBITDA of the Borrower Group, the
Annualised EBITDA of the Target for the Relevant Ratio Period,

the ratio of Senior Debt to Annualised EBITDA of the Borrower Group
would be less than the higher of:

	 	I.	 	4.0:1; and
	 
	 	II.	 	the ratio of Senior Debt to Annualised EBITDA of the Borrower
Group for the Relevant Ratio Period; or

	 	(c)	 	any Acquisition by a member of the Borrower Group for the purposes of a solvent
reorganisation of the Borrower Group where the Acquisition is of share capital or
equivalent of a company which:

	 	(i)	 	has not traded and does not own any assets; or
	 
	 	(ii)	 	is a dormant Subsidiary of Liberty Global, Inc. and,
in each case, which has no liabilities.

	 	 	All references in this definition to euro or
€ shall, where applicable, mean the
equivalent in any other currency, converted to euro, based on the Agent’s Spot Rate of
Exchange at the relevant time.
	 
	 	 	Permitted Borrower Group Guarantee Facilities means the guarantee facilities under
which UPC Broadband and/or any of its Subsidiaries can draw guarantees up to a maximum
aggregate principal amount of €10,000,000.
	 
	 	 	Permitted Borrower Group Revolving Credit Facility means the revolving credit facility
to be entered into after the date of the Amendment Agreement by UPC Broadband as borrower,
under which UPC Broadband can borrow revolving advances for general corporate and working
capital purposes of the Borrower Group up to a maximum principal amount of €10,000,000.
	 
	 	 	Permitted Business means the carrying on of the Business in Europe.
	 
	 	 	Permitted Disposal has the meaning given to it in Clause 16.10(b) (Disposals).

20

 

	 	 	Permitted Financial Indebtedness has the meaning given to it in Clause 16.12(b)
(Restrictions on Financial Indebtedness).
	 
	 	 	Permitted Joint Venture means:

	 	(a)	 	any Acquisition referred to in paragraph (a) of the definition of “Permitted
Acquisition” and any Acquisition as a result of a reorganisation of a person that is
not a Subsidiary of UPC Broadband but in which a member of the Borrower Group has an
interest, provided that such reorganisation does not result in an overall increase in
the value of the Borrower Group’s interest in that person, other than adjustments to
the basis of any member of the Borrower Group’s interest in accordance with GAAP; or
	 
	 	(b)	 	any Acquisition where, upon completion of the Acquisition, the person acquired
will not be a Subsidiary of UPC Broadband or where UPC Broadband or one of its
Subsidiaries which is a member of the Borrower Group will own directly or indirectly no
more than a 50 per cent. interest in the asset or assets constituting the acquired
business (a JV Minority Acquisition) and where:

	 	(i)	 	the business of the acquired entity or the business acquired,
as the case may be, is of the same nature as the business of the Borrower Group
as at the Effective Date and is carried out principally in Europe (other than
Great Britain or Germany);
	 
	 	(ii)	 	in the case of any JV Minority Acquisition where the
Acquisition Cost is €40,000,000 or greater, UPC Broadband delivers to the
Facility Agent:

	 	(A)	 	a Borrower Group Business Plan which in
relation to any JV Minority Acquisition must:

	 	I.	 	contain cash flow projection which show that the sum of
the undrawn Total Facility A Commitments (as defined in the
Existing Facility Agreement), any undrawn Additional Facility
Commitments that are available to be drawn for the general
corporate and working capital purposes of the Borrower Group,
and Unrestricted Cash, taking into account the proposed JV
Minority Acquisition, is projected to be greater than
€100,000,000 on the date on which financial covenants
relating to the eleventh quarterly Accounting Period after
the quarterly Accounting Period in which the Acquisition is
made are tested under Clause 17 (Financial Covenants); and
	 
	 	II.	 	contain financial projections which demonstrate that the
Borrowers will be in compliance with the undertakings set out
in Clause 17 (Financial Covenants) for the period from
completion of the Acquisition (taking into account the
Acquisition Cost of such Acquisition) to the Final Maturity
Date; and

	 	(B)	 	an Acquisition Business Plan;

	 	(iii)	 	UPC Broadband delivers to the Facility Agent the most recent
six months management accounts of or relating to the Target, together with a
certificate

21

 

	 	 	 	signed by two managing directors or the sole managing director, as the case
may be, of UPC Broadband certifying the amount of the Cash Flow of the
Target for the most recent six months and setting out the supporting
calculations;

	 	(iv)	 	no Default has occurred and is continuing or would be caused by
the JV Minority Acquisition; and
	 
	 	(v)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which certifies that, if the ratio of Senior Debt to Annualised EBITDA of the
Borrower Group was re-calculated for the most recent Ratio Period ending prior
to the date of the Acquisition for which financial statements have been
delivered pursuant to Clause 16.2(a) or (b) (Financial information) (the
Relevant Ratio Period) but adding to the:

	 	(A)	 	amount of Senior Debt used in such calculation
any net increase in the Senior Debt of the Borrower Group since the end
of the Relevant Ratio Period or subtracting from the amount of Senior
Debt used in such calculation any net deduction in the Senior Debt of
the Borrower Group since the end of the Relevant Ratio Period (in each
case taking into account the amount of Senior Debt used to fund the
Acquisition Cost); and
	 
	 	(B)	 	Annualised EBITDA of the Borrower Group the
Annualised EBITDA of the Target for the Relevant Ratio Period,

the ratio of Senior Debt to Annualised EBITDA of the Borrower Group
would be less than the higher of:

	 	(1)	 	4.0:1; and
	 
	 	(2)	 	the ratio of Senior Debt to Annualised EBITDA
of the Borrower Group for the Relevant Ratio Period.

	 	 	All references in this definition to euro or
€ shall, where applicable, mean the
equivalent in any other currency, converted to euro, based on the Agent’s Spot Rate of
Exchange at the relevant time.
	 
	 	 	Permitted Payment has the meaning given to it in Clause 16.13(c) (Restricted Payments).
	 
	 	 	Permitted Security Interest means:

	 	(a)	 	any Security Interest arising hereunder or under any Security Document;
	 
	 	(b)	 	any Security Interest arising under any Existing Security Document;
	 
	 	(c)	 	any liens arising in the ordinary course of business by way of contract which
secure indebtedness under any agreement for the supply of goods or services in respect
of which payment is not deferred for more than 180 days (or 360 days if such deferral
is in accordance with the terms pursuant to which the relevant goods were acquired or
services were provided);

22

 

	 	(d)	 	any Security Interest imposed by any taxation or governmental authority in
respect of amounts which are being contested in good faith and not yet payable and for
which adequate reserves have been set aside in the books of the Borrower Group (or, as
the case may be, UPC Broadband Holdco) in respect of the same in accordance with GAAP;
	 
	 	(e)	 	any Security Interests approved in writing by the Agent (acting on the
instructions of the Majority Lenders);
	 
	 	(f)	 	any Security Interest in favour of any bank incurred in relation to any cash
management arrangements;
	 
	 	(g)	 	rights of set-off arising in the ordinary course of business;
	 
	 	(h)	 	any Security Interest securing any Financial Indebtedness referred to in Clause
16.12(b)(xi) (Restrictions on Financial Indebtedness), provided that (A) such Security
Interest was not created in contemplation of the acquisition of such company, (B) the
debt secured by such Security Interest is not increased beyond that secured at the date
the company in question is acquired and such Security Interest secures only that debt
and (C) such Encumbrance is discharged within 12 months of completion of the relevant
acquisition;
	 
	 	(i)	 	any Security Interest over non-Distribution Business Assets referred to in
Clause 16.12(b)(xii) (Restrictions on Financial Indebtedness), securing Financial
Indebtedness described therein or any other obligation in respect of such
non-Distribution Business Assets;
	 
	 	(j)	 	Security Interests arising under agreements entered into in the ordinary course
of business relating to (i) network leases or (ii) the leasing of (A) building; (B)
cars; and (C) other operational equipment;
	 
	 	(k)	 	any Security Interest securing Financial Indebtedness arising under the
Permitted Borrower Group Revolving Credit Facility or the Permitted Borrower Group
Guarantee Facilities provided that any such Security Interest will constitute a
Security Interest over assets that are not secured or required to be secured as at the
date of the Amendment Agreement under the Finance Documents or the Existing Finance
Documents; and
	 
	 	(l)	 	any Security Interests not falling within paragraphs (a) to (k) above and
securing indebtedness (other than indebtedness in relation to an Acquisition) not
exceeding €15,000,000 (or its equivalent).

	 	 	Plan means a plan that is subject to section 302 or regulated by Title IV of ERISA
maintained by any member of the Borrower Group or any ERISA Affiliate currently or at any
time within the last five years, or to which any member of the Borrower Group or any ERISA
Affiliate is required to make payments or contributions or has made payments or
contributions within the past five years.
	 
	 	 	Pledge of Subordinated Shareholder Loans means the deed of pledge and subordination of
Subordinated Shareholder Loans entered into between certain Restricted Persons and the
Security Agent listed in subparagraph 3(b) of Schedule 7 (Security Documents) and any other
deed of pledge entered into pursuant to any such deed of pledge or Clause 16.24(a)
(Shareholder Loans).

23

 

	 	 	Polska Holdco means:

	 	(a)	 	UPC Poland Holding B.V. (previously called UPC Telecom NV); and
	 
	 	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with or is acquired by any other
person or persons; or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

	 	 	the successor person (including any Holding Company which holds all the shares of
Polska Holdco) formed by such consolidation or into which such entity is merged or to which
such conveyance, transfer or lease is made.
	 
	 	 	Priority Pledge means the pledge entered into between UPC Broadband as pledgee and
Priority Telecom Netherlands N.V. as pledgor dated 30 August 2002 in relation to telephony
switches.
	 
	 	 	Professional Market Party means a professional market party (professionele marktpartij)
under the Dutch Exemption Regulation.
	 
	 	 	Rate Fixing Day means:

	 	(a)	 	the second Business Day before the Utilisation Date of an Advance denominated
in US Dollars; or
	 
	 	(b)	 	the second TARGET Day before the Utilisation Date of an Advance denominated in
euros,

		 	or such other day on which it is market practice in the London or, as the case may be,
European interbank market for leading banks to give quotations in the relevant currency for
delivery on the first day of the relevant Utilisation Date.
	 
	 	 	Ratio Period has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Reference Banks means, subject to Clause 26.5 (Reference Banks), the principal London
offices of JPMorgan Chase Bank, The Toronto-Dominion Bank and CIBC World Markets plc.
	 
	 	 	Related Fund means, with respect to any Lender that is a fund that invests in
commercial loans, any other fund that invests in commercial loans and is administered or
managed by (a) that Lender, (b) any Affiliate of that Lender or (c) the same investment
adviser (or an Affiliate of that investment adviser) that administers or manages that
Lender.
	 
	 	 	Relevant Convertible Preference Shares means, at any time, convertible preference
shares issued by a member of the UGCE Borrower Group but excluding:

	 	(a)	 	convertible preference shares that cannot in accordance with their terms be
redeemed for cash:

24

 

	 	(i)	 	before the date on which all amounts outstanding under the
Finance Documents and the Existing Finance Documents have been repaid or
prepaid in full; or
	 
	 	(ii)	 	(if they can be redeemed for cash before that date) until the
ratio of Senior Debt to Annualised EBITDA (i) is 3.5:1 or less for the two
immediately preceding consecutive Ratio Periods and (ii) will be less than
3.5:1 immediately after such cash redemption; and

	 	(b)	 	convertible preference shares issued by a member of the UGCE Borrower Group and
subscribed for by a member of the Wider Group.

	 	 	Relevant Eastern European Subsidiary means any Subsidiary of any Obligor which
Subsidiary is incorporated and has all its material operations in Eastern Europe, provided
that the aggregate of the contributions of the Relevant Eastern European Subsidiaries to the
consolidated EBITDA of the Borrower Group attributable to Eastern Europe does not exceed in
aggregate 10 per cent.
	 
	 	 	For the purposes of this definition, consolidated EBITDA of the Borrower Group or any
Subsidiary of an Obligor shall be determined by reference to the 12 month period ending on
the most recent date in respect of which financial statements have been delivered to the
Facility Agent under Clause 16.2(b) (Financial information).
	 
	 	 	Relevant Event means a Default in relation to (a) Clause 18.2 (Non-payment) or (b)
Clause 17.2 (Financial ratios).
	 
	 	 	Repayment Instalment has the meaning given to that term in Clause 6.1 (Repayment of
Advances).
	 
	 	 	Reportable Event means:

	 	(a)	 	an event specified as such in section 4043 of ERISA or any regulation
promulgated thereunder, with respect to a Plan that is subject to Title IV of ERISA,
other than an event in relation to which the requirement to give 30 days notice of that
event is waived by any regulation; or
	 
	 	(b)	 	a failure to meet the minimum funding standard under section 412 of the Code or
section 302 of ERISA with respect to a Plan that is subject to such sections of the
Code and ERISA, whether or not there has been any waiver of notice or waiver of the
minimum funding standard under section 412 of the Code.

	 	 	Request means a request made by a Borrower to utilise any of the Facilities and,
subject to Clause 5.2 (Form of Request), substantially in the form of Part 1 of Schedule 4
(Form of Request).
	 
	 	 	Requested Amount means the amount requested in a Request.
	 
	 	 	Restricted Payment has the meaning given to it in Clause 16.13(b) (Restricted
Payments).
	 
	 	 	Restricted Person means UGCE Inc., UPC, LGEF, UPC Holding, any other company (not being
a member of the Borrower Group) which is a Subsidiary of, or an Associated Company of, UGCE
Inc. (other than Associated Companies of UGCE Inc. which are its Associated Companies by
virtue of controlling UGCE Inc. or owning beneficially and/or legally directly or indirectly
10 per cent. or more of the equity interests in UGCE Inc.).

25

 

	 	 	Restricted Person’s Framework Agreement means the Framework Agreement as defined in any
Pledge of Subordinated Shareholder Loans.
	 
	 	 	Restructuring means the transfer of share capital and intercompany receivables that
took place prior to the Signing Date so that the Borrower Group was restructured to consist
of UPC Broadband and its Subsidiaries as described in the structure chart set out at
Schedule 8 (Borrower Group Structure).
	 
	 	 	Sale and Purchase Agreements means the following sale and purchase agreements relating
to the sale and transfer of shares and receivables entered into on 9 April 2003 between:

	 	(a)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Broadband Operations B.V.
(previously called UPC Operations B.V.);
	 
	 	(b)	 	UPC, LGEF, UPC Holding and UGC Europe Services B.V. (previously called UPC
Services B.V.);
	 
	 	(c)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Broadband Holding Services B.V.
(previously called UPC Holding Services B.V.); and
	 
	 	(d)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Services Ltd.

	 	 	Screen Rate means:

	 	(a)	 	in relation to LIBOR, the British Bankers Association Interest Settlement Rate
for the relevant currency and period; and
	 
	 	(b)	 	in relation to EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant period,

	 	 	displayed on the appropriate page of the Reuters screen. If that page is replaced or
the service ceases to be available, the Facility Agent may specify another page or service
displaying the appropriate rate after consultation with UPC Broadband and the Lenders.
	 
	 	 	Security Deed means the Security Deed dated 16 January 2004 between, among others, each
Obligor, the Facility Agent, the Security Agent, the Lenders, the High Yield Hedging Banks
and each Subordinated Creditor and includes each Deed of Accession (as defined in the
Security Deed) entered into in relation to the Security Deed.
	 
	 	 	Security Documents means:

	 	(a)	 	the documents listed in Schedule 7 (Security Documents); and
	 
	 	(b)	 	such other security documents as may from time to time be entered into in
favour of any Beneficiary pursuant to any of the Finance Documents (including without
limitation any other Obligor Pledge of Shareholder Loans or Pledge of Subordinated
Shareholder Loans, any security document referred to in Clause 16.22 (UPC Broadband
Pledged Account), Clause 16.23 (Share security) or Clause 16.25 (Further security over
receivables) and any security document provided to the Security Agent in connection
with the accession of an Additional Obligor pursuant to Clause 26.4 (Additional
Obligors) and Part 2 of Schedule 2 (Conditions Precedent Documents) or otherwise.

26

 

	 	 	Security Interest means any mortgage, charge (whether fixed or floating), pledge, lien,
hypothecation, assignment by way of security, trust arrangement for the purpose of providing
security or other security interest of any kind securing any obligation of any person or any
other arrangement having the effect of conferring rights of retention or other disposal
rights over an asset (including without limitation title transfer and/or retention
arrangements having a similar effect or a deposit of money with the primary intention of
affording a right of set-off) and includes any agreement to create any of the foregoing but
does not include (a) liens arising in the ordinary course of business by operation of law
and not by way of contract and (b) any grant of indefeasible rights of use or equivalent
arrangements with respect to network capacity, communications, fibre capacity or conduit.
	 
	 	 	Security Provider’s Deed of Accession has the meaning given to it in the Security Deed.
	 
	 	 	Senior Beneficiary has the meaning given to the term in the Security Deed.
	 
	 	 	Senior Debt has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Senior Hedging Agreements means any Cash Flow Hedging Agreement and all interest rate
and/or currency swap and/or interest rate and/or currency cap and/or other interest rate
and/or currency hedging agreements entered into or to be entered into by any member of the
Borrower Group with any of the Senior Hedging Banks from time to time in relation to the
Borrower Group’s floating rate interest exposure and/or currency exposure.
	 
	 	 	Senior Hedging Bank means a Lender or its Affiliate as defined in the Existing Facility
Agreement which is or becomes a party to the Existing Security Deed as a senior hedging
bank.
	 
	 	 	Serviceable Subordinated Debt means any Financial Indebtedness not prohibited by the
Finance Documents or the Existing Finance Documents (including, for the avoidance of doubt,
High Yield Notes and Relevant Convertible Preference Shares) which is raised by an entity
that is not a member of the Borrower Group, all or part of, the proceeds of which are
on-lent directly or indirectly to a member of the Borrower Group by a Subordinated Creditor
by means of a Subordinated Shareholder Loan provided that, all or part of, such proceeds are
applied in permanent prepayment and cancellation of the Facilities in accordance with this
Agreement or of the Existing Facility in accordance with the Existing Facility Agreement.
	 
	 	 	Shareholder means UGCE Inc. or a UGCE Inc. Subsidiary.
	 
	 	 	Shareholders’ Agreements means the agreements listed in Schedule 9 (Shareholders’
Agreements).
	 
	 	 	Signing Date means the date of this Agreement.
	 
	 	 	Sterling means the lawful currency for the time being of the United Kingdom.
	 
	 	 	Subordinated Creditor means any Restricted Person who has, at any relevant time,
entered into a Pledge of Subordinated Shareholder Loans and the Security Deed or a Security
Provider’s Deed of Accession.
	 
	 	 	Subordinated Shareholder Loans means any Financial Indebtedness of any member of the
Borrower Group owed to a Subordinated Creditor.
	 
	 	 	Subsidiary of a person means any company or entity directly or indirectly controlled by
such person, for which purpose control means ownership of more than 50 per cent. of the

27

 

	 	 	economic and/or voting share capital (or equivalent right of ownership of such company or
entity).
	 
	 	 	Target means any assets or entity which is or are the subject of an Acquisition in
accordance with the terms of this Agreement.
	 
	 	 	TARGET Day means a day on which the Trans-European Automated Real-Time Gross Settlement
(TARGET) System is operating.
	 
	 	 	Taxes or Tax means all present and future taxes, imposts, duties, levies, fees or
charges of a similar nature, together with interest thereon and penalties in respect
thereof.
	 
	 	 	Telecommunications and Cable Law means all laws, statutes, regulations and judgments
relating to telecommunications, cable television and data services applicable to any member
of the Borrower Group and/or the business carried on by any member of the Borrower Group in
any jurisdiction in which a member of the Borrower Group is incorporated or formed or in
which such member has its principal place of business or owns any material assets.
	 
	 	 	Telekabel Wien means Telekabel Wien GmbH a company incorporated under the laws of
Austria with its corporate seat at Erlachgasse 116, 1100 Wien, Austria and with registration
number FN 84116a.
	 
	 	 	Third Party Debt means any Financial Indebtedness which is owed to any person other
than a member of the Wider Group (but, for the avoidance of doubt, excluding any
indebtedness arising under any instrument that does not impose any obligations on the
obligor to make any cash payment and does not permit such obligor to elect to make any cash
payments and to the extent only that such instrument is not amended so as to become an
instrument under which there are (or may be) cash payment obligations).
	 
	 	 	Total Additional Facility Commitments means in relation to an Additional Facility, the
aggregate for the time being of the Additional Facility Commitments for that Additional
Facility.
	 
	 	 	Total Cash Interest has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Total Commitments means the aggregate for the time being of the aggregate Total
Additional Facility Commitments for all Additional Facilities.
	 
	 	 	Total Debt has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	UGC means:

	 	(a)	 	UnitedGlobalCom, Inc. a corporation incorporated in the State of Delaware,
United States and, as of the Signing Date, having its business office at 4643 South
Ulster Street, Suite 1300, Denver, Colorado 80237 U.S.A.; and
	 
	 	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with any other person or persons;
or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

28

 

	 	 	the successor person formed by such consolidation or into which such entity is merged
or to which such conveyance, transfer or lease is made.
	 
	 	 	UGCE Borrower Group means:

	 	(a)	 	UGCE Inc.;
	 
	 	(b)	 	any other company of which UPC Broadband is a Subsidiary and which is a
Subsidiary of UGCE Inc.; and
	 
	 	(c)	 	UPC Holding II.

	 	 	UGCE Inc. means:

	 	(a)	 	UGC Europe Inc. a company organised under the laws of the State of Delaware;
and
	 
	 	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with any other person or persons;
or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

	 	 	the successor person formed by such consolidation or into which such entity is merged
or to which such conveyance, transfer or lease is made.
	 
	 	 	UGCE Inc. Subsidiary means:

	 	(a)	 	any corporation, association or other business entity (other than a
partnership, joint venture, limited liability company or similar entity) of which more
than 50 per cent. of the total ordinary voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof (or persons performing similar functions);
or
	 
	 	(b)	 	any partnership, joint venture limited liability company or similar entity of
which more than 50 per cent. of the capital accounts, distribution rights, total equity
and voting interests or general or limited partnership interests, as applicable, is, in
the case of clauses (a) and (b), at the time owned or controlled, directly indirectly,
by:

	 	(i)	 	UGCE Inc;
	 
	 	(ii)	 	UGCE Inc. and one or more UGCE Inc. Subsidiaries; or
	 
	 	(iii)	 	one or more UGCE Inc. Subsidiaries.

	 	 	For the purposes of the above definition:

Capital Stock of any UGCE Inc. Subsidiary means any and all shares, interests,
rights to purchase, warrants, options, participation or other equivalents of or
interests in (however designated) equity of such UGCE Inc. Subsidiary, including any
Preferred Stock, but excluding any debt securities convertible into such equity; and

Preferred Stock, as applied to the Capital Stock of any UGCE Inc. Subsidiary,
means Capital Stock of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any
voluntary

29

 

or involuntary liquidation or dissolution of such UGCE Inc. Subsidiary, over shares
of Capital Stock of any other class of such UGCE Inc. Subsidiary.

	 	 	United States or US means the United States of America.
	 
	 	 	Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance
Documents.
	 
	 	 	Unrestricted Cash has the meaning given to that term under GAAP.
	 
	 	 	Unrestricted Subsidiary means each Subsidiary of UPC Broadband and, prior to the
Restructuring, each Subsidiary of each Obligor that is not a Subsidiary of UPC Broadband,
the acquisition cost of which and whose on-going funding requirements are not funded
directly or indirectly (in whole or in part) by any member of the Borrower Group by way of
drawings under the Facilities and which is designated by UPC Broadband in writing as an
Unrestricted Subsidiary.
	 
	 	 	UPC means United Pan-Europe Communications N.V., a public limited liability company
incorporated under the laws of The Netherlands and, as of the Signing Date, with its
registered office at Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol
Rijk, Amsterdam, The Netherlands.
	 
	 	 	UPC Austria means UPC Austria Holding B.V. a private limited liability company
incorporated under the laws of The Netherlands and, as of the Signing Date, with its
registered office at Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol
Rijk, Amsterdam, The Netherlands.
	 
	 	 	UPC Broadband Holdco means the immediate Holding Company of UPC Broadband from time to
time, being UPC Holding as of the Signing Date.
	 
	 	 	UPC Broadband Pledged Account has the meaning given in Clause 16.22(b) (UPC Broadband
Pledged Account).
	 
	 	 	UPC Financing means UPC Financing Partnership, a general partnership formed under the
laws of Delaware, United States with its principal place of business at 4643 South Ulster
Street, Suit 1300, Denver, Colorado 80237, USA.
	 
	 	 	UPC Holding means UPC Holding B.V., a limited liability company incorporated under the
laws of The Netherlands and, as of the Signing Date, with its registered office at Amsterdam
and its business office at Boeing Avenue 53, 1119 PE Schiphol Rijk, Amsterdam, The
Netherlands.
	 
	 	 	UPC Holding II means UPC Holding II B.V., a limited liability company incorporated
under the laws of The Netherlands and, as of the Signing Date, with its registered office at
Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol Rijk, Amsterdam, The
Netherlands.
	 
	 	 	UPC Polska means UPC Polska LLC.
	 
	 	 	US Borrower means any Additional Borrower under this Agreement which is incorporated or
formed under the laws of a State of the United States or that resides or has a domicile, a
place of business or property in the United States.
	 
	 	 	US Dollars and US$ means the lawful currency for the time being of the United States.

30

 

	 	 	US Obligor has the meaning given to it in Clause 18.6(c) (Insolvency).
	 
	 	 	Utilisation Date means the date specified as such in the relevant Request or, on and
after the making and/or issue thereof pursuant to such Request, the date on which it was
made and/or issued.
	 
	 	 	VAT means value added or similar tax.
	 
	 	 	Western Europe means the countries that comprised the European Community as at the
Effective Date, Scandinavia and Switzerland.
	 
	 	 	Wider Group means UGCE Inc. and each of its Affiliates including (for the avoidance of
doubt) UGC, Liberty Global, Inc. and Liberty Media International, Inc. or any of their
respective Subsidiaries.

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

	 	(i)	 	a document being in the agreed form means a document (A) in a form previously
agreed in writing by or on behalf of the Facility Agent and UPC Broadband, or (B) in a
form substantially as set out in any Schedule to any Finance Document, or (C) (if not
falling within (A) or (B) above) in form and substance satisfactory to the Lenders and
initialled by or on behalf of the Facility Agent and UPC Broadband for the purposes of
identification;
	 
	 	 	 	amendment includes a supplement, novation or re-enactment and amended is to be
construed accordingly;
	 
	 	 	 	assets includes all or any part of any business, undertaking, real property,
personal property, uncalled capital and any rights (whether actual or contingent,
present or future) to receive, or require delivery of, any of the foregoing;
	 
	 	 	 	references to the equivalent of an amount specified in a particular currency
(the specified currency amount) shall be construed as a reference to the amount of
the other relevant currency which can be purchased with the specified currency
amount in the London foreign exchange market at or about 11.00 a.m. on the day on
which the calculation falls to be made for spot delivery as determined by the
Facility Agent in accordance with its customary practices;
	 
	 	 	 	European interbank market means the interbank market for euro operating in
Participating Member States;
	 
	 	 	 	a guarantee includes a reference 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;
	 
	 	 	 	indebtedness is a reference to any obligation for the payment or repayment of
money, whether as principal or as surety and whether present or future, actual or
contingent;
	 
	 	 	 	a month is a reference to a period starting on one day in a calendar month and
ending on the numerically corresponding day in the next calendar month, except that,
if there

31

 

	 	 	 	is no numerically corresponding day in the month in which that period ends, that
period shall end on the last Business Day in that month;
	 	 	 	permanent prepayment and cancellation means, in relation to any facility, a
permanent prepayment of outstanding advances under that facility with a
corresponding permanent cancellation of the total commitments in relation to that
facility;
	 
	 	 	 	a person includes any individual, firm, company, corporation, unincorporated
body of persons or any state or any of its agencies;
	 
	 	 	 	a regulation includes any present or future regulation, rule, directive,
requirement, request or guideline (whether or not having the force of law but, if
not having the force of law, only if compliance therewith is in accordance with the
general practice of the relevant persons to whom it is intended to apply or, in the
case of Clause 12 (Increased Costs) only, the relevant Finance Party or its Holding
Company) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

	 	(A)	 	a provision of a law is a reference to that provision as
amended, re-enacted or extended;
	 
	 	(B)	 	a Clause or a Schedule is a reference to a clause of or a
schedule to this Agreement;
	 
	 	(C)	 	a person includes its successors, transferees and assigns;
	 
	 	(D)	 	(or to any specified provision of) this Agreement or any other
document shall be construed, save where expressly provided to the contrary in
this Agreement, as a reference to this Agreement, that provision or that
document as in force for the time being and as from time to time amended in
accordance with its terms, or, as the case may be, with the agreement of the
relevant parties and (where such consent is, by the terms of this Agreement or
the relevant document, required to be obtained as a condition to such amendment
being permitted) the prior written consent of the Facility Agent, all of the
Lenders or the Majority Lenders (as the case may be);
	 
	 	(E)	 	other than in the definition of EURIBOR in Clause 1.1
(Definitions), a time of day is a reference to London time; and
	 
	 	(F)	 	words importing the plural include the singular and vice versa.

	(b)	 	Unless the contrary intention appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.
	 
	(c)	 	The index to and the headings in this Agreement are for convenience only and are to be
ignored in construing this Agreement.
	 
	(d)	 	Unless expressly provided to the contrary in a Finance Document, a person who is not a party
to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third
Parties) Act 1999.

32

 

	(e)	 	Notwithstanding any term of any Finance Document, the consent of any third party is not
required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document.
	 
	1.3	 	Existing Facility Agreement
	 
	(a)	 	Unless expressly stated to the contrary, and subject to paragraph (b), references in any of
the Finance Documents to the Existing Finance Documents and to terms defined in, and
provisions of, any of the Existing Finance Documents, shall be references to the relevant
Existing Finance Document and such terms and provisions as at the Effective Date, as the same
may be amended with the prior written approval of the Facility Agent (acting on the
instructions of the Majority Lenders) from time to time.
	 
	(b)	 	References in any of the Finance Documents to any Finance Party (as defined in the Existing
Facility Agreement) shall include such Finance Party’s permitted successors, transferees or
assigns from time to time.
	 
	2.	 	THE FACILITIES
	 
	2.1	 	[Intentionally left blank]
	 
	2.2	 	Additional Facilities
	 
	(a)	 	Any person may, subject to the terms of this Agreement, become a Lender by delivering to the
Facility Agent an Additional Facility Accession Agreement in each case duly completed and
executed by that person, , UPC Broadband and, if the Additional Facility is to be granted to
an Additional Borrower, the relevant Additional Borrower. If, on the date the Additional
Facility Accession Agreement becomes effective, it is a requirement under Dutch law that a
Lender needs to be qualified as a Professional Market Party, such Lender must make the
declaration and representation set out in paragraph 4 of the Additional Facility Accession
Agreement. That person shall become a Lender on the date specified in the Additional Facility
Accession Agreement.
	 
	(b)	 	Upon the relevant person becoming a Lender, the Total Commitments shall be increased by the
amount set out in the relevant Additional Facility Accession Agreement as that Lender’s
Additional Facility Commitment.
	 
	(c)	 	Each Lender will grant to the relevant Borrower a term loan facility in the amount specified
in the relevant Additional Facility Accession Agreement in euros, US Dollars or an Additional
Currency (as applicable) during the Additional Facility Availability Period specified in the
Additional Facility Accession Agreement, subject to the terms of this Agreement.
	 
	(d)	 	The execution by UPC Broadband and the relevant Borrower of an Additional Facility Accession
Agreement constitutes confirmation by each Guarantor that its obligations under Clause 14
(Guarantee) shall continue unaffected except that those obligations shall extend to the Total
Commitments as increased by the addition of the relevant Lender’s Commitment and shall be owed
to each Finance Party including the relevant Lender.
	 
	2.3	 	Overall facility limits
	 
	(a)	 	The aggregate amount of all outstanding Advances under an Additional Facility shall not at
any time exceed the relevant Total Additional Facility Commitments for that Additional
Facility.

33

 

	(b)	 	The aggregate amount of the participations of a Lender in Advances under an Additional
Facility shall not at any time exceed that Lender’s Additional Facility Commitment for that
Additional Facility at that time.
	 
	2.4	 	Number of Requests and Advances
	 
	(a)	 	No more than one Request may be made under each Additional Facility unless an Additional
Facility Accession Agreement specifies otherwise, in which case the maximum number of requests
for Advances under that Additional Facility will be as set out in that Additional Facility
Accession Agreement.
	 
	(b)	 	Unless the Facility Agent agrees otherwise, no more than five Advances may be outstanding at
any one time under each Additional Facility (other than Additional Facilities that can be
redrawn) and no more than ten Advances may be outstanding at any one time under each
Additional Facility that can be redrawn.
	 
	2.5	 	Nature of a Finance Party’s rights and obligations
	 
	(a)	 	The obligations of a Finance Party under the Finance Documents are several. Failure of a
Finance Party to carry out those obligations does not relieve any other Party of its
obligations under the Finance Documents. No Finance Party is responsible for the obligations
of any other Finance Party under the Finance Documents.
	 
	(b)	 	The rights of a Finance Party under the Finance Documents are divided rights. A Finance
Party may, except as otherwise stated in the Finance Documents, separately enforce those
rights.
	 
	(c)	 	Each of the Obligors and each of the Finance Parties agrees that the Security Agent shall be
the joint and several creditor (hoofdelijk crediteur) of each and every obligation of any
Obligor towards each of the Finance Parties under any Finance Document, and that accordingly
the Security Agent will have its own independent claim as creditor and not as agent against
each Obligor to demand performance by the relevant Obligor of those obligations. However, any
discharge of any such obligation to either of the Security Agent or the relevant Finance Party
shall, to the same extent, discharge the corresponding obligation owing to the other.
	 
	(d)	 	Without limiting or affecting the Security Agent’s rights against any Obligor (whether under
this paragraph or under any other provision of the Finance Documents), the Security Agent
agrees with each other Finance Party (on a several and divided basis) that, subject as set out
in the next sentence, it will not exercise its rights as a joint and several creditor with a
Finance Party except with the prior written consent of the relevant Finance Party. However,
for the avoidance of doubt, nothing in the previous sentence shall in any way limit the
Agent’s right to act in the protection or preservation of rights under or to enforce any
Security Document or the Security Deed as contemplated by the Finance Documents (or to do any
act reasonably incidental to any of the foregoing).
	 
	2.6	 	UPC Broadband as Obligors’ agent
	 
	 	 	Each Obligor:

	 	(a)	 	irrevocably authorises and instructs UPC Broadband to give and receive as agent
on its behalf all notices (including Requests) and sign all documents in connection
with the Finance Documents on its behalf (including but not limited to amendments and
variations and execution of any new Finance Documents) and take such other action

34

 

	 	 	 	as may be necessary or desirable under or in connection with the Finance Documents;
and

	 	(b)	 	confirms that it will be bound by any action taken by UPC Broadband under or in
connection with the Finance Documents.

	2.7	 	Actions of UPC Broadband as Obligors’ agent
	 
	 	 	The respective liabilities of each of the Obligors under the Finance Documents shall
not be in any way affected by:

	 	(a)	 	any irregularity (or purported irregularity) in any act done by or any failure
(or purported failure) by UPC Broadband;
	 
	 	(b)	 	UPC Broadband acting (or purporting to act) in any respect outside any
authority conferred upon it by any Obligor; or
	 
	 	(c)	 	the failure (or purported failure) by or inability (or purported inability) of
UPC Broadband to inform any Obligor of receipt by it of any notification under this
Agreement or any other Finance Document.

	3.	 	PURPOSE
	 
	3.1	 	Purpose
	 
	 	 	Each Advance will be applied to finance the general corporate and working capital
purposes of the Borrower Group, including, without limitation, to finance capital
expenditure and the making of Acquisitions by the Borrower Group (to the extent permitted by
this Agreement) and the repayment or prepayment of any Facilities or Existing Facilities.
	 
	3.2	 	Lender’s declarations and representations as Professional Market Party

	 	(a)	 	Each Lender under an Additional Facility made available to a Dutch Borrower
makes the following declarations and representations to those relevant Dutch Borrowers:

	 	(i)	 	it is a Professional Market Party; and
	 
	 	(ii)	 	it acknowledges that as a consequence it has no benefit from
the (creditor) protection under the Dutch Banking Act for non-Professional
Market Parties.

	 	(b)	 	Each declaration and representation set out in paragraph (a) above is made by
each relevant Lender on the 2006 Amendment Effective Date and on each date that this
Agreement is amended, restated or supplemented.
	 
	 	(c)	 	If on the date on which a Dutch Borrower accedes to this Agreement, it is a
requirement under Dutch law that a Lender needs to be qualified as a Professional
Market Party in respect of Advances to be made to that Dutch Borrower, each then
current Lender under an Existing Facility or an Additional Facility to which that Dutch
Borrower is a Borrower shall make the declaration and representation set out under
paragraph (a) above to such Dutch Borrower.

35

 

	3.3	 	No monitoring
	 
	 	 	Without affecting the obligations of the Borrowers in any way, no Finance Party is
bound to monitor or verify the application of the proceeds of any Advance.
	 
	4.	 	CONDITIONS PRECEDENT
	 
	4.1	 	Documentary conditions precedent
	 
	(a)	 	This Agreement will take effect on the day falling no less than five Business Days after the
Signing Date (the Effective Date) on which the Facility Agent notifies UPC Broadband and the
Lenders that it has received written confirmation from the Existing Facility Agents that the
conditions precedent in Clause 2(b) of the amendment and restatement agreement dated on or
about the date of this Agreement between, inter alia, UPC Broadband and the Existing Facility
Agents amending and restating the Existing Facility Agreement have been either satisfied or
waived and that such agreement is effective.
	 
	(b)	 	No Borrower may draw an Advance under this Agreement until the Facility Agent has notified
UPC Broadband and the Lenders that it has received all of the documents set out in Part 1 of
Schedule 2 (Conditions Precedent Documents) in form and substance satisfactory to the Facility
Agent.
	 
	(c)	 	The Facility Agent will confirm to UPC Broadband and to the Existing Facility Agents that it
has received the documents referred to in paragraph (b) above as soon as practicable upon
receiving all of them in form and substance satisfactory to it.
	 
	4.2	 	Further conditions precedent
	 
	 	 	The obligations of each Lender in respect of each Advance are subject to the further
conditions precedent that:

	 	(a)	 	on the date of the Request for that Advance and on the proposed Utilisation
Date the representations and warranties in Clause 15 (Representations and Warranties)
to be repeated on those dates are and will be immediately after the relevant Advance is
drawn down correct in all material respects;
	 
	 	(b)	 	on the date of the Request for that Advance and on the proposed Utilisation
Date no Default is outstanding or would result from the proposed Advance;
	 
	 	(c)	 	on the date of the Request for that Advance and on the proposed Utilisation
Date no Change of Control has occurred where the event has not been waived by the
Majority Lenders; and
	 
	 	(d)	 	the relevant Borrower confirms to the Facility Agent in the Request that the
proceeds of such Advance are only to be applied in accordance with Clause 3.1 (Purpose)
and specifies the relevant purpose of the proposed Advance in such Request.

	4.3	 	Pro forma covenant compliance
	 
	 	 	No Borrower may Request or obtain any Advance in an amount which, when aggregated with
all other Advances (and all Advances (other than Rollover Advances) (in each case as defined
in the Existing Facility Agreement)) (the Relevant Advances) made since the last day of the
most recent Ratio Period ending prior to the proposed date of that Advance for which
financial statements have been delivered pursuant to Clause 4.1 (Documentary conditions

36

 

	 	 	precedent) or Clause 16.2(a) or (b) (Financial information) (the Relevant Ratio Period)
would cause UPC Broadband to fail to be in compliance with the financial ratios set out in
Clause 17.2 (Financial ratios) for the Relevant Ratio Period, if such financial ratios were
re-tested for the Relevant Ratio Period after adding the aggregate amount of all such
Relevant Advances to the amount of Senior Debt and Total Debt used in calculating such
ratios.

	4.4	 	Deferred Acquisition Costs
	 
	 	 	Where a member of the Borrower Group has made an Acquisition permitted by Clause 16.11
(Acquisitions and mergers), no Borrower may Request, or apply the proceeds of, any Advance
for the purpose of paying any consideration referred to in paragraph (a) of the definition
of Acquisition Cost in relation to that Acquisition, unless UPC Broadband delivers to the
Facility Agent on or before the date of each relevant Request:

	 	(a)	 	where the Acquisition Cost of the acquisition was greater than €100,000,000 and
no more than €150,000,000, a certificate signed by two managing directors or the sole
managing director, as the case may be, of UPC Broadband and certifying; or
	 
	 	(b)	 	where the Acquisition Cost of the acquisition was greater than €150,000,000,
financial projections based on assumptions which are no more aggressive (when taken as
a whole) than those used in the preparation of the Business Plan which demonstrate,

	 	 	that the Borrowers will be in compliance with Clause 6 (Repayment) and the undertakings
set out in Clause 17 (Financial Covenants) for the period from the Utilisation Date of such
Advance (taking into account (i) the Acquisition Cost of such acquisition (but deducting
from that Acquisition Cost the value of any consideration referred to in paragraph (a) of
the definition of Acquisition Cost which has yet to be paid or delivered), (ii) the amount
of such Advance and (iii) financial projections relating to the acquired business or
asset(s)) to the Final Maturity Date.
	 
	5.	 	ADVANCES
	 
	5.1	 	Delivery of Request
	 
	 	 	Subject to the terms of this Agreement, a Borrower may request an Advance by delivering
to the Facility Agent by not later than 11.00 a.m. on the third Business Day before the
Utilisation Date or (if applicable) by not later than the time specified in the relevant
Additional Facility Accession Agreement, a duly completed Request.
	 
	5.2	 	Form of Request
	 
	 	 	Each Request shall specify (where applicable):

	 	(a)	 	the relevant Facility and the corresponding Utilisation Date which shall be a
Business Day falling during the relevant Additional Facility Availability Period;
	 
	 	(b)	 	the currency of the proposed Advance (which must be euros, US Dollars or an
Additional Currency (in each case as specified in the relevant Additional Facility
Accession Agreement));

37

 

	 	(c)	 	the principal amount of the proposed Advance which:

	 	(i)	 	for an Advance denominated in euros, shall be a minimum amount
of €10,000,000;
	 
	 	(ii)	 	for an Advance denominated in US Dollars, shall be a minimum
amount of US$10,000,000; and
	 
	 	(iii)	 	for an Advance denominated in any Additional Currency, shall
be a minimum amount equivalent to €10,000,000 (in each case using the Agent’s
Spot Rate of Exchange on the date of receipt by the Agent of the Request and
rounded up to the nearest million units in the relevant Additional Currency);

	 	(d)	 	the Interest Period of the Advance, which must be a period complying with
Clause 8 (Interest); and
	 
	 	(e)	 	unless previously notified to the Facility Agent in writing and not revoked the
details of the bank and account to which the proceeds of the proposed Advance are to be
made available, which must comply with Clause 9 (Payments).

	 	 	Subject to the terms of this Agreement, each Request shall be irrevocable and the
relevant Borrower shall be bound to borrow an Advance in accordance with such Request.
	 
	5.3	 	Notification to the Lenders
	 
	 	 	The Facility Agent shall promptly notify each Lender participating in the relevant
Advance of each Request for an Advance and the amount of its participation in the Advance.
	 
	5.4	 	Participations in Advances
	 
	(a)	 	Subject to the terms of this Agreement, each Lender shall, on the date specified in any
Request for an Advance, make available to the Facility Agent for the account of the relevant
Borrower the amount of its participation in that Advance. All such amounts shall be made
available to the Facility Agent in accordance with Clause 9.2 (Funds) for disbursement to or
to the order of the relevant Borrower in accordance with the provisions of this Agreement.
	 
	(b)	 	The amount of a Lender’s participation in an Advance will be the proportion (applied to the
amount set out in the Request) which its relevant Additional Facility Commitment bears to the
relevant Total Additional Facility Commitments.
	 
	(c)	 	Advances denominated in euro will only be made available in the euro unit.
	 
	6.	 	REPAYMENT
	 
	6.1	 	Repayment of Advances
	 
	(a)	 	Each Borrower must repay the Advances made to it in accordance with the provisions of the
relevant Additional Facility Accession Agreement, which shall provide, subject to paragraph
(b) below, for repayment of the relevant Additional Facility to be made:

	 	(i)	 	in full on the relevant Final Maturity Date; or
	 
	 	(ii)	 	by payment of instalments (each a Repayment Instalment) on any date or dates up
to and including the relevant Final Maturity Date. Each Repayment Instalment shall

38

 

	 	 	 	be in the amount and on the date or dates set out in or calculated in accordance
with the relevant Additional Facility Accession Agreement.

	(b)	(i)	   The aggregate Original Euro Amount of each:

	 	(A)	 	Repayment Instalment; and
	 
	 	(B)	 	amount of any Facility A Advances (as defined in the Existing
Facility Agreement) repaid or prepaid pursuant to clause 6.1(a) (Repayment of
Advances) of the Existing Facility Agreement,
	 
	 	on any date falling prior to 1 July 2009 (each a Relevant Date) shall not
exceed:
	 
	       (ii)	(A)	 	 the cumulative amount in euros set out in column (2) below opposite the
current repayment date set out in column (1) below which immediately precedes that
Relevant Date, minus
	 
	 	(B)	 	the aggregate Original Euro Amount of each amount referred to
in paragraphs (b)(i)(A) and (b)(i)(B) above repaid or prepaid on any date
during the period from 2 December 2004 to (but excluding) that Relevant Date.

	 	 	 	 	 
	                   (1)	 	(2)
	current repayment dates	 	cumulative amount
	30 June 2005
	 	€	4,017,079	 
	 
	 	 	 	 
	31 December 2005
	 	€	6,025,618	 
	 
	 	 	 	 
	30 June 2006
	 	€	215,174,782	 
	 
	 	 	 	 
	31 December 2006
	 	€	596,336,446	 
	 
	 	 	 	 
	30 June 2007
	 	€	944,235,611	 
	 
	 	 	 	 
	31 December 2007
	 	€	1,208,734,775	 
	 
	 	 	 	 
	30 June 2008
	 	€	2,038,469,660	 
	 
	 	 	 	 
	31 December 2008
	 	€	2,134,879,545	 
	 
	 	 	 	 
	30 June 2009
	 	€	3,156,732,530	 

	6.2	 	Notification
	 
	 	 	The Agent shall notify the relevant Lender(s) and UPC Broadband of US Dollar or
Additional Currency amounts (and the applicable Agent’s Spot Rate of Exchange) promptly
after they are ascertained under this Agreement.

39

 

	7.	 	CANCELLATION AND PREPAYMENT
	 
	7.1	 	Automatic Cancellation of the Commitments
	 
	 	 	The undrawn Additional Facility Commitment under each Additional Facility shall be
automatically cancelled at the close of business in London on the last day of the relevant
Additional Facility Availability Period.
	 
	7.2	 	Voluntary cancellation
	 
	 	 	UPC Broadband may, by delivering to the Facility Agent a duly completed Cancellation Notice
not less than five Business Days prior to the due date of cancellation, cancel the
unutilised portion of the Total Additional Facility Commitments in whole or in part (but, if
in part, in an aggregate minimum Original Euro Amount of €10,000,000) in such proportions as
UPC Broadband may specify in the Cancellation Notice on the date specified in the
Cancellation Notice. Any cancellation in part shall be applied against the relevant
Additional Facility Commitment of each Lender pro rata.
	 
	7.3	 	Voluntary prepayment
	 
	(a)	 	UPC Broadband may, by delivering to the Facility Agent a duly completed Cancellation Notice
not less than five Business Days prior to the due date of prepayment, prepay the whole or any
part, (but if in part in an aggregate minimum Original Euro Amount of €10,000,000) of the
outstanding Advances made to a Borrower under any Additional Facility.
	 
	(b)	 	Any voluntary prepayment made under paragraph (a) above will be applied against the
Additional Facilities in such proportion as may be specified by UPC Broadband in the notice of
prepayment and:

	 	(i)	 	(in the case of any Additional Facility which may be redrawn following
prepayment) against all outstanding Advances under such Additional Facility pro rata or
against such Advances as UPC Broadband may designate in the Cancellation Notice; and
	 
	 	(ii)	 	(in the case of any other Additional Facility) against all the outstanding
Advances made under the relevant Additional Facility pro rata (and, if applicable,
against the Repayment Instalments for the relevant Additional Facility or Additional
Facilities in such order as may be specified by UPC Broadband).

	7.4	 	Change of Control
	 
	(a)	 	If:

	 	(i)	 	UGC ceases:

	 	(A)	 	directly or indirectly to own more than 50 per cent. of the
issued share capital of UGCE Inc.; and
	 
	 	(B)	 	to Control UGCE Inc.; or

	 	(ii)	 	UGCE Inc. does not or ceases to own, directly or indirectly through one or more
of its Subsidiaries or other persons Controlled by it, the legal and beneficial
interest in more than 50 per cent. of the voting and economic rights attaching to the
issued share capital of, or otherwise ceases to Control, UPC Broadband Holdco, (except
as a result of a merger or consolidation of UPC Broadband Holdco with or into a
Shareholder,

40

 

	 	 	 	provided that such merger or consolidation is in accordance with paragraph (b)
below); or
	 
	 	(iii)	 	in accordance with the terms of any share pledge in favour of the Security
Agent over the issued share capital of UPC Broadband Holdco and UPC Holding II, UPC
Broadband Holdco does not or ceases to own directly (or indirectly through one or more
of its Subsidiaries or other persons Controlled by it, subject to such Subsidiary or
person complying with Clause 26.4(a) (Additional Obligors)) the legal and beneficial
interest in 100 per cent. of the issued share capital of UPC Broadband and UPC Holding
II or otherwise ceases to Control UPC Broadband and UPC Holding II; or
	 
	 	(iv)	 	in accordance with the terms of the share pledges in favour of the Security
Agent over the issued share capital of each of the Obligors (other than UPC Broadband
Holdco, UPC Holding II, UPC Financing and UPC Broadband), UPC Broadband does not or
ceases to own directly or indirectly through one or more of its Subsidiaries or other
persons Controlled by it, the legal and beneficial interest in at least 75 per cent. of
the voting and economic rights attaching to the issued share capital of any Obligor
(other than UPC Broadband Holdco, UPC Holding II, UPC Financing or UPC Broadband) or
otherwise ceases to Control such Obligor; or
	 
	 	(v)	 	UPC Broadband Holdco and UPC Holding II do not or cease to own, in accordance
with the terms of the pledge referred to in paragraph 2 of Schedule 7 (Security
Documents), the legal and beneficial interest in 100 per cent. of the partnership
interests and economic rights attaching to the partnership interests of, or otherwise
ceases to Control, UPC Financing,
	 
	 	 	 	(any of the events described in (i) to (v) above being a Change of Control):

	 	(A)	 	UPC Broadband shall promptly notify the Facility Agent upon
becoming aware of a Change of Control; and
	 
	 	(B)	 	if the Majority Lenders so require, the Facility Agent shall,
by not less than 20 Business Days’ notice to UPC Broadband, cancel each
Additional Facility and declare all outstanding Advances, together with accrued
interest and all other relevant amounts accrued under the Finance Documents
immediately due and payable, whereupon each Additional Facility will be
cancelled and all such outstanding amounts will become immediately due and
payable.

	(b)	 	UPC Broadband Holdco shall not enter into a merger or consolidation with or into a
Shareholder (the resulting entity being the UPC Merged Entity) unless:

	 	(i)	 	reasonable details of the proposed merger concerning the matters set out in
paragraphs (ii) and (iii) below are provided to the Facility Agent at least 10 days
before the merger is to be entered into;
	 
	 	(ii)	 	the UPC Merged Entity will be liable for the obligations of UPC Broadband
Holdco (including the obligations under the Finance Documents), which obligations will
continue in full force and effect after the merger, and entitled to the benefit of all
rights of UPC Broadband Holdco; and
	 
	 	(iii)	 	the UPC Merged Entity has entered into Security Documents (if applicable)
which provide security over the same assets of at least an equivalent nature and
ranking to the security provided by UPC Broadband Holdco pursuant to any Security
Documents

41

 

	 	 	 	entered into by it and such Security Documents are the legal, valid and binding
obligations of the UPC Merged Entity enforceable in accordance with their terms
subject (to the extent applicable) to substantially similar qualifications to those
made in the legal opinions referred to in Schedule 2 (Conditions Precedent
Documents).

	7.5	 	Mandatory prepayment from Excess Cash Flow and Relevant Convertible Preference Shares
	 
	(a)	 	Subject to paragraph (b) below and Clause 7.7 (Date for prepayment), within 10 Business Days
of the delivery of the Borrower Group’s audited consolidated financial statements which relate
to any financial year of the Borrower Group (starting with the annual Accounting Period ending
31 December 2004) under Clause 16.2 (Financial information) the Borrowers (unless otherwise
agreed in writing by the Facility Agent acting on the instructions of the Majority Lenders)
shall prepay, or procure that there is prepaid, an amount of the Facilities equal to 50 per
cent. of the Excess Cash Flow for such financial year.
	 
	(b)	 	The Borrowers shall not be required to make any prepayments under (a) above:

	 	(i)	 	after the date on which the Facility Agent receives financial statements
delivered under Clause 16.2(b) (Financial information) which show that, for the two
most recent Ratio Periods, the ratio of Senior Debt to Annualised EBITDA is less than
or equal to 4:1; or
	 
	 	(ii)	 	if the amount of Excess Cash Flow in respect of the relevant financial year is
less than €5,000,000.

	(c)	 	Subject to paragraph (d) below and Clause 7.7 (Date for prepayment) UPC Broadband shall,
within ten Business Days of receipt by or for the account of a member of the UGCE Borrower
Group of the proceeds of an issue of Relevant Convertible Preference Shares, prepay or procure
that there is prepaid an amount of the Facilities equal to 40 per cent. of the balance of the
proceeds of the Relevant Convertible Preference Shares. Such amount shall be applied pro rata
against all outstanding Advances in accordance with Clause 7.8 (Order of application).

	(d)	 	UPC Broadband shall not be required to make any prepayments under paragraph (c) above
provided that the most recently delivered financial statements provided to the Facility Agent
under Clause 16.2(b) (Financial information) show that, for the two most recent Ratio Periods,
the applicable ratio for the purposes of Clause 17.2(a) (Financial ratios) is 3.5:1 or less.
	 
	7.6	 	Mandatory prepayment from disposal proceeds

	(a)	 	Other than as provided in paragraphs (b) and (c) below, on a Permitted Disposal (other than a
disposal in accordance with paragraphs (b)(i) to (xiii) of Clause 16.10 (Disposals)), the
Borrowers shall immediately prepay, or procure that there is prepaid, an amount of the
Additional Facilities equal to four times Annualised EBITDA (calculated in accordance with
Clause 16.10(c) (Disposals)) of the person or asset that is being disposed of for the Ratio
Period which ends on the most recent quarterly Accounting Period end date for which financial
information has been delivered to the Facility Agent under Clause 16.2 (Financial
information). Such amount shall be applied against the Additional Facilities in accordance
with Clause 7.8 (Order of application).

	(b)	 	No prepayment in accordance with paragraph (a) above is required where the amount of any such
prepayment would be less than €100,000,000.

42

 

	(c)	 	The Facility Agent may, with the approval of the Majority Lenders, waive the requirement for
the Borrowers to make a prepayment in accordance with paragraph (a). Notwithstanding any such
waiver, the Borrowers shall in any event be required to prepay an amount of the Additional
Facilities to ensure that the financial ratios set out in Clause 17.2 (Financial ratios) for
the Latest Ratio Period (as defined in Clause 16.10(b)(xiv) (Disposals)) in respect of the
relevant disposal would not be breached if such financial ratios were tested for that Latest
Ratio Period taking into account (on a pro forma basis) all disposals made since the last day
of that Latest Ratio Period and the amount of such prepayment.
	 
	7.7	 	Date for prepayment
	 
	 	 	Each amount of the Facilities to be prepaid under Clause 7.5 (Mandatory prepayment from
Excess Cash Flow and Relevant Convertible Preference Shares), Clause 7.6 (Mandatory
prepayment from disposal proceeds) and Clause 17.4 (Cure provisions) shall be applied in
prepayment of the Facility within the period required by the relevant Clause or deposited
before the end of such period with the Security Agent or as the Security Agent may
reasonably direct in an account (or accounts) (each a Blocked Account) in the name of any
Obligor bearing interest at rates customarily offered by the Security Agent in such
circumstances, secured (if requested by the Security Agent) by a first ranking security
interest in favour of the Security Agent on behalf of the Beneficiaries, on terms that the
principal amount so deposited may only be released by making the relevant prepayment on
Interest Dates falling immediately thereafter, in accordance with Clause 7.8 (Order of
application) (where applicable), until the prepayment obligations under Clause 7.5
(Mandatory prepayment from Excess Cash Flow and Relevant Convertible Preference Shares), 7.6
(Mandatory prepayment from disposal proceeds) and Clause 17.4 (Cure provisions) have been
satisfied.
	 
	7.8	 	Order of application
	 
	(a)	 	The amount of each prepayment of the Facilities made under Clauses 7.5(a) and (c) (Mandatory
prepayment from Excess Cash Flow and Relevant Convertible Preference Shares) shall be applied,
subject to any requirements described in this Agreement first to apply amounts in prepayment
of the Existing Facilities:

	 	(i)	 	first pro rata between outstanding Advances other than Advances that can be
prepaid and re-borrowed (and, if applicable, against the Repayment Instalments for the
relevant Additional Facility or Additional Facilities in such order as may be specified
by UPC Broadband); and
	 
	 	(ii)	 	second against outstanding Advances that can be repaid or voluntarily prepaid
and re-borrowed, pro rata between such outstanding Advances,

in each case with a corresponding permanent cancellation of the Total Additional Facility
Commitments (pro rata between the Additional Facility Commitments of the Lenders under each
Additional Facility).

	(b)	 	The amount of each prepayment of the Additional Facilities made under Clause 7.6 (Mandatory
prepayment from disposal proceeds) shall be applied against the Additional Facilities in such
proportion as may be specified to the Facility Agent by UPC Broadband not less than two
Business Days before the date on which the prepayment is due to be made and against all the
outstanding Advances made under the relevant Additional Facility pro rata (and, if applicable,
against the Repayment Instalments for the relevant Additional Facility or Additional
Facilities in such order as may be specified by UPC Broadband).

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	(c)	 	If UPC Broadband does not give a notice to the Facility Agent specifying how amounts are to
be applied in prepayment under Clause 7.6 (Mandatory prepayment from disposal proceeds) within
the time period specified in paragraph (b) above, the amount of the relevant prepayment shall
be applied in accordance with paragraph (a) above.
	 
	7.9	 	Right of prepayment and cancellation in relation to a single Lender
	 
	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by a Borrower is required to be increased under
Clause 10.2(c) (Tax gross-up); or
	 
	 	(ii)	 	any Lender claims indemnification from a Borrower under Clause 10.3 (Tax
indemnity) or Clause 12.1 (Increased Costs),

	 	 	a Borrower may, whilst the circumstance giving rise to the requirement or indemnification
continues, in respect only of the Facilities made available to it, give the Facility Agent
notice of cancellation of the Additional Facility Commitment (as applicable) of that Lender
and its intention to procure the repayment of that Lender’s participation in all relevant
Advances.
	 
	(b)	 	On receipt of a notice referred to in paragraph (a) above, the Additional Facility Commitment
of that Lender shall each immediately be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after a Borrower has given notice under
paragraph (a) above (or, if earlier, the date specified by the relevant Borrower in that
notice), the relevant Borrower shall repay that Lender’s participation in all relevant
Advances.
	 
	(d)	 	Prepayments made pursuant to this Clause 7.9 shall be applied against the outstanding
Advances and the outstanding Repayment Instalments (if applicable) pro rata.
	 
	7.10	 	Miscellaneous provisions
	 
	(a)	 	Any Cancellation Notice delivered under this Agreement is irrevocable. The Facility Agent
shall notify the Lenders promptly of receipt of any such notice.
	 
	(b)	 	All prepayments under this Agreement shall be made together with accrued interest on the
amount prepaid and any other amounts due under this Agreement in respect of that prepayment
and, subject to Clause 23.4 (Break Costs), without premium or penalty.
	 
	(c)	 	No prepayment or cancellation is permitted except in accordance with the express terms of
this Agreement.
	 
	(d)	 	The amount of an Advance prepaid by UPC Broadband in accordance with Clause 7.3 (Voluntary
prepayment) may, if specified in the relevant Additional Facility Accession Agreement, be
re-borrowed in accordance with the terms of this Agreement. No other amount prepaid under
this Agreement may subsequently be re-borrowed.
	 
	(e)	 	No amount of any Additional Facility Commitment cancelled under this Agreement may
subsequently be reinstated.
	 
	(f)	 	Any prepayment in part of any Advance shall be applied against the participations of the
Lenders in that Advance pro rata.

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	8.	 	INTEREST
	 
	8.1	 	Interest rate
	 
	 	 	The rate of interest on each Advance for its Interest Period is the rate per annum
determined by the Facility Agent to be the aggregate of:

	 	(a)	 	the applicable Margin; and
	 
	 	(b)	 	(i) LIBOR (in the case of an Advance denominated in US Dollars or an Additional
Currency); or

	 	(ii)	 	EURIBOR (in the case of an Advance denominated in euros); and

	 	(c)	 	the Mandatory Costs.

	8.2	 	Selection of Interest Periods
	 
	(a)	 	The Interest Period of each Advance will be the period selected in the Request for that
Advance and each subsequent Interest Period will be the period selected by the Borrower by
notice (a Selection Notice) to the Facility Agent received not later than the third Business
Day before the end of the then current Interest Period.
	 
	(b)	 	Each Interest Period shall be one month, two, three or six months or in any case such other
period not exceeding six months as the relevant Borrower and the Facility Agent (acting on
the instructions of all the Lenders) may agree from time to time. Each Interest Period for an
Advance will commence on its Utilisation Date or in the case of each subsequent Interest
Period the expiry of its preceding Interest Period.
	 
	8.3	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period shall instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	8.4	 	Further Adjustments to Interest Periods
	 
	 	 	If an Interest Period for an Advance would otherwise overrun the relevant Final Maturity
Date, it shall be shortened so that it ends on that Final Maturity Date.
	 
	8.5	 	Other adjustments
	 
	 	 	The Facility Agent and the Borrowers may enter into such other arrangements as they may
agree for the adjustment of Interest Periods and the consolidation and/or splitting of
Advances.
	 
	8.6	 	Notification
	 
	 	 	The Facility Agent shall notify the relevant Borrower and the Lenders of the duration of
each Interest Period promptly after ascertaining its duration.
	 
	8.7	 	Due dates
	 
	 	 	Except as otherwise provided in this Agreement, accrued interest on each Advance is payable
by the relevant Borrower on its Interest Date and also, in the case of any Advance with an

45

 

	 	 	Interest Period longer than six months, at six monthly intervals after the first day of that
Interest Period for so long as the Interest Period continues.
	 
	8.8	 	Default interest
	 
	(a)	 	If an Obligor fails to pay any amount payable by it under the Finance Documents, it shall
forthwith on demand by the Facility Agent pay interest on the overdue amount from the due date
up to the date of actual payment, both before and after judgment, at a rate (the default rate)
determined by the Facility Agent to be two per cent. per annum above the rate which would have
been payable if the Unpaid Sum had, during the period of non-payment, constituted an Advance
at the Margin applicable to a new Advance if it had been drawn down at such time in the
currency of the Unpaid Sum for such successive Interest Periods of such duration (not being
more than three months) as the Facility Agent may determine, having regard to the likely
duration of the default (a Designated Term).
	 
	(b)	 	The default rate will be determined on each Business Day or the first day of, or two Business
Days before the first day of, the relevant Designated Term, as appropriate.
	 
	(c)	 	Default interest will be compounded at the end of each Designated Term.
	 
	8.9	 	Notification of rates of interest
	 
	 	 	The Facility Agent will promptly notify each relevant Party of the determination of a rate
of interest under this Agreement.
	 
	9.	 	PAYMENTS
	 
	9.1	 	Place of Payment
	 
	 	 	All payments by an Obligor or a Lender under this Agreement shall be made to the Facility
Agent to its account at such office or bank in the principal financial centre of the country
of the currency concerned (or, in the case of euros, the financial centre of such of the
Participating Member States or London) as the Facility Agent may notify to the Obligor or
Lender for this purpose.
	 
	9.2	 	Funds
	 
	 	 	Payments under this Agreement to the Facility Agent shall be made for value on the due date
at such times and in such funds as the Facility Agent may specify to the Party concerned as
being customary at the time for the settlement of transactions in the relevant currency in
the place for payment.
	 
	9.3	 	Distribution
	 
	(a)	 	Each payment received by the Facility Agent under this Agreement for another Party shall,
except as set out in paragraph (d) below and subject to paragraphs (b) and (c) below, be made
available by the Facility Agent to that Party by payment (on the date of value of receipt and
in the currency and funds of receipt) to its account with such bank in the principal financial
centre of the country of the relevant currency (or, in the case of euros, in the principal
financial centre of such of the Participating Member States or London) as it may notify to the
Facility Agent for this purpose by not less than five Business Days’ prior notice.
	 
	(b)	 	The Facility Agent may apply any amount received by it for an Obligor in or towards payment
(on the date and in the currency and funds of receipt) of any amount due from an

46

 

	 	 	Obligor under this Agreement in the same currency on such date or in or towards the purchase
of any amount of any currency to be so applied.
	 
	(c)	 	Where a sum is to be paid under this Agreement to the Facility Agent for the account of
another Party, the Facility Agent is not obliged to pay that sum to that Party until it has
established that it has actually received that sum. The Facility Agent may, however, assume
that the sum has been paid to it in accordance with this Agreement and, in reliance on that
assumption, make available to that Party a corresponding amount. If the sum has not been made
available but the Facility Agent has paid a corresponding amount to another Party, that Party
shall forthwith on demand refund the corresponding amount to the Facility Agent together with
interest on that amount from the date of payment to the date of receipt, calculated at a rate
reasonably determined by the Facility Agent to reflect its cost of funds.
	 
	(d)	 	Subject to paragraph (c) above, in the case of a Mid-Interest Period Transfer, the Facility
Agent shall:

	 	(i)	 	make any interest payable in respect of the principal amount that is assigned,
transferred or novated under a Mid-Interest Period Transfer, that accrues on and prior
to the date on which the Mid-Interest Period Transfer becomes effective, available to
the Existing Lender; and
	 
	 	(ii)	 	make any interest payable in respect of the principal amount that is assigned,
transferred or novated as a Mid-Interest Period Transfer, that accrues after the date
on which the Mid-Interest Period Transfer becomes effective, available to the New
Lender,

	 	 	such payments shall be paid (on the date of value of receipt and in the currency and funds
of receipt) to the Existing Lenders’ account or the New Lenders’ account (as applicable)
with such bank and in the principal financial centre of the country of the relevant currency
(or in the case of euros, in the principal financial centre of one of the Participating
Member States or London) as it may notify to the Facility Agent for this purpose by not less
that five Business Days’ prior notice.
	 
	9.4	 	Currency
	 
	(a)	 	A repayment or prepayment of an Advance is payable in the currency in which the Advance is
denominated.
	 
	(b)	 	All interest is payable in the currency in which the relevant amount in respect of which it
is payable is denominated.
	 
	(c)	 	Amounts payable in respect of costs, expenses, Taxes and the like are payable in the currency
in which they are incurred.
	 
	(d)	 	Any other amount payable under this Agreement is, except as otherwise provided in this
Agreement, payable in euros.
	 
	9.5	 	Set-off and counterclaim
	 
	 	 	All payments made by an Obligor under this Agreement shall be made without set-off or
counterclaim.

47

 

	9.6	 	Non-Business Days
	 
	(a)	 	If a payment under this Agreement is due on a day which is not a Business Day, the due date
for that payment shall instead be the next Business Day in the same calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	(b)	 	During any extension of the due date for payment of any principal under this Agreement
interest is payable on the principal at the rate payable on the original due date.
	 
	9.7	 	Partial payments
	 
	(a)	 	Subject to the Security Deed, if the Facility Agent receives a payment insufficient to
discharge all the amounts then due and payable by an Obligor under this Agreement, the
Facility Agent shall apply that payment towards the obligations of the Obligors under this
Agreement in the following order:

	 	(i)	 	first, in or towards payment pro rata of any unpaid costs, fees and expenses of
the Facility Agent under this Agreement;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of any accrued fees (other than any
commitment fees payable under Clause 20.1 (Commitment fee)) due but unpaid under Clause
20 (Fees);
	 
	 	(iii)	 	thirdly, in or towards payment to the Lenders pro rata of any accrued interest
(including, where a Mid-Interest Period Transfer has taken place towards payment to the
Existing Lenders and the New Lenders pro rata) and commitment fees due but unpaid under
this Agreement;
	 
	 	(iv)	 	fourthly, in or towards payment to the Lenders pro rata of any principal due
but unpaid under this Agreement; and
	 
	 	(v)	 	fifthly, in or towards payment pro rata of any other sum due but unpaid under
the Finance Documents.

	(b)	 	Subject to the Security Deed, the Facility Agent shall, if so directed by all of the Lenders,
vary the order set out in subparagraphs (a)(ii) to (v) above. The Facility Agent shall notify
UPC Broadband of any such variation.
	 
	(c)	 	Paragraphs (a) and (b) above shall override any appropriation made by any Obligor.
	 
	10.	 	TAX GROSS-UP AND INDEMNITIES
	 
	10.1	 	Definitions
	 
	(a)	 	In this Clause 10:
	 
	 	 	Protected Party means a Finance Party which is or will be, for or on account of Tax, subject
to any liability or required to make any payment in relation to a sum received or receivable
(or any sum deemed for the purposes of Tax to be received or receivable) under a Finance
Document.
	 
	 	 	Tax Credit means a credit against, relief or remission for, or repayment of any Tax.

48

 

	 	 	Tax Deduction means a deduction or withholding for or on account of Tax from a payment under
a Finance Document.
	 
	 	 	Tax Payment means an increased payment made by an Obligor to a Finance Party under Clause
10.2 (Tax gross-up) or a payment under Clause 10.3 (Tax indemnity).
	 
	 	 	Treaty Lender means a Lender which is (on the date a payment falls due), entitled to that
payment under a double taxation agreement in force on the date (subject to the completion of
any necessary procedural formalities) without a Tax Deduction.
	 
	(b)	 	In this Clause 10 a reference to determines or determined means a determination made in the
absolute discretion of the person making the determination.
	 
	10.2	 	Tax gross-up
	 
	(a)	 	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax
Deduction is required by law.
	 
	(b)	 	UPC Broadband or a Lender shall promptly upon becoming aware that an Obligor must make a Tax
Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the
Facility Agent accordingly. If the Facility Agent receives such notification from a Lender it
shall notify UPC Broadband and that Obligor.
	 
	(c)	 	Subject to Clause 10.5 (U.S. Taxes), if a Tax Deduction is required by law to be made by an
Obligor, the amount of the payment due from that Obligor shall be increased to an amount which
(after making any Tax Deduction) leaves an amount equal to the payment which would have been
due if no Tax Deduction had been required.
	 
	(d)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction
and any payment required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law.
	 
	(e)	 	Within 30 days of making either a Tax Deduction or any payment required in connection with
that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Facility Agent
for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing authority.
	 
	(f)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate and use its reasonable efforts to complete any procedural
formalities and provide any information, in each case on a timely basis, necessary for that
Obligor to obtain authorisation to make that payment without a Tax Deduction (or with a
reduced rate of such Tax Deduction).
	 
	10.3	 	Tax indemnity
	 
	(a)	 	The Obligors shall (within three Business Days of demand by the Facility Agent) pay to a
Protected Party an amount equal to the loss, liability or cost which that Protected Party
determines will be or has been (directly or indirectly) suffered for or on account of Tax by
that Protected Party.

49

 

	(b)	 	Paragraph (a) above shall not apply with respect to any Tax assessed on a Finance Party:

	 	(i)	 	under the law of the jurisdiction in which that Finance Party is incorporated
or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is
treated as resident for tax purposes; or
	 
	 	(ii)	 	under the law of the jurisdiction in which that Finance Party’s Facility Office
is located in respect of amounts received or receivable in that jurisdiction,

	 	 	if that Tax is imposed on or calculated by reference to the net income or net profits
received or receivable (but not any sum deemed to be received or receivable) by that Finance
Party.
	 
	(c)	 	A Protected Party making or intending to make a claim pursuant to paragraph (a) above shall
promptly notify the Facility Agent in writing of the event which will give, or has given, rise
to the claim, including details of the nature of the Tax due or paid by that Protected Party,
following which the Facility Agent shall promptly provide such information to UPC Broadband.
	 
	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this Clause 10.3,
notify the Facility Agent.
	 
	10.4	 	Tax Credit
	 
	(a)	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(i)	 	a Tax Credit is attributable to that Tax Payment; and
	 
	 	(ii)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines
will leave it (after that payment) in the same after-Tax position as it would have been in
had the Tax Payment not been made by the Obligor.

	(b)	 	No provision of this Agreement shall:

	 	(i)	 	interfere with the right of any Finance Party to arrange its tax or any other
affairs in whatever manner it thinks fit or oblige any Finance Party to claim any
credit, relief, remission or repayment in respect of any payment of Tax in priority to
any other credit, relief, remission or repayment available to it, except that the
Finance Party’s sole reason (acting in good faith) for not claiming or for deferring
such credit, relief, remission or repayment shall not be its obligation to make a
payment under this Clause 10.4; or
	 
	 	(ii)	 	oblige any Finance Party to disclose any information relating to its Tax or
other affairs or any computations in respect thereof.

	10.5	 	U.S. Taxes
	 
	 	 	A US Borrower shall not be required to pay any additional amount pursuant to Clause 10.2
(Tax gross-up) in respect of United States Taxes (including, without limitation, federal,
state, local or other income Taxes), branch profits or franchise Taxes with respect to a sum
payable by it pursuant to this Agreement to a Lender if on the date such Lender becomes a
Party to this Agreement or has designated a new Facility Office either:

50

 

	 	(a)	 	in the case of a Lender which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code), such Lender has not provided the Borrower
with two accurate and complete original signed copies of (i) U.S. Internal Revenue
Service Form W-8BEN (relating to such Lender and claiming a complete exemption from
withholding under an income tax treaty (or successor form) or (ii) U.S. Internal
Revenue Service Form W-8ECI (or successor form) certifying, in each case, to such
Lender’s entitlement as of such date to a complete exemption from United States
withholding with respect to all amounts payable pursuant to the Finance Documents;
	 
	 	(b)	 	after the date such Lender becomes a Party to this Agreement, when a lapse in
time or change in circumstances renders the previous certification of such Lender made
pursuant to Clause 10.5(a) above obsolete or inaccurate, such Lender has not delivered
to UPC Broadband two new accurate and complete original signed copies of Internal
Revenue Service Form W-8ECI or Form W-8BEN (with respect to the benefit of any income
tax treaty), as the case may be, and such other forms as may be required in order to
confirm or establish the entitlement of such Lender to a continued exemption from or
reduction in United States withholding tax with respect to amounts payable pursuant to
the Finance Documents; or
	 
	 	(c)	 	such Lender is subject to such Tax by reason of any connection between the
jurisdiction imposing such Tax and the Lender or its Facility Office other than a
connection arising solely from this Agreement or any transaction contemplated hereby.

	10.6	 	Value added tax
	 
	(a)	 	All consideration payable under a Finance Document by an Obligor to a Finance Party shall be
deemed to be exclusive of any VAT. If VAT is chargeable, the Obligor shall, following
delivery of a VAT invoice, pay to the Finance Party (in addition to and at the same time as
paying the consideration) an amount equal to the amount of the VAT.
	 
	(b)	 	Where a Finance Document requires an Obligor to reimburse a Finance Party for any costs or
expenses, that Obligor shall also at the same time pay and indemnify that Finance Party
against all VAT incurred by that Finance Party in respect of the costs or expenses save to the
extent that that Finance Party is entitled to repayment or credit in respect of the VAT.
	 
	11.	 	MARKET DISRUPTION
	 
	11.1	 	Absence of quotations
	 
	 	 	Subject to Clause 11.2 (Market disruption), if LIBOR or, if applicable, EURIBOR is to be
determined by reference to the Reference Banks but a Reference Bank does not supply a
quotation by noon on the Rate Fixing Day, the applicable LIBOR or EURIBOR shall be
determined on the basis of the quotations of the remaining Reference Banks.
	 
	11.2	 	Market disruption
	 
	(a)	 	If a Market Disruption Event occurs in relation to an Advance for any Interest Period, then
the rate of interest on each Lender’s share of that Advance for the Interest Period shall be
the rate per annum which is the sum of:

	 	(i)	 	the Margin;

51

 

	 	(ii)	 	the rate notified to the Facility Agent by that Lender as soon as practicable
and in any event before interest is due to be paid in respect of that Interest Period,
to be that which expresses as a percentage rate per annum the cost to that Lender of
funding its participation in that Advance from whatever source it may reasonably
select; and
	 
	 	(iii)	 	the Mandatory Cost.

	(b)	 	In this Agreement Market Disruption Event means:

	 	(i)	 	at or about noon on the Rate Fixing Day for the relevant Term or Interest
Period the Screen Rate is not available and none or only one of the Reference Banks
supplies a rate to the Facility Agent to determine LIBOR or, if applicable, EURIBOR for
the relevant currency and period; or
	 
	 	(ii)	 	before close of business in London on the Rate Fixing Day for the relevant
Interest Period, the Facility Agent receives notifications from a Lender or Lenders
(whose participations in an Advance aggregate not less than one-third of that Advance)
that the cost to it of obtaining matching deposits in the London Interbank Market or,
as the case may be, the European Interbank Market would be in excess of LIBOR or, if
applicable, EURIBOR.

	11.3	 	Alternative basis of interest or funding
	 
	(a)	 	If a Market Disruption Event occurs and the Facility Agent or UPC Broadband so requires, the
Facility Agent and UPC Broadband shall enter into negotiations (for a period of not more than
30 days) with a view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of
all the Lenders and UPC Broadband, be binding on all Parties.
	 
	11.4	 	Revocation of currency
	 
	 	 	If before 9.30 a.m. on any Rate Fixing Day, the Facility Agent receives notice from a Lender
that:

	 	(a)	 	it is impracticable for the Lender to fund its participation in an Advance in
US Dollars or an Additional Currency (as applicable) during that Interest Period in the
ordinary course of business in the London or (in the case of euro) European Interbank
Market; and/or
	 
	 	(b)	 	the use of US Dollars or an Additional Currency (as applicable) might
contravene any law or regulation,

the Facility Agent shall give notice to UPC Broadband and to the Lenders to that effect
before 11.00 a.m. on that day. In this event:

	 	(i)	 	UPC Broadband and the Lenders may agree that the drawdown will not be made; or
	 
	 	(ii)	 	in the absence of agreement:

	 	(A)	 	that Lender’s participation in the Advance (or, if more than
one Lender is similarly affected, those Lender’s participations in the Advance)
shall be treated as a separate Advance denominated in euros during the relevant
Interest Period;

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	 	(B)	 	in the definitions of LIBOR or, as applicable, EURIBOR,
(insofar as it applies to that Advance) in Clause 1.1 (Definitions):

	 	I.	 	there shall be substituted for the time “11.00
a.m.” the time “1.00 p.m.”; and
	 
	 	II.	 	paragraph (c) of the relevant definition shall
apply.

	12.	 	INCREASED COSTS
	 
	12.1	 	Increased Costs
	 
	(a)	 	Subject to Clause 12.3 (Exceptions) the Borrowers shall, within three Business Days of a
demand by the Facility Agent, pay to the Facility Agent for the account of a Finance Party the
amount of any Increased Costs incurred by that Finance Party or any of its Holding Companies
as a result of (i) the introduction of or any change in (or in the interpretation or
application of) any law or regulation after the Signing Date or (ii) compliance with any law
or regulation made after the Signing Date.
	 
	(b)	 	In this Agreement Increased Costs means:

	 	(i)	 	a reduction in the rate of return from the Facilities or on a Finance Party’s
(or any of its Holding Companies’) overall capital;
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Holding Companies to the
extent that it is attributable to that Finance Party having entered into its Commitment or
funding or performing its obligations under any Finance Document.

	12.2	 	Increased cost claims
	 
	(a)	 	A Finance Party intending to make a claim pursuant to Clause 12.1 (Increased Costs) as soon
as is reasonably practicable after that Finance Party becomes aware that circumstances have
arisen which entitle it to make such claim, shall notify the Facility Agent of the event
giving rise to the claim, following which the Facility Agent shall promptly notify UPC
Broadband.
	 
	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Facility Agent,
provide a certificate confirming the amount of its Increased Costs.
	 
	12.3	 	Exceptions
	 
	(a)	 	Clause 12.1 (Increased Costs) does not apply to the extent any Increased Cost is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(ii)	 	compensated for by Clause 10.3 (Tax indemnity) (or would have been compensated
for under Clause 10.3 (Tax indemnity) but was not so compensated solely because one of
the exclusions in Clause 10.3(b) (Tax indemnity) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or

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	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party or any of its
Holding Companies of any law or regulation.

	(b)	 	In this Clause 12.3, a reference to a Tax Deduction has the same meaning given to the term in
Clause 10.1 (Definitions).
	 
	13.	 	ILLEGALITY AND MITIGATION
	 
	13.1	 	Illegality
	 
	 	 	If it is or will become unlawful in any applicable jurisdiction for a Lender to give effect
to any of its obligations as contemplated by this Agreement or to fund or allow to remain
outstanding all or part of its participation in any Advance:

	 	(a)	 	that Lender shall promptly notify the Facility Agent upon becoming aware of the
same;
	 
	 	(b)	 	upon the Facility Agent notifying UPC Broadband, the Commitment of that Lender
will be immediately cancelled; and
	 
	 	(c)	 	if the Facility Agent on behalf of such Lender requires, the relevant Borrower
or Borrowers shall repay that Lender’s participation in any Advance made to that
Borrower on the last day of the Interest Period for each Advance occurring after the
Facility Agent has notified UPC Broadband or, if earlier, the date specified by the
Lender in the notice delivered to the Facility Agent (being no earlier than the last
day of any applicable grace period permitted by law).

	13.2	 	Mitigation
	 
	(a)	 	Each Finance Party shall, in consultation with UPC Broadband, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount (including without
limitation, VAT) becoming payable under, or cancelled pursuant to, any of Clause 10 (Tax
Gross-up and Indemnities), Clause 12 (Increased Costs) or Clause 13.1 (Illegality) including
(but not limited to) transferring its rights and obligations under the Finance Documents to
another Affiliate or Facility Office.
	 
	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor under the
Finance Documents.
	 
	13.3	 	Limitation of Liability
	 
	(a)	 	The Borrowers shall indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause 13.2
(Mitigation).
	 
	(b)	 	A Finance Party is not obliged to take any steps under Clause 13.2 (Mitigation) if, in the
opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.
	 
	14.	 	GUARANTEE
	 
	14.1	 	Guarantee and indemnity
	 
	 	 	In consideration of the Finance Parties entering into this Agreement and, where applicable,
the other Finance Documents and performing their obligations thereunder and the High Yield

54

 

Hedging Banks from time to time entering into the High Yield Hedging Agreements
respectively, each Guarantor irrevocably and unconditionally, jointly and severally:

	 	(a)	 	guarantees to each Finance Party and the Security Agent on behalf of the
Beneficiaries punctual performance by each Borrower and each High Yield Hedging
Counterparty of all their respective obligations under the Guaranteed Documents;
	 
	 	(b)	 	undertakes with each Finance Party and the Security Agent on behalf of the
Beneficiaries that whenever a Borrower or a High Yield Hedging Counterparty does not
pay any amount when due under or in connection with any Guaranteed Document, that
Guarantor shall immediately on demand pay that amount as if it was the principal
obligor; and
	 
	 	(c)	 	indemnifies each Finance Party and the Security Agent on behalf of the
Beneficiaries immediately on demand against any cost, loss or liability suffered by
that Finance Party or Beneficiary if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be
equal to the amount which that Finance Party or Beneficiary would otherwise have been
entitled to recover.

Any demand issued to a Guarantor under this Clause 14.1 shall be copied to UPC Broadband at
the same time as it is issued to the relevant Guarantor, provided that failure to do so
shall not affect the validity or effectiveness of the demand or the obligations of the
Guarantor under this Clause 14 (Guarantee).

	14.2	 	Continuing guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor or any High Yield Hedging Counterparty under the Guaranteed
Documents, regardless of any intermediate payment or discharge in whole or in part.
	 
	14.3	 	Reinstatement
	 
	 	 	If any payment by an Obligor or a High Yield Hedging Counterparty or any discharge given by
a Beneficiary (whether in respect of the obligations of any Obligor or any High Yield
Hedging Counterparty or any security for those obligations or otherwise) is avoided or
reduced as a result of insolvency or any similar event:

	 	(a)	 	the liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and
	 
	 	(b)	 	each Beneficiary shall be entitled to recover the value or amount of that
security or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

	14.4	 	Waiver of defences
	 
	 	 	The obligations of each Guarantor under this Clause 14 will not be affected by any act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice any
of its obligations under this Clause 14 (without limitation and whether or not known to it
or any Beneficiary) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or any
High Yield Hedging Counterparty or other person;

55

 

	 	(b)	 	the release of any other Obligor or any High Yield Hedging Counterparty or any
other person under the terms of any composition or arrangement with any creditor of any
member of the Borrower Group or any High Yield Hedging Counterparty;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Obligor or any High Yield Hedging Counterparty or other person or any
non-presentation or non-observance of any formality or other requirement in respect of
any instrument or any failure to realise the full value of any security;
	 
	 	(d)	 	any incapacity or lack of power, authority or legal personality of, or
dissolution or change in, the members or status of an Obligor or a High Yield Hedging
Counterparty or any other person;
	 
	 	(e)	 	any amendment (however fundamental) or replacement of a Guaranteed Document or
any other document or security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Guaranteed Document or any other document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	14.5	 	Immediate recourse
	 
	 	 	None of the Beneficiaries shall be obliged to make any claim or demand on the Borrowers or
any High Yield Hedging Counterparty or to resort to any security document or other means of
payment now or hereafter held by or available to them or it before enforcing its rights
under this Clause 14 and no action taken or omitted by 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 Guarantor under this Clause 14 nor shall
any of the Beneficiaries be obliged to apply 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 in reduction of the obligations and liabilities expressed to be
guaranteed by the Guarantors pursuant to this Clause 14.
	 
	14.6	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Obligors and the High Yield Hedging
Counterparties under or in connection with the Guaranteed Documents have been irrevocably
paid in full, each Beneficiary (or any trustee or agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held or
received by that Beneficiary (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and
	 
	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this Clause 14.

	14.7	 	Deferral of Guarantors’ rights
	 
	 	 	Until all amounts which may be or become payable by the Obligors and the High Yield Hedging
Counterparties under or in connection with the Guaranteed Documents have been

56

 

irrevocably paid in full (and notwithstanding payment of a dividend in any liquidation or
under any compromise or arrangement) each Guarantor agrees that, without the prior written
consent of the Facility Agent, it will not:

	 	(a)	 	exercise its rights of subrogation, reimbursement and indemnity against any
other Obligor or High Yield Hedging Counterparty or any other person liable; or
	 
	 	(b)	 	demand or accept any security to be executed in respect of any of its
obligations under this guarantee or any other indebtedness now or hereafter due to such
Guarantor from any other member of the Borrower Group or any High Yield Hedging
Counterparty or from any other person liable; or
	 
	 	(c)	 	take any step or enforce any right against any Obligor or any High Yield
Hedging Counterparty or any other person liable in respect of any obligations and
liabilities expressed to be guaranteed by the Guarantors pursuant to this Clause 14; or
	 
	 	(d)	 	exercise any right of set off or counterclaim against any other Obligor or any
High Yield Hedging Counterparty or any other person liable or claim or prove or vote as
a creditor in competition with any of the Beneficiaries in the bankruptcy, liquidation,
administration or other insolvency proceeding of any other Obligor or any High Yield
Hedging Counterparty or any other person liable or have the benefit of, or share in,
any payment from or composition with, any other Obligor or any High Yield Hedging
Counterparty or any other person liable or any other security document now or hereafter
held by any of the Beneficiaries for the obligations and liabilities expressed to be
guaranteed by the Guarantors pursuant to this Clause 14 or for the obligations or
liabilities of any other person liable, but so that, if so directed by the Facility
Agent, it will prove for the whole or any part of its claim in the liquidation of any
other Obligor or any High Yield Hedging Counterparty, as the case may be, on terms that
the benefit of such proof and of all money received by it in respect thereof shall
immediately be transferred to an account to be designated by the Security Agent for the
Beneficiaries and applied in or towards discharge of the obligations and liabilities
expressed to be guaranteed by the Guarantors pursuant to this Clause 14 in accordance
with the Security Deed.

	14.8	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by any Beneficiary.
	 
	14.9	 	Limitation
	 
	 	 	Notwithstanding any other provision of this Clause 14, the obligations of each US Guarantor
under this Clause 14, shall be limited to a maximum aggregate amount equal to the largest
amount that would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Bankruptcy Code,
any applicable provisions of comparable state law or any applicable case law (collectively,
the Fraudulent Transfer Laws), in each case after giving effect to all other liabilities of
such US Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer
Laws and after giving effect as assets to the value (as determined under the applicable
provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution,
reimbursement, indemnity or similar rights of such US Guarantor pursuant to (i) applicable
law or (ii) any agreement providing for an equitable allocation among such US Guarantors and
other Affiliates of the Borrower Group of the obligations arising under guarantees by such
parties.

57

 

	 	 	For the purposes of this Clause 14.9, US Guarantor means each Guarantor incorporated (or in
the case of a non-corporate Guarantor, formed and subsisting) in the United States of
America (or any of its states or territories or any political or legal subdivision thereof).
	 
	15.	 	REPRESENTATIONS AND WARRANTIES
	 
	15.1	 	Representations and warranties
	 
	(a)	 	Subject to paragraph (b), each Obligor makes the representations and warranties set out in
this Clause 15, in respect of itself and (where applicable) its Subsidiaries which are members
of the Borrower Group, other than:

	 	(i)	 	Clauses 15.9 (Accounts), 15.10 (Financial condition) and 15.14 (Business Plan)
Clause 15.15(b) (Tax liabilities) and 15.25 (Dutch Banking Act), which shall only be
made by UPC Broadband;
	 
	 	(ii)	 	Clause 15.24 (UPC Financing), which shall only be made by UPC Financing,

to each Finance Party.

	(b)	 	UPC Broadband Holdco does not make the representations and warranties set out in Clauses
15.6(b) or (c) (Consents), 15.7 (Material Contracts), 15.9 (Accounts), 15.10 (Financial
condition), 15.11 (Environmental), 15.13(a) (Litigation and insolvency proceedings), 15.15(a)
(Tax liabilities), 15.16 (Ownership of assets), 15.17 (Intellectual Property Rights), 15.19
(Borrower Group structure) and 15.24 (UPC Financing).
	 
	15.2	 	Status
	 
	(a)	 	It is a corporation, duly incorporated and validly existing under the laws of its place of
incorporation and, in the case of UPC Financing only, it is a Delaware general partnership
duly formed and wholly existing under the laws of its place of formation.
	 
	(b)	 	It has the power to own its assets and carry on its business as it is being conducted.
	 
	15.3	 	Powers and authority
	 
	 	 	It has the power:

	 	(a)	 	to enter into and comply with all obligations expressed on its part under the
Finance Documents; and
	 
	 	(b)	 	(in the case of a Borrower) to borrow under this Agreement; and
	 
	 	(c)	 	(in the case of a Guarantor) to give the guarantee in Clause 14 (Guarantee),

	 	 	and has taken all necessary actions to authorise the execution, delivery and performance of
the Finance Documents to which it is a party.
	 
	15.4	 	Legal validity
	 
	(a)	 	Each Finance Document to which it is or will be a party constitutes, or when executed in
accordance with its terms will constitute, its legal, valid and binding obligations
enforceable, subject to any relevant reservations or qualifications as to matters of law
contained in any legal opinion referred to in paragraph 3 of Part 1 of Schedule 2 (Conditions
Precedent

58

 

	 	 	Documents) or (as applicable) paragraph 12 of Part 2 of Schedule 2 (Conditions Precedent
Documents), in accordance with its terms.
	 
	(b)	 	The choice of English law as the governing law of the Finance Documents and its irrevocable
submission to the jurisdiction of the courts of England in respect of any proceedings relating
to the Finance Documents (in each case other than any Finance Document which is expressly to
be governed by a law other than English law) will be recognised and enforced in its
jurisdiction of incorporation, subject to any relevant reservation or qualification as to
matters of law contained in any legal opinion referred to in paragraph (a) above.
	 
	(c)	 	Any judgment obtained in England in relation to a Finance Document (in each case other than
any Security Document which is expressly to be governed by a law other than English law) will
be recognised and enforced in its jurisdiction of incorporation, subject to any relevant
reservation or qualification as to matters of law contained in any legal opinion referred to
in paragraph (a) above.
	 
	15.5	 	Non-violation
	 
	 	 	The execution and delivery by it of, the Finance Documents to which it is a party, and its
performance of the transactions contemplated thereby, will not violate:

	 	(a)	 	in any material respect, any law or regulation or official judgment or decree
applicable to it;
	 
	 	(b)	 	in any material respect, its constitutional documents; or
	 
	 	(c)	 	any agreement or instrument to which it is a party or binding on any of its
assets or binding upon any other member of the Borrower Group or any other member of
the Borrower Group’s assets, where such violation would or is reasonably likely to have
a Material Adverse Effect.

	15.6	 	Consents
	 
	(a)	 	Subject to any relevant reservations or qualifications contained in any legal opinion
referred to in Clause 15.4(a) (Legal validity) above, all material and necessary
authorisations, registrations, consents, approvals, licences (other than the Licences), and
filings required by it in connection with the execution, validity or enforceability of the
Finance Documents to which it is a party and performance of the transactions contemplated by
the Finance Documents have been obtained (or, if applicable, will be obtained within the
required time period) and are validly existing.
	 
	(b)	 	The Licences are in full force and effect and each member of the Borrower Group is in
compliance in all material respects with all provisions thereof such that the Licences are not
the subject of any pending or, to the best of its knowledge, threatened attack, suspension or
revocation by a competent authority except, in each case, to the extent that any lack of
effect, non-compliance or attack, suspension or revocation of a Licence would not have or be
reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	All the Necessary Authorisations are in full force and effect, each member of the Borrower
Group is in compliance in all material respects with all provisions thereof and the Necessary
Authorisations are not the subject of any pending or, to the best of its knowledge, threatened
attack or revocation by any competent authority except, in each case, to the extent that any
lack of effect, non-compliance or attack or revocation of a Necessary Authorisation would not
have or be reasonably likely to have a Material Adverse Effect.

59

 

	15.7	 	Material Contracts
	 
	(a)	 	Each Material Contract to which any member of the Borrower Group is a party constitutes, or
will when executed constitute, the legal, valid and binding obligation of such member, subject
to the application of any relevant insolvency, bankruptcy or similar laws or other laws
affecting the interests of creditors generally, enforceable against it in accordance with its
terms.
	 
	(b)	 	No member of the Borrower Group is in breach of any of its material obligations under any
Material Contract to which such member is a party, nor (to the best of its knowledge and
belief), is any other party thereto, in each case in such a manner or to such an extent as
would or is reasonably likely to have a Material Adverse Effect. To the best of its knowledge
and belief there is no material dispute between any member of the Borrower Group and any other
party to a Material Contract and there have been no amendments to any Material Contract in the
form provided to the Facility Agent prior to the date of this Agreement which would or is
reasonably likely to have a Material Adverse Effect.
	 
	15.8	 	No default
	 
	(a)	 	No Event of Default has occurred and is continuing or will result from the making of any
Advance.
	 
	(b)	 	None of it or any other member of the Borrower Group is in default under any law, regulation
or agreement to which it is subject, except for a default which will not have or be reasonably
likely to have a Material Adverse Effect.
	 
	15.9	 	Accounts
	 
	 	 	The consolidated financial statements of it and the Borrower Group most recently delivered
to the Facility Agent (which, at the date of this Agreement are the Original Borrower Group
Financial Statements):

	 	(a)	 	present a true and fair view of (in the case of audited financial statements)
or fairly present (in the case of unaudited financial statements) its financial
position and the consolidated financial position of the Borrower Group respectively as
at the date to which they were drawn up; and
	 
	 	(b)	 	have been prepared in all material respects in accordance with GAAP (except
that such consolidated financial statements do not include all consolidated
Subsidiaries to the extent they are Unrestricted Subsidiaries).

	15.10	 	Financial condition
	 
	 	 	There has been no material adverse change in the consolidated financial position of the
Borrower Group (taken as a whole) since the date of the Original Borrower Group Financial
Statements which would or is reasonably likely to have a Material Adverse Effect.
	 
	15.11	 	Environmental
	 
	(a)	 	It and each other member of the Borrower Group (i) have obtained all requisite Environmental
Licences required for the carrying on of its business as currently conducted and (ii) have at
all times complied with the terms and conditions of such Environmental Licences and (iii) have
at all times complied with all other applicable Environmental Law,

60

 

	 	 	which in each such case, if not obtained or complied with, would or is reasonably likely to
have a Material Adverse Effect.
	 
	(b)	 	There is no Environmental Claim in existence, pending or, to the best of its knowledge,
threatened, against it which is reasonably likely to be decided against it and which, if so
decided, would or is reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	So far as it is aware, no Dangerous Substance has been used, disposed of, generated, stored,
transported, dumped, released, deposited, buried or emitted at, on, from or under any premises
(whether or not owned, leased, occupied or controlled by it or any member of the Borrower
Group and including any offsite waste management or disposal location utilised by it or any
member of the Borrower Group) in circumstances where this would be reasonably likely to result
in a liability on it which would or is reasonably likely to have a Material Adverse Effect.
	 
	15.12	 	Security Interests
	 
	 	 	Its execution and delivery of this Agreement does not necessitate and will not result in the
creation or imposition of any Security Interest over any of its material assets or those of
any member of the Borrower Group (except for any Security Interest created pursuant to the
Security Documents).
	 
	15.13	 	Litigation and insolvency proceedings
	 
	(a)	 	No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency have been started against any member of the Borrower Group and, to its
knowledge, no such proceedings are threatened, where in any such case, there is a reasonable
likelihood of an adverse outcome to any member of the Borrower Group where that outcome is of
a nature which would or is reasonably likely to have a Material Adverse Effect.
	 
	(b)	 	None of the circumstances referred to in Clause 18.7 (Insolvency proceedings) are pending or,
to its knowledge, threatened against it or any member of the Borrower Group which is a
Material Subsidiary.
	 
	15.14	 	Business Plan
	 
	 	 	To the best of its knowledge after due inquiry, as of the date of the Business Plan:

	 	(a)	 	the factual information relating to the Borrower Group contained in the
Business Plan is accurate in all material respects;
	 
	 	(b)	 	all UPC Broadband’s projections and forecasts contained in the Business Plan
were based on and arrived at after due and careful consideration and have been prepared
by UPC Broadband on the basis of assumptions that UPC Broadband believed were
reasonable as of the date of the projections;
	 
	 	(c)	 	there are no material facts or circumstances which have not been disclosed to
the Lenders in writing prior to the date of the Business Plan and which would make any
material factual information referred to in (a) above untrue, inaccurate or misleading
in any material respect as at the date of the Business Plan, or any such opinions,
projections, or assumptions referred to in (b) above misleading in any material respect
as at the date of the Business Plan.

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	15.15	 	Tax liabilities
	 
	(a)	 	No claims are being asserted against it or any member of the Borrower Group with respect to
Taxes which are reasonably likely to be determined adversely to it or to such member and
which, if so adversely determined, would or is reasonably likely to have a Material Adverse
Effect. It is not materially overdue in the filing of any Tax returns required to be filed by
it (where such late filing might result in any material fine or penalty on it) and it has paid
within any period required by law all Taxes shown to be due on any Tax returns required to be
filed by it or on any assessments made against it (other than Tax liabilities being contested
by it in good faith and where it has made adequate reserves for such liabilities or where such
overdue filing, or non-payment, or a claim for payment, of which in each such case would not
have or be reasonably likely to have a Material Adverse Effect).
	 
	(b)	 	Each Obligor (other than UPC Financing) is part of the same fiscal unity for Dutch corporate
income tax purposes. UPC Financing is transparent for Dutch corporate income tax purposes and
all of the partners in UPC Financing are part of the fiscal unity for Dutch corporate income
tax purposes as all of the other Obligors.
	 
	15.16	 	Ownership of assets
	 
	 	 	It and each member of the Borrower Group has good title to or valid leases or licences of or
is otherwise entitled to use all assets necessary to conduct its business, except where the
failure to do so would not have or be reasonably likely to have a Material Adverse Effect.
	 
	15.17	 	Intellectual Property Rights
	 
	(a)	 	It (and each member of the Borrower Group) owns or has the legal right to use all the
Intellectual Property Rights which are required for the conduct of the business of the
Borrower Group as a whole from time to time or are required by it (or such member) in order
for it to carry on such business as it is then being conducted, except where the failure to do
so would not have or be reasonably likely to have a Material Adverse Effect. As far as it is
aware it does not (nor does any member of the Borrower Group), in carrying on its business,
infringe any Intellectual Property Rights of any third party in any way which would or is
reasonably likely to have a Material Adverse Effect.
	 
	(b)	 	None of the Intellectual Property Rights owned by any member of the Borrower Group is, to its
knowledge, being infringed nor, to its knowledge, is there any threatened infringement of
those Intellectual Property Rights, by any third party which, in either case, would or is
reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	All registered Intellectual Property Rights owned by it (or any member of the Borrower Group)
are subsisting and all actions (including payment of all fees) required to maintain the same
in full force and effect have been taken except where the absence of such rights or the
failure to take any such action would not have or be reasonably likely to have a Material
Adverse Effect.
	 
	15.18	 	Works councils
	 
	 	 	All of the requirements of Section 25 of The Netherlands Works Council Act (Wet op de
Ondernemingsraden) in connection with the transactions contemplated by the Finance Documents
which are applicable to an Obligor have been complied with by that Obligor.

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	15.19	 	Borrower Group structure
	 
	 	 	Schedule 8 (Borrower Group Structure) sets out a description which is true and complete in
all material respects as at the Effective Date of the corporate ownership structure of the
Borrower Group and of the ownership of the Borrower (but does not describe any level of
ownership above UGCE Inc.).
	 
	15.20	 	ERISA
	 
	 	 	Neither it nor any member of the Borrower Group or ERISA Affiliate maintains, contributes to
or has any obligation to contribute to or any liability under, any Plan, or in the past five
years has maintained or contributed to or had any obligation to, or liability under, any
Plan.
	 
	15.21	 	United States Regulations
	 
	 	 	Neither it nor any member of the Borrower Group is:

	 	(a)	 	a holding company as defined in the United States Public Utility Holding
Company Act of 1935 or subject to regulation thereunder;
	 
	 	(b)	 	a public utility as defined in the United States Federal Power Act of 1920; or
subject to regulation thereunder;
	 
	 	(c)	 	required to be registered as an investment company as defined in the United
States Investment Company Act of 1940 or subject to regulation thereunder; or
	 
	 	(d)	 	subject to regulation under any United States Federal or State law or
regulation that limits its ability to incur or guarantee indebtedness.

	15.22	 	Anti-Terrorism Laws
	 
	 	 	To the best of its knowledge, neither it nor any member of the Borrower Group:

	 	(a)	 	is, or is controlled by, a Designated Party;
	 
	 	(b)	 	has received funds or other property from a Designated Party; or
	 
	 	(c)	 	is in material breach of or is the subject of any action or investigation under
any Anti-Terrorism Law

	 	 	It and each of its Affiliates have taken commercially reasonable measures to ensure
compliance with the Anti-Terrorism Laws.
	 
	15.23	 	Margin stock
	 
	(a)	 	(In the case of the Borrowers only) the proceeds of the Facilities have been and will be used
only for the purposes described in Clause 3 (Purpose).
	 
	(b)	 	Neither it nor any member of the Borrower Group is engaged principally in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulations U and X of the Board of Governors of the United States Federal Reserve System),
and no portion of any Advance has been or will be used, directly or indirectly, to purchase or
carry margin stock or to extend credit to others for the purpose of purchasing or carrying
margin stock.

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	15.24	 	UPC Financing
	 
	 	 	UPC Financing did not trade or carry on any business from the date it was formed up to and
including 26 October 2000 except for investment in or proposed investment in other members
of the Borrower Group by way of intercompany loan or subscription of shares.
	 
	15.25	 	Dutch Banking Act
	 
	 	 	On the Effective Date UPC Broadband is in compliance with the applicable provisions of the
Dutch Banking Act and any implementing regulations.
	 
	15.26	 	Investment Company Act
	 
	 	 	Neither it nor any member of the Borrower Group is an “investment company” or a company
“controlled” by an “investment company”, within the meaning of the United States Investment
Company Act of 1940, as amended.
	 
	15.27	 	Public Utility Holding Company Act and Federal Power Act
	 
	 	 	Neither it nor any member of the Borrower Group is a “holding company”, or an “affiliate” of
a “holding company” or a “subsidiary company” of a “holding company”, within the meaning of,
or otherwise subject to regulation under, the United States Public Utility Holding Company
Act of 1935, as amended. Neither it nor any member of the Borrower Group is a “public
utility” within the meaning of, or otherwise subject to regulation under, the United States
Federal Power Act.
	 
	15.28	 	Times for making representations and warranties
	 
	(a)	 	The representations and warranties set out in this Clause 15 (Representations and Warranties)
are made by each Obligor on the Signing Date (except for Clause 15.25 (Dutch Banking Act)
which shall be made on the Effective Date) and (except for Clauses 15.6(a) (Consents), 15.10
(Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency
proceedings), 15.14 (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets),
15.18 (Works councils), 15.19 (Borrower Group structure), 15.20 (ERISA), 15.24 (UPC Financing)
and 15.25 (Dutch Banking Act)) are deemed to be made again by each relevant Obligor on the
date of each Request, the first day of each Interest Period and on each Utilisation Date with
reference to the facts and circumstances then existing.
	 
	(b)	 	The representations and warranties set out in this Clause 15 (Representations and Warranties)
(except Clauses 15.9 (Accounts), 15.10 (Financial condition), 15.14 (Business Plan), 15.19
(Borrower Group structure) and 15.24 (UPC Financing)) are repeated by each Additional Obligor
with respect to itself on the date of the Obligor Accession Agreement relating to that
Additional Obligor, with reference to the facts and circumstances then subsisting.
	 
	(c)	 	The representation and warranty made by UPC Broadband in Clause 15.14 (Business Plan) will be
deemed to be repeated on the date any updated Business Plan is delivered to the Facility Agent
by UPC Broadband, but only in respect of that updated Business Plan, by reference to the facts
and circumstances existing on the relevant date.

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	16.	 	UNDERTAKINGS
	 
	16.1	 	Duration
	 
	 	 	The undertakings in this Clause 16 (Undertakings) will remain in force from the Signing Date
for so long as any amount is or may be outstanding under any Finance Document or any
Commitment is in force.
	 
	16.2	 	Financial information
	 
	 	 	UPC Broadband shall supply to the Facility Agent in sufficient copies for all the Lenders:

	 	(a)	 	as soon as the same are available (and in any event within 150 days of the end
of each of its financial years) audited consolidated financial statements of UPC
Broadband Holdco for that financial year;
	 
	 	(b)	 	as soon as the same are available (and, in any event, (in the case of its first
three financial quarters in any financial year) within 60 days of the end of each of
its financial quarters and (in the case of its fourth financial quarter in each
financial year) within 150 days of the end of each such financial quarter), unaudited
quarterly consolidated management accounts of UPC Broadband Holdco for that financial
quarter in the agreed form;
	 
	 	(c)	 	by no later than 60 days after the last day of each of its financial years, an
annual budget for the Distribution Business of the Borrower Group in the agreed form
for the immediately following financial year;
	 
	 	(d)	 	together with any financial statements specified in paragraphs (a) or (b)
above, a certificate signed by a director of UPC Broadband:

	 	(i)	 	confirming that no Default is outstanding or if a Default is
outstanding, specifying the Default and the steps, if any, being taken to
remedy it;
	 
	 	(ii)	 	setting out in reasonable detail computations establishing, as
at the date of such financial statements, whether each of the financial ratios
set out in Clause 17 (Financial Covenants) were complied with;
	 
	 	(iii)	 	(in the case of financial statements specified in paragraph
(a) above, starting with the annual financial statements for 31 December 2004)
setting out in reasonable detail computations establishing the Excess Cash Flow
(if any) for the financial year to which such financial statements were
delivered for the purposes of Clause 7.5 (Mandatory prepayment from Excess Cash
Flow and Relevant Convertible Preference Shares);
	 
	 	(iv)	 	certifying current compliance with the Borrowers’ obligations
under Clause 7.6(a) (Mandatory prepayment from disposal proceeds); and
	 
	 	(v)	 	certifying compliance with Clause 16.11(a) (Acquisitions and
mergers);

	 	(e)	 	as soon as the same is available (and in any event within 90 days after each of
its financial quarters) the consolidated financial statements of UGC. for that
financial quarter on Form 10Q as filed with the United States Securities and Exchange
Commission (the Commission) or such other comparable form as UGC. is required to file
with the Commission under the United States Securities Exchange Act of 1934

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	 	 	 	(the 1934 Act) or, if UGC. is no longer subject to the reporting requirements of the
1934 Act, in the form required to be filed with the regulatory body comparable to
the Commission then having jurisdiction over UGC.;
	 
	 	(f)	 	as soon as the same is available (and in any event within 180 days after each
of its financial years) the audited consolidated financial statements of UGC. for that
financial year on Form 10K as filed with the Commission or such other comparable form
as UGC. is required to file with the Commission under the 1934 Act or, if UGC. is no
longer subject to the reporting requirements of the 1934 Act, in the form required to
be filed with the regulatory body comparable to the Commission then having jurisdiction
over UGC.;
	 
	 	(g)	 	together with the financial statements and accounts referred to in paragraphs
(a) and (b), a reconciliation demonstrating the effect of excluding from such financial
statements or accounts the results of any business or activity other than the
Distribution Business of the Borrower Group, provided that non-Distribution Business
Assets need not be so excluded (and the reconciliation need not apply to such assets)
unless they are subject to any Security Interest referred to in paragraph (i) of the
definition of Permitted Security Interest or any other form of recourse as contemplated
by Clause 16.12(b)(xii) (Restrictions on Financial Indebtedness); and
	 
	 	(h)	 	details of the principal terms (including without limitation, details of the
notional amount, the termination date and applicable rates) of any Senior Hedging
Agreements or High Yield Hedging Agreements to which any member of the Borrower Group
is a party within five Business Days of any Senior Hedging Agreement or High Yield
Hedging Agreement being entered into.

	16.3	 	Information — Miscellaneous
	 
	 	 	UPC Broadband shall supply promptly (and in any event in the case of paragraph (d) below
within five Business Days of the date on which UPC Broadband becomes aware of such
information) or procure that there shall be supplied (both in hard copy and in electronic
form) promptly to the Facility Agent:

	 	(a)	 	all notices, reports or other documents despatched by or on behalf of any
Obligor to its creditors generally in relation to it or any of its Subsidiaries;
	 
	 	(b)	 	a copy of any material report or other notice, statement or circular, sent or
delivered by any member of the Borrower Group whose shares are pledged to the Security
Agent pursuant to any Security Document to any person in its capacity as shareholder of
such member of the Borrower Group, which materially adversely affects the interest of
the Finance Parties under such Security Document;
	 
	 	(c)	 	such other material information regarding the Borrower Group and which is in
the possession or control of any member of the Borrower Group as the Facility Agent may
from time to time reasonably request; and
	 
	 	(d)	 	written notification of:

	 	(i)	 	the Priority Pledge becoming enforceable;
	 
	 	(ii)	 	any breach by Priority Telecom N.V. of its obligations set out
in the Priority Pledge; and

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	 	(iii)	 	any breach of the Sale and Purchase Agreements.

	16.3A	 	Enforcement of and undertakings in relation to certain agreements
	 
	(a)	 	UPC Broadband agrees promptly after (and in any event within five Business Days of) receiving
notice from the Facility Agent to do so, to take all necessary action to:

	 	(i)	 	if the Priority Pledge becomes enforceable, enforce the Priority Pledge;
	 
	 	(ii)	 	if Priority Telecom N.V. has breached its obligations set out in the Priority
Pledge in any material respect enforce its rights in respect of any such breaches by
Priority Telecom N.V. of its obligations under the Priority Pledge; and
	 
	 	(iii)	 	if any party to the Sale and Purchase Agreements is in default under any one
or more of the Sale and Purchase Agreements in any material respect, enforce its rights
in respect of such default.

	(b)	 	UPC Broadband undertakes to keep the Lenders informed and to take such action in connection
with the enforcement of the Priority Pledge or its rights under the Priority Pledge or any of
the Sale and Purchase Agreements (as the case may be) as may be requested by the Facility
Agent (acting on the instructions of the Majority Lenders).
	 
	(c)	 	UPC Broadband undertakes not to agree to any amendment, variation, supplement or waiver of
the Priority Pledge or the Sale and Purchase Agreements
	 
	 	 	without the written consent of the Facility Agent (acting on the instructions of the
Majority Lenders) where the same would prejudice in any material respect the interests of
the Lenders under such arrangements.
	 
	16.4	 	Notification of Default and inspection rights
	 
	(a)	 	Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of it (unless that Obligor is aware that such
a notification has already been provided by another Obligor).
	 
	(b)	 	Each Obligor (other than UPC Broadband Holdco) shall, if required by the Facility Agent
(acting on the instructions of the Majority Lenders), at any time whilst an Event of Default
is continuing or the Facility Agent has reasonable grounds to believe that an Event of Default
may exist and at other times if the Facility Agent has reasonable grounds for such request,
permit representatives of the Facility Agent upon reasonable prior written notice to UPC
Broadband to:

	 	(i)	 	visit and inspect the properties of any member of the Borrower Group during
normal business hours;
	 
	 	(ii)	 	inspect its books and records other than records which the relevant member of
the Borrower Group is prohibited by law, regulation or contract from disclosing to the
Facility Agent; and
	 
	 	(iii)	 	discuss with its principal officers and Auditors its business, assets,
liabilities, financial position, results of operations and business prospects provided
that (A) any such discussion with the Auditors shall only be on the basis of the
audited financial statements of the Borrower Group and any compliance certificates
issued by the

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	 	 	 	Auditors and (B) representatives of UPC Broadband shall be entitled to be present at
any such discussion with the Auditors.

	(c)	 	Any Obligor must promptly upon becoming aware of it notify the Facility Agent of:

	 	(i)	 	any Reportable Event;
	 
	 	(ii)	 	the termination of or withdrawal from, or any circumstances reasonably likely
to result in the termination of or withdrawal from, any Plan subject to Title IV of
ERISA; and
	 
	 	(iii)	 	material non-compliance with any law or regulation relating to any Plan which
would or is reasonably likely to have a Material Adverse Effect.

	16.5	 	Authorisations
	 
	 	 	Each Obligor (other than UPC Broadband Holdco, in the case of paragraphs (b) below) will,
and will procure that each of its Subsidiaries which is a member of the Borrower Group will:

	 	(a)	 	obtain or cause to be obtained, maintain and comply with the terms of:

	 	(i)	 	every material consent, authorisation, licence or approval of,
or filing or registration with or declaration to, governmental or public bodies
or authorities or courts; and
	 
	 	(ii)	 	every material notarisation, filing, recording, registration or
enrolment in any court or public office,

	 	 	 	in each case required under any law or regulation to enable it to perform its
obligations under, or for the validity, enforceability or admissibility in evidence
of any Finance Document to which it is a party; and
	 
	 	(b)	 	obtain or cause to be obtained every Necessary Authorisation and the Licences
and ensure that (i) none of the Necessary Authorisations or Licences is revoked,
cancelled, suspended, withdrawn, terminated, expires and is not renewed or otherwise
ceases to be in full force and effect and (ii) no Necessary Authorisation or Licence is
modified and no member of the Borrower Group commits any breach of the terms or
conditions of any Necessary Authorisation or Licence which, in each case, would or is
reasonably likely to have a Material Adverse Effect.

	16.6	 	Pari passu ranking
	 
	 	 	Each Obligor will procure that its payment obligations under the Finance Documents do and
will rank at least pari passu with all the claims of its other present and future unsecured
and unsubordinated creditors (save for those obligations mandatorily preferred by applicable
law applying to companies generally).
	 
	16.7	 	Negative pledge
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not permit any Security Interest (other
than the Permitted Security Interests) by any member of the Borrower Group to subsist, arise
or be created or extended over all or any part of their respective present or future
undertakings, assets, rights or revenues to secure or prefer any present or future
indebtedness of any member of the Borrower Group or any other person.

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	(b)	 	UPC Broadband Holdco will not create or permit to subsist any Security Interest over its
assets which are subject to the Security Documents to which it is a party (other than any
Permitted Security Interest referred to in paragraphs (a), (b), (d), (e) or (g) of the
definition of Permitted Security Interest).
	 
	(c)	 	(i) UPC Broadband will procure that none of LGEF, UPC, UGCE Inc. or any other member of the
UGCE Borrower Group (each a Relevant Company) will create or permit to subsist any Security
Interest (other than an Agreed Security Interest) over all or part of that Relevant Company’s
present or future undertakings, assets, rights or revenues.

	 	(ii)	 	For the purposes of subparagraph (c)(i) above:

Agreed Security Interest means:

	 	(a)	 	any liens arising in the ordinary course of business by way of contract which
secure indebtedness under any agreement for the supply of goods or services in respect
of which payment is not deferred for more than 180 days (or 360 days if such deferral
is in accordance with the terms pursuant to which the relevant goods were acquired or
services were provided);
	 
	 	(b)	 	any Security Interest imposed by any taxation or governmental authority in
respect of amounts which are being contested in good faith and not yet payable and for
which adequate reserves have been set aside in the accounts of the Relevant Company in
respect of the same in accordance with GAAP;
	 
	 	(c)	 	any Security Interest in favour of any bank incurred in relation to any cash
management arrangements;
	 
	 	(d)	 	rights of set-off arising in the ordinary course of business;
	 
	 	(e)	 	any Security Interest granted by a Relevant Company over its shareholding in
any of its Subsidiaries which is not itself a Relevant Company;
	 
	 	(f)	 	any Security Interest granted by a Relevant Company under any Existing Security
Documents provided that, (other than in the case of the Security Interests referred to
in paragraph (a) of the definition of Existing Security Documents) at the same time
that such Security Interest is granted, the Relevant Company grants an identical
Security Interest over the same assets to the Beneficiaries and under the terms of the
Intercreditor Agreement, such Security Interest ranks pari passu with the Security
Interest(s) arising under the corresponding Security Document which purports to create
a Security Interest over the same property, assets or rights provided that any such
Existing Security Document will be in the same form as the corresponding Security
Document (save for changes directly attributable to the identity of the parties and the
loan amounts);
	 
	 	(g)	 	any Security Interest granted by a Relevant Party to secure any Third Party
Debt permitted under Clause 16.12(d) (Restrictions on Financial Indebtedness); and
	 
	 	(h)	 	any Security Interest not falling within subparagraphs (a) to (g) above
securing any indebtedness which, when aggregated with all other indebtedness secured by
that Relevant Company and each other Relevant Company, does not exceed €15,000,000 (or
its equivalent).

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	16.8	 	Permitted Business
	 
	(a)	 	Each Obligor will ensure that it and its Subsidiaries which are members of the Borrower Group
(other than any Relevant Eastern European Subsidiary) engage:

	 	(i)	 	in no material activity outside the Permitted Business; and/or
	 
	 	(ii)	 	in the business of acting as the holder of shares and/or interests in other
members of the Borrower Group (which shall include the raising of Permitted Financial
Indebtedness and the on-lending of such Financial Indebtedness to its Subsidiaries in
accordance with the provisions of this Agreement and the entry into of hedging
arrangements on behalf of its Subsidiaries).

	(b)	 	The Borrowers will ensure that UPC Financing will engage primarily in the business of a
finance company for and in respect of the Borrower Group in connection with the Existing
Facilities and the transactions contemplated by the Existing Facility Agreement.
	 
	16.9	 	Compliance with laws
	 
	 	 	Each Obligor will, and will procure that each of its Subsidiaries which is a member of the
Borrower Group will, comply in all material respects with all applicable laws, rules,
regulations and orders of any governmental authority, having jurisdiction over it or any of
its assets, except where failure to comply with which would not have or be reasonably likely
to have a Material Adverse Effect.
	 
	16.10	 	Disposals
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not and will procure that no other member
of the Borrower Group (other than a Relevant Eastern European Subsidiary) will, sell,
transfer, lend (subject to Clause 16.14 (Loans and guarantees)) or otherwise dispose of or
cease to exercise direct control over (each a disposal) any part of its present or future
undertaking, assets, rights or revenues whether by one or a series of transactions related or
not (other than Permitted Disposals).
	 
	(b)	 	As used herein a Permitted Disposal means:

	 	(i)	 	disposals (including, for the avoidance of doubt, the outsourcing of activities
that support or are incidental to the Permitted Business) on arm’s length commercial
terms in the ordinary course of business;
	 
	 	(ii)	 	the disposal of property or other assets on bona fide arm’s length commercial
terms in the ordinary course of business in consideration for, or to the extent that
the net proceeds of disposal are applied within 120 days after such disposal in the
acquisition of, property or other assets of a similar nature and approximately equal
value to be used in the Permitted Business;
	 
	 	(iii)	 	disposals of assets on bona fide arm’s length commercial terms where such
assets are obsolete or no longer required for the purposes of the Permitted Business;
	 
	 	(iv)	 	the application of cash in payments which are not otherwise restricted by the
terms of this Agreement and the Security Documents including, for the avoidance of
doubt, Permitted Acquisitions and Permitted Payments;

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	 	(v)	 	disposals (or the payment of management, consultancy or similar fees):

	 	(A)	 	by an Obligor to another Obligor; or
	 
	 	(B)	 	from a member of the Borrower Group which is not an Obligor, to
any member of the Borrower Group; or
	 
	 	(C)	 	from an Obligor to another member of the Borrower Group which
is not an Obligor;

	 	(vi)	 	disposals of any interest in an Unrestricted Subsidiary;
	 
	 	(vii)	 	disposals made in connection with Approved Stock Options;
	 
	 	(viii)	 	disposals of undertakings, assets, rights or revenues comprising interests in the
share capital of persons not holding or engaged in the Distribution Business of the
Borrower Group or other undertakings, assets, rights or revenues not constituting part
of the Distribution Business of the Borrower Group (non-Distribution Business Assets);
	 
	 	(ix)	 	payment, transfer or other disposal of consideration for any Acquisition,
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers);
	 
	 	(x)	 	disposals of cash or cash equivalents constituting any distribution, dividend,
transfer, loan or other transaction permitted by Clause 16.13 (Restricted Payments);
	 
	 	(xi)	 	the grant of indefeasible rights of use or equivalent arrangements with respect
to network capacity, communications, fibre capacity or conduit, in each case on arm’s
length commercial terms or on terms that are fair and reasonable and in the best
interests of the Borrower Group;
	 
	 	(xii)	 	disposal of any interest (whether direct or indirect) held by Polska Holdco in
Fox Kids Inc., Telewizja Korporacja Partycypacyjana SA and/or @media S.p.zoo.
	 
	 	 	 	For the avoidance of doubt and without limiting the generality of subparagraph (x)
above, non-Distribution Business Assets shall include:

	 	(A)	 	undertakings, assets, rights and revenues comprising interests
in the share capital of any person engaged solely in the competitive local
exchange carrier (CLEC) business, including without limitation, the business of
providing traditional voice and data services and services based on
Transmission Control Protocol/Internet Protocol (TCP/IP) technology and other
undertakings, assets, rights or revenues constituting a part of such
businesses; and
	 
	 	(B)	 	undertakings, assets, rights and revenues comprising interests
in the share capital of any person engaged solely in the business of television
and radio programming, including without limitation, the business or creating
and distributing special interest television channels, radio programmes, pay
per view programmes and near video on demand services and other undertakings,
assets, rights or revenues constituting a part of such businesses;

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	 	(xiii)	 	the disposal by UPC Scandinavia Holding B.V. of:

	 	(A)	 	the shares in UPC Norge A.S. and/or NBS Nordic Broadband
Services A.B.; or
	 
	 	(B)	 	the business or a substantial part of the business of UPC Norge
A.S. and/or NBS Nordic Broadband Services A.B.,

	 	 	 	provided that, in each case, an amount equal to four times Annualised EBITDA of the
entity (or the business) that is being disposed of under this Subclause for the
Ratio Period which ends on the most recent quarterly Accounting Period end date for
which financial information has been delivered under Clause 16.2 (Financial
information) (the Scandinavia Repayment Amount) is deposited immediately with the
Facility Agent and/or the Existing Facility Agent and applied in prepayment and
cancellation or repayment of the Additional Facilities in accordance with paragraphs
(f), (g), (h) and (i) below and/or the Existing Facilities in accordance with
clauses 16.10(f), (g), (h) and (i) (Disposals) of the Existing Facility Agreement;
and
	 
	 	(xiv)	 	any disposal made after the 2006 Amendment Effective Date (in addition to
those described in sub paragraphs (i) to (xiii) above) of any person or asset the
Annualised EBITDA of or attributable to which does not exceed the Remaining Percentage
of the Annualised EBITDA of the Borrower Group for the Latest Ratio Period Provided
that:

	 	(A)	 	no Default has occurred and is continuing or would occur as a
result of such disposal;
	 
	 	(B)	 	where required, a prepayment is made in accordance with Clause
7.6(a) (Mandatory prepayment from disposal proceeds) in respect of such
disposal; and
	 
	 	(C)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which certifies that, if the financial ratios set out in Clause 17.2 (Financial
ratios) were re-calculated for the Latest Ratio Period but adjusting the:

	 	I.	 	amount of Senior Debt and Total Debt used in
such calculations by adding any net increase in Senior Debt or Total
Debt (respectively) of the Borrower Group since the end of the Latest
Ratio Period or subtracting any net reduction in the Senior Debt or
Total Debt (respectively) of the Borrower Group since the end of the
Latest Ratio Period and any such reduction which will occur from a
prepayment of a Facility made under Clause 7.3 (Voluntary prepayment)
or Clause 7.6(a) (Mandatory prepayment from disposal proceeds) of this
Agreement from the proceeds of such disposal; and
	 
	 	II.	 	Annualised EBITDA of the Borrower Group used in
such calculations by subtracting the Annualised EBITDA attributable to
persons or assets disposed of since the end of the Latest Ratio Period
and the Annualised EBITDA attributable to the person or asset the
subject of such disposal, in each case for the Latest Ratio Period,

those financial ratios would not be breached.

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	(c)	 	The Remaining Percentage is:

	 	(i)	 	the greater of (A) 17.5% and (B) the percentage of the Annualised EBITDA of the
Borrower Group represented by the Annualised EBITDA of the French Group for the Latest
Ratio Period;
	 
	 	(ii)	 	less the aggregate percentage value of all previous disposals made after the
2006 Amendment Effective Date; and
	 
	 	(iii)	 	plus the aggregate percentage value of all Reinvestments made after the 2006
Amendment Effective Date,

as calculated in accordance with paragraph (d) below.

Provided that:-

	 	(x)	 	the percentage of the Annualised EBITDA of the Borrower Group represented by
the Annualised EBITDA of the person or asset disposed of can never be more than the
Remaining Percentage immediately prior to such disposal;
	 
	 	(y)	 	the percentage value of a Reinvestment shall be disregarded if, immediately
after and taking account of the Reinvestment under consideration, the Annualised EBITDA
of the members of the Borrower Group which is derived from persons or assets located in
Western Europe is less than 662/3 per cent. of the Annualised
EBITDA of the Borrower Group (in each case for the Latest Ratio Period but taking into
account each disposal and Reinvestment made after the date on which that Latest Ratio
Period ended); and
	 
	 	(z)	 	the Remaining Percentage can never be more than 17.5%, except in respect of a
disposal of the French Group.

	(d)	 	For the purposes of paragraphs (b)(xiv) and (c) above:
	 
	 	 	Annualised EBITDA and EBITDA have the meaning given to them in Clause 17.1 (Financial
definitions) but, when calculating EBITDA in relation to a person or asset that is being (or
has been) acquired or disposed of, any amounts will be calculated using the methodology for
calculating operating cash flow used in the accounts most recently filed with the Securities
and Exchange Commission by or on behalf of UPC Holding prior to the date of that acquisition
or disposal, and, for the avoidance of doubt, any corporate costs or allocations paid or
payable during the relevant period by a member of the Borrower Group which is being disposed
of to one of its Affiliates pursuant to any general services (or similar) arrangement shall
be deducted from the EBITDA of the member of the Borrower Group being disposed of.
	 
	 	 	French Group means the group of companies of which UPC France Holding B.V. is the holding
company as at the 2006 Amendment Effective Date;
	 
	 	 	Latest Ratio Period means the most recent Ratio Period for which financial statements have
been delivered pursuant to Clause 16.2 (Financial Information);
	 
	 	 	percentage value means:

	 	(a)	 	in relation to a disposal, the percentage of the Annualised EBITDA of the
Borrower Group for what was the Latest Ratio Period at the time of the disposal which
is represented by the Annualised EBITDA of the person or asset disposed of (the

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	 	 	 	EBITDA Percentage), after deducting a percentage equal to the EBITDA Percentage
multiplied by the Proportion Repaid; and
	 
	 	(b)	 	in relation to a Reinvestment, the percentage of the Annualised EBITDA of the
Borrower Group for what was the Latest Ratio Period at the time of the Reinvestment
(but taking into account each disposal made by the Borrower Group after the last day of
that Latest Ratio Period and prior to the date of the relevant Reinvestment) which is
represented by the Annualised EBITDA of the person or asset acquired multiplied by the
Proportion Reinvested,

	 	 	Where:
	 
	 	 	the Proportion Reinvested is that proportion of the purchase price for the person or asset
acquired which is represented by the amount of the Net Proceeds of a previous disposal that
were reinvested pursuant to the relevant Reinvestment;
	 
	 	 	the Proportion Repaid is that proportion of the Net Proceeds of that disposal prepaid
pursuant to Clause 7.6(a) (Mandatory prepayment of disposal proceeds) and/or repaid pursuant
to Clause 7.3 (Voluntary prepayment);and
	 
	 	 	Reinvestment means the reinvestment of all or any part of the Net Proceeds of a previous
disposal made under paragraph (b)(xiv) above by the Borrower Group after the 2006 Amendment
Effective Date, including in circumstances where all or any part of such Net Proceeds are
distributed as a Permitted Payment and an equity subscription is subsequently made in, or a
Subordinated Shareholder Loan is subsequently made to, a member of the Borrower Group.
	 
	(e)	 	Except as otherwise expressly permitted in this Agreement or the relevant Security Document,
UPC Broadband Holdco will not sell, transfer, lease or otherwise dispose of all or any part of
its assets which are subject to a Security Document to which it is a party.
	 
	(f)	 	Any prepayment and cancellation or repayment made under subparagraph (b)(xiii) above will be
applied against the Additional Facilities and/or the Existing Facilities in such proportion as
may be specified by UPC Broadband in the notice of prepayment and cancellation or repayment
and in the case of a prepayment and cancellation or repayment of Advances, against all
outstanding Advances made under the relevant Additional Facilities pro rata (and, if
applicable, against the Repayment Instalments for the relevant Additional Facility or
Additional Facilities in such order as may be specified by UPC Broadband).
	 
	(g)	 	Subject to paragraph (h), each Lender may elect not to accept prepayment and cancellation of
Advances under subparagraph (b)(xiii) above by notifying the Facility Agent in writing on or
before 29 November 2005. In the event of such election, any amounts which would otherwise
have been applied in prepayment and cancellation of the relevant Advances (the balance), shall
be applied in prepayment and cancellation or repayment pro rata of any other outstanding
Advances or Existing Facility Advances in accordance with paragraph (f) above (and paragraph
(f) above and this paragraph (g) shall continue to be applied to any balance until it has been
exhausted or until all Advances and Existing Facility Advances in respect of which the
relevant Lenders or Existing Lenders have not elected not to accept prepayment and
cancellation have been repaid or prepaid and cancelled in full).
	 
	(h)	 	Any election under paragraph (g) above not to accept prepayment and cancellation of an
Advance will only apply in relation to disposals made under subparagraph (b)(xiii) above on or
before 8 May 2006.

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	(i)	 	The amount of a Facility I Advance prepaid or repaid by UPC Broadband in accordance with
subparagraph (b)(xiii) above may be re-borrowed in accordance with the terms of this
Agreement.
	 
	16.11	 	Acquisitions and mergers
	 
	(a)	 	No Obligor (other than UPC Broadband Holdco) will, and each Obligor (other than UPC Broadband
Holdco) will procure that none of its Subsidiaries which is a member of the Borrower Group
will, make any Acquisition, other than:

	 	(i)	 	any Acquisition approved in writing by the Majority Lenders;
	 
	 	(ii)	 	any Permitted Acquisition;
	 
	 	(iii)	 	any Permitted Joint Venture; or
	 
	 	(iv)	 	any Acquisition from any person which is a member of the Borrower Group or
subscription of an interest in the share capital (or equivalent) in any person which is
a member of the Borrower Group.

	(b)	 	Each Obligor (other than UPC Broadband Holdco) will not merge or consolidate with any other
company or person and will procure that no member of the Borrower Group will merge or
consolidate with any other company or person (other than, in each case, in connection with the
Romania Restructuring) save for:

	 	(i)	 	Acquisitions permitted by paragraph (a) above and disposals permitted by Clause
16.10 (Disposals); or
	 
	 	(ii)	 	with the prior written consent of the Facility Agent (acting on the
instructions of the Majority Lenders); or
	 
	 	(iii)	 	mergers between any member of the Borrower Group with (I) any or all of the
other members of the Borrower Group or (II) an Unrestricted Subsidiary (Original
Entities), into one or more entities (each a Merged Entity) provided that:

	 	(A)	 	reasonable details of the proposed merger in order to
demonstrate satisfaction with subparagraphs (C) to (G) below are provided to
the Facility Agent at least 10 days before the merger is to be entered into;
	 
	 	(B)	 	if the proposed merger is between a member of the Borrower
Group and an Unrestricted Subsidiary, UPC Broadband has delivered to the
Facility Agent financial projections based on assumptions which are no more
aggressive than those used in the preparation of the Business Plan which
demonstrate that the Borrower Group will be in compliance with the undertakings
set out in Clause 17.2 (Financial ratios) for the period commencing on the date
of merger and ending on the Final Maturity Date;
	 
	 	(C)	 	such Merged Entity will be a member of the Borrower Group and
will be liable for the obligations of the relevant Original Entities (including
the obligations under this Agreement and the Security Documents), which
obligations remain unaffected by the merger, and entitled to the benefit of all
rights of such Original Entities;

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	 	(D)	 	(if all or any part of the share capital of any of the relevant
Original Entities was charged pursuant to a Security Document) the equivalent
part of the issued share capital of such Merged Entity is charged pursuant to a
Security Document on terms of at least an equivalent nature and equivalent
ranking as any Security Document relating to the shares in each relevant
Original Entity within 60 days of the merger;
	 
	 	(E)	 	such Merged Entity has entered into Security Documents (if
applicable) within 60 days of the merger which provide security over the same
assets of at least an equivalent nature and ranking to the security provided by
the relevant Original Entities pursuant to any Security Documents entered into
by them;
	 
	 	(F)	 	any possibility of the Security Documents referred to in
subparagraphs (D) or (E) above being challenged or set aside is not materially
greater than any such possibility in relation to the Security Documents entered
into by, or in respect of the share capital of, any relevant Original Entity;
and
	 
	 	(G)	 	all the property and other assets of the relevant Original
Entities are vested in the Merged Entity and the Merged Entity has assumed all
the rights and obligations of the relevant Original Entities under any relevant
Material Contracts, material Necessary Authorisations and Licences and other
licences or registrations (to the extent reasonably necessary for the business
of the relevant Original Entities) granted in favour of the Original Entities
under Telecommunications and Cable Laws and/or all such rights and obligations
have been transferred to the Merged Entity and/or the relevant Material
Contracts, Necessary Authorisations and Licences and other licences or
registrations (to the extent reasonably necessary for the business of the
relevant Original Entities) granted in favour of the Original Entities under
Telecommunications and Cable Laws have been reissued to the Merged Entity,

except that the requirements of paragraphs (C) to (G) above will not apply in
respect of any merger between Original Entities:

	 	I.	 	both of which are not Obligors; and
	 
	 	II.	 	neither one of which is party to a Security
Document, neither one of whose share capital is charged pursuant to a
Security Document and neither one of whom owes any receivables to
another member of the Borrower Group which are pledged pursuant to a
Security Document.

	16.12	 	Restrictions on Financial Indebtedness
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no other
member of the Borrower Group (other than a Relevant Eastern European Subsidiary) will, create,
incur or otherwise permit to be outstanding any Financial Indebtedness (other than Permitted
Financial Indebtedness).
	 
	(b)	 	As used herein, Permitted Financial Indebtedness means, without duplication:

	 	(i)	 	any Financial Indebtedness arising hereunder or under the Security Documents;
	 
	 	(ii)	 	any Financial Indebtedness arising under the Existing Facility;

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	 	(iii)	 	any Financial Indebtedness or guarantees permitted pursuant to Clause 16.14
(Loans and guarantees);
	 
	 	(iv)	 	any Financial Indebtedness incurred through a Subordinated Shareholder Loan
made to any member of the Borrower Group;
	 
	 	(v)	 	any Financial Indebtedness of any member of the Borrower Group arising as a
result of the issue by it or a financial institution of a surety or performance bond in
relation to the performance by such member of the Borrower Group or its obligations
under contracts entered into in the ordinary course of its business (other than for the
purpose of raising finance);
	 
	 	(vi)	 	any Financial Indebtedness approved in writing by the Facility Agent (acting on
the instructions of the Majority Lenders);
	 
	 	(vii)	 	any Financial Indebtedness incurred in connection with the Senior Hedging
Agreements and any other hedging arrangements permitted by Clause 16.17 (Hedging);
	 
	 	(viii)	 	any deposits or prepayments constituting Financial Indebtedness received by any
member of the Borrower Group from a customer or subscriber for its services;
	 
	 	(ix)	 	any Financial Indebtedness owing by any member of the Borrower Group being
Management Fees or management, consultancy or similar fees payable to another member of
the Borrower Group in respect of which payment has been deferred;
	 
	 	(x)	 	any Financial Indebtedness being Permitted Payments in respect of which payment
has been deferred;
	 
	 	(xi)	 	any Financial Indebtedness of a company which is acquired by a member of the
Borrower Group after the date hereof as an acquisition permitted by Clause 16.11
(Acquisitions and mergers) where such Financial Indebtedness existed at the date of
completion of such Permitted Acquisition provided that (A) such Financial Indebtedness
was not incurred in contemplation of the acquisition, (B) the amount of such Financial
Indebtedness is not increased beyond the amount in existence at the date of completion
of the acquisition and (C) such Financial Indebtedness is discharged within six months
of the date of completion of the acquisition;
	 
	 	(xii)	 	any Financial Indebtedness of any member of the Borrower Group, in respect of
which the person or persons to whom such Financial Indebtedness is or may be owed has
or have no recourse whatever to any member of the Borrower Group for any payment or
repayment in respect thereof other than recourse to such member of the Borrower Group
for the purpose only of enabling amounts to be claimed in respect of such Financial
Indebtedness in an enforcement of any Security Interest given by any member of the
Borrower Group over non-Distribution Business Assets, provided that:

	 	(A)	 	the extent of such recourse to such member is limited solely to
the amount of any recoveries made on any such enforcement;
	 
	 	(B)	 	such person or persons are not entitled, pursuant to the terms
of any agreement evidencing any right or claim arising out of or in connection
with such Financial Indebtedness, to commence proceedings for the winding up,
dissolution or administration of any member of the Borrower Group (or
proceedings having an equivalent effect) or to appoint or procure the

77

 

	 	 	 	appointment of any receiver, trustee or similar person or officer in respect
of any member of the Borrower Group or any of its assets (save only for the
non-Distribution Business Assets the subject of that Security Interest)
until after the Commitments have been reduced to zero and all amounts
outstanding under the Finance Documents have been repaid or paid in full;
and
	 
	 	(C)	 	the aggregate outstanding amount of all such Financial
Indebtedness of all members of the Borrower Group does not exceed €100,000,000
(or its equivalent in other currencies);

	 	(xiii)	 	any Financial Indebtedness of any member of the Borrower Group (other than any
Obligor) constituting Financial Indebtedness to all the holders (or their Associated
Companies) of the share capital of any such member of the Borrower Group on a basis
that is substantially proportionate to their interests in such share capital (with any
disproportionately large interest received by any member of the Borrower Group or any
disproportionately small interest received by any person other than a member of the
Borrower Group, in each case relative to its interests in such share capital, being
ignored for this purpose), provided such Financial Indebtedness does not bear interest
(other than by way of addition to its principal amount on a proportionate basis as
described above) and is made on terms that repayment or pre-payment of such Financial
Indebtedness shall only be made to each such holder (A) in proportion to their
respective interests in such share capital (ignoring any disproportionately large
interest held by any member of the Borrower Group or any disproportionately small
interest received by any person other than a member of the Borrower Group, in each case
relative to its interests in such share capital, for this purpose) and (B) only on and
in connection with the liquidation or winding up (or equivalent) of such member of the
Borrower Group;
	 
	 	(xiv)	 	any Financial Indebtedness arising under the Permitted Borrower Group
Revolving Credit Facility or the Permitted Borrower Group Guarantee Facilities; and
	 
	 	(xv)	 	any other Financial Indebtedness in addition to the Financial Indebtedness
falling within paragraphs (i) to (xiv) above not exceeding at any time more than
€25,000,000 in aggregate (or its equivalent) provided that such Financial Indebtedness
is not indebtedness incurred in respect of Acquisitions.

	(c)	 	No Obligor will, and each Obligor will procure that none of its Subsidiaries which is a
member of the Borrower Group will, incur or have outstanding any Financial Indebtedness due to
or for the benefit of UPC or any Subsidiary of UPC (not being a member of the Borrower
Group), other than Subordinated Shareholder Loans and any Permitted Financial Indebtedness
referred to in Clause 16.12(b)(iv), (viii), (ix), (x) or (xii).
	 
	(d)	 	   (i)    Subject to subparagraph (ii) below, UPC Broadband will ensure that no member of the UGCE
Borrower Group will incur any Third Party Debt (other than any Third Party Debt subsisting
prior to 28 September 2002) unless such Third Party Debt will not become due and payable until
after 31 December 2011.

	 	(ii)	 	Subparagraph (d)(i) above shall not apply if:

	 	(A)	 	the most recently delivered financial statements provided to
the Facility Agent under Clause 16.2(b) (Financial information) show that, for
the two most recent Ratio Periods, the applicable ratio for the purposes of
Clause 17.2(a) (Financial ratios) is 3.5:1 or less; or

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	 	(B)	 	the principal amount of such Third Party Debt, when aggregated
with (I) any other Third Party Debt incurred by that member of the UGCE
Borrower Group after 28 September 2002, and (II) any Third Party Debt incurred
by any other member of the UGCE Borrower Group after 28 September 2002, is
equal to or less than €15,000,000.

	16.13	 	Restricted Payments
	 
	(a)	 	Except for any payment or transfer of consideration for the transfer of shares or receivables
to a member of the Borrower Group pursuant to the Restructuring, each Obligor (other than UPC
Broadband Holdco) will not, and will procure that no member of the Borrower Group will, make
any Restricted Payments other than Permitted Payments or enter into any transaction with a
Restricted Person other than on bona fide arm’s length commercial terms or on terms which are
fair and reasonable and in the best interests of the Borrower Group.
	 
	(b)	 	As used herein, a Restricted Payment means, in each case whether in cash, securities,
property or otherwise:

	 	(i)	 	any direct or indirect distribution, dividend or other payment on account of
any class of its share capital or capital stock or other securities;
	 
	 	(ii)	 	any payment of principal of, or interest on, any loan; or
	 
	 	(iii)	 	any transfer of assets, loan or other payment,
	 
	 	in the case of each of (i), (ii) and (iii), to a Restricted Person.

	(c)	 	As used herein, a Permitted Payment means any distribution, dividend, transfer of assets,
loan or other payment:

	 	(i)	 	to any Restricted Person in relation to transactions carried out on bona fide
arm’s length commercial terms in the ordinary course of business or on terms which are
fair and reasonable and in the best interest of the Borrower Group (including but not
limited to, such transactions under Clause 16.21 (Priority));
	 
	 	(ii)	 	by way of payment of Management Fees (A) which are paid on bona fide arm’s
length terms in the ordinary course of business to a Restricted Person or (B) of up to
€15,000,000 in any financial year provided that, at the time of payment, no Default
is outstanding or would occur as a result of such payment;
	 
	 	(iii)	 	by way of payment of principal or interest on Subordinated Shareholder Loans
or by way of distributions, dividends or other payments paid by UPC Broadband in
respect of its share capital provided that:

	 	(A)	 	the applicable ratio for the purposes of Clause 17.2(a)
(Financial ratios) is 4:1 or less prior to making the relevant payment and will
be 4:1 or less after such payment has been made; and
	 
	 	(B)	 	no Default has occurred and is continuing or would occur as a
result of such payment;

	 	(iv)	 	by way of payment to any Restricted Person of consideration for an acquisition,
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers);

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	 	(v)	 	by way of transfer to any Restricted Person of any non-Distribution Business
Assets (as defined in Clause 16.10(b)(viii) (Disposals)) permitted in accordance with
Clause 16.10(b)(viii) (Disposals); and
	 
	 	(vi)	 	by way of distributions, dividends or other payments paid by UPC Broadband in
respect of its share capital or by way of repayment or payment by UPC Broadband or UPC
Scandinavia Holding B.V. (as the case may be) in respect of a Subordinated Shareholder
Loan (each an Applicable Payment) but only to the extent that (A) UPC Broadband or UPC
Scandinavia Holding B.V. (as the case may be) makes the Applicable Payment from the
proceeds of sale or a disposal by UPC Scandinavia Holding B.V. permitted by Clause
16.10(b)(xiii) (Disposals); and (B) the aggregate of all Applicable Payments is less
than or equal to the Net Proceeds of the sale or disposal by UPC Scandinavia Holding
B.V. permitted by Clause 16.10(b)(xiii) (Disposals) less the Scandinavia Repayment
Amount (as defined in Clause 16.10(b)(xiii) (Disposals)) and provided that no Default
has occurred and is continuing or would occur as a result of such payment.

	(d)	 	The restriction contained in paragraph (a) on the payment by any member of the Borrower Group
of Management Fees shall cease to apply during such period as the applicable ratio for the
purposes of Clause 17.2(a) (Financial ratios) is 3.50:1 (or less), provided that no Management
Fees may be paid by any member of the Borrower Group at any time after a Relevant Event has
occurred or if a Relevant Event would result from such payment.
	 
	16.14	 	Loans and guarantees
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will make any loans, grant any credit or give any guarantee, to or for
the benefit of, or enter into any transaction having the effect of lending money to, any
person, other than:

	 	(a)	 	loans from a member of the Borrower Group to another member of the Borrower
Group, provided that no Obligor shall make a loan to any other member of the Borrower
Group unless:

	 	(i)	 	such Obligor has first entered into an Obligor Pledge of
Shareholder Loans which creates an effective pledge in favour of the Security
Agent in relation to such loan and provided the Security Agent with such
evidence as it may reasonably request as the power and authority of such
Obligor to enter into such Obligor Pledge of Shareholder Loans and that such
Obligor Pledge of Shareholder Loans constitutes valid and legally binding
obligations of such Obligor enforceable in accordance with its terms subject
(to the extent possible) to substantially similar qualifications to those made
in the legal opinions referred to in Schedule 2 (Conditions Precedent
Documents); and
	 
	 	(ii)	 	the relevant member of the Borrower Group to whom the
shareholder loan is to be made has given a notification of pledge to the
Security Agent in respect of such shareholder loans;

	 	(b)	 	as permitted by Clause 16.12 (Restrictions on Financial Indebtedness);
	 
	 	(c)	 	normal trade credit in the ordinary course of business;
	 
	 	(d)	 	guarantees given:

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	 	(i)	 	by any Obligor in respect of the liabilities of another
Obligor;
	 
	 	(ii)	 	by a member of the Borrower Group in respect of the liabilities
of an Obligor; or
	 
	 	(iii)	 	by a member of the Borrower Group (which is not an Obligor) in
respect of the liabilities of another member of the Borrower Group (which is
not an Obligor);
	 
	 	(iv)	 	by an Obligor in respect of the liabilities of any other member
of the Borrower Group to the extent that such liabilities could have been
incurred by such Obligor directly without breaching this Agreement; or
	 
	 	(v)	 	by an Obligor in respect of the liabilities of any other member
of the Borrower Group which is not an Obligor provided that that other member
of the Group must become an Additional Guarantor in accordance with Clause
26.4(a) (Additional Obligors) within 30 days of the granting of the guarantee
made pursuant to this paragraph (v); or

	 	(e)	 	to the extent that the same constitute Permitted Payments or a Permitted
Disposal (not being a Permitted Disposal of cash or cash equivalents);
	 
	 	(f)	 	loans, the granting of credit, guarantees and other transactions having the
effect of lending money (each a Lending Transaction) from a member of the Borrower
Group, in connection with an acquisition by that member which is permitted by Clause
16.11 (Acquisitions and mergers), to the relevant person being acquired or one or more
of its Subsidiaries, provided that:

	 	(i)	 	no Lending Transaction may have a term longer than 12 months
(including any extensions or refinancings of the original Lending Transaction);
and
	 
	 	(ii)	 	the aggregate outstanding principal amount of all Lending
Transactions (which principal amount shall be deemed to be no longer
outstanding for this purpose at the time the beneficiary of the relevant
Lending Transaction becomes a member of the Borrower Group upon completion of
the relevant acquisition, provided such Lending Transaction was made to or in
favour of the person acquired or its Subsidiaries) shall not exceed
€100,000,000 at any time; and

	 	(g)	 	Lending Transactions from a member of the Borrower Group to any person of the
proceeds of equity subscribed by any Restricted Person in, or Subordinated Shareholder
Loans provided to, such member (other than any such proceeds which are otherwise
applied in mandatory prepayment of any or all Facilities under this Agreement or the
Existing Facilities under the Existing Facility Agreement or pursuant to Clause 17.4
(Cure provisions) or otherwise).

	16.15	 	Environmental matters
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will and will procure that each of its
Subsidiaries which is a member of the Borrower Group will:

	 	(a)	 	(i) obtain all requisite Environmental Licences, (ii) comply with the terms and
conditions of all Environmental Licences applicable to it and (iii) comply with all

81

 

	 	 	 	other applicable Environmental Law, in each case where failure to do so would or is
reasonably likely to have a Material Adverse Effect;
	 
	 	(b)	 	promptly upon receipt of the same, notify the Facility Agent and the Security
Agent of any claim, notice or other communication served on it in respect of any
alleged breach of, or corrective or remedial obligation or liability under, any
Environmental Law which, if substantiated, would or is reasonably likely to have a
Material Adverse Effect.

	16.16	 	Insurance
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that each of its
Material Subsidiaries which is a member of the Borrower Group will maintain insurance cover
of a type and level which a prudent company in the same business would effect.
	 
	16.17	 	Hedging
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, enter into any interest rate or currency swaps, other interest rate
or currency derivative transactions or other hedging arrangements other than:

	 	(i)	 	transactions and arrangements entered into with a High Yield Hedging Bank or a
Senior Hedging Bank directly relating to the management of interest rate and/or
currency exchange rate risk arising out of any Financial Indebtedness of any member of
the Borrower Group permitted to subsist by the terms of this Agreement (or transactions
and arrangements relating to interest rate or currency swaps, other interest rate or
currency derivative transactions or other hedging arrangements that themselves relate
to the management of interest rate and/or currency exchange rate risk arising out of
any Financial Indebtedness of any member of the Borrower Group permitted to subsist by
the terms of this Agreement), in each case excluding any such transactions or
arrangements that directly or indirectly relate to Subordinated Shareholder Loans; and
	 
	 	(ii)	 	transactions and arrangements entered into by any Obligor with a Senior Hedging
Bank directly relating to the management of currency exchange risk arising out of
income denominated in a currency other than euro (each such transaction or arrangement,
a Cash Flow Hedging Agreement); and
	 
	 	(iii)	 	to the extent they constitute interest rate or currency swaps or other hedging
arrangements, the guarantees granted by each of the Guarantors pursuant to Clause 14
(Guarantee) or clause 14 (Guarantee) of the Existing Facility Agreement (as applicable)
in respect of any High Yield Hedging Agreements.

	(b)	 	UPC Broadband will procure that any member of the Borrower Group that enters into a Senior
Hedging Agreement (as defined in the Existing Facility Agreement) and any member of the UGCE
Borrower Group that enters into a High Yield Hedging Agreement accedes to the Security Deed
and the Intercreditor Agreement as a Charging Entity by delivering to the Security Agent a
Security Provider’s Deed of Accession duly executed by that company.
	 
	16.18	 	Intellectual Property Rights
	 
	 	 	Except as otherwise permitted by this Agreement, each Obligor (other than UPC Broadband
Holdco) will, and will procure that each of its Subsidiaries which is a member of the
Borrower Group will:

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	 	(a)	 	make such registrations and pay such fees and similar amounts as are necessary
to keep those registered Intellectual Property Rights owned by any member of the
Borrower Group and which are material to the conduct of the business of the Borrower
Group as a whole from time to time;
	 
	 	(b)	 	take such steps as are necessary and commercially reasonable (including,
without limitation, the institution of legal proceedings) to prevent third parties
infringing those Intellectual Property Rights referred to in paragraph (a) above and
(without prejudice to paragraph (a) above) take such other steps as are reasonably
practicable to maintain and preserve its interests in those rights, except where
failure to do so will not have or be reasonably likely to have a Material Adverse
Effect;
	 
	 	(c)	 	ensure that any licence arrangements in respect of the Intellectual Property
Rights referred to in paragraph (a) above entered into with any third party are entered
into on arm’s length terms and in the ordinary course of business (which shall include,
for the avoidance of doubt, any such licensing arrangements entered into in connection
with outsourcing on normal commercial terms) and will not have or be reasonably likely
to have a Material Adverse Effect;
	 
	 	(d)	 	not permit any registration of any of the Intellectual Property Rights referred
to in paragraph (a) above to be abandoned, cancelled or lapsed or to be liable to any
claim of abandonment for non-use or otherwise to the extent the same would or is
reasonably likely to have a Material Adverse Effect; and
	 
	 	(e)	 	pay all fees, and comply with each of its material obligations under, any
licence of Intellectual Property Rights which are material to the conduct of the
business of the Borrower Group as a whole from time to time.

	16.19	 	Share capital
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group (other than in respect of such other members of the Borrower Group in
order to permit a solvent reorganisation permitted under Clause 16.11(b)(iii) (Acquisitions
and mergers)) will, reduce its capital or purchase or redeem any class of its shares or any
other ownership interest in it, except to the extent the same constitutes a Permitted
Payment or in the case of members of the Borrower Group other than the Obligors, is
otherwise permitted by Clause 16.13 (Restricted Payments) or is in connection with the
Romania Restructuring.
	 
	16.20	 	Inter-connection and chello
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will ensure that each member of the Borrower
Group which is not a Relevant Eastern European Subsidiary:

	 	(a)	 	which offers residential telephony services in any country, maintains
inter-connection arrangements with one or more major fixed line telephony operators in
that country; and
	 
	 	(b)	 	which offers internet and/or data services is provided with such services by
UPC Broadband N.V. or by another provider on arm’s length commercial terms.

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	16.21	 	Priority
	 
	 	 	For as long as Priority Telecom N.V. is a Restricted Person, each Obligor (other than UPC
Broadband Holdco) will not and will not permit any contractual arrangements between Priority
Telecom N.V. and the Borrower Group to be entered into other than on bona fide arm’s length
commercial terms or on terms that are fair and reasonable and in the best interests of the
Borrower Group.
	 
	16.22	 	UPC Broadband Pledged Account
	 
	(a)	 	Subject to receipt of all necessary legal, regulatory, shareholder and partner approvals (all
of which each Obligor will, and will ensure that each of its Subsidiaries will, use all
reasonable efforts to obtain as soon as practicable), each Obligor (other than UPC Broadband
Holdco) shall on receipt of a request from the Facility Agent (acting on the instructions of
the Majority Lenders) ensure that it and each of its Subsidiaries which is a member of the
Borrower Group, promptly following the last day of either each calendar month or each calendar
quarter (as may be directed by the Facility Agent in its request) of UPC Broadband ending
after 31 March 2006 transfers an amount equal to its Excess Cash on that date to the UPC
Broadband Pledged Account.
	 
	(b)	 	For the purposes of this Clause 16.22:

	 	(i)	 	Excess Cash means, in relation to any member of the Borrower Group at any time,
the aggregate cash in hand and at bank (less withdrawals and other transfers of cash
that have not cleared at bank) of that member at that time in excess of €5,000,000 (or
its equivalent in other currencies); and
	 
	 	(ii)	 	the UPC Broadband Pledged Account means one or more accounts in the name of UPC
Broadband or any other member of the Borrower Group, held with a branch of a bank or
financial institution, which has been pledged to the Beneficiaries pursuant to a
Security Document in the agreed form and in respect of which account(s) all notices
required by that Security Document have been served upon the relevant bank or financial
institution in the manner required by that Security Document and the relevant account
bank(s) have waived any lien, right of set-off or other Security Interest, other than
in respect of routine account keeping charges and set offs between UPC Broadband
Pledged Accounts.

	(c)	 	UPC Broadband may withdraw amounts standing to the credit of the UPC Broadband Pledged
Account at any time provided that:

	 	(i)	 	any such withdrawn amount is to be applied to meet expenditure arising in the
course of the Business of the Borrower Group as carried on in accordance with this
Agreement or for any other purpose permitted under this Agreement; and
	 
	 	(ii)	 	no Event of Default has occurred which is continuing.

	16.23	 	Share security
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, issue any shares of any class provided that:

	 	(a)	 	notwithstanding paragraph (b), an Obligor (other than UPC Broadband, UPC
Holding II or UPC Broadband Holdco) may issue shares to any person other than a member
of the Borrower Group and shall not be required to procure that such shares are charged

84

 

	 	 	 	or pledged in favour of the Beneficiaries, provided that such share issue does not
result in a Change of Control;
	 
	 	(b)	 	any member of the Borrower Group may issue shares to or otherwise acquire
additional rights from any other member of the Borrower Group so long as (if any of the
existing shares in the relevant member of the Borrower Group are charged or pledged in
favour of any Beneficiary) such shares are charged or pledged in favour of the
Beneficiaries pursuant to the terms of a Security Document and there are delivered at
the same time to the Security Agent the relevant share certificates and blank stock
transfer forms (or equivalent documents) in respect thereof together with such other
documents and evidence and legal opinions as the Security Agent may reasonably require;
	 
	 	(c)	 	UPC Broadband and UPC Holding II may issue shares to UPC Broadband Holdco
provided that such shares are charged or pledged in favour of the Beneficiaries
pursuant to the terms of a Security Document and there are delivered at the same time
to the Security Agent the relevant share certificates and blank stock transfer forms
(or equivalent documents) in respect thereof together with such other documents and
evidence and legal opinions as the Security Agent may reasonably require;
	 
	 	(d)	 	any member of the Borrower Group may issue shares pursuant to the exercise of
Approved Stock Options;
	 
	 	(e)	 	a member of the Borrower Group may issue shares as part of an Acquisition or
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers), provided
that the issue of such shares does not cause a Change of Control;
	 
	 	(f)	 	a member of the Borrower Group (other than an Obligor) may issue shares to all
the holders of the share capital of such member pro rata to their interests in such
share capital provided that, if any existing shares in that member of the Borrower
Group are charged or pledged in favour of any Beneficiary under any Security Document,
upon issue the shares that are issued to any other member of the Borrower Group or any
Shareholder are charged or pledged in favour of the Beneficiaries as provided in
paragraph (b) above; and
	 
	 	(g)	 	any member of the Borrower Group (other than UPC Broadband or UPC Holding II)
may issue shares to any person pursuant to any agreement or other legally binding
arrangement existing, and disclosed to the Facility Agent in writing, on or before the
Signing Date, provided that such share issue does not result in a Change of Control.

	16.24	 	Shareholder Loans
	 
	(a)	 	Each Obligor will procure that prior to any Restricted Person making any Financial
Indebtedness (other than Permitted Payments) available to any member of the Borrower Group,
such Restricted Person shall enter into a Pledge of Subordinated Shareholder Loans on terms
and conditions satisfactory to the Facility Agent and a Security Provider’s Deed of Accession
and provides (i) the Facility Agent with such documents and evidence as it may reasonably
require as to the power and authority of the Restricted Person to enter into such Pledge of
Subordinated Shareholder Loans and Security Provider’s Deed of Accession and that the same
constitute valid and legally binding obligations of such Restricted Person enforceable in
accordance with their terms subject (to the extent applicable) to substantially similar
qualifications to those made in the legal opinions referred to in Schedule 2 (Conditions
Precedent Documents); and (ii) notification of such pledge to the relevant member of the
Borrower Group.

85

 

	(b)	 	Each Obligor shall ensure that each Subordinated Shareholder Loan and each shareholder loan
entered into between an Obligor which is a party to an Obligor Pledge of Shareholder Loans as
a creditor and a member of the Borrower Group is governed by the law of The Netherlands.
	 
	16.25	 	Further security over receivables
	 
	 	 	UPC Broadband shall:

	 	(a)	 	on each date on which it is required to deliver the financial statements
referred to in Clause 16.2(b) (Financial information) in respect of its second and
fourth financial quarters in each financial year, notify the Facility Agent of the
details of any contracts, agreements or other arrangements entered into by any member
of the Borrower Group with Priority Telecom N.V. at any time under which receivables
owing to such member of the Borrower Group aggregating €10,000,000 (or its equivalent
in other currencies) or more are outstanding on such date, together with details of
such receivables; and
	 
	 	(b)	 	if the Facility Agent (acting on the instructions of the Majority Lenders)
requires, promptly grant, or procure the grant by the relevant member of the Borrower
Group of (in each case subject to receipt of all necessary legal, regulatory,
shareholder and partner approvals, other than approvals from Priority Telecom N.V, all
of which UPC Broadband will and will ensure that each member of the Borrower Group will
use all reasonable efforts to obtain as soon as possible) (i) a pledge in favour of the
Beneficiaries over the receivables referred to in (a) above in substantially the same
form as a receivables pledge already granted to the Security Agent by a member of the
Borrower Group in respect of receivables located in, or governed by the laws of, or (as
the case may be) owed by or to a person incorporated in, the same jurisdiction as the
relevant receivables or (as the case may be) relevant person by or to whom such
receivables are owed or in such other form as the Security Agent may reasonably request
and (ii) a Security Provider’s Deed of Accession and shall provide the Security Agent
with such evidence as it may reasonably request as to the power and authority of such
member of the Borrower Group to enter into such pledge of receivables and Security
Provider’s Deed of Accession and that the same constitute valid and legally binding
obligations of such member enforceable in accordance with their terms subject (to the
extent possible) to substantially similar qualifications to those made in the legal
opinions referred to in Schedule 2 (Conditions Precedent Documents), together with all
such notices and other documents as the Security Agent may reasonably require to
perfect the receivables pledge.

	16.26	 	Financial year end
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that its Subsidiaries
which are members of the Borrower Group will, maintain a financial year end of 31 December
save with the prior written consent of the Facility Agent (acting on the instructions of the
Majority Lenders in each case not to be unreasonably withheld).
	 
	16.27	 	Capital expenditure
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, incur any material Capital Expenditure other than in relation to
the Permitted Business.

86

 

	16.28	 	Constitutive documents
	 
	 	 	Each Obligor will not, and will procure that no member of the Borrower Group will, amend its
constitutive documents in any way which would or is reasonably likely to materially
adversely affect (in terms of value, enforceability or otherwise) any charge or pledge over
the shares or partnership interest of any member of the Borrower Group granted to the
Beneficiaries pursuant to the Security Documents.
	 
	16.29	 	ERISA
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that its Subsidiaries
which are members of the Borrower Group will, give the Facility Agent prompt notice of the
adoption of, participation in or contribution to any Plan by it or any ERISA Affiliate, or
any action by any of these to adopt, participate in or contribute to any Plan, or the
incurrence by any of them of any liability or obligation to any Plan.
	 
	16.30	 	UPC Financing
	 
	(a)	 	Each Borrower will ensure that the proceeds of any loan made to the UPC Financing by UPC
Broadband or UPC Holding II and the proceeds of any drawing made by UPC Financing shall be
invested by way of intercompany loan or equity subscription in one or more other members of
the Borrower Group within five Business Days of receipt of such proceeds or, as the case may
be, the relevant Utilisation Date.
	 
	(b)	 	Each Obligor (other than UPC Broadband Holdco) will ensure that, in accordance with the terms
of any pledge of intercompany loans made by UPC Financing, any intercompany loan made by UPC
Financing to any Obligor or any Subsidiary of an Obligor which is a member of the Borrower
Group is made on bona fide arm’s length commercial terms or on terms which are fair and
reasonable and in the best interests of UPC Financing and entered into in good faith.
	 
	17.	 	FINANCIAL COVENANTS
	 
	17.1	 	Financial definitions
	 
	 	 	In this Clause 17:
	 
	 	 	Annualised EBITDA means:

	 	(a)	 	for the purposes of the definition of Permitted Acquisition, Clause 16.10
(Disposals) and Clause 7.6(a) (Mandatory prepayment from disposal proceeds) in respect
of any person, in respect of any six month period, two times EBITDA of that person
(calculated on a consolidated basis) for that period; and
	 
	 	(b)	 	for all other purposes, in respect of any Ratio Period, two times EBITDA of the
Borrower Group for that Ratio Period.

EBITDA means, in respect of any period or person, the Net Income of that person (plus, in
the case of the Borrower Group, any amount attributable to non-cash compensation payable to
employees or directors of members of the Borrower Group deducted in calculating Net Income,
any depreciation, amortisation, other non-cash charges (such as deferred Taxes), accrued
Management Fees (whether or not paid), fees accrued (whether or not paid) in respect of
Financial Indebtedness and interest expense and other charges in respect of Financial
Indebtedness) for such period adjusted as follows:

87

 

	 	(a)	 	minus extraordinary income of the relevant person for such period;
	 
	 	(b)	 	plus any extraordinary expenses (including one off restructuring costs) of the
relevant person for such period;
	 
	 	(c)	 	minus any interest income of the relevant person for such period; and
	 
	 	(d)	 	in the case of the Borrower Group, minus any Management Fees paid during such
period,

to the extent attributed to the Distribution Business of the Borrower Group and all as
determined in accordance with GAAP and (in the case of the Borrower Group or any part of the
Borrower Group) as shown in the relevant financial statements prepared and delivered to the
Facility Agent pursuant to Clause 16.2(a) or (b) (Financial information) (as the case may
be).

Interest means:

	 	(a)	 	interest and amounts in the nature of interest (including, without limitation,
the interest element of finance leases) accrued;
	 
	 	(b)	 	discount fees and acceptance fees payable or deducted in respect of any
Financial Indebtedness (including all commissions payable in connection with any letter
of credit); and
	 
	 	(c)	 	any net payment (or, if appropriate in the context, receipt) under any interest
rate hedging agreement or instrument (including without limitation under the Senior
Hedging Agreements and (as applicable) High Yield Hedging Agreements), taking into
account any premiums payable.

Net Income means, in respect of any period and for any period, the net profit after Taxes
and (in the case of the Borrower Group only) Management Fees, in the case of the Borrower
Group to the extent attributed to the Distribution Business of the Borrower Group for such
period as determined in accordance with GAAP and (in the case of the Borrower Group) as
shown in the financial statements in respect of such period prepared and delivered to the
Facility Agent pursuant to Clause 16.2(a) or (b) (Financial information).

Ratio Period means each period of approximately 6 months covering two quarterly Accounting
Periods of the Borrower Group ending on each date to which each set of financial statements
required to be delivered under Clause 16.2(a) or (b) (Financial information) are prepared.

Senior Debt means at any time, the consolidated Financial Indebtedness of the Borrower
Group, excluding:

	 	(a)	 	any Financial Indebtedness which is a contingent obligation of a member of the
Borrower Group; and
	 
	 	(b)	 	any Subordinated Shareholder Loans and any Financial Indebtedness referred to
in Clause 16.12(b)(viii), (xi), (xii) and (xiii) (Restrictions on Financial
Indebtedness).

Senior Debt Service means, for any Ratio Period, the sum of:

88

 

	 	(a)	 	all scheduled repayments (including scheduled reductions of revolving credits
to the extent they are drawn) of Senior Debt which fell due during such Ratio Period
excluding any scheduled repayments of facilities under this Agreement or the Existing
Facility Agreement that are funded by drawings of an Additional Facility in accordance
with the terms of this Agreement; and
	 
	 	(b)	 	Total Cash Interest for that Ratio Period.

Senior Interest means, in respect of any period, the amount of Total Cash Interest accrued
in respect of Senior Debt during that period.

Total Cash Interest means, in respect of any period, the total amount of all Interest
accrued in respect of Senior Debt and Subordinated Shareholder Loans during such period and
payable in cash (either during such period or after such period) (having taken into account
the effect of any Senior Hedging Agreements), except in each case, to the extent that such
payments (other than payments in respect of Senior Debt) are funded by distributions made by
Unrestricted Subsidiaries to UPC Broadband or any other member of the Borrower Group and
excluding, for the avoidance of doubt, capitalisation of Interest accrued in respect of
Subordinated Shareholder Loans.

Total Debt means, at any time, the aggregate amount of:

	 	(a)	 	Senior Debt; and
	 
	 	(b)	 	Financial Indebtedness of each other member of the UGCE Borrower Group, but
excluding any Financial Indebtedness (i) owing between members of the UGCE Borrower
Group and (ii) owing between a member of the UGCE Borrower Group and a member of the
Wider Group (other than a member of the UGCE Borrower Group).

	17.2	 	Financial ratios
	 
	 	 	UPC Broadband will procure that:

	 	(a)	 	the ratio of Senior Debt to Annualised EBITDA for each Ratio Period which ends
on a date or in a period specified in column 1 below shall not exceed the ratio
specified in column 2 below opposite such date or period:

	 	 	 
	Test Dates	 	Ratio
	30 September 2003
	 	7.75:1
	 
	 	 
	31 December 2003
	 	6.75:1
	 
	 	 
	31 March 2004
	 	6.75:1
	 
	 	 
	30 June 2004
	 	5.90:1
	 
	 	 
	30 September 2004
	 	5.40:1
	 
	 	 
	31 December 2004
	 	4.90:1
	 
	 	 
	31 March 2005
	 	4.80:1

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	Test Dates	 	Ratio
	30 June 2005

	 	4.60:1
	 
	30 September 2005

	 	4.40:1
	 
	31 December 2005

	 	4.10:1
	 
	thereafter

	 	4.00:1

	 	(b)	 	the ratio of EBITDA to Total Cash Interest for each Ratio Period which ends on
a date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date and period:

	 	 	 
	Test Dates	 	Ratio
	30 September 2003

	 	2.25:1
	 
	31 December 2003

	 	2.25:1
	 
	31 March 2004

	 	2.00:1
	 
	30 June 2004

	 	2.25:1
	 
	30 September 2004

	 	2.50:1
	 
	31 December 2004

	 	2.50:1
	 
	31 March 2005

	 	2.50:1
	 
	30 June 2005

	 	2.50:1
	 
	30 September 2005

	 	2.75:1
	 
	31 December 2005

	 	2.75:1
	 
	31 March 2006

	 	2.75:1
	 
	30 June 2006

	 	2.75:1
	 
	Thereafter

	 	3.00:1

	 	(c)	 	the ratio of EBITDA to Senior Debt Service for each Ratio Period which ends on
a date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date or period:

	 	 	 
	Test Dates	 	Ratio
	31 December 2003

	 	1.00:1
	 
	31 March 2004

	 	1.00:1

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	Test Dates	 	Ratio
	30 June 2004

	 	1.50:1
	 
	30 September 2004

	 	1.50:1
	 
	31 December 2004

	 	1.50:1
	 
	31 March 2005

	 	2.25:1
	 
	30 June 2005

	 	2.25:1
	 
	30 September 2005

	 	2.25:1
	 
	31 December 2005

	 	2.25:1
	 
	31 March 2006

	 	2.25:1
	 
	30 June 2006

	 	1.00:1
	 
	30 September 2006

	 	1.00:1
	 
	31 December 2006

	 	1.00:1
	 
	31 March 2007

	 	1.00:1
	 
	Thereafter

	 	1.00:1

	 	(d)	 	the ratio of EBITDA to Senior Interest for each Ratio Period which ends on a
date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date or period:

	 	 	 
	Test Dates	 	Ratio
	30 September 2003

	 	2.25:1
	 
	31 December 2003

	 	2.25:1
	 
	31 March 2004

	 	2.10:1
	 
	30 June 2004

	 	2.10:1
	 
	30 September 2004

	 	2.50:1
	 
	31 December 2004

	 	2.65:1
	 
	31 March 2005

	 	2.80:1
	 
	30 June 2005

	 	2.85:1
	 
	30 September 2005

	 	3.05:1

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	Test Dates	 	Ratio
	31 December 2005

	 	3.15:1
	 
	thereafter

	 	3.40:1; and

	 	(e)	 	the ratio of Total Debt to Annualised EBITDA for each Ratio Period shall not
exceed 5.75:1.

	17.3	 	Calculations
	 
	 	 	For the purposes of Clause 17.2 (Financial ratios), Senior Debt for any Ratio Period will be
calculated on the basis of Senior Debt outstanding on the last day of that Ratio Period.
	 
	17.4	 	Cure provisions
	 
	(a)	 	UPC Broadband may cure a breach of the financial ratios set out in Clause 17.2(a), (b), (c),
(d) and (e) (Financial ratios) by procuring that additional equity is injected into the
Borrower Group by one or more Restricted Persons and/or additional Subordinated Shareholder
Loans are provided to the Borrower Group in an aggregate amount equal to:

	 	(i)	 	in the case of a breach of Clause 17.2(a) or (e) (Financial ratios), the amount
which, if it had been deducted from Senior Debt or Total Debt (as applicable) for the
Ratio Period in respect of which the breach arose, would have avoided the breach; or
	 
	 	(ii)	 	in the case of a breach of Clause 17.2(b), (c) or (d) (Financial ratios), the
amount which, if it had been added to EBITDA for the Ratio Period in respect of which
the breach arose, would have avoided the breach; or
	 
	 	(iii)	 	in the case of a breach of more than one paragraph of Clause 17.2 (Financial
ratios), the higher of the relevant amount referred to in (i) or (ii) above.

	(b)	 	A cure under paragraph (a) above will not be effective unless:

	 	(i)	 	the required amount of additional equity or the proceeds of Subordinated
Shareholder Loans is received by the Borrower Group before delivery of the financial
statements delivered under Clause 16.2(a) or (b) (Financial information) which show
that Clause 17.2 (Financial ratios) has been breached; and
	 
	 	(ii)	 	in the case of a cure of Clause 17.2(a) or (e) (Financial ratios), the proceeds
of the relevant additional equity or Subordinated Shareholder Loans are applied in full
in or towards repayment or prepayment of Facility A Advances (as defined in the
Existing Facility Agreement) in accordance with Clause 7 (Cancellation and Prepayment)
and, to the extent of any surplus after such repayment or prepayment, for the purposes
of the Permitted Business.

	(c)	 	No cure may be made under this Clause 17.4:

	 	(i)	 	in respect of more than five Ratio Periods during the life of the Additional
Facilities; or
	 
	 	(ii)	 	in respect of consecutive Ratio Periods.

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	(d)	 	Where a cure is exercised under this Clause 17.4 in respect of a breach of Clause 17.2(b),
(c) or (d) (Financial ratios) and the next Ratio Period ends approximately three months after
the Ratio Period in respect of which the cure was made, EBITDA in respect of that next Ratio
Period will be deemed, for the purposes of Clause 17.2(b), (c) and (d) (Financial ratios), to
be increased by the amount determined under subparagraph 17.4(a)(ii) above in respect of the
relevant cure. This deemed increase will not be treated as a separate cure.
	 
	17.5	 	Determinations
	 
	(a)	 	Any amount outstanding in a currency other than euros is to be taken into account at its euro
equivalent calculated at the rate used in the latest accounts delivered to the Facility Agent.
	 
	(b)	 	All the terms used above are to be calculated in accordance with the GAAP on which the
preparation of the Original Borrower Group Financial Statements was based.
	 
	(c)	 	If there is a dispute as to any interpretation of or computation for Clause 17.1 (Financial
definitions), the interpretation or computation of the auditors of UPC Broadband shall
prevail.
	 
	(d)	 	If UPC Broadband is obliged or chooses to prepare its financial statements on a different
basis from the basis used in the preparation of the Original Borrower Group Financial
Statements, such financial statements shall be accompanied by a statement (providing
reasonable detail) from UPC Broadband either:

	 	(i)	 	confirming that the change(s) would have no effect on the operation of the
ratios set out in Clause 17.2 (Financial ratios); or
	 
	 	(ii)	 	unless otherwise agreed in writing by the Facility Agent (acting upon the
instructions of the Majority Lenders), if the change(s) would have such an effect,
containing a reconciliation demonstrating the effect of the change(s) (and, for the
purpose of calculating the ratios set out in Clause 17.2 (Financial ratios), such
financial statements will be treated as though adjusted by that reconciliation so as to
exclude the effect of the changes).

	18.	 	DEFAULT
	 
	18.1	 	Events of Default
	 
	 	 	Each of the events set out in Clauses 18.2 (Non-payment) to 18.20 (ERISA) is an Event of
Default (whether or not caused by any reason whatsoever outside the control of any Obligor
or any other person).
	 
	18.2	 	Non-payment
	 
	 	 	An Obligor does not pay on the due date any amount payable by it under the Finance Documents
(other than any amount payable by UPC Broadband under Clause 7.6(a) (Mandatory prepayment
from disposal proceeds) of this Agreement) at the place at, and in the currency in, which it
is expressed to be payable, unless the relevant amount is paid in full within one Business
Day (in the case of principal amounts) or three Business Days (in the case of other amounts)
of the due date.

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	18.3	 	Breach of other obligations
	 
	(a)	 	An Obligor does not comply with any of Clauses 16.6 (Pari passu ranking), 16.7 (Negative
pledge), 16.10 (Disposals), 16.11 (Acquisitions and mergers), 16.13 (Restricted Payments),
16.14 (Loans and guarantees), 16.19 (Share capital) or 17 (Financial Covenants).
	 
	(b)	 	An Obligor does not comply with any provision of the Finance Documents (other than those
referred to in paragraph (a) above or in Clause 18.2 (Non-payment) and other than non-payment
by UPC Broadband of any amount under Clause 7.6(a) (Mandatory prepayment from disposal
proceeds) of this Agreement) and such failure (if capable of remedy before the expiry of such
period) continues unremedied for a period of 28 days from the earlier of the date on which (i)
such Obligor has become aware of the failure to comply or (ii) the Facility Agent gives notice
to UPC Broadband requiring the same to be remedied.
	 
	18.4	 	Misrepresentation
	 
	 	 	A representation or warranty made or repeated by any Obligor in or in connection with any
Finance Document or in any certificate or statement delivered by or on behalf of any Obligor
under or in connection with any Finance Document (other than the representation in Clause
15.25 (Dutch Banking Act) but only to the extent that an Obligor has relied on the
declaration of a Lender that it qualified as a Professional Market Party) is incorrect in
any material respect when made or deemed to have been made or repeated and, in the event
that any representation or warranty is capable of remedy, the misrepresentation is not
remedied within 28 days of the earlier of the date on which (i) such Obligor has become
aware of the misrepresentation or (ii) the Facility Agent gives notice to UPC Broadband
requiring the same to be remedied.
	 
	18.5	 	Cross default
	 
	(a)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group is not paid when due or within any originally
applicable grace period.
	 
	(b)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group becomes prematurely due and payable or is placed on
demand, in each case as a result of an event of default (howsoever described) under the
document relating to that Financial Indebtedness.
	 
	(c)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group becomes capable of being declared prematurely due and
payable or placed on demand, in each case as a result of an event of default (howsoever
described) under the document relating to that Financial Indebtedness.
	 
	(d)	 	It shall not be an Event of Default under:

	 	(i)	 	this Clause 18.5 where the aggregate principal amount of all Financial
Indebtedness to which any event specified in paragraphs (a), (b) or (c) relates is less
than €15,000,000 (in the case of the Borrower Group) or €50,000,000 (in the case of any
member of the UGCE Borrower Group) or, as the case may be, the equivalent in other
currencies;
	 
	 	(ii)	 	this Clause 18.5 in respect of Financial Indebtedness owing by a member of the
Borrower Group to another member of the Borrower Group which is permitted under this
Agreement; and

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	 	(iii)	 	paragraph (c) above, in the case of the Acquisition of an entity which results
in that entity becoming a member of the Borrower Group, for a period of 180 days
following completion of that Acquisition, by reason only of an event of default
(however described) arising in relation to the Financial Indebtedness of that acquired
entity as a result only of the Acquisition of that acquired entity, provided that such
Financial Indebtedness is not placed on demand, becomes prematurely due and payable or
is otherwise accelerated during that period).

	(e)	 	Any Financial Indebtedness of a member of the Borrower Group under an Existing Finance
Document becomes capable of being due and payable or placed on demand, in each case as a
result of an Event of Default as defined under the relevant Existing Finance Document.
	 
	18.6	 	Insolvency
	 
	(a)	 	The Netherlands: any Obligor, any Material Subsidiary or member of the UGCE Borrower Group
organised in The Netherlands is declared bankrupt (in staat van faillissement verklaard) or
enters into a preliminary or definitive moratorium (in voorlopige of definitieve surseance van
betaling gaan) pursuant to the Dutch Bankruptcy Act (Faillissementswet); or
	 
	(b)	 	General: any of the following occurs in respect of an Obligor, any Material Subsidiary or
any member of the UGCE Borrower Group:

	 	(i)	 	it is, or is deemed for the purposes of any law to be, unable to pay its debts
as they fall due or insolvent;
	 
	 	(ii)	 	it admits its inability to pay its debts as they fall due;
	 
	 	(iii)	 	it suspends making payments on any of its debts or announces an intention to
do so; or
	 
	 	(iv)	 	a moratorium is declared in respect of any of its indebtedness.

	 	 	If a moratorium occurs in respect of any Obligor, any Material Subsidiary or any member of
the UGCE Borrower Group, the ending of the moratorium will not remedy any Event of Default
caused by the moratorium.
	 
	(c)	 	United States of America: any Obligor, any Material Subsidiary or any member of the UGCE
Borrower Group which is a partnership, or a partner of any partnership, formed under the laws
of the states of Colorado or Delaware, United States or which is incorporated under the laws
of a State of the United States or that resides or has a domicile, a place of business or
property in the United States (each a U.S. Obligor):

	 	(i)	 	admit in writing its inability to, or be generally unable to, pay its debts as
such debts become due;
	 
	 	(ii)	 	makes a general assignment for the benefit of creditors;
	 
	 	(iii)	 	shall have had appointed a receiver, a custodian, trustee or similar official
for, or a receiver, custodian, trustee or similar official shall have taken possession
of, all or substantially all of its assets, in proceedings brought by or against such
Obligor or Material Subsidiary, and such appointment shall not have been discharged or
such possession shall not have been terminated within 60 days after the effective date
thereof or such Obligor or Material Subsidiary shall have consented to or acquiesced in
such appointment or possession;

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	 	(iv)	 	shall have filed a petition for relief under the insolvency, bankruptcy or
similar laws of the United States of America or any state thereof, or an involuntary
petition for such relief shall have been filed against any such Obligor or Material
Subsidiary under such laws and shall not have been dismissed or terminated within 60
days after such involuntary petition is filed; or
	 
	 	(v)	 	shall have failed to have discharged or obtained a stay of any proceeding to
enforce, within a period of 45 days after the commencement thereof, any attachment,
sequestration or similar proceeding asserted against all or substantially all of the
assets of such Obligor or Material Subsidiary,
	 
	 	(vi)	 	in each case other than in connection with the solvent liquidation of UPC
Polska following the transfer of its assets to Polska Holdco.

	18.7	 	Insolvency proceedings
	 
	(a)	 	Any formal voluntary step commencing legal proceedings (including petition or convening a
meeting) is taken by any Obligor, any Material Subsidiary or any member of the UGCE Borrower
Group with a view to a moratorium or a composition, assignment or arrangement with any class
of creditors of any Obligor, any Material Subsidiary or any member of the UGCE Borrower Group;
or
	 
	(b)	 	a meeting of any Obligor, any Material Subsidiary or any member of the UGCE Borrower Group is
convened by its shareholders, directors, managing partner (in the case of UPC Financing),
secretary or other officers for the purpose of considering any resolution for, to petition for
or to file documents with a court for its winding-up, dissolution or for its administration,
suspension of payments, composition or bankruptcy or any such resolution is passed; or
	 
	(c)	 	any person presents a petition or files documents, with the appropriate legal authorities,
for the winding-up or for the administration or for the bankruptcy of any Obligor, any
Material Subsidiary or any member of the UGCE Borrower Group and the petition is not
discharged or stayed within 45 days (or, in the case of a US Obligor, 60 days); or
	 
	(d)	 	an order for the winding-up or administration of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group is made,
	 
	 	 	in each case other than in connection with a reconstruction or amalgamation on terms
approved by the Facility Agent (acting on the instructions of the Majority Lenders) or in
connection with the solvent liquidation of UPC Polska following the transfer of its assets
to Polska Holdco.
	 
	18.8	 	Appointment of receivers and managers
	 
	(a)	 	Any liquidator, trustee-in-bankruptcy, preliminary trustee, composition trustee, judicial
custodian, compulsory manager, receiver, administrative receiver or administrator is appointed
in respect of any Obligor, any Material Subsidiary or any member of the UGCE Borrower Group or
any part of its assets which is material in the context of the Borrower Group (taken as a
whole) and, only in the case of the appointment of a judicial custodian, compulsory manager or
receiver, is not discharged within 45 days (or, in the case of a US Obligor, 60 days); or
	 
	(b)	 	the directors, shareholders or other officers of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group request the appointment of, or give notice of their

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	 	 	intention to appoint, a liquidator, trustee in bankruptcy, preliminary trustee, composition
trustee, judicial custodian, compulsory manager, receiver, administrative receiver or
administrator,
	 
	 	 	in each case other than in connection with a reconstruction or amalgamation on terms
approved by the Facility Agent (acting on the instructions of the Majority Lenders).
	 
	18.9	 	Creditors’ process
	 
	 	 	A distress, execution, attachment or other legal process is levied, enforced or sued out
upon or against all or any part of the assets of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group which is material in the context of the Borrower Group
(taken as a whole), except where the same is being contested in good faith or is removed,
discharged or paid within 45 days (or, in the case of a US Obligor, 60 days).
	 
	18.10	 	Similar proceedings
	 
	 	 	Anything which has an equivalent effect to any of the events specified in Clauses 18.6
(Insolvency) to 18.9 (Creditors’ process) (inclusive) shall occur under the laws of any
applicable jurisdiction in relation to any Obligor, any Material Subsidiary or any member of
the UGCE Borrower Group.
	 
	18.11	 	Unlawfulness
	 
	 	 	It is or becomes unlawful for any Obligor or Subordinated Creditor to perform any of its
payments or other material obligations under the Finance Documents to which it is a party.
	 
	18.12	 	Repudiation
	 
	 	 	Any Obligor or Subordinated Creditor repudiates, or evidences an intention to repudiate, any
Finance Document to which it is a party.
	 
	18.13	 	Cessation of Distribution Business
	 
	 	 	The Borrower Group (taken as a whole) ceases to carry on all or substantially all of its
Distribution Business.
	 
	18.14	 	Seizure
	 
	 	 	All or a material part of the undertakings, assets, rights or revenues of, or shares or
other ownership interests in, UGCE Inc., UPC Broadband Holdco or the Borrower Group (taken
as a whole but excluding any undertaking, assets, rights or revenues which do not form part
of the Distribution Business) are seized, nationalised, expropriated or compulsorily
acquired by or under the authority of any government.
	 
	18.15	 	Environmental Matters
	 
	 	 	As a result of any Environmental Law any of the Finance Parties becomes subject to a
material obligation (actual or contingent and, in the case of any contingent obligation,
being one which, at the relevant time, would be likely to arise) directly as a result of it
entering into any of the Finance Documents which was not caused by its negligence or wilful
default.

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	18.16	 	Breach of Security Deed and Intercreditor Agreement
	 
	(a)	 	A Subordinated Creditor fails to comply with any of its obligations under the Security Deed
or the Pledge of Subordinated Shareholder Loans to which it is party and such failure (if
capable of remedy before the expiry of such period) continues unremedied for a period of 28
days from the earlier of the date on which (i) UPC or UPC Broadband has become aware of the
failure to comply or (ii) the Facility Agent gives notice to the relevant Subordinated
Creditor and UPC Broadband requiring the same to be remedied.
	 
	(b)	 	Any representation or warranty made by a Subordinated Creditor under the Security Deed or the
Pledge of Subordinated Shareholder Loans is incorrect in any material aspect when made or
repeated and, in the event that any representation or warranty is capable of remedy, the
misrepresentation is not remedied within 28 days of the earlier of the date on which (i) such
Obligor has become aware of the misrepresentation or (ii) the Facility Agent gives notice to
that Subordinated Creditor requiring the same to be remedied.
	 
	(c)	 	Any representation or warranty made by a Finance Party (as defined in the Existing Facility
Agreement) is incorrect in any material respect when made or repeated.
	 
	18.17	 	Loss of Licences
	 
	 	 	Any Licence is in whole or part:

	 	(a)	 	terminated, suspended or revoked or does not remain in full force and effect or
otherwise expires and is not renewed prior to its expiry (in each case, without
replacement by Licence(s) having substantially equivalent effect) in any case in a
manner which would or is reasonably likely to have a Material Adverse Effect; or
	 
	 	(b)	 	is modified or is breached in a manner which would or is reasonably likely to
have a Material Adverse Effect.

	18.18	 	Material Contracts
	 
	(a)	 	Except as is required by any term of this Agreement, any Material Contract to which a member
of the Borrower Group is a party is terminated, suspended, revoked or cancelled or otherwise
ceases to be in full force and effect, unless:

	 	(i)	 	in the case of an Interconnect Agreement only, services of a similar nature to
those provided pursuant to such Material Contract are at all times provided to the
Borrower Group on terms which are not materially more onerous on the relevant member of
the Borrower Group or on the terms imposed by the mandatory requirements of any
regulatory body; or
	 
	 	(ii)	 	such termination, suspension, revocation, cancellation or cessation (in the
reasonable opinion of the Facility Agent) would not or is not reasonably likely to have
a Material Adverse Effect.

	(b)	 	Any alteration or variation is made to any term of any Material Contract to which a member of
the Borrower Group is a party which individually or cumulatively (in the reasonable opinion of
the Facility Agent) would or is reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	Any party breaches any term of or repudiates any of its obligations under any Material
Contract to which a member of the Borrower Group is a party where such breach or

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	 	 	repudiation (in the opinion of the Facility
Agent exercised reasonably) would or is
reasonably likely to have a Material Adverse
Effect unless, in the case of a breach of a
Material Contract by any person other than any
member of the Borrower Group, the relevant
services are at all relevant times provided to
the appropriate members of the Borrower Group on
the basis set out in (a) above.

	 
	18.19	 	Material Adverse Change
	 
	 	 	Any event or series of events occurs which would or is reasonably likely to have a Material
Adverse Effect.
	 
	18.20	 	ERISA
	 
	 	 	The occurrence of:

	 	(a)	 	any event or condition that presents a material risk that any member of the
Borrower Group or any ERISA Affiliate may incur a material liability to a Plan or to
the United States Internal Revenue Service or to the United States Pension Benefit
Guaranty Corporation; or
	 
	 	(b)	 	an “accumulated funding deficiency” (as that term is defined in section 412 of
the United States Internal Revenue Code of 1986, as amended, or section 302 of ERISA),
whether or not waived, by reason of the failure of any member of the Borrower Group or
any ERISA Affiliate to make a contribution to a Plan.

	18.21	 	Acceleration
	 
	 	 	On and at any time after the occurrence of an Event of Default while such event is
continuing the Facility Agent may, and if so directed by the Majority Lenders will, by
notice to UPC Broadband declare that an Event of Default has occurred and:

	 	(a)	 	cancel the Total Commitments; and/or
	 
	 	(b)	 	declare that all the Advances be payable on demand, whereupon they shall
immediately become payable on demand by the Facility Agent on the instructions of the
Majority Lenders; and/or
	 
	 	(c)	 	demand that all the Advances be immediately due and payable, whereupon they
shall become immediately due and payable together with all interest accrued on those
Advances and all other amounts payable by the Obligors under the Finance Documents.

	18.22	 	Automatic Acceleration
	 
	 	 	If an Event of Default described in Clause 18.6(c)(ii), (iii) or (iv) (United States of
America) occurs, or upon the entry of an order for relief in a voluntary or involuntary
bankruptcy of a US Borrower, all outstanding Advances drawn by a US Borrower under this
Agreement will be immediately and automatically due and payable and the Total Commitments
(to the extent they relate to such Advances) will, if not already cancelled under this
Agreement, be immediately and automatically cancelled.

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	19.	 	FACILITY AGENT, SECURITY AGENT AND LENDERS
	 
	19.1	 	Appointment and duties of the Agents
	 
	(a)	 	Each Lender irrevocably appoints each Agent to act as its agent under and in connection with
the Finance Documents.
	 
	(b)	 	Each Finance Party appointing each Agent irrevocably authorises each Agent on its behalf to:

	 	(i)	 	perform the duties and to exercise the rights, powers and discretions that are
specifically delegated to it under or in connection with the Finance Documents,
together with any other incidental rights, powers and discretions; and
	 
	 	(ii)	 	execute each Finance Document expressed to be executed by the Facility Agent on
that Finance Party’s behalf.

	(c)	 	Each Agent shall have only those duties which are expressly specified in this Agreement.
Those duties are solely of a mechanical and administrative nature.
	 
	19.2	 	Relationship
	 
	 	 	The relationship between each Agent and the other Finance Parties is that of agent and
principal only. Nothing in this Agreement constitutes either Agent as trustee or fiduciary
for any other Party or any other person and neither Agent need hold in trust any moneys paid
to it for a Party save as provided in the Finance Documents or be liable to account for
interest on those moneys.
	 
	19.3	 	Majority Lenders’ directions
	 
	(a)	 	Each Agent will be fully protected if it acts in accordance with the instructions of the
Majority Lenders in connection with the exercise of any right, power or discretion or any
matter not expressly provided for in the Finance Documents. Any such instructions given by
the Majority Lenders will be binding on all the Lenders. In the absence of such instructions
each Agent may act as it considers to be in the best interests of all the Lenders.
	 
	(b)	 	No Agent is authorised to act on behalf of a Lender (without first obtaining that Lender’s
consent) in any legal or arbitration proceedings relating to any Finance Document.
	 
	19.4	 	Delegation
	 
	 	 	Each Agent may act under the Finance Documents through its personnel and agents.
	 
	19.5	 	Responsibility for documentation
	 
	 	 	Neither Agent is responsible to any other Party for:

	 	(a)	 	the execution, genuineness, validity, enforceability or sufficiency of any
Finance Document or any other document by any other Party;
	 
	 	(b)	 	the collectability of amounts payable under any Finance Document;
	 
	 	(c)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Finance Document by any other Party; or

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	 	(d)	 	the integrity or security of any Finance Document or other document or
information posted or distributed electronically on any intranet based system (or
similar) in connection with the preparation, negotiation and execution of the Finance
Documents or the administration of the Facilities.

	19.6	 	Default
	 
	(a)	 	Neither Agent is obliged to monitor or enquire as to whether or not a Default has occurred.
Neither Agent will be deemed to have knowledge of the occurrence of a Default. However, if an
Agent receives notice from a Party referring to this Agreement, describing the Default and
stating that the event is a Default, it shall promptly notify the Lenders of such notice.
	 
	(b)	 	Each Agent may require the receipt of security satisfactory to it whether by way of payment
in advance or otherwise, against any liability or loss which it will or may incur in taking
any proceedings or action arising out of or in connection with any Finance Document before it
commences these proceedings or takes that action.
	 
	19.7	 	Exoneration
	 
	(a)	 	Without limiting paragraph (b) below, neither Agent will be liable for any action taken or
not taken by it under or in connection with any Finance Document, unless directly caused by
its gross negligence or wilful misconduct.
	 
	(b)	 	No Party may take any proceedings against any officer, employee or agent of either Agent in
respect of any claim it might have against that Agent or in respect of any act or omission of
any kind (including negligence or wilful misconduct) by that officer, employee or agent in
relation to any Finance Document.
	 
	(c)	 	Any officer, employee or agent of either Agent may rely on this Clause 19.7 and enforce its
terms under the Contracts (Rights of Third Parties) Act 1999.
	 
	19.8	 	Reliance
	 
	 	 	Each Agent may:

	 	(a)	 	rely on any notice or document believed by it to be genuine and correct and to
have been signed by, or with the authority of, the proper person;
	 
	 	(b)	 	rely on any statement made by a director or employee of any person regarding
any matters which may reasonably be assumed to be within his knowledge or within his
power to verify; and
	 
	 	(c)	 	engage, pay for and rely on legal or other professional advisers selected by it
(including those in the Facility Agent’s employment and those representing a Party
other than the Facility Agent).

	19.9	 	Credit approval and appraisal
	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms that it:

	 	(a)	 	has made its own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation

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	 	 	 	in this Agreement and has not relied exclusively on any information provided to it
by either Agent in connection with any Finance Document; and
	 
	 	(b)	 	will continue to make its own independent appraisal of the creditworthiness of
each Obligor and its related entities while any amount is or may be outstanding under
the Finance Documents or any Commitment is in force.

	19.10	 	Information
	 
	(a)	 	Each Agent shall promptly forward to the person concerned the original or a copy of any
document which is delivered to that Agent by a Party for that person.
	 
	(b)	 	Except where this Agreement specifically provides otherwise, neither Agent is obliged to
review or check the accuracy or completeness of any document it forwards to another Party.
	 
	(c)	 	Except as provided above, neither Agent has a duty:

	 	(i)	 	either initially or on a continuing basis to provide any Lender with any credit
or other information concerning the financial condition or affairs of any Obligor or
any related entity of any Obligor whether coming into its possession or that of any of
its related entities before, on or after the Signing Date; or
	 
	 	(ii)	 	unless specifically requested to do so by a Lender in accordance with this
Agreement, to request any certificates or other documents from any Obligor.

	19.11	 	Each Agent individually
	 
	(a)	 	If it is also a Lender, each of the Facility Agent and the Security Agent has the same rights
and powers under this Agreement as any other Lender and may exercise those rights and powers
as though it were not the Facility Agent or Security Agent (as applicable).
	 
	(b)	 	Each of the Agents may:

	 	(i)	 	carry on any business with an Obligor or its related entities;
	 
	 	(ii)	 	act as agent or trustee for, or in relation to any financing involving, an
Obligor or its related entities; and
	 
	 	(iii)	 	retain any profits or remuneration in connection with its activities under the
Finance Documents, or in relation to any of the foregoing.

	19.12	 	Indemnities
	 
	 	 	Each Lender shall indemnify each Agent, within three Business Days of demand, against any
cost, loss or liability incurred by the relevant Agent (otherwise than by reason of the
relevant Agent’s gross negligence or wilful misconduct) in acting as Agent under the Finance
Documents (unless the relevant Agent has been reimbursed by an Obligor pursuant to a Finance
Document). Such indemnification shall be pro rata to its Commitments (and for the purposes
of calculating this proportion, the amount of the Total Additional Facility Commitments and
each Lender’s Additional Facility Commitments shall be converted to euros at the Agent’s
Spot Rate of Exchange on the date of the relevant calculation).

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	19.13	 	Compliance
	 
	(a)	 	Each Agent may refrain from doing anything which might, in its reasonable opinion, constitute
a breach of any law or regulation or be otherwise actionable at the suit of any person, and
may do anything which, in its reasonable opinion, is necessary or desirable to comply with any
law or regulation of any jurisdiction.
	 
	(b)	 	Without limiting paragraph (a) above, neither Agent need disclose any information relating to
any Obligor or any of its related entities if the disclosure might, in the opinion of the
relevant Agent, constitute a breach of any law or regulation or any duty of secrecy or
confidentiality or be otherwise actionable at the suit of any person.
	 
	19.14	 	Resignation of Agents
	 
	(a)	 	Notwithstanding its irrevocable appointment (but subject to paragraphs (f) and (g) below),
each Agent may resign by giving notice to the Lenders and UPC Broadband, in which case the
relevant Agent may, following consultation with and with the consent of UPC Broadband (not to
be unreasonably withheld or delayed) forthwith appoint one of its Affiliates as successor
Agent or, failing that, the Majority Lenders may with the consent of UPC Broadband (not to be
unreasonably withheld or delayed) appoint a reputable and experienced bank as successor Agent.
The resignation of the Security Agent is subject to compliance with clause 9.1 (Retirement of
Security Agent) of the Security Deed.
	 
	(b)	 	If the appointment of a successor Agent is to be made by the Majority Lenders but they have
not, within 30 days after notice of resignation, appointed a successor Agent which accepts the
appointment, the retiring Agent may, following consultation with and with the consent of UPC
Broadband (not to be unreasonably withheld or delayed), appoint a successor Agent.
	 
	(c)	 	The resignation of the retiring Agent and the appointment of any successor Agent will both
become effective only upon the successor Agent notifying all the Parties that it accepts the
appointment. On giving the notification and receiving such approval, the successor Agent will
succeed to the position of the retiring Facility Agent and the term Facility Agent or Security
Agent (as the case may be) will mean the successor Facility Agent or Security Agent,
respectively.
	 
	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such
documents and records and provide such assistance as the successor Agent may reasonably
request for the purposes of performing its functions as the Agent under this Agreement.
	 
	(e)	 	Upon its resignation becoming effective, this Clause 19 shall continue to benefit the
retiring Agent in respect of any action taken or not taken by it under or in connection with
the Finance Documents while it was the relevant Agent and, subject to paragraph (d) above, it
shall have no further obligation under any Finance Document.
	 
	(f)	 	The Majority Lenders may by notice to an Agent require it to resign in accordance with
paragraph (a) above. In this event, the relevant Agent shall resign in accordance with
paragraph (a) above but it shall not be entitled to appoint one of its Affiliates as successor
Agent.
	 
	(g)	 	UPC Broadband may, if it is unsatisfied (acting reasonably) with the performance by an Agent
of its role as Agent, following a period of consultation with the relevant Agent of not less
than 14 days, by notice to that Agent require it to resign in accordance with paragraph (a)
above. Such notice must specify the reasons for which UPC Broadband is seeking the Agent’s
resignation, which must be based on reasonable grounds. In this event, the relevant

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	 	 	Agent shall resign in accordance
with paragraph (a) above but it
shall not be entitled to appoint
one of its Affiliates as
successor Agent.
	 
	19.15	 	Lenders
	 
	(a)	 	Each Agent may treat each Lender as a Lender, entitled to payments under this Agreement and
as acting through its Facility Office(s) until it has received notice from the Lender to the
contrary by not less than five Business Days prior to the relevant payment.
	 
	(b)	 	Each Lender, on the date on which it becomes a party to this Agreement (if it is a
requirement of Dutch law that such Lender is a Professional Market Party) represents to the
Finance Parties and UPC Broadband that it is a Professional Market Party. Such Lender
acknowledges that the Finance Parties and UPC Broadband have relied upon such representation.
	 
	19.16	 	Separate divisions
	 
	 	 	In acting as an Agent, the agency division of each of the Agents shall be treated as a
separate entity from its other divisions and departments. Any information acquired at any
time by either Agent otherwise than in the capacity of Agent through its agency division
(whether as financial adviser to any member of the Borrower Group or otherwise) may be
treated as confidential by the relevant Agent and shall not be deemed to be information
possessed by the relevant Agent in its capacity as such. Each Finance Party acknowledges
that each Agent may, now or in the future, be in possession of, or provided with,
information relating to the Obligors which has not or will not be provided to the other
Finance Parties. Each Finance Party agrees that, except as expressly provided in this
Agreement, neither Agent will be under any obligation to provide, or be under any liability
for failure to provide, any such information to the other Finance Parties.
	 
	20.	 	FEES
	 
	20.1	 	Commitment fee
	 
	(a)	 	Subject to paragraph (b) below, if specified in the relevant Additional Facility Accession
Agreement, UPC Broadband shall pay to the Facility Agent for distribution to each Lender pro
rata to the proportion that the relevant Lender’s Additional Facility Commitment bears to the
Total Additional Facility Commitments from time to time a commitment fee (subject to paragraph
(c) below computed at the rate specified in the Additional Facility Accession Agreement on any
undrawn uncancelled amount of Total Additional Facility Commitments.
	 
	(b)	 	Commitment fee is calculated and accrues on a daily basis on and from the date of the
relevant Additional Facility Accession Agreement and payable quarterly in arrear from the date
of the relevant Additional Facility Accession Agreement and on the relevant Utilisation Date.
Accrued commitment fee is also payable to the Facility Agent for the relevant Lender(s) on the
cancelled amount of its (their) Additional Facility Commitments at the time the cancellation
takes effect (but only in respect of the period up to the date of cancellation).
	 
	(c)	 	Commitment fee is payable in the currency in which the Additional Facility is denominated.
	 
	20.2	 	Agent’s fees
	 
	 	 	UPC Broadband shall pay to the Facility Agent and the Security Agent for their own account
an agency fee in the amounts and on the dates agreed in the relevant Fee Letter.

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	20.3	 	VAT
	 
	 	 	Any fee referred to in this Clause 20 (Fees) is exclusive of any applicable value added tax.
If any value added tax is so chargeable and is invoiced, it shall be paid by UPC Broadband
at the same time as it pays the relevant fee. Where appropriate, the relevant Finance Party
will supply a VAT invoice in respect of such fees.
	 
	21.	 	EXPENSES
	 
	21.1	 	Transaction Expenses
	 
	 	 	UPC Broadband shall within ten Business Days of demand pay the Agents the amount of all
costs and expenses (including legal fees) reasonably incurred by any of them in connection
with the negotiation, preparation, printing, execution and perfection of:

	 	(a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	 	(b)	 	any other Finance Document executed after the date of this Agreement.

	21.2	 	Amendment Costs
	 
	 	 	If:

	 	(a)	 	an Obligor requests an amendment, waiver or consent under or in connection with
any Finance Document;
	 
	 	(b)	 	an amendment is required under Clause 25.3 (Change of Currency),

	 	 	UPC Broadband shall, within ten Business Days of demand, reimburse the Facility Agent or, as
the case may be, the Security Agent, for the amount of all costs and expenses (including
legal fees) reasonably incurred by the Facility Agent or, as the case may be, the Security
Agent in responding to, evaluating, negotiating or complying with that request or
requirement.
	 
	21.3	 	Enforcement Costs
	 
	 	 	UPC Broadband shall, within ten Business Days of demand, pay to the Facility Agent on behalf
of each Finance Party the amount of all costs and expenses (including legal fees) incurred
by that Finance Party in connection with the enforcement of, or the preservation of any
rights under, any Finance Document.
	 
	22.	 	STAMP DUTIES
	 
	 	 	UPC Broadband shall pay and, within ten Business Days of demand, indemnify each Finance
Party against any cost, loss or liability which that Finance Party incurs in relation to all
stamp duty, registration and other similar Taxes payable in respect of any Finance Document
(other than those imposed by reason of any assignment or novation by any Finance Party).
	 
	23.	 	INDEMNITIES
	 
	23.1	 	Currency indemnity
	 
	(a)	 	If any sum due from an Obligor under the Finance Documents (a Sum), or any order, judgment or
award given or made in relation to a Sum, has to be converted from the currency

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(the First Currency) in which that Sum is payable into another currency (the Second
Currency) for the purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor;
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

	 	 	that Obligor shall as an independent obligation, within ten Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or liability
arising out of or as a result of the conversion including any discrepancy between (A) the
rate of exchange used to convert that Sum from the First Currency into the Second Currency
and (B) the rate or rates of exchange available to that person at the time of its receipt of
that Sum.
	 
	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.
	 
	23.2	 	Other indemnities
	 
	 	 	UPC Broadband shall (or shall procure that an Obligor will), within ten Business Days of
demand, indemnify each Lender against any cost, loss or liability incurred by that Lender as
a result of:

	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on its
due date, including without limitation, any cost, loss or liability arising as a result
of Clause 29 (Pro Rata Sharing);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in an Advance
requested by a Borrower in a Request but not made by reason of the operation of any one
or more of the provisions of this Agreement (other than by reason of default or
negligence by that Lender alone); or
	 
	 	(d)	 	an Advance (or part of an Advance) not being prepaid in accordance with a notice of
prepayment given by a Borrower.

	23.3	 	Indemnity to the Facility Agent
	 
	 	 	UPC Broadband shall, within ten Business Days of demand, indemnify the Facility Agent
against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a
result of:

	 	(a)	 	investigating any event which it reasonably believes is a Default; or
	 
	 	(b)	 	acting or relying on any notice, request or instruction which it reasonably
believes to be genuine, correct and appropriately authorised.

	23.4	 	Break Costs
	 
	(a)	 	UPC Broadband shall, within ten Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of an Advance or Unpaid Sum

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	 	 	being paid by that Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum.
	 
	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent,
provide a certificate (which shall be provided to UPC Broadband) confirming the amount of its
Break Costs for any Interest Period in which they accrue.
	 
	24.	 	EVIDENCE AND CALCULATIONS
	 
	24.1	 	Accounts
	 
	 	 	Accounts maintained by a Finance Party in connection with this Agreement are prima facie
evidence of the matters to which they relate.
	 
	24.2	 	Certificates and determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount payable under this
Agreement or otherwise expressed to be determined by a Finance Party is, in the absence of
manifest error, prima facie evidence of the matters to which it relates.
	 
	24.3	 	Calculations
	 
	 	 	The interest and the fees payable under Clause 20.1 (Commitment fee) accrue from day to day
and are calculated on the basis of the actual number of days elapsed and a year of 360 days
or, where practice in the London inter-bank market, in the case of non-euro amounts, or the
European interbank market, in the case of euro amounts, otherwise dictates, 365 days.
	 
	25.	 	AMENDMENTS AND WAIVERS
	 
	25.1	 	Required consents
	 
	(a)	 	Subject to Clause 25.2 (Exceptions) any term of the Finance Documents may be amended or
waived only with the written consent of the Majority Lenders and UPC Broadband and any such amendment
or waiver will be binding on all Parties.
	 
	(b)	 	The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this Clause 25.
	 
	25.2	 	Exceptions
	 
	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definitions of “Majority Lenders” in Clause 1.1 (Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount of principal, interest or
commitment fees under this Agreement or the Security Documents or the extension of an
Additional Facility Availability Period;
	 
	 	(iii)	 	a reduction in the Margin or the amount of any payment of principal, interest,
fees or commission payable under this Agreement or the Security Documents;
	 
	 	(iv)	 	an increase in a Lender’s Additional Facility Commitment;

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	 	(v)	 	an assignment, transfer, novation or other disposal of any of, or any interest
in, an Obligor’s rights and/or obligations under this Agreement other than in
accordance with Clause 26 (Changes to the Parties);
	 
	 	(vi)	 	any provision which expressly requires the consent of all the Lenders;
	 
	 	(vii)	 	Clause 2.5 (Nature of a Finance Party’s rights and obligations), Clause 26.2
(Transfers by Lenders) or this Clause 25;
	 
	 	(viii)	 	a release of the guarantee under Clause 14 (Guarantee) other than in accordance with
Clause 26 (Changes to the Parties);
	 
	 	(ix)	 	the selection of an Interest Period exceeding six months; or
	 
	 	(x)	 	the release of an asset from a Security Document (except as otherwise expressly
permitted herein or in any such Security Document and except in furtherance of a
disposal or any other transaction which is permitted by any Finance Document),

	 	 	shall not be made without the prior consent of all the Lenders.
	 
	(b)	 	An amendment or waiver which relates to the rights or obligations of the Facility Agent may
not be effected without the consent of the Facility Agent.
	 
	(c)	 	The Facility Agent may agree with UPC Broadband any amendment to or the modification of the
provisions of any of the Finance Documents or any Schedule thereto, which is necessary to
correct a manifest error.
	 
	(d)	 	If authorised by the Majority Lenders, the Security Agent may, subject to paragraph (a)
above, grant any waiver or consent in relation to, or variation of the material provisions of,
any Security Document.
	 
	25.3	 	Change of Currency
	 
	(a)	 	If more than one currency or currency unit are at the same time recognised by the central
bank of any country as the lawful currency of that country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations arising under
the Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the Agent; and
	 
	 	(ii)	 	any translation from one currency or currency unit to another shall be at the
official conversion rate recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Agent acting
reasonably.

	(b)	 	If a change in any currency of a country occurs, this Agreement will be amended to the extent
the Agent specifies to be necessary to reflect the change in currency and to put the Banks in
the same position, so far as possible, that they would have been in if no change in currency
had occurred.

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	25.4	 	Waivers and remedies cumulative
	 
	 	 	The rights of each Party under the Finance Documents:

	 	(a)	 	may be exercised as often as necessary, subject to the terms of the relevant
Finance Documents;
	 
	 	(b)	 	are cumulative and not exclusive of its rights under the general law; and
	 
	 	(c)	 	may be waived only in writing and specifically.

	 	 	Delay in the exercise or non-exercise of any such right is not a waiver of that right.
	 
	26.	 	CHANGES TO THE PARTIES
	 
	26.1	 	Transfers by Obligors
	 
	(a)	 	No Obligor may assign, transfer, novate or dispose of any of, or any interest in, its rights
and/or obligations under this Agreement, except:

	 	(i)	 	pursuant to a merger in accordance with Clause 16.11(b) (Acquisitions and
mergers); and
	 
	 	(ii)	 	that UPC Broadband Holdco (Existing UPC Broadband Holdco) may at any time
assign, transfer, novate or dispose of all of its rights and obligations under this
Agreement and the other Finance Documents to which it is a party to another person
which is the immediate Holding Company of UPC Broadband (New UPC Broadband Holdco) in
accordance with the terms of this Agreement and the terms of such other Finance
Document, provided that any transfer or novation of obligations by Existing UPC
Broadband Holdco will not be effective until New UPC Broadband Holdco has become an
Additional Guarantor in accordance with Clause 26.4 (Additional Obligors) and has
delivered or delivers the documents specified in Clause 26.4(a)(v) (Additional
Obligors).

	(b)	 	At the time the foregoing conditions for the transfer or novation of Existing UPC Broadband
Holdco’s obligations shall have been satisfied (or waived, as the case may be) and such
transfer or novation has taken effect:

	 	(i)	 	Existing UPC Broadband Holdco will be released from its obligations under this
Agreement and the other Finance Documents, without prejudice to any such obligations
which may have accrued and shall not have been discharged prior to such time; and
	 
	 	(ii)	 	Existing UPC Broadband Holdco will cease to be an Original Guarantor.

	26.2	 	Transfers by Lenders
	 
	(a)	 	A Lender (the Existing Lender) may at any time after the day falling five Business Days after
the Signing Date assign, transfer or novate any of its rights and/or obligations under this
Agreement and the other Finance Documents to another person (the New Lender), provided that in
the case of a partial assignment, transfer or novation of rights and/or obligations, such
assignment, transfer or novation shall be in a minimum amount (in relation to an Additional
Facility Commitment denominated in euros) of €1,000,000 or (in relation to an Additional
Facility Commitment denominated in US Dollars) of US$1,000,000 or, in each case, such

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	 	 	lower amount as the Existing Lender may agree with UPC Broadband (save that in the case of a
partial assignment, transfer or novation by a Lender of its rights and/or obligations under
an Additional Facility to an Affiliate or Related Fund of that Lender, such assignment,
transfer or novation shall be in a minimum amount (in relation to an Additional Facility
Commitment denominated in euros) of €500,000 or (in relation to an Additional Facility
Commitment denominated in US Dollars) of US$500,000 or, in each case, such lower amount as
that Lender may agree with UPC Broadband).
	 
	(b)	 	The prior consent of UPC Broadband is required for any such assignment, transfer or novation
(unless to an Affiliate or to a Lender, but without prejudice to Clause 26.2(a)), provided
that:

	 	(i)	 	UPC Broadband’s consent must not be unreasonably withheld or delayed;
	 
	 	(ii)	 	the consent of UPC Broadband to an assignment, transfer or novation must not be
withheld solely because the assignment, novation or transfer may result in an increase
to the Mandatory Cost;
	 
	 	(iii)	 	the prior consent of UPC Broadband is not required when (A) the assignment,
novation or transfer of a Lender’s rights and/or obligations is to an Affiliate or
Related Fund of that Lender or (B) an Event of Default is outstanding;
	 
	 	(iv)	 	nothing in this Clause 26.2 restricts the ability of any Lender to enter into
any sub-participation or other arrangement with any third party relating to the Finance
Documents which does not transfer to that third party any obligation and/or legal or
equitable interest in any of the rights arising under this Agreement.

	(c)	 	A transfer of obligations will be effective only if the obligations are novated in accordance
with Clause 26.3 (Procedure for novations).
	 
	(d)	 	If, on the date of an assignment, transfer or novation of rights and/or obligations, it is a
requirement of Dutch law that each Lender must be a Professional Market Party, then on the
date that such assignment, transfer or novation becomes effective, the New Lender must make
the declaration and representation on the terms set out in paragraph 2 of the Novation
Certificate.
	 
	(e)	 	On each occasion an Existing Lender assigns, transfers or novates any of its rights and/or
obligations under this Agreement (other than to an Affiliate or Related Fund of that Existing
Lender), the New Lender shall, on the date the assignment, transfer and/or novation takes
effect, pay to the Facility Agent for its own account a fee of €1,500.
	 
	(f)	 	An Existing Lender is not responsible to a New Lender for:

	 	(i)	 	the execution, genuineness, validity, enforceability or sufficiency of any
Finance Document or any other document;
	 
	 	(ii)	 	the collectability of amounts payable under any Finance Document; or
	 
	 	(iii)	 	the accuracy of any statements (whether written or oral) made in connection
with any Finance Document.

	(g)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that:

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	 	(i)	 	it has made its own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation in this Agreement and has not relied exclusively on any information
provided to it by the Existing Lender in connection with any Finance Document; and
	 
	 	(ii)	 	it will continue to make its own independent appraisal of the creditworthiness
of each Obligor and its related entities while any amount is or may be outstanding
under this Agreement or any Additional Facility Commitment is in force; and
	 
	 	(iii)	 	where such New Lender is a Lender under an Additional Facility to which a
Dutch Borrower is a Borrower it is a Professional Market Party and that it is aware
that it therefore does not benefit from the (creditor) protection under the Dutch
Banking Act for non-Professional Market Parties.

	(h)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and/or obligations
assigned, transferred or novated under this Clause 26; or
	 
	 	(ii)	 	support any losses incurred by the New Lender by reason of the non-performance
by any Obligor of its obligations under this Agreement or otherwise.

	(i)	 	Any reference in this Agreement to a Lender includes a New Lender (to the extent rights have
been assigned, transferred or novated to that New Lender and to the extent that obligations
have been assumed by the New Lender) but excludes a Lender if no amount is or may be owed to
or by it under this Agreement and its Additional Facility Commitment has been cancelled or
reduced to nil.
	 
	(j)	 	If any assignment, transfer or novation results, or will result by reason of circumstances
existing at the time of the assignment, transfer or novation, in additional amounts becoming
due under Clause 10 (Tax Gross-up and Indemnities) or amounts becoming due under Clause 12
(Increased Costs), the New Lender shall be entitled to receive such additional amounts only to
the extent that the Existing Lender would have been so entitled had there been no such
assignment, transfer or novation.
	 
	26.3	 	Procedure for novations
	 
	(a)	 	A novation is effected if:

	 	(i)	 	the Existing Lender and the New Lender deliver to the Facility Agent a duly
completed certificate (a Novation Certificate), substantially in the form of Part 1 of
Schedule 5 (Novation Certificate); and
	 
	 	(ii)	 	the Facility Agent executes it (which the Facility Agent shall promptly do).

	(b)	 	Each Finance Party (other than the Existing Lender and the New Lender) irrevocably authorises
the Facility Agent to execute any duly completed Novation Certificate on its behalf if that
Novation Certificate effects a novation permitted by Clause 26.2 (Transfers by Lenders).
	 
	(c)	 	To the extent that they are expressed to be the subject of the novation in the Novation
Certificate and subject to paragraph (e) below:

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	 	(i)	 	the Existing Lender and the other Parties (the existing Parties) will be
released from their obligations to each other (the discharged obligations);
	 
	 	(ii)	 	the New Lender and the existing Parties will assume obligations towards each
other which differ from the discharged obligations only insofar as they are owed to or
assumed by the New Lender instead of the Existing Lender;
	 
	 	(iii)	 	the rights of the Existing Lender against the existing Parties and vice versa
(the discharged rights) will be cancelled;
	 
	 	(iv)	 	the New Lender and the existing Parties will acquire rights against each other
which differ from the discharged rights only insofar as they are exercisable by or
against the New Lender instead of the Existing Lender; and
	 
	 	(v)	 	the New Lender shall become, by the execution by the Facility Agent of such
Novation Certificate, bound by the terms of the Security Deed as if it were an original
party thereto as a Senior Beneficiary and shall acquire the same rights and assume the
same obligations towards the other parties to the Security Deed as would have been
acquired and assumed had the New Lender been an original party to the Security Deed as
a Senior Beneficiary,

	 	 	all on the later of (i) five Business Days after receipt of a Novation Certificate executed
by the Existing Lender and the New Lender; (ii) the date of execution of such Novation
Certificate by the Facility Agent or; (iii) the date specified in the Novation Certificate.
	 
	(d)	 	If the effective date of a novation is after the date a Request is received by the Facility
Agent but before the date the requested Advance is disbursed to the relevant Borrower, the
Existing Lender shall be obliged to participate in that Advance in respect of its discharged
obligations notwithstanding that novation, and the New Lender shall reimburse the Existing
Lender for its participation in that Advance and all interest and fees thereon up to the date
of reimbursement (in each case to the extent attributable to the discharged obligations)
within three Business Days of the Utilisation Date of that Advance.
	 
	(e)	 	If an Existing Lender effects a Mid-Interest Period Transfer:

	 	(i)	 	the Facility Agent has an obligation to make interest accruing on and prior to
the date on which the Mid-Interest Period Transfer took effect (the Pre-Transfer
Accrued Interest) available to the Existing Lender in accordance with Clause 9.3
(Distribution). Once such Accrued Interest has been made available to the Existing
Lender in accordance with Clause 9.3 (Distribution), the Facility Agent will be
released from all obligations towards the Existing Lender;
	 
	 	(ii)	 	the Facility Agent will have no obligation to pay Pre-Transfer Accrued Interest
to the New Lender;
	 
	 	(iii)	 	such Existing Lender will continue to have the right to receive Pre-Transfer
Accrued Interest. Once such Pre-Transfer Accrued Interest has been made available to
such Existing Lender in accordance with Clause 9.3 (Distribution), all rights of such
Existing Lender against the Facility Agent will be cancelled; and
	 
	 	(iv)	 	the New Lender will have no right to receive Pre-Transfer Accrued Interest from
the Facility Agent.

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	26.4	 	Additional Obligors

	(a) 	(i) 	 	Subject to paragraphs (b) and (c) below, a Subsidiary
of UPC Broadband may become an Additional Guarantor
and any member of the Borrower Group may become an
Additional Borrower by delivering to the Facility
Agent an Obligor Accession Agreement, duly executed
by that company as an Additional Guarantor or
Additional Borrower (as applicable).
	 
	 	(ii)	 	A person which (A) becomes the immediate Holding Company of UPC Broadband or
(B) becomes a Guarantor under the Existing Facility Agreement shall, prior to or
contemporaneously with becoming such Holding Company, become an Additional Guarantor by
delivering to the Facility Agent an Obligor Accession Agreement, duly executed by that
company as an Additional Guarantor.
	 
	 	(iii)	 	A member of the Borrower Group that becomes an Additional Borrower shall, prior
to or contemporaneously with becoming an Additional Borrower, become an Additional
Guarantor by delivering to the Facility Agent an Obligor Accession Agreement (which may
be the same Obligor Accession Agreement entered into by that Additional Borrower
referred to in subparagraph (i) above) duly executed by that company as an Additional
Guarantor.
	 
	 	(iv)	 	Upon execution and delivery of an Obligor Accession Agreement and delivery of
the documents specified in subparagraph (v) below, the relevant Subsidiary, member of
the Borrower Group or person referred to in subparagraph (i), (ii) or (iii) above will
become an Additional Guarantor or Additional Borrower and an Additional Guarantor (as
applicable).
	 
	 	(v)	 	UPC Broadband shall procure that, at the same time as an Obligor Accession
Agreement is delivered to the Facility Agent, there is also delivered to the Facility
Agent all those documents listed in Part 2 of Schedule 2 (Conditions Precedent
Documents), in each case in form and substance satisfactory to the Facility Agent
(acting reasonably).
	 
	 	(vi)	 	The Obligor Accession Agreement referred to in subparagraph (i) above may, in
the case of an Additional Guarantor, with the prior written approval of the Facility
Agent, include a limitation of the obligations or liabilities of the relevant
Additional Guarantor under Clause 14 (Guarantee) where such limitation is required by
any applicable law.

	(b)	 	UPC Broadband shall:

	 	(i)	 	procure that at all times the value of the aggregate EBITDA of:

	 	(A)	 	the Guarantors as of the Effective Date (other than UPC
Broadband, any UPC Broadband Holdco, UPC Holding and UPC Holding II) and their
respective Subsidiaries (as calculated by reference to the relevant financial
statements most recently provided under Clause 16.2(a) or (b) (Financial
information)); and
	 
	 	(B)	 	any Additional Guarantors which have become Guarantors since
the Effective Date and their respective Subsidiaries (as calculated by
reference to the relevant financial statements most recently provided under
Clause 16.2(a) or (b) (Financial information) or, if no such financial
statements have been provided in respect of such Additional Guarantors, as
calculated by reference

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	 	 	 	to the financial statements referred to in paragraph 11 of Part 2 of
Schedule 2 (Conditions Precedent Documents) provided under Clause
26.4(a)(iii) (Additional Obligors) in respect of each Additional Guarantor),

	 	 	 	is equal to or greater than 95 per cent. of the Borrower Group’s consolidated EBITDA
(as calculated by reference to the relevant financial statements most recently
provided under Clause 16.2(a) or (b) (Financial information) but, for the avoidance
of doubt, deducting any corporate costs or allocations paid or payable by a member
of the Borrower Group to one of its Affiliates pursuant to any general services
arrangement), if necessary by procuring that additional Subsidiaries of UPC
Broadband become Additional Guarantors; and
	 
	 	(ii)	 	consult with the Facility Agent prior to any entity becoming an Additional
Guarantor in order to ensure that no material adverse change would or be reasonably
likely to occur, as a result of such entity becoming an Additional Guarantor, in the
consolidated financial position of the Borrower Group (taken as a whole) which would or
be reasonably likely to have a Material Adverse Effect.

	(c)	 	A member of the Borrower Group may only become an Additional Borrower:

	 	(i)	 	if such member of the Borrower Group executes an Obligor Accession Agreement
prior to or contemporaneously with the execution by the relevant Initial Additional
Facility Lenders of the relevant Additional Facility Accession Agreement and (other
than in the case of UPC Financing) such Obligor Accession Agreement specifies the
relevant Additional Facility under which that member of the Borrower Group is to be a
Borrower; and
	 
	 	(ii)	 	with the prior consent of the Majority Lenders (except in the case of UPC
Financing).

	(d)	 	UPC Broadband represents and warrants to the Finance Parties that it is in compliance with
paragraph (b) above as of the Effective Date (all relevant calculations being made by
reference to the financial statements most recently provided under Clause 16.2(a) or (b)
(Financial information)).
	 
	(e)	 	After the Effective Date, UPC Broadband shall be in compliance with its obligations under
paragraph (b) above if it procures that any of its Subsidiaries which are required to become
Additional Guarantors do so within 60 days after the delivery to the Facility Agent of any
financial statements delivered under Clause 16.2(a) or (b) (Financial information) which
demonstrate that additional Subsidiaries of UPC Broadband are required to be become Additional
Guarantors under paragraph (b).
	 
	(f)	 	The execution of an Obligor Accession Agreement constitutes confirmation by the relevant
Additional Guarantor or Additional Borrower (if applicable) that the relevant representations
and warranties set out in Clause 15 (Representations and Warranties) to be made by it on the
date of the Obligor Accession Agreement are correct, as if made with reference to the facts
and circumstances then existing.
	 
	26.5	 	Reference Banks
	 
	(a)	 	If a Reference Bank ceases to be a Lender, the Facility Agent shall (after consulting with
UPC Broadband) appoint another Lender which is not a Reference Bank to replace that Reference
Bank.

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	(b)	 	UPC Broadband and the Facility Agent may agree to add one or more additional Reference
Bank(s) from among the Lenders.
	 
	26.6	 	Register
	 
	 	 	The Facility Agent shall maintain at its address referred to in Clause 32.2(b) (Addresses
for notices) a copy of each Novation Certificate delivered to and accepted by it and a
register of the names and addresses all the Parties including, in the case of Lenders, their
Commitments under each Facility, the principal amount of the Advances owing under each
Facility to each Lender from time to time and the details of their Facility Office notified
to the Facility Agent from time to time, and shall supply any other Party (at that Party’s
expense) with a copy of the register on request. The entries in such register shall be
conclusive and binding for all purposes, absent manifest error, and the Obligors, the
Facility Agent and the Lenders shall treat each person whose name is recorded in the
register as a Lender hereunder for all purposes of this Agreement.
	 
	27.	 	DISCLOSURE OF INFORMATION
	 
	(a)	 	Any Lender may disclose to any of its Affiliates and any other person:

	 	(i)	 	to (or through) whom that Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights and obligations under this Agreement;
	 
	 	(ii)	 	with (or through) whom that Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or any Obligor; or
	 
	 	(iii)	 	to whom, and to the extent that, information is required to be disclosed by
any applicable law or regulation,

	 	 	any information about any Obligor, the Borrower Group and the Finance Documents as that
Lender shall consider appropriate (acting reasonably) if, in relation to subparagraphs (i)
and (ii) above, the person to whom the information is to be given has entered into a
Confidentiality Undertaking.
	 
	(b)	 	Notwithstanding any other provision of this Agreement, any Party to this Agreement (and any
of its affiliates, officers, directors, employees, representatives, professional advisers, or
other agents) may (and has since the commencement of discussions with respect to the
Additional Facilities been permitted to) disclose to any and all persons, without limitation
of any kind:

	 	(i)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the
Additional Facilities; and
	 
	 	(ii)	 	all material of any kind (including opinions and other tax analyses) that are
provided to such party relating to such U.S. tax treatment or U.S. tax structure,

	 	 	except to the extent reasonably necessary to comply with applicable federal or state
securities laws.
	 
	 	 	For the purposes of this subsection, the U.S. tax treatment of the Additional Facilities is
the purported or claimed U.S. federal, state and local income tax treatment of the
Additional Facilities, and the U.S. tax structure of the Additional Facilities is any fact
that may be relevant to understanding the purported or claimed U.S. federal, state and local
income tax treatment of the Additional Facilities. This authorisation is not intended to
permit disclosure

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	 	 	of any information (other than information relating to the U.S. tax treatment or U.S. tax
structure of the Additional Facilities) including (without limitation) (i) any portion of
any materials to the extent not related to the U.S. tax treatment or U.S. tax structure of
the Additional Facilities, (ii) the identities of participants or potential participants in
the Additional Facilities (except to the extent such identities are related to the U.S. tax
treatment or the U.S. tax structure of the Facility), (iii) the existence or status of any
negotiations, (iv) any pricing or financial information (except to the extent such pricing
or financial information is related to the U.S. tax treatment or the U.S. tax structure of
the Additional Facilities), or (v) any other term or detail not relevant to the U.S. tax
treatment or the U.S. tax structure of the Additional Facilities.
	 
	28.	 	SET-OFF
	 
	28.1	 	Contractual set-off
	 
	 	 	A Finance Party may set off any matured obligation owed by an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to that Obligor, regardless of the place of payment,
booking branch or currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of exchange in
its usual course of business for the purpose of the set-off.
	 
	28.2	 	Set-off not mandatory
	 
	 	 	No Finance Party shall be obliged to exercise any right given to it by Clause 28.1
(Contractual set-off).
	 
	28.3	 	Notice of set-off
	 
	 	 	Any Finance Party exercising its rights under Clause 28.1 (Contractual set-off) shall notify
the relevant Obligor promptly after set-off is applied.
	 
	29.	 	PRO RATA SHARING
	 
	29.1	 	Redistribution
	 
	 	 	If any amount owing by an Obligor under any Finance Document to a Finance Party (the
recovering Finance Party) is discharged by payment, set-off or any other manner other than
through the Facility Agent in accordance with Clause 9 (Payments) (a recovery), then:

	 	(a)	 	the recovering Finance Party shall, within three Business Days, notify details
of the recovery to the Facility Agent;
	 
	 	(b)	 	the Facility Agent shall determine whether the recovery is in excess of the
amount which the recovering Finance Party would have received had the recovery been
received by the Facility Agent and distributed in accordance with Clause 9 (Payments);
	 
	 	(c)	 	subject to Clause 29.3 (Exceptions), the recovering Finance Party shall, within
three Business Days of demand by the Facility Agent, pay to the Facility Agent an
amount (the redistribution) equal to the excess;
	 
	 	(d)	 	the Facility Agent shall treat the redistribution as if it were a payment by
the Obligor concerned under Clause 9 (Payments) and shall pay the redistribution to the
Finance

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	 	 	 	Parties (other than the recovering Finance Party) in accordance with Clause 9.7
(Partial payments); and
	 
	 	(e)	 	after payment of the full redistribution, the recovering Finance Party will be
subrogated to the portion of the claims paid under paragraph (d) above, and that
Obligor will owe the recovering Finance Party a debt which is equal to the
redistribution, immediately payable and of the type originally discharged.

	29.2	 	Reversal of redistribution
	 
	 	 	If under Clause 29.1 (Redistribution):

	 	(a)	 	a recovering Finance Party must subsequently return a recovery, or an amount
measured by reference to a recovery, to an Obligor; and
	 
	 	(b)	 	the recovering Finance Party has paid a redistribution in relation to that
recovery,

	 	 	each Finance Party shall, within three Business Days of demand by the recovering Finance
Party through the Facility Agent, reimburse the recovering Finance Party all or the
appropriate portion of the redistribution paid to that Finance Party. Thereupon the
subrogation in Clause 29.1(e) (Redistribution) will operate in reverse to the extent of the
reimbursement.
	 
	 	 	Each Finance Party agrees with the Facility Agent that it will comply with any notice given
to it by the Facility Agent under this Clause 29.2.
	 
	29.3	 	Exceptions
	 
	(a)	 	A recovering Finance Party need not pay a redistribution to the extent that it would not,
after the payment, have a valid claim against the Obligor concerned in the amount of the
redistribution pursuant to Clause 29.1(e) (Redistribution).
	 
	(b)	 	A recovering Finance Party is not obliged to share with any other Finance Party any amount
which the recovering Finance Party has received or recovered as a result of taking legal
proceedings, if the other Finance Party had an opportunity to participate in those legal
proceedings but did not do so and did not take separate legal proceedings.
	 
	30.	 	SEVERABILITY
	 
	 	 	If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in
any jurisdiction, that shall not affect:

	 	(a)	 	the legality, validity or enforceability in that jurisdiction of any other
provision of the Finance Documents; or
	 
	 	(b)	 	the legality, validity or enforceability in other jurisdictions of that or any
other provision of the Finance Documents.

	31.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of this Agreement.

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	32.	 	NOTICES
	 
	32.1	 	Giving of notices
	 
	 	 	All notices or other communications under or in connection with this Agreement shall be
given in writing and, unless stated, may be made by letter, telex or facsimile or (to the
extent that (i) the relevant Party has specified such an address pursuant to Clause 32.2
(Addresses for notices) and (ii) such notice or communication is not required to be signed
by an Authorised Signatory, other officer or board of the relevant entity and the form of
such notice or communication does not provide for signature by an Authorised Signatory,
other officer or board of the relevant entity) by e-mail. Any such notice will be deemed to
be given as follows:

	 	(a)	 	if by letter, when delivered personally or on actual receipt; and
	 
	 	(b)	 	if by facsimile or e-mail, when received in legible form.

	 	 	However, a notice given in accordance with the above but received on a non-working day or
after business hours in the place of receipt will only be deemed to be given on the next
working day in that place.
	 
	32.2	 	Addresses for notices
	 
	(a)	 	The address and facsimile number and (if so specified) e-mail address of each Party (other
than the Facility Agent and the Borrowers) for all notices under or in connection with this
Agreement are:

	 	(i)	 	that notified by that Party for this purpose to the Facility Agent on or before
it becomes a Party; or
	 
	 	(ii)	 	any other notified by that Party for this purpose to the Facility Agent by not
less than five Business Days’ notice.

	(b)	 	The address, facsimile numbers and e-mail address of the Facility Agent and the Security
Agent are:
	 
	 	 	Toronto Dominion (Texas) LLC / TD Bank Europe Limited

Triton Court

14/18 Finsbury Square

London EC2A 1DB

	 	 	 	 	 
	 

	 	Contact:
	 	Rory McCarthy
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+44 20 7638 0006
	 
	 	 	 	 
	 

	 	E-mail:
	 	rory.mccarthy@tdsecurities.com
	 
	 	 	 	 
	 	 	and in each case with a copy to:
	 
	 	 	 	 
	 	 	TD Bank Europe Limited

Royal Trust Tower

77 King Street West

18th Floor

Toronto

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	 	 	Ontario, Canada

M5K 1A2
	 
	 	 	 	 
	 

	 	Contact:
	 	Jim Bridwell / Elhamy Khalil
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+1 416 307 3826
	 
	 	 	 	 
	 	 	or such other as the Facility Agent may notify to the other Parties by not less than five
Business Days’ notice.

	(c)	 	The address, facsimile numbers and e-mail address of UPC Broadband is:
	 
	 	 	UPC Broadband Holding B.V.

Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

	 	 	 	 	 
	 

	 	Contact:
	 	Dennis Okhuijsen
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+ 3120 778 9453; and
	 
	 	 	 	 
	 

	 	E-mail:
	 	dokhuijsen@lgi.com
	 
	 	 	 	 
	 	 	or such other as the Borrower may notify to the other Parties by not less than five Business
Days’ notice.

	(d)	 	The Facility Agent shall, promptly upon request from any Party, give to that Party the
address, facsimile number or e-mail address (if applicable) of any other Party applicable at
the time for the purposes of this Clause 32.
	 
	33.	 	LANGUAGE
	 
	(a)	 	Any notice given under or in connection with any Finance Document shall be in English.
	 
	(b)	 	All other documents provided under or in connection with any Finance Document shall be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English and the Facility Agent so requests, accompanied by a
certified English translation and, in this case, the English translation shall prevail
unless the document is a statutory or other official document.

	34.	 	JURISDICTION
	 
	34.1	 	Submission
	 
	 	 	For the benefit of each Finance Party, each Obligor agrees that the courts of England have
jurisdiction to settle any disputes in connection with any Finance Document (other than any
Security Document expressed to be governed by laws other than the laws of England) and
accordingly submits to the jurisdiction of the English courts.
	 
	34.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service, each Obligor which is not incorporated in
England and Wales:

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	 	(a)	 	irrevocably appoints UPC Services Ltd, 4th Floor, Michelen House, 81 Fulham
Road, London, SW3 6RD as its agent for service of process relating to any proceedings
before the English courts in connection with any Finance Document;
	 
	 	(b)	 	agrees to maintain an agent for service of process in England until all
Additional Facility Commitments have terminated and the Advances and all other amounts
payable under the Finance Documents have been finally, irrevocably and indefeasibly
repaid in full;
	 
	 	(c)	 	agrees that failure by a process agent to notify the Obligor of the process
will not invalidate the proceedings concerned;
	 
	 	(d)	 	consents to the service of process relating to any such proceedings by prepaid
posting of a copy of the process to its address for the time being applying under
Clause 32.2 (Addresses for notices); and
	 
	 	(e)	 	agrees that if the appointment of any person mentioned in paragraph (a) above
ceases to be effective, the relevant Obligor shall immediately appoint a further person
in England to accept service of process on its behalf in England and, failing such
appointment within 15 days, the Facility Agent is entitled and authorised to appoint a
process agent for the Obligor by notice to the Obligor.

	34.3	 	Forum convenience and enforcement abroad
	 
	 	 	Each Obligor:

	 	(a)	 	waives objection to the English courts on grounds of inconvenient forum or
otherwise as regards proceedings in connection with a Finance Document; and
	 
	 	(b)	 	agrees that a judgment or order of an English court in connection with a
Finance Document is conclusive and binding on it and may be enforced against it in the
courts of any other jurisdiction.

	34.4	 	Non-exclusivity
	 
	 	 	Nothing in this Clause 34 limits the right of a Finance Party to bring proceedings against
an Obligor in connection with any Finance Document:

	 	(a)	 	in any other court of competent jurisdiction; or
	 
	 	(b)	 	concurrently in more than one jurisdiction.

	35.	 	WAIVER OF IMMUNITY
	 
	 	 	Each Obligor irrevocably and unconditionally:

	 	(a)	 	agrees that if a Finance Party brings proceedings against it or its assets in
relation to a Finance Document, no immunity from those proceedings (including, without
limitation, suit, attachment prior to judgment, other attachment, the obtaining of
judgment, execution or other enforcement) will be claimed by or on behalf of itself or
with respect to its assets;
	 
	 	(b)	 	waives any such right of immunity which it or its assets now has or may
subsequently acquire; and

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	 	(c)	 	consents generally in respect of any such proceedings to the giving of any
relief or the issue of any process in connection with those proceedings, including,
without limitation, the making, enforcement or execution against any assets whatsoever
(irrespective of its use or intended use) of any order or judgment which may be made or
given in those proceedings.

	36.	 	WAIVER OF TRIAL BY JURY
	 
	 	 	EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN
CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE
DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT.
	 
	37.	 	GOVERNING LAW
	 
	 	 	This Agreement is governed by and construed in accordance with English law.

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

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SCHEDULE 1

ORIGINAL PARTIES

ORIGINAL GUARANTORS

	 	 	 
	Name	 	Address
	UPC Financing Partnership

	 	4643 South Ulster Street

Suite 1300

Denver, Co 80237

United States
	 
	 	 
	UPC Broadband Holding B.V. (previously called UPC
Distribution Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC France Holding B.V

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Austria Holding B.V. (previously called Cable
Network Austria Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

	 
	 	 
	UPC Central Europe Holding B.V (previously called
Stipdon Investments B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

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	Name	 	Address
	UPC Nederland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Poland Holding B.V. (previously called UPC
Telecom B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

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SCHEDULE 2

CONDITIONS PRECEDENT DOCUMENTS

PART 1

TO BE DELIVERED BEFORE THE FIRST ADVANCE

	1.	 	Constitutional Documents
	 
	(a)	 	A copy of the articles of association and certificate of incorporation of each Obligor (other
than UPC Financing) and the partnership agreement in relation to UPC Financing or, if the
Facility Agent already has a copy, a certificate of an authorised signatory of the relevant
Obligor confirming that the copy in the Facility Agent’s possession is still correct, complete
and in full force and effect as at the date of this Agreement.
	 
	(b)	 	An extract of the registration in the trade register of the Dutch Chamber of Commerce of each
Obligor established in The Netherlands.
	 
	2.	 	Authorisations
	 
	(a)	 	A copy of an extract of a resolution of the managing or supervisory board of directors (or
equivalent) and, to the extent that a shareholders’ resolution is required under the
constitutional documents of any Obligor established in The Netherlands, a copy of an extract
of the shareholders’ resolution of each Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by, the Finance
Documents to which it is a party (including, in the case of each Guarantor, the giving
of the guarantee under Clause 14 (Guarantee)) and resolving that it execute and, where
applicable, deliver the Finance Documents;
	 
	 	(ii)	 	authorising a specified person or persons to execute and, where applicable,
deliver the Finance Documents to which it is a party on its behalf; and
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including Requests) to be signed and/or despatched
by it under or in connection with the Finance Documents to which it is a party;

	(b)	 	a specimen of the signature of each person authorised by the resolutions referred to in
paragraph (a) above;
	 
	(c)	 	certificate of an authorised signatory of UPC Broadband certifying that each copy of the
documents specified in Part 1 of this Schedule 2 and supplied by UPC Broadband is a true copy
and in full force and effect as at a date no earlier than the Signing Date; and
	 
	(d)	 	evidence that all of the requirements of Section 25 of the Netherlands Works Council Act (Wet
op de Ondernemingsraden) in connection with the transactions contemplated by the Finance
Documents have been complied with by each Obligor established in The Netherlands.

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	3.	 	Legal opinions
	 
	 	 	Legal opinions of:

	 	(a)	 	Allen & Overy, London, Amsterdam, Antwerp and New York, legal advisers to the
Facility Agent;
	 
	 	(b)	 	Vinge KB, Stockholm, legal advisers to the Facility Agent;
	 
	 	(c)	 	Wiersholm, Mellbye & Bech, Oslo, legal advisers to the Facility Agent.

	4.	 	Finance Documents
	 
	(a)	 	The Security Documents in Schedule 7 (Security Documents) duly executed by all parties
thereto.
	 
	(b)	 	The Security Deed duly executed by all parties thereto.
	 
	(c)	 	All relevant notices of security required to be delivered under any Security Document
together with acknowledgements of such notices, in each case in the form required by the
relevant Security Document.
	 
	(d)	 	Delivery to the Security Agent of share certificates and duly completed blank stock transfer
forms (or equivalent) in respect of all shares or partnership interests (as applicable)
subject to the Security Documents listed in Schedule 7 (Security Documents).
	 
	(e)	 	UCC-1 Financing Statements duly executed by each of UPC Holding and UPC Holding II.
	 
	(f)	 	Completion of all other steps specified by the Security Agent as being necessary to perfect
the Security Interests intended to be created by the Security Documents listed in Schedule 7
(Security Documents).
	 
	5.	 	Financial information
	 
	(a)	 	Audited consolidated financial statements for UPC for the financial year ending 31 December
2002.
	 
	(b)	 	The Original Borrower Group Financial Statements, together with the financial statements of
the Borrower Group for the Accounting Period ended 30 September 2003.
	 
	6.	 	Other documents
	 
	(a)	 	A copy of (and of all applications for) any and all approvals, consents, licences, exemptions
and other requirements of governmental and other authorities required for the entering into or
performance of the Finance Documents to be entered into on or about the Signing Date by each
party.
	 
	(b)	 	A copy of any other authorisation or other document, opinion or assurance which the Facility
Agent has notified UPC Broadband is necessary in connection with the entry into and
performance of transactions contemplated by this Agreement or the validity and enforceability
of this Agreement.
	 
	(c)	 	Evidence that all fees, costs and expenses required to be paid by UPC Broadband on or before
the Effective Date pursuant to Clause 21.1 (Transaction Expenses) have been paid.

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	(d)	 	A duly executed copy of Intercreditor Agreement.
	 
	(e)	 	A copy of the Business Plan.
	 
	(f)	 	A copy of a duly executed Verification Letter from each Facility D Lender.
	 
	(g)	 	A copy of an amendment to the partnership agreement of UPC Financing to permit a further
assignment of the partnership interest in UPC Financing to be granted.
	 
	(h)	 	A copy of a deed of amendment to the articles of association of UPC Nederland B.V. permitting
the entry into of further security agreements and the related notulen and evidence of the
execution and delivery to the Ministry of Justice in the Netherlands of the deed of amendment
and notulen.
	 
	(i)	 	A statement signed on behalf of United Pan-Europe Communications Norge AS confirming that it
has not received any notifications of pledges other than the share pledge dated 31 October
2000 granted to TD Bank Europe Limited as security agent under the Existing Facility
Agreement.
	 
	(j)	 	A copy of a letter from UPC Services Limited acknowledging its appointment as agent for
service of process relating to any proceedings before the English courts, in connection with
any Finance Document by each Obligor which is not incorporated in England and Wales.
	 
	(k)	 	A copy of the Fee Letter.

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PART 2

TO BE DELIVERED BY AN ADDITIONAL OBLIGOR

	1.	 	An Obligor Accession Agreement, duly executed as a deed (or using any equivalent necessary
formality, in the case of an Additional Obligor incorporated outside the United Kingdom) by
the Additional Obligor.
	 
	2.	 	In the case of an Additional Obligor (other than any UPC Broadband Holdco), a pledge over all
the issued shares of the Additional Obligor owned by any member of the Borrower Group in
substantially the same form as a share pledge already granted to the Security Agent over
shares of another Obligor incorporated in the same jurisdiction as the Additional Obligor or
in such other form as the Security Agent may reasonably require, together with a Security
Provider’s Deed of Accession executed by such member of the Borrower Group, such notices and
other documents as the Security Agent may require to perfect such share pledge.
	 
	3.	 	Details of:

	 	(a)	 	(in the case of an Additional Obligor, other than any UPC Broadband Holdco) all
material receivables (aggregating €10,000,000 (or its equivalent in other currencies)
or more) which are owed to the Additional Obligor by Priority Telecom N.V.;
	 
	 	(b)	 	(in the case of, an Additional Obligor, other than UPC Broadband Holdco) all
intercompany loans owed to the Additional Obligor by any member of the Borrower Group,
together with an Obligor Pledge of Shareholder Loans executed by the Additional Obligor
in respect of such intercompany loans and the other documents referred to in Clause
16.14 (Loans and guarantees);
	 
	 	(c)	 	where the Additional Guarantor will become a UPC Broadband Holdco at the same
time as, or after, it becomes an Additional Guarantor, details of all Financial
Indebtedness owing to the Additional Guarantor by any member of the Borrower Group,
together with a Pledge of Subordinated Shareholder Loans executed by the Additional
Guarantor in respect of such Financial Indebtedness and the other documents referred to
in Clause 16.24(a) (Shareholder Loans); and
	 
	 	(d)	 	(in the case of an Additional Obligor, other than any UPC Broadband Holdco) all
Financial Indebtedness owing by the Additional Obligor to any Restricted Person,
together with a Pledge of Subordinated Shareholder Loans executed by the relevant
Restricted Person(s) (if any) in respect of such Financial Indebtedness and the other
documents referred to in Clause 16.24(a) (Shareholder Loans).

	4.	 	A pledge over such of the receivables referred to in subparagraph 3(a) above (in the case of
an Additional Obligor, other than any UPC Broadband Holdco) as in the opinion of the Security
Agent is necessary to maintain the coverage of the Security Documents over such receivables
owed to the Borrower Group on a basis consistent with Clause 16.25 (Further security over
receivables) in substantially the same form as a receivables pledge already granted to the
Security Agent (i) by a member of the Borrower Group incorporated in the same jurisdiction as
the Additional Obligor or (ii) in respect of receivables located in the same jurisdiction as
the relevant receivables or (iii) in such other form as the Security Agent may reasonably
request, together with all such notices and other documents as the Security Agent may require
to perfect the receivables pledge.

127

 

	5.	 	A copy of the memorandum and articles of association and certificate of incorporation (or
other equivalent constitutional documents) of the Additional Obligor (and any Subsidiary of
the Additional Obligor, the issued shares of which are to be subject to a share
pledge referred to in paragraph 6 below).

	6. 	(a) 	 	Where the Additional Guarantor will become a
UPC Broadband Holdco at the same time as, or
after, it becomes an Additional Guarantor, a
pledge over all the issued shares of UPC
Broadband substantially in the same form as
a share pledge already granted to the
Security Agent over shares of UPC Broadband
or in such other form as the Security Agent
may reasonable require, together with such
notices and other documents as the Security
Agent may require to perfect such share
pledge.
	 
	 	(b)	 	In the case of an Additional Obligor (other than any UPC Broadband Holdco), a
pledge over all the issued shares of any Subsidiary (a Relevant Subsidiary) of the
Additional Obligor (other than shares not owned by the Additional Obligor or any
Subsidiary of the Additional Obligor) if in the opinion of the Security Agent such
pledge is necessary to maintain the coverage of the Security Documents over shares in
Obligors (other than UPC Holding and any other UPC Broadband Holdco) or other key
members of the Borrower Group (being holding companies in respect of one or more
members of the Borrower Group which carry on business in a particular jurisdiction).
Such share pledge shall be in substantially the same form as a Share Pledge already
granted to the Security Agent over shares in a person incorporated in the same
jurisdiction as the Relevant Subsidiary or in such other form as the Security Agent may
reasonably require, together with such notices and other documents as the Security
Agent may require to perfect such pledge.

	7.	 	A copy of a resolution of the board of directors of the Additional Obligor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Obligor
Accession Agreement (and any relevant Security Document referred to in paragraphs 2, 3,
4 or 6 above (each an Additional Security Document) resolving that it execute the
Obligor Accession Agreement (and each Additional Security Document);
	 
	 	(b)	 	authorising a specified person or persons to execute the Obligor Accession
Agreement and each Additional Security Document; and
	 
	 	(c)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents to be signed and/or despatched by it under or in connection with
the Finance Documents.

	8.	 	A copy of any other authorisation or other document, opinion or assurance which the Facility
Agent reasonably considers to be necessary in connection with the entry into and performance
of, and the transactions contemplated by, the Obligor Accession Agreement or any Additional
Security Document.
	 
	9.	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 7 above.
	 
	10.	 	A certificate of an authorised signatory of the Additional Obligor certifying that each copy
of the documents specified in Part 2 of this Schedule 2 and provided by it is a true copy and
in full force and effect as at a date no earlier than the date of the Obligor Accession
Agreement (and, in the case of an Additional Obligor other than any UPC Broadband Holdco, if
required by the Facility Agent, a certificate of each Relevant Subsidiary in respect of each
copy of the documents provided by it in accordance with the provisions of Part 2 of this
Schedule 2).

128

 

	11.	 	A copy of the latest financial statements (audited, if available) of the Additional Obligor.
	 
	12.	 	A legal opinion of legal advisers to the Facility Agent, and, if applicable, other lawyers
approved by the Facility Agent in the place of incorporation of the Additional Obligor (and/or
each Relevant Subsidiary) addressed to the Finance Parties.
	 
	13.	 	All other notices, documents and other steps required to perfect the security constituted by
each Additional Security Document (including, without limitation, accession to, or entry into
(as the case may be), by:

	 	(a)	 	the relevant Additional Obligor (and any member of the Borrower Group which is
an intercompany debtor in respect of the Additional Obligor) of an Obligors’ Framework
Agreement; or
	 
	 	(b)	 	as the case may be, the relevant Restricted Person referred to subparagraph
3(d) above (and the Additional Obligor) of a Restricted Person’s Framework Agreement.

129

 

SCHEDULE 3

MANDATORY COST FORMULAE

	1.	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.
	 
	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the Facility
Agent shall calculate, as a percentage rate, the arithmetic mean (rounded up, if necessary, to
four decimal places) of the respective rates notified by each Reference Bank to the Facility
Agent at its request as the rate resulting from the application of the formulae set out in
paragraphs 3 and 4 below (the Additional Cost Rate).
	 
	3.	 	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Facility Agent. This
percentage will be certified by that Lender in its notice to the Facility Agent to be its
reasonable determination of the cost (expressed as a percentage of that Lender’s participation
in all Loans made from that Facility Office) of complying with the minimum reserve
requirements of the European Central Bank in respect of loans made from that Facility Office.
	 
	4.	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom
will be calculated by the Facility Agent as follows:
	 
	 	 	in relation to an Advance in any currency other than sterling:

	 	 	 	 	 
	 

	 	EX0.01
	 	per cent. per annum.
	 

	 	 

300
	 	 

	 	Where: 	 	
	 
	 	E	 	is designed to compensate the Reference Banks for amounts payable under the
Fees Rules (but, for this purpose, ignoring any minimum fee required pursuant to the
Fees Rules) and is calculated by the Facility Agent as being the average for the most
recent rates of charge supplied by the Reference Banks to the Facility Agent pursuant
to paragraph 6 below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	Fees Rules means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect
of the payment of fees for the acceptance of deposits;
	 
	 	(b)	 	Fee Tariffs means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate; and
	 
	 	(c)	 	Tariff Base has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

130

 

	6.	 	If requested by the Facility Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Facility Agent, the rate of
charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees
Rules in respect of the relevant financial year of the Financial Services Authority
(calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in pounds per
£1,000,000 of the Tariff Base of that Reference Bank.
	 
	7.	 	Each Lender shall supply any information required by the Facility Agent for the purpose of
calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information on or prior to the date on which its becomes a Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Facility Agent may reasonably require for such
purpose.

	 	 	Each Lender shall promptly notify the Facility Agent of any change to the information
provided by it pursuant to this paragraph.
	 
	8.	 	The rates of charge of each Reference Bank for the purpose of E above shall be determined by
the Facility Agent based upon the information supplied to it pursuant to paragraphs 6 and 7
above.
	 
	9.	 	The Facility Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Reference Bank pursuant to paragraph 3 above is
true and correct in all respects.
	 
	10.	 	The Facility Agent shall distribute the additional amounts received as a result of the
Mandatory Costs to the Lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Reference Bank pursuant to paragraphs 3, 6 and 7 above.
	 
	11.	 	Any determination by the Facility Agent pursuant to this Schedule in relation to a formula,
the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.
	 
	12.	 	The Facility Agent may from time to time, after consultation with UPC Broadband and the
Lenders, determine and notify to all Parties any amendments which are required to be made to
this Schedule in order to comply with any change in law, regulation or any requirements from
time to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all Parties.

131

 

SCHEDULE 4

FORM OF REQUEST AND CANCELLATION NOTICE

PART 1

FORM OF REQUEST

To:               [                    ]

Attention:               [               ]

From: UPC Broadband Holding B.V.

Date: [               ]

REQUEST (ADVANCE)

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement dated 16th January, 2004 (as
amended, the Credit Agreement)

Dear Sirs,

We hereby give you notice pursuant to Clause 5.1 (Delivery of Request) of the above Credit
Agreement that we require an Advance to be made to that Borrower under the Credit Agreement, as
follows:

	 	 	 	 	 
	(a)

	 	Facility:
	 	[relevant Additional Facility]
	 
	 	 	 	 
	(b)

	 	Utilisation Date:
	 	[a date falling within the relevant Additional Facility Availability Period]
	 
	 	 	 	 
	(c)

	 	Requested Amount:
	 	[                              ]
	 
	 	 	 	 
	(d)

	 	[Currency:
	 	[                              ]]
	 
	 	 	 	 
	(e)

	 	Interest Period:
	 	[                              ]

Payment instructions with respect to the proceeds of the Advance to be made in relation to this
Request are as follows: [                    ].

We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied
on the date of this Request. [In particular, we confirm that the proceeds of the Advance will be
applied [specify purpose] in accordance with Clause 3.1 (Purpose).]

Terms used in this Request and defined in the Credit Agreement have the same meaning in this
Request as in the Credit Agreement.

Yours faithfully

[Authorised Signatory]

[Borrower]

132

 

PART 2

FORM OF CANCELLATION AND/OR PREPAYMENT NOTICE

	 	 	 
	To:

	 	[     ] as Facility Agent
	 
	 	 
	From:

	 	[BORROWER]
	 
	 	 
	Date:

	 	[          ]

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement dated 16th January, 2004 (as
amended)

	1.	 	[We wish to cancel a portion of Total Additional Facility Commitments in the following
amounts:
	 
	 	 	Cancellation:
	 
	 	 	Total Additional Facility Commitments: [     ]

OR

[We wish to prepay the whole or part of the following Advances which are to be applied
against the Additional Facilities in the following order:

	 	(a)	 	Additional Facilities:
	 
	 	 	 	Advance:     [     ]
	 
	 	(b)	 	Application of Advance[s]:
	 
	 	 	 	Additional Facility:      [     ]

	2.	 	Terms defined in the above Credit Agreement have the same meaning in this notice.

By:

[BORROWER]

Authorised Signatory

133

 

SCHEDULE 5

FORMS OF ACCESSION DOCUMENTS

PART 1

NOVATION CERTIFICATE

	 	 	 	 	 
	To:

	 	[     ] as Facility Agent and [BORROWER]	 	 
	 
	 	 	 	 
	From:

	 	[THE EXISTING LENDER] and [THE NEW LENDER]
	 	Date: [          ]

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement dated 16th January, 2004 (as
amended, the Credit Agreement)

We refer to Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers
by the Lenders) of the Security Deed. Terms defined in the Credit Agreement have the same meaning
in this Novation Certificate.

	1.	 	We [          ] (the Existing Lender) and [     ] (the New Lender) agree to the Existing
Lender and the New Lender novating all the Existing Lender’s rights and obligations referred
to in the Schedule in accordance with Clause 26.3 (Procedure for novations) of the Credit
Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed.
	 
	2.	 	In the case of an Additional Facility under which a Dutch Borrower is a Borrower, on the
[date of execution of the Novation Certificate] and on the [effective transfer date], the New
Lender declares and represents to the Existing Lender, the other Finance Parties and each
Dutch Borrower that [it is exempted from the requirement to be a Professional Market Party
because it forms part of a closed circle (besloten kring) with [name of Dutch Borrower].][:

	 	(a)	 	it is a Professional Market Party;
	 
	 	(b)	 	it acknowledges that as a consequence it has no benefit from the (creditor)
protection under the Dutch Banking Act for non-Professional Market Parties; and
	 
	 	(c)	 	it has made its own credit appraisal of each Dutch Borrower.]1

	3.	 	The Facility Office and address for notices of the New Lender for the purposes of Clause 32.2
(Addresses for notices) are set out in the Schedule.
	 
	4.	 	This Novation Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Novation
Certificate.
	 
	5.	 	This Novation Certificate is governed by English law.

 

			
	1	 	Include and delete as appropriate.

134

 

THE SCHEDULE

Rights and obligations to be novated

[Details of the rights and obligations of the Existing Lender to be novated.]

	 	 	 	 	 
	[New Lender]
	 	 	 	 
	 
	 	 	 	 
	[Facility Office

	 	Address for notices for
administrative purposes
	 
	 	 	 	 
	 

	 	Address for notices for
credit purposes]	 	 
	 
	 	 	 	 
	[Existing Lender]

	 	[New Lender]
	 	[                    ]
	 
	 	 	 	 
	By:

	 	By:
	 	By:
	 
	 	 	 	 
	Date:

	 	Date:
	 	Date:

135

 

PART 2

OBLIGOR ACCESSION AGREEMENT

	 	 	 
	To:

	 	[     ] as Facility Agent and [     ] as Security Agent
	 
	 	 
	From:

	 	[PROPOSED OBLIGOR]

Date: [          ]

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement dated 16th January,
2004 (as amended, the Credit Agreement)

We refer to Clause 26.4 (Additional Obligors). Terms defined in the Credit Agreement have the same
meaning in this Deed.

We, [name of company] of [Registered Office] (Registered no. [                    ]) agree:

	(a)	 	to become an [Additional Borrower and an Additional Guarantor/Additional Guarantor and to be
bound by the terms of the Credit Agreement as an [Additional Borrower and an Additional
Guarantor/Additional Guarantor] in accordance with Clause 26.4 (Additional Obligors);
	 
	(b)	 	to become a party to the Security Deed as a Charging Entity and to observe, perform and be
bound by the terms and provisions of the Security Deed in the capacity of a Charging Entity in
accordance with clause 9.6 (Charging Entities) of the Security Deed; and
	 
	(c)	 	to become a party to the Intercreditor Agreement as a Charging Entity and to observe, perform
and be bound by the terms and provisions of the Intercreditor Agreement in the capacity of a
Charging Entity in accordance with clause 8.1 of the Intercreditor Agreement.
	 
	(d)	 	[The relevant Additional Facility will be a [insert currency][          ] term facility with [                    ] as Lenders].*

Our address for notices for the purposes of Clause 32.2 (Addresses for notices) is:

[

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	]
	 	 

This Deed is governed by English law.

	 	 	 	 	 	 	 
	Executed as a deed by

	 	 	)	 	 	Director
	[PROPOSED OBLIGOR]

	 	 	)	 	 	 
	acting by

	 	 	)	 	 	Director/Secretary
	and

	 	 	)	 	 	 

 

			
	*	 	In the case of an Additional Borrower

136

 

PART 3

ADDITIONAL FACILITY ACCESSION AGREEMENT

	 	 	 
	To:

	 	[                                        ] as Facility Agent
	 

	 	[                                        ] as Security Agent
	 
	 	 
	From:

	 	[PROPOSED LENDER(S)]

Date: [               ]

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement
dated 16th January 2004 (as amended, the Credit Agreement)

	1.	 	Terms defined in the Credit Agreement shall have the same meaning in this Deed.
	 
	2.	 	We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement.
	 
	3.	 	We, [Name of Lender(s)] agree:

	 	(a)	 	to become party to and to be bound by the terms of the Credit Agreement as [a]
Lender(s) in accordance with Clause 2.2 (Additional Facilities); and
	 
	 	(b)	 	to become a party to the Security Deed as a Lender and to observe, perform and
be bound by the terms and provisions of the Security Deed in the capacity of Lender in
accordance with clause 9.3 (Transfers by Lenders) of the Security Deed.

	4.	 	On the date on which this agreement becomes effective and where such Lender is a Lender under
an Additional Facility to which a Borrower is a Dutch Borrower, the Lender declares and
represents to the Finance Parties and UPC Broadband that [it is [exempted from the requirement
to be a Professional Market Party because it forms part of a closed circle (besloten kring)
with UPC Broadband.][:

	 	(a)	 	it is a Professional Market Party;
	 
	 	(b)	 	it acknowledges that, as a consequence, it has no benefit from the (creditor)
protection under the Dutch Banking Act for non-professional Market Parties; and
	 
	 	(c)	 	it has made its own credit appraisal of UPC Broadband.]

	5.	 	Our Additional Facility Commitment is EUR/US$/Additional Currency [               ].
	 
	 	 	[If the Additional Facility Commitment is denominated in US Dollars or an Additional
Currency and any determination under the Credit Agreement needs to be made by reference to a
euro amount, the Facility Agent will translate the relevant US Dollar or Additional Currency
amount into euros using the Agent’s Spot Rate of Exchange on the relevant date.]
	 
	6.	 	[The Final Maturity Date in respect of our Additional Facility Commitment is [          ]/[Our
Additional Facility Commitment will be repaid at a rate of [up to one] per cent. per annum

137

 

	 	 	starting on the day falling 12 months from the date of this accession
agreement until [     ] on which date each Advance under this Additional Facility will be repaid in full].
	 
	7.	 	The Availability Period in relation to this Additional Facility is [     ].
	 
	8.	 	The Margin in relation to this Additional Facility is [     ] per annum. [If applicable set
out how the Margin will be adjusted].
	 
	9.	 	The commitment fee in relation to this Additional Facility under Clause 20.1 (Commitment fee)
is [     ] per cent. per annum.
	 
	10.	 	[The Borrower in relation to this Additional Facility is [          ].]
	 
	11.	 	Advances under this Additional Facility will be applied [                    ].
	 
	12.	 	[This Additional Facility can be re-borrowed in accordance with the terms of the Credit
Agreement (as set out in Clause 7.10(d) (Miscellaneous provisions).)]
	 
	13.	 	[For the purposes of partial assignments, transfers or novations of rights and/or obligations
by a Lender in respect of this Additional Facility under Clause 26.2 (Transfers by Lenders) of
the Credit Agreement, the Lenders and UPC Broadband agree that, for the purposes of Clause
26.2(a) (Transfers by Lenders), such assignment, transfer or novation shall be in a minimum
amount of [insert Additional Currency amount that is lower than the equivalent of
€1,000,000 and U.S.$1,000,000] (save that in the case of a partial assignment, transfer or
novation by a Lender of its rights and/or obligations under this Additional Facility to an
Affiliate or Related Fund of that Lender, such assignment, transfer or novation shall be in a
minimum amount of [insert Additional Currency amount that is lower than the equivalent of
€500,000 and US$500,000]).]
	 
	14.	 	We confirm to each Finance Party that:

	 	(a)	 	we have made our own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation in the Credit Agreement and have not relied on any information provided
to us by a Finance Party in connection with any Finance Document; and
	 
	 	(b)	 	we will continue to make our own independent appraisal of the creditworthiness
of each Obligor and its related entities while any amount is or may be outstanding
under the Credit Agreement or any Additional Facility Commitment is in force.

	15.	 	The Facility Office and address for notices of the Lender for the purposes of Clause 32.2
(Addresses for notices) is:

[          ]
	 
	16.	 	This Agreement is governed by English law.

[LENDER(S)]

By:

[          ] as Facility Agent

By:

138

 

UPC BROADBAND HOLDING B.V.

By:

[RELEVANT BORROWER]

By:

139

 

SCHEDULE 6

FORM OF CONFIDENTIALITY UNDERTAKING

PART 1

FORM OF LMA CONFIDENTIALITY UNDERTAKING

LMA CONFIDENTIALITY LETTER (PURCHASER) [Letterhead of Existing Lender]

To:

[insert name of New Lender]

Re: The Facility

Borrower:

Amount:

Agent:

Dear Sirs

We understand that you are considering participating in the Facility. In consideration of us
agreeing to make available to you certain information, by your signature of a copy of this letter
you agree as follows:

	1.	 	Confidentiality Undertaking
	 
	 	 	You undertake:

	 	(a)	 	to keep the Confidential Information confidential and not to disclose it to
anyone except as provided for by paragraph 2 below and to ensure that the Confidential
Information is protected with security measures and a degree of care that would apply
to your own confidential information;
	 
	 	(b)	 	to keep confidential and not disclose to anyone the fact that the Confidential
Information has been made available or that discussions or negotiations are taking
place or have taken place between us in connection with the Facility;
	 
	 	(c)	 	to use the Confidential Information only for the Permitted Purpose;
	 
	 	(d)	 	to use all reasonable endeavours to ensure that any person to whom we pass any
Confidential Information (unless disclosed under subparagraph 21.1(b) below)
acknowledges and complies with the provisions of this letter as if that person were
also a party to it; and

140

 

	 	(e)	 	not to make enquiries of any member of the Borrower Group or any of their
officers, directors, employees or professional advisers relating directly or indirectly
to the Facility.

	2.	 	Permitted Disclosure
	 
	(a)	 	We agree that you may disclose Confidential Information:

	 	(i)	 	to members of the Participant Group and their officers, directors, employees
and professional advisers to the extent necessary for the Permitted Purpose and to any
auditors of members of the Participant Group;
	 
	 	(ii)	 	(A) where requested or required by any court of competent jurisdiction or any
competent judicial, governmental, supervisory or regulatory body, (B) where required by
the rules of any stock exchange on which the shares or other securities of any member
of the Participant Group are listed or (C) where required by the laws or regulations of
any country with jurisdiction over the affairs of any member of the Participant Group;
	 
	 	(iii)	 	with the prior written consent of us and the Borrower.

	(b)	 	Notwithstanding any other provision of this letter, any party to this letter (and any of its
affiliates, officers, directors, employees, representatives, professional advisers, or other
agents) may and has since the commencement of discussions with respect to the Facility been
permitted to disclose to any and all persons, without limitation of any kind:

	 	(i)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the
Facility: and
	 
	 	(ii)	 	all material of any kind (including opinions and other tax analyses) that are
provided to such party relating to such U.S. tax treatment or U.S. tax structure,

	 	 	except to the extent reasonably necessary to comply with applicable federal or state
securities laws.
	 
	 	 	For the purposes of this subsection, the U.S. tax treatment of the Facility is the purported
or claimed U.S. federal, state and local income tax treatment of the Facility, and the U.S.
tax structure of the Facility is any fact that may be relevant to understanding the
purported or claimed U.S. federal, state and local income tax treatment of the Facility.
This authorisation is not intended to permit disclosure of any information (other than
information relating to U.S. tax treatment or U.S. tax structure of the Facility) including
(without limitation (i) any portion of any materials to the extent not related to the U.S.
tax treatment or U.S. tax structure of the Facility, (ii) the identities of participants or
potential participants in the Facility (except to the extent such identities are related to
the tax treatment or the U.S. tax structure of the Facility), (iii) the existence or status
of any negotiations, (iv) any pricing or financial information (except to the extent such
pricing or financial information is related to the U.S. tax treatment or the U.S. tax
structure of the Facility), or (v) any other term or detail not relevant to the U.S. tax
treatment or the U.S. tax structure of the Facility.
	 
	3.	 	Notification of Required or Unauthorised Disclosure
	 
	 	 	You agree (to the extent permitted by law) to inform us of the full circumstances of any
disclosure under subparagraph 2(b) or upon becoming aware that Confidential Information has
been disclosed in breach of this letter.

141

 

	4.	 	Return of Copies
	 
	 	 	If we so request in writing, you shall return all Confidential Information supplied to you
by us and destroy or permanently erase all copies of Confidential Information made by you
and use all reasonable endeavours to ensure that anyone to whom you have supplied any
Confidential Information destroys or permanently erases such Confidential Information and
any copies made by them, in each case save to the extent that you or the recipients are
required to retain any such Confidential Information by any applicable law, rule or
regulation or by any competent judicial, governmental, supervisory or regulatory body or in
accordance with internal policy, or where the Confidential Information has been disclosed
under subparagraph 2(b) above.
	 
	5.	 	Continuing Obligations
	 
	 	 	The obligations in this letter are continuing and, in particular, shall survive the
termination of any discussions or negotiations between you and us. Notwithstanding the
previous sentence, the obligations in this letter shall cease (a) if you become a party to
or otherwise acquire (by assignment or sub-participation) an interest, direct or indirect,
in the Facility or (b) 12 months after we have returned all Confidential Information
supplied to you by us and destroyed or permanently erased all copies of Confidential
Information made by you (other than any such Confidential Information or copies which have
been disclosed under paragraph 2 above (other than subparagraph 2(a) or which, pursuant to
paragraph 4 above, are not required to be returned or destroyed).
	 
	6.	 	No Representation; Consequences of Breach, etc
	 
	 	 	You acknowledge and agree that:

	 	(a)	 	neither we nor any of our officers, employees or advisers (each a Relevant
Person) (i) make any representation or warranty, express or implied, as to, or assume
any responsibility for, the accuracy, reliability or completeness of any of the
Confidential Information or any other information supplied by us or any member of the
Borrower Group or the assumptions on which it is based or (ii) shall be under any
obligation to update or correct any inaccuracy in the Confidential Information or any
other information supplied by us or any member of the Borrower Group or be otherwise
liable to you or any other person in respect to the Confidential Information or any
such information; and
	 
	 	(b)	 	we or members of the Borrower Group may be irreparably harmed by the breach of
the terms of this letter and damages may not be an adequate remedy; each Relevant
Person or member of the Borrower Group may be granted an injunction or specific
performance for any threatened or actual breach of the provisions of this letter by
you.

	7.	 	No Waiver; Amendments, etc.
	 
	 	 	This letter sets out the full extent of our obligations of confidentiality owed to us in
relation to the information the subject of this letter. No failure or delay in exercising
any right, power or privilege under this letter will operate as a waiver thereof nor will
any single or partial exercise of any right, power or privilege preclude any further
exercise thereof or the exercise of any other right, power or privileges under this letter.
The terms of this letter and your obligations under this letter may only be amended or
modified by written agreement between us.

142

 

	8.	 	Inside Information
	 
	 	 	We acknowledge that some or all of the Confidential Information is or may be price-sensitive
information and that the use of such information may be regulated or prohibited by
applicable legislation relating to insider dealing and you undertake not to use any
Confidential Information for any unlawful purpose.
	 
	9.	 	Nature of Undertakings
	 
	 	 	The undertakings given by you under this letter are given to us and (without implying any
fiduciary obligations on our part) are also given for the benefit of the Borrower and each
other member of the Borrower Group.
	 
	10.	 	Third party rights
	 
	(a)	 	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied
upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act 1999
is excluded.
	 
	(b)	 	Notwithstanding any provisions of this letter, the parties to this letter do not require the
consent of any Relevant Person or any member of the Borrower Group to rescind or vary this
letter at any time.
	 
	11.	 	Governing Law and Jurisdiction
	 
	 	 	This letter (including the agreement constituted by your acknowledgement of its terms) shall
be governed by and construed in accordance with the laws of England and the parties submit
to the non-exclusive jurisdiction of the English courts.
	 
	12.	 	Definitions
	 
	 	 	In this letter (including the acknowledgement set out below):
	 
	 	 	Borrower Group means UPC Broadband and each of its holding companies and subsidiaries and
each subsidiary of each of its holding companies (as each such term is defined in the
Companies Act 1985);
	 
	 	 	Confidential Information means any information relating to a Borrower, the Borrower Group,
the Facility including information given orally and any document, electronic file or any
other way of representing or recording information which contains or is derived or copied
from such information but excludes information that (a) is or becomes public knowledge other
than as a direct or indirect result of any breach of this letter or (b) is known by you
before the date the information is disclosed to you by us or any of our affiliates or
advisers or is lawfully obtained by you thereafter, other than from a source which is
connected with the Borrower Group and which, in either case, as far as you are aware, has
not been obtained in violation of, and is not otherwise subject to, any obligation of
confidentiality;
	 
	 	 	Participant Group means us, each of your holding companies and subsidiaries and each
subsidiary of each of your holding companies (as each such term is defined in the Companies
Act 1985); and
	 
	 	 	Permitted Purpose means considering and evaluating whether to enter into the Facility.

Please acknowledge your agreement to the above by signing and returning the enclosed copy.

143

 

Yours faithfully

......................................................

For and on behalf of

[Arranger]

	 	 	 
	To:

	 	[Existing Lender]
	 

	 	The Borrower and each other member of the Borrower Group

We acknowledge and agree to the above:

......................................................

For and on behalf of

[New Lender]

144

 

PART 2

FORM OF LSTA CONFIDENTIALITY UNDERTAKING

Master Confidentiality Agreement dated as of [     ] (this Agreement) between [Existing Lender]
(the Existing Lender) and [New Lender] (the New Lender).

This Agreement sets forth the terms and conditions that will apply, in each instance, to the
treatment of certain non-public information that the Existing Lender may supply to the New Lender
in connection with the consideration by the New Lender of its participating in any financing or
proposed financing (a Financing) for any borrower or group of borrowers (each a Borrower) specified
in a Schedule described below.

As used herein: (a) Evaluation Material refers to (i) the non-public information furnished to the
Existing Lender, including any Information Memorandum, in respect of a particular Financing of a
Borrower that the Existing Lender supplies to the New Lender on or after the date of the Schedule
in respect of such Financing, (ii) all memoranda, notes, and other documents and analyses
(collectively, analyses) internally developed by the Existing Lender that it supplies to the New
Lender and (iii) all analyses developed by the New Lender using any information specified under
clauses (i) and (ii) above; (b) Internal Evaluation Material refers to analyses specified under
clause (iii) of the definition of Evaluation Material; and (c) participation refers to a transfer
of a lender’s interest in a Financing (or a grant of derivative rights in respect thereof), whether
by assignment, participation or otherwise (and participate and participating shall have correlative
meanings thereto).

As a condition to the Existing Lender’s furnishing the New Lender with any Evaluation Material in
the Existing Lender’s possession in respect of a particular Financing, the New Lender shall execute
and return to the Existing Lender a schedule, in substantially the form of Exhibit A attached
hereto, that the Existing Lender may have completed, executed and delivered to it (a Schedule).
Each Schedule shall identify the Existing Lender and the New Lender in respect of such Financing
and the related Evaluation Material, the name of each Borrower that the New Lender has under
consideration and a description of the documentation (the Operative Documentation) in respect
thereof.

The New Lender in respect of a particular Financing agrees that it will use all Evaluation Material
in respect of such Financing solely for the purpose of evaluating its possible participation, or
obtaining the participation of another eligible person (an Additional Assignee), in such Financing
and that the New Lender will use reasonable precautions in accordance with its established
procedures to keep such information confidential; provided, however, that any such information may
be disclosed to the partners, directors, officers, employees, agents, counsel, auditors,
affiliates, advisors and representatives (collectively, Representatives) of the New Lender’s
institution who need to know such information for the purpose of evaluating its participation in
such Financing (it being understood that such Representatives shall be informed by the New Lender
of the confidential nature of such information and shall be directed by it to treat such
information in accordance with the terms of this Agreement) and to any Additional Assignee and its
Representatives (provided that such Additional Assignee shall have previously executed and
delivered to the New Lender an agreement in substantially the same substance as this Agreement in
respect of the Evaluation Material). The New Lender agrees to be responsible for any breach of
this Agreement that results from the actions or omissions of its Representatives. Notwithstanding
the foregoing, the New Lender will not use such information to obtain an Additional Assignee if
otherwise prohibited by agreements binding on the New Lender.

In addition, the New Lender in respect of a particular Financing agrees that prior to the
settlement of its participation in such Financing, it will not disclose to any person, other than
its Representatives, the identity of the Existing Lender with which discussions or negotiations are
taking place concerning

145

 

the New Lender’s possible participation in the related Financing or any of the terms or conditions
of such proposed participation. The term person as used in this Agreement shall be broadly
interpreted to include the media and any corporation, partnership, group, individual or other
entity and, if the New Lender’s participation in the Financing would constitute a secondary market
transaction, the Borrower.

The New Lender in respect of a particular Financing shall be permitted to disclose any related
Evaluation Material (and the fact that such Evaluation Material has been made available to it and
that discussions or negotiations are taking place concerning the transaction or any of the terms,
conditions or other facts with respect thereto) in the event that the New Lender is required by law
or regulation or requested by any governmental agency or other regulatory authority (including any
self-regulatory organization having or claiming to have jurisdiction) or in connection with any
legal proceedings. The New Lender agrees that it will notify the Existing Lender as soon as
practical in the event of any such disclosure (other than as a result of an examination by any
regulatory agency), unless such notification shall be prohibited by applicable law or legal
process.

The New Lender in respect of a particular Financing and its Representatives shall have no
obligation hereunder with respect to any information in any related Evaluation Material to the
extent that such information (i) is or becomes generally available to the public other than as a
result of a disclosure by the New Lender in violation of this Agreement, (ii) was within the New
Lender’s possession prior to its being furnished to it pursuant hereto, provided that the source of
such information was not known by the New Lender to be bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation of confidentiality to the Borrower or any other
party with respect to such information or (iii) is or becomes available to the New Lender on a
non-confidential basis from a source other than the Borrower or the Existing Lender, or their
respective Representatives, provided that such source is not known by the New Lender to be bound by
a confidentiality agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Existing Lender, the Borrower or any other party with respect to such
information.

Notwithstanding any other provision of this letter, any party to this letter (and any of its
affiliates, officers, directors, employees, representatives, professional advisers, or other
agents) may and has since the commencement of discussions with respect to the Facility been
permitted to disclose to any and all persons, without limitation of any kind:

	(a)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the Facility; and
	 
	(b)	 	all material of any kind (including opinions and other tax analyses) that are provided to
such party relating to such U.S. tax treatment or U.S. tax structure,

except to the extent reasonably necessary to comply with applicable federal or state securities
laws.

For the purposes of this subsection, the U.S. tax treatment of the Facility is the purported or
claimed U.S. federal, state and local income tax treatment of the Facility, and the U.S. tax
structure of the Facility is any fact that may be relevant to understanding the purported or
claimed U.S. federal, state and local income tax treatment of the Facility. This authorisation is
not intended to permit disclosure of any information (other than information relating to U.S. tax
treatment or U.S. tax structure of the Facility) including (without limitation) (i) any portion of
any materials to the extent not related to the U.S. tax treatment or U.S. tax structure of the
Facility, (ii) the identities of participants or potential participants in the Facility (except to
the extent such identities are related to the tax treatment or the U.S. tax structure of the
Facility), (iii) the existence or status of any negotiations, (iv) any pricing or financial
information (except to the extent such pricing or financial information is related to the U.S. tax
treatment or the U.S. tax structure of the Facility), or (v) any other term or detail not relevant
to the U.S. tax treatment or the U.S. tax structure of the Facility.

146

 

To the extent the Operative Documentation for a particular Financing contains provisions regarding
the use of non-public information which conflict with, are more restrictive than or are in addition
to the provisions of this Agreement, then (so long as such Operative Documentation shall be
effective as to the Existing Lender) solely with application to any Evaluation Material concerning
the Borrower that is the subject of such Financing (and without application hereunder to any other
Evaluation Material or otherwise), such provisions of the Operative Documentation shall be
incorporated herein by this reference and shall supersede and control the terms of this Agreement
to the extent that such provisions are in conflict with or more restrictive than the terms hereof
or are in addition to those contained herein. Upon the New Lender’s request, the Existing Lender
will furnish to the New Lender the provisions of the Operative Documentation for such Financing
regarding the use of non-public information. In addition, in the event that the New Lender
actually becomes a lender (bound as a party to the Operative Documentation) with respect to a
particular Financing, the application of this Agreement in respect of all Evaluation Material in
respect of such Financing shall terminate and the applicable confidentiality provisions, if any,
contained in the Operative Documentation shall govern and control.

If the New Lender in respect of a particular Financing chooses not to participate in such
Financing, the New Lender agrees on request of the Existing Lender to return to the Existing Lender
as soon as practical all related Evaluation Material (other than Internal Evaluation Material) or
destroy such Evaluation Material (other than Internal Evaluation Material) without retaining any
copies thereof unless prohibited from doing so by its internal policies and procedures.

The New Lender in respect of a particular Financing understands and agrees that the Existing Lender
will have received the related Evaluation Material from third party sources (including the
Borrower) and that the Existing Lender bears no responsibility (and shall not be liable) for the
accuracy or completeness (or lack thereof) of such Evaluation Material or any information contained
therein.

The New Lender hereby acknowledges that United States securities laws prohibit any person with
material, non-public information about an issuer from purchasing or selling securities of such
issuer or, subject to certain limited exceptions, from communicating such information to any other
person. The New Lender agrees to comply with its internal compliance policies and procedures with
respect to material confidential information.

The New Lender agrees that money damages would not be a sufficient remedy for breach of this
Agreement, and that in addition to all other remedies available at law or in equity, the Existing
Lender shall be entitled to seek equitable relief, including injunction and specific performance,
without proof of actual damages.

This Agreement (including each Schedule delivered pursuant hereto and the provisions of any
Operative Documentation incorporated herein by reference) embodies the entire understanding and
agreement between the parties with respect to all Evaluation Material for each Financing and
supersedes all prior understandings and agreements relating thereto. Unless otherwise agreed in
writing between the parties hereto, the application of this Agreement shall terminate with respect
to all Evaluation Material concerning each Financing on the date falling one year after the
Schedule in respect of such Financing.

This Agreement shall be governed by and construed in accordance with the law of the State of New
York, without regard to principles of conflicts of law (except Section 5-1401 of the New York
General Obligation Law to the extent that it mandates that the law of the State of New York
govern).

This Agreement may be signed in counterparts, each of which shall be an original and both of which
taken together shall constitute the same instrument.

147

 

It is understood by the parties that the custom in the loan syndications and loan trading markets
is to execute and deliver any confidentiality agreement, schedule, confirmation or other
transaction documents by telecopy or telefax. The parties agree that all telecopied or telefaxed
copies of this Agreement, the Schedules, confirmations and other transaction documents, and
signatures hereto and thereto, shall be duplicate originals.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered
by their respective authorized officers as of the date first written above.

[Existing Lender]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

Name:

Title:

[New Lender]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

Name:

Title:

148

 

EXHIBIT A

This Schedule, dated as of [     ], is one of the Schedules referred to in the Master
Confidentiality Agreement dated today between [Existing Lender] and [New Lender], Terms used
herein, unless defined herein, shall have the respective meanings given them in said Master
Confidentiality Agreement.

Name(s) of the Borrower(s): [                                        ]

Description of the Operative Documentation: [                                        ]

Existing Lender

[                                        ].

By: [                                        ]

Name:

Title:

Received and accepted as of

the date first written above:

New Lender

[                                        ].

By: [                                        ]

Name:

Title:

149

 

SCHEDULE 7

SECURITY DOCUMENTS

	1.	 	Each share pledge given in favour of the Security Agent by:

	 	(a)	 	UPC Holding in respect of its interest in the share capital of UPC Broadband;
	 
	 	(b)	 	UPC Holding in respect of its interest in the share capital of UPC Holding II;
	 
	 	(c)	 	UPC Broadband in respect of its interest in the share capital of UPC
Scandinavia Holding B.V.;
	 
	 	(d)	 	UPC Broadband in respect of its interest in the share capital of UPC Austria
Holding B.V. (previously called Cable Networks Austria Holding B.V.);
	 
	 	(e)	 	UPC Broadband in respect of its interest in the share capital of UPC France
Holding B.V.;
	 
	 	(f)	 	UPC Broadband in respect of its interest in the share capital of UPC Nederland
B.V.;
	 
	 	(g)	 	UPC Broadband in respect of its interest in the share capital of UPC Central
Europe Holding B.V. (previously called Stipdon Investments B.V.).;
	 
	 	(h)	 	UPC Scandinavia Holding B.V. in respect of its interest in the share capital of
United Pan-Europe Communications Norge AS;
	 
	 	(i)	 	UPC Scandinavia Holding B.V. and UPC Austria Holding B.V. (previously called
Cable Networks Austria Holding B.V.) in respect of their respective interests in the
share capital of UPC Belgium SA;
	 
	 	(j)	 	UPC Scandinavia Holding B.V. in respect of its interest in the share capital of
NBS Nordic Broadband Services AB;
	 
	 	(k)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Czech Holding B.V.;
	 
	 	(l)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Slovakia Holding B.V.;
	 
	 	(m)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Romania Holding B.V.; and
	 
	 	(n)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interests in the share capital of Telekabel Hungary N.V.
	 
	 	(o)	 	UPC Broadband in respect of the its interest in the share capital of UPC Poland
Holding B.V. (previously called UPC Telecom B.V.).

	2.	 	Pledge by each of UPC Holding and UPC Holding II of its partnership interest in UPC
Financing.

	3. 	i) 	 	Obligor Pledge of Shareholder Loans between UPC Broadband, UPC Scandinavia Holding B.V.,
UPC Central Europe Holding B.V. (previously called Stipdon

150

 

	 	 	 	Investments B.V.), UPC Nederland B.V. and UPC Financing Partnership and the Security
Agent;
	 
	 	(b)	 	Pledge of Subordinated Shareholder Loans between UPC Holding and the Security
Agent;
	 
	 	(c)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent;
	 
	 	(d)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent;
	 
	 	(e)	 	Obligor Pledge of Shareholder Loans between UPC Central Europe Holding B.V.
(previously called Stipdon Investments B.V.) and the Security Agent;
	 
	 	(f)	 	Obligor Pledge of Shareholder Loans between Scandinavia Holding B.V. and the
Security Agent;
	 
	 	(g)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent; and
	 
	 	(h)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent in respect of UPC Poland Holding B.V. receivables;
	 
	 	(i)	 	Obligor Pledge of Shareholder Loans between UPC Poland Holding B.V. and the
Security Agent in respect of UPC Polska LLC receivables;
	 
	 	(j)	 	Obligor Pledge of Shareholder Loans between UPC France Holding B.V. and the
Security Agent in respect of MediaReseaux receivables; and
	 
	 	(k)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent in respect of UPC France Holding SNC receivables.

	4.	 	Deed of pledge of registered shares in favour of the Security Agent by UPC Broadband over its
interest in UGC Europe Holding Services B.V.
	 
	5.	 	Bank account pledge between UPC Broadband, Fortis Bank (Nederland) B.V. and the Security
Agent.
	 
	6.	 	Securities account pledge between UPC Scandinavia Holding B.V., Fortis Bank (Nederland) N.V.
and the Security Agent in relation to the shares in the capital of NBS Nordic Broadband AB.

151

 

SCHEDULE 8

BORROWER GROUP STRUCTURE

 

			
	*	 	All the asterisked entities are not part of the Borrower Group at the Signing Date. These
entities figure on the chart for the sake of clarification.
	 
	1.	 	One share in UPC Belgium S.A. is held by UPC Austria Holding B.V.

152

 

SCHEDULE 9

SHAREHOLDERS’ AGREEMENTS

	1.	 	Austria
	 
	 	 	Syndikatsvereinbarung (shareholders agreement) dated 28 June 1995 among Osterreichische
Philips Industrie GmbH, Cable Networks Austria Holding B.V. and Kabel-TV-Wien GmbH. (In
English and German).
	 
	2.	 	France
	 
	 	 	Stockholders Agreement dated 29 February 2000 between Belmarken Holding B.V., InterComm
France CVOHA, InterComm France II CVOHA and Reflex Participants.
	 
	3.	 	The Netherlands
	 
	 	 	Shareholders’ Agreement, dated 6 July 1995, among The Municipality of Amsterdam, A2000
Holding N.V. and Kabeltelevisie Amsterdam B.V. (in English).
	 
	4.	 	Romania
	 
	 	 	Partnership Agreement between Comtec 2000, Multicanal Holdings S.R.L. and Control SA.

153

 

SIGNATORIES

[This section is not restated]

154

 

SCHEDULE 3

RESTATED NEW SECURITY DEED

DATED 16 JANUARY 2004 AS AMENDED PURSUANT TO AN AMENDMENT DEED DATED 25

JANUARY 2004 AND AMENDED AND RESTATED PURSUANT TO A DEED OF AMENDMENT

AND RESTATEMENT DATED 10 May 2006

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Clause	 	 	 	 
	 
	 	 	 	 	 	 
	1.

	 	Interpretation
	 	 	1	 
	2.

	 	Powers of the Security Agent
	 	 	8	 
	3.

	 	General Duties of the Security Agent
	 	 	10	 
	4.

	 	Supplementary Provisions
	 	 	10	 
	5.

	 	Enforcement of and Other Action under the Security Agent Security Documents
	 	 	13	 
	6.

	 	Application of Proceeds
	 	 	14	 
	7.

	 	Restrictions and Limitations on and Exclusions of the Duties and Responsibilities of the
Security Agent
	 	 	16	 
	8.

	 	No Restriction on or Liability to Account for Other Transactions
	 	 	18	 
	9.

	 	Changes to Parties to this Deed
	 	 	18	 
	10.

	 	Effect of this Deed as regards the Charging Entities
	 	 	22	 
	11.

	 	Senior Hedging Agreements
	 	 	22	 
	12.

	 	High Yield Hedging Agreements
	 	 	24	 
	13.

	 	Miscellaneous
	 	 	25	 
	14.

	 	Notices
	 	 	26	 
	15.

	 	Governing Law and Jurisdiction
	 	 	28	 
	 
	 	 	 	 	 	 
	Schedule	 	 	 	 
	 
	 	 	 	 	 	 
	1.

	 	The Original Guarantors
	 	 	29	 
	2.

	 	Lenders
	 	 	31	 
	3.

	 	Form of Facility Agent’s Deed of Accession
	 	 	33	 
	4.

	 	Form of Senior Hedging Bank’s Deed of Accession
	 	 	35	 
	5.

	 	Form of Security Provider’s Deed of Accession
	 	 	37	 
	6.

	 	Form of Security Agent’s Deed of Accession
	 	 	39	 
	7.

	 	Form of High Yield Hedging Bank’s Deed of Accession
	 	 	41	 
	 
	 	 	 	 	 	 
	Signatories	 	 	43	 

 

 

THIS DEED is dated 16 January 2004 as amended by an amendment deed dated 24 June 2004 and a
deed of amendment and restatement dated 10 May 2006 and made

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (previously called UPC Distribution Holding B.V.) (UPC Broadband);
	 
	(2)	 	UPC HOLDING B.V., a private limited company incorporated under the laws of The Netherlands
with its registered office as of the Signing Date at Beech Avenue 100, 1119 PW Schiphol Rijk,
Postbus 74763, 1070 BT Amsterdam, The Netherlands as Subordinated Creditor;
	 
	(3)	 	THE COMPANIES whose names and addresses are set out in Schedule 1 as Original Guarantors;
	 
	(4)	 	THE LENDERS AND FINANCIAL INSTITUTIONS whose names and addresses are set out in Schedule 2 in
their capacities as Lenders;
	 
	(5)	 	TORONTO DOMINION (TEXAS) LLC in its capacity as Facility Agent;
	 
	(6)	 	TD BANK EUROPE LIMITED in its capacity as Security Agent;
	 
	(7)	 	The Senior Hedging Banks who are a party to this Deed from time to time; and
	 
	(8)	 	The High Yield Hedging Banks who are a party to this Deed from time to time.

WHEREAS:

	(A)	 	By an agreement (as from time to time amended, varied, extended, restated, refinanced or
replaced, the New Facility Agreement) dated 16 January 2004 and made between UPC Broadband
(1), the entities whose names and registered offices are set out in Schedule 1 thereto as
Original Guarantors (2), the banks and financial institutions whose names and addresses are
set out in part 2 of schedule 1 thereto as Initial Original Facility Lenders (3), the Facility
Agent (3) and the Security Agent (4) and Toronto Dominion (Texas) LLC as facility agent under
the Existing Facility (6), the Lenders have agreed to make available to UPC Broadband credit
facilities of up to €1,072,000,000 as well as additional credit facilities from time to time.
	 
	(B)	 	The execution and delivery of this Deed, pursuant to which, inter alia, the Security Agent
agrees to hold the benefit of the Security Agent Security Documents (including the security
created thereby) on trust or as otherwise provided by this Deed is one of the conditions
precedent to the Lenders making their Additional Facility Commitments available under the New
Facility Agreement.
	 
	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed (including its recitals), unless the context otherwise requires:
	 
	 	 	Additional Facility Lender means:

	 	(a)	 	an Initial Additional Facility Lender; and
	 
	 	(b)	 	any person which has become a New Lender under an Additional Facility in
accordance with Clause 26 (Changes to the Parties) of the New Facility Agreement,

1

 

	 	 	 	which in each case has not ceased to be a party to the New Facility Agreement in accordance
with the terms of the New Facility Agreement;
	 
	 	 	 	Beneficiaries means the Second Beneficiaries and, where the context permits, the First
Beneficiary;

Changeover Date means the date on which:

	 	(a)	 	the Total Commitments (as defined in the Existing Facility Agreement) have been
irrevocably cancelled or reduced to nil and all Senior Indebtedness (as defined in the
Existing Security Deed) has been irrevocably paid in full; and
	 
	 	(b)	 	the Total Commitments have been irrevocably cancelled or reduced to nil and all
Senior Indebtedness has been irrevocably paid in full. Paragraph (b) of this
definition shall not apply for the purposes of Clause 7.8 (Indemnity Beneficiaries)
only.

Charging Entities means the Borrowers, the Original Guarantors, UPC Holding, any other
person who enters into an Obligor Accession Agreement as an Additional Guarantor or as an
Additional Borrower pursuant to Clause 26.4 (Additional Obligors) of the New Facility
Agreement and any Subordinated Creditor, Security Provider or High Yield Hedging
Counterparty who has entered into a Security Provider’s Deed of Accession;

Deed of Accession means a Facility Agent’s Deed of Accession, a Security Agent’s Deed of
Accession, a Senior Hedging Bank’s Deed of Accession, a High Yield Hedging Bank’s Deed of
Accession, an Obligor Accession Agreement, or a Security Provider’s Deed of Accession (as
the case may be);

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 (a) at any time before the Changeover Date, the date on which the
Facility Agent gives a notice under Clause 18.22 (Acceleration) of the New Facility
Agreement or (b) at any time on or after the Changeover Date, the date on which the Security
Agent notifies UPC Broadband that an event of default or termination event (however
described) has occurred and is continuing under the Senior Hedging Agreements or the High
Yield Hedging Agreements;

Facility Agent’s Deed of Accession means a deed of accession substantially in the form set
out in Schedule 3 (Form of Facility Agent’s Deed of Accession);

Facility D means the €1,071,836,720 term loan originally made to UPC Broadband under the New
Facility Agreement;

First Beneficiary means the Security Agent, to the extent only of the amounts payable to the
Security Agent (for its own account) pursuant to the New Facility Agreement or any of the
Security Agent Security Documents (which includes without limitation all amounts payable to
the Security Agent in respect of third party costs and expenses but excluding amounts
payable to the Security Agent in respect of its rights under Clause 5.3 (Security Agent as
joint and several creditor) and the equivalent provisions of any other Finance Documents)
and any other person who may be appointed as Security Agent pursuant to the provisions of
the New Facility Agreement, to the extent only of the amounts payable to the Security Agent
(for its own account) pursuant to the New Facility Agreement or any of the Security Agent
Security Documents, in relation to the period from and including its

2

 

appointment up to and including its retirement as Security Agent pursuant to the provisions
of this Deed;

Further Assurance Deed means any Security Agent Security Document executed or to be executed
pursuant to a further assurance covenant or obligation contained in another Security Agent
Security Document;

High Yield Hedging Agreements means any currency and/or interest rate hedging agreements,
each as amended, increased or novated from time to time entered into by a High Yield Hedging
Counterparty at any relevant time with a High Yield Hedging Bank in relation to any
Serviceable Subordinated Debt;

High Yield Hedging Bank’s Deed of Accession means a deed of accession substantially in the
form set out in Schedule 7 (Form of High Yield Hedging Bank’s Deed of Accession);

High Yield Hedging Counterparty means any person other than a member of the Borrower Group
who enters into a High Yield Hedging Agreement;

High Yield Hedging Discharge Date means the date on which each High Yield Hedging Bank has
notified the Security Agent that its High Yield Hedging Indebtedness has been fully and
finally satisfied and no further transactions can be entered into in respect of the High
Yield Hedging Agreements entered into by any High Yield Hedging Bank;

High Yield Hedging Exposure means, with respect to a High Yield Hedging Bank, on a Valuation
Date, the sum of:

	 	(a)	 	in respect of its High Yield Hedging Agreements which have then been
terminated:

	 	(i)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
mandatory prepayment and cancellation of the Facility D under the New Facility
Agreement or the Facilities under the Existing Facility Agreement, the aggregate
amount(s) outstanding from any High Yield Hedging Counterparty to such High
Yield Hedging Bank in respect of any High Yield Hedging Agreements which relate
to such Serviceable Subordinated Debt; and
	 
	 	(ii)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
prepayment and cancellation of Facility D under the New Facility Agreement or
the Facilities under the Existing Facility Agreement, other than in mandatory
prepayment, only the Relevant Proportion of the aggregate amount(s) outstanding
from any High Yield Hedging Counterparty to such High Yield Hedging Bank in
respect of any High Yield Hedging Agreements which relate to such Serviceable
Subordinated Debt; and

	 	(b)	 	in respect of its High Yield Hedging Agreements which have not then been
terminated:

	 	(i)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
mandatory prepayment and cancellation of Facility D under the New Facility
Agreement or the Facilities under the Existing Facility Agreement, the aggregate
of the amount(s) (the Termination Amount(s)), if any, that would be payable to
such High Yield Hedging Bank by any High Yield Hedging Counterparty in respect
of such High Yield Hedging Agreements to which such High Yield Hedging Bank is a
party relating to such Serviceable Subordinated Debt (expressed as a positive
number) or

3

 

	 	 	 	by such High Yield Hedging Bank to any High Yield Hedging Counterparty in
respect of such High Yield Hedging Agreements (expressed as a negative
number) if such High Yield Hedging Agreements to which such High Yield
Hedging Bank and such High Yield Hedging Counterparty are a party were being
terminated as of the relevant Valuation Date and such amount shall be
determined by the Security Agent acting reasonably and in good faith as its
estimate at mid-market of the net replacement cost of such terminated High
Yield Hedging Agreements, which estimate shall, in the absence of manifest
error, be binding on the parties to such High Yield Hedging Agreements; and

	 	(ii)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
prepayment and cancellation of Facility D under the New Facility Agreement or
the Facilities under the Existing Facility Agreement, other than in mandatory
prepayment, only the Relevant Proportion of the Termination Amount(s),

provided that (x) if any amount payable by any High Yield Hedging Counterparty to a High
Yield Hedging Bank under or in respect of any High Yield Hedging Agreement described above
is netted (in whole or in part) against any amount payable by such High Yield Hedging Bank
under any other High Yield Hedging Agreement or under any other interest rate or currency
hedging arrangements, the High Yield Hedging Exposure of that High Yield Hedging Bank shall
be the netted amount payable to it under such High Yield Hedging Agreements and (y) if the
High Yield Hedging Exposure of any High Yield Hedging Bank is less than zero it shall be
deemed to be zero;

High Yield Hedging Indebtedness means:

	 	(a)	 	where all or part of the proceeds of the Subordinated Shareholder Loans in
respect of any Serviceable Subordinated Debt have been applied in mandatory prepayment
and cancellation of Facility D under the New Facility Agreement or the Facilities under
the Existing Facility Agreement, all indebtedness covenanted to be paid or discharged
by any High Yield Hedging Counterparty to the High Yield Hedging Banks under any High
Yield Hedging Agreements which relate to such Serviceable Subordinated Debt; and
	 
	 	(b)	 	where all or part of the proceeds of the Subordinated Shareholder Loans in
respect of any Serviceable Subordinated Debt have been applied in prepayment and
cancellation of Facility D under the New Facility Agreement or the Facilities under the
Existing Facility Agreement other than in mandatory prepayment, only the Relevant
Proportion of the indebtedness covenanted to be paid or discharged by any High Yield
Hedging Counterparty to the High Yield Hedging Banks under any High Yield Hedging
Agreements which relate to such Serviceable Subordinated Debt;

Instructing Party means, at any time prior to the Changeover Date, the Lenders or the
Majority Lenders (as the case may be) in accordance with the terms of the Finance Documents
or, at any time from (and including) the Changeover Date, all of the High Yield Hedging
Banks (in relation to matters where consent of all High Yield Hedging Banks is required in
accordance with the terms of the relevant documents) or the Majority Hedging Banks (as the
case may be);

Majority Hedging Banks means on any Valuation Date the High Yield Hedging Banks the
aggregate of whose High Yield Hedging Exposure exceeds 66 2/3 per cent. of the Total High
Yield Hedging Exposure.

Original Security Agent Security Documents means this Deed, the guarantee and indemnity
arrangements contained in Clause 14 of the New Facility Agreement, the Intercreditor
Agreement

4

 

and the Security Documents substantially in the form of those listed in Schedule 7 of the
New Facility Agreement;

Relevant Proportion means the proportion that the amount of any relevant Serviceable
Subordinated Debt that is on-lent to the Borrower Group by a Subordinated Creditor by means
of a Subordinated Shareholder Loan and applied in permanent prepayment and cancellation of
the Facilities under the Existing Facility Agreement or Facility D under the New Facility
Agreement bears to the aggregate amount of such Serviceable Subordinated Debt;

Second Beneficiaries means the Senior Beneficiaries and the High Yield Hedging Banks;

Secured Assets means the undertaking, goodwill, property, assets or rights of whatsoever
nature which are the subject of the security created pursuant to any of the Security Agent
Security Documents;

Secured Obligations means the Security Agent Indebtedness, the Senior Indebtedness, and the
High Yield Hedging Indebtedness;

Security Agent Indebtedness means the amounts referred to in the definition of First
Beneficiary;

Security Agent’s Deed of Accession means a deed of accession substantially in the form set
out in Schedule 6 (Form of Security Agent’s Deed of Accession);

Security Agent Security Documents means the Original Security Agent Security Documents, any
other Security Documents, each Deed of Accession and all other mortgages, charges,
guarantees, inter-creditor deeds and other instruments from time to time entered into in
favour of the Security Agent by way of guarantee or other assurance and/or security for or
(in the case of inter-creditor agreements or deeds) otherwise in relation to the Secured
Obligations, each as amended, increased or novated from time to time;

Security Provider means any person other than an Obligor, a Subordinated Creditor or a
Beneficiary who has entered into a Security Document;

Security Provider’s Deed of Accession means a deed of accession substantially in the form of
Schedule 5 (Form of Security Provider’s Deed of Accession);

Senior Beneficiaries means the Facility Agent, the Lenders, the Existing Lenders (in respect
of any ongoing right to receive interest payments under Clause 26.3 (Procedure for
novations) of the New Facility Agreement) and the Security Agent (in respect of its rights
under Clause 5.3 (Security Agent as joint and several creditor) and the equivalent
provisions of any other Finance Documents);

Senior Hedging Bank’s Deed of Accession means the deed of accession substantially in the
form set out in Schedule 4 (Form of Senior Hedging Bank’s Deed of Accession);

Senior Hedging Counterparty means a member of the Borrower Group who enters into a Senior
Hedging Agreement;

Senior Indebtedness means all indebtedness covenanted to be paid or discharged by all or any
of the Charging Entities to all or any of the Senior Beneficiaries under the Finance
Documents (for the avoidance of doubt the terms of this Deed shall not alter the nature of
any several obligation of a Charging Entity under any of the Finance Documents);

5

 

Subordinated Creditors means any Restricted Person who has, at any relevant time, entered
into a Pledge of Subordinated Shareholder Loans and the Security Deed or a Security
Provider’s Deed of Accession;

Total Commitments means the aggregate Total Additional Facility Commitments for all
Additional Facilities;

Total High Yield Hedging Exposures means the aggregate of the High Yield Hedging Exposures
of all the High Yield Hedging Banks;

Trust Property means collectively, (a) the security, powers, rights, titles, benefits and
interests (both present and future) constituted by and conferred on the Security Agent under
or pursuant to the Security Agent Security Documents (including, without limitation, the
benefit of all covenants given in the Security Agent Security Documents), (b) all moneys,
property and other assets paid or transferred to or vested in the Security Agent (or any
agent of the Security Agent) or received or recovered by the Security Agent (or any agent of
the Security Agent) pursuant to, or in connection with, any of the Security Agent Security
Documents whether from any Charging Entity or any other person and (c) all rights, benefits,
interests, money, investments, property and other assets at any time representing or
deriving from any of the foregoing, including all interest, income and other sums at any
time received or receivable by the Security Agent (or any agent of the Security Agent) in
respect of the same (or any part thereof);

Valuation Date means any date on which a High Yield Hedging Exposure falls to be determined.

	1.2	 	Successors and assigns
	 
	 	 	In this Deed, unless the context otherwise requires, a reference to a person includes its
successors and permitted transferees and assigns.
	 
	1.3	 	Agreement definitions
	 
	 	 	Unless the context otherwise requires or unless otherwise defined in this Deed, words and
expressions defined in the New Facility Agreement (as amended and restated from time to
time) shall have the same meaning when used in this Deed.
	 
	1.4	 	Headings
	 
	 	 	Clause and schedule headings and the contents page are inserted for convenience of reference
only and shall be ignored in the interpretation of this Deed.
	 
	1.5	 	Construction of certain terms
	 
	 	 	In this Deed, unless the context otherwise requires:

	 	(a)	 	references to Clauses and 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)	 	reference to (or to any specified provision of) this Deed or any other document
shall be construed as references to this Deed, that provision or that document as in
force for the time being and as amended 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 this Deed or the relevant document or otherwise, required to be obtained
as a condition to such amendment being permitted) the prior written consent of the
Facility Agent, the Security Agent, all of the Lenders, the Majority Lenders or all or
any of the Beneficiaries (as the case may be);

6

 

	 	(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,
only if compliance therewith is in accordance with the general practice of the relevant
persons to whom it is intended to apply) 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 person includes any individual, firm, company, corporation,
unincorporated body of persons or any state or any of its agencies;
	 
	 	(f)	 	references to assets includes all or any part of any business, undertaking,
real property, personal property, uncalled capital and any rights (whether actual or
contingent, present or future) to receive, or require delivery of, any of the
foregoing;
	 
	 	(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 a provision of the law is a reference to that provision as
amended, re-enacted or extended;
	 
	 	(i)	 	references to indebtedness include any obligation for the payment or repayment
of money, whether as principal or as surety and whether present or future, actual or
contingent;
	 
	 	(j)	 	references to amendment includes a supplement, novation or re-enactment and
amended is to be construed accordingly.

	1.6	 	Effect as a deed
	 
	 	 	This Deed is intended to take effect as a deed notwithstanding that the Security Agent or
any other party hereto may have executed it under hand only.
	 
	1.7	 	Specific capacity of parties
	 
	 	 	References in this Deed to the Facility Agent, the Lenders, the High Yield Hedging Banks,
the Senior Hedging Banks, the Borrowers, the Guarantors, the Security Providers, the
Charging Entities, the High Yield Hedging Counterparties, the Subordinated Creditors or the
Security Agent and references to the obligations or liabilities of such person shall be
strictly construed as references to any such person or (as the case may be) obligations or
liabilities of any such person solely in its capacity as such.
	 
	1.8	 	Majority Lenders and Majority Hedging Banks
	 
	(a)	 	Where this Deed provides for any matter to be determined by reference to the opinion of the
Majority Lenders or to be subject to the consent or request of the Majority Lenders or for any
action to be taken on the instructions of the Majority Lenders, such opinion, consent, request
or instructions shall (as between the Lenders) only be regarded as having been validly given
or issued by the Majority Lenders if all of the Lenders shall have received appropriate prior
notice of the matter on which such opinion, consent, request or instructions are required to
be obtained and the relevant majority of Lenders shall have given or issued such opinion,
consent, request or instructions but each Charging Entity shall be entitled (and bound) to
assume that such notice shall have been duly

7

 

	 	 	received by each Lender and that the relevant majority shall have been obtained to
constitute Majority Lenders whether or not this is in fact the case.
	 
	(b)	 	Where this Deed provides for any matter to be determined by reference to the opinion of the
Majority Hedging Banks or to be subject to the consent or request of the Majority Hedging
Banks or for any action to be taken on the instructions of the Majority Hedging Banks, such
opinion, consent, request or instructions shall (as between the High Yield Hedging Banks) only
be regarded as having been validly given or issued by the Majority Hedging Banks if all of the
High Yield Hedging Banks shall have received appropriate prior notice of the matter on which
such opinion, consent, request or instructions are required to be obtained and the relevant
majority of High Yield Hedging Banks shall have given or issued such opinion, consent, request
or instructions but each Charging Entity shall be entitled (and bound) to assume that such
notice shall have been duly received by each High Yield Hedging Bank and that the relevant
majority shall have been obtained to constitute Majority Hedging Banks whether or not this is
in fact the case.
	 
	1.9	 	Instructing Party
	 
	 	 	Where, at any relevant time, the Instructing Party is the Lenders or the Majority Lenders,
the instructions of the Lenders or the Majority Lenders (as the case may be) shall be
provided to the Security Agent by the Facility Agent on their behalf. Where at any relevant
time, the Instructing Party are all the High Yield Hedging Banks or the Majority Hedging
Banks, the instructions of all the High Yield Hedging Banks (as the case may be) or the
Majority Hedging Banks shall be provided to the Security Agent by each High Yield Hedging
Bank and the Majority Hedging Banks respectively.
	 
	1.10	 	Equality of treatment
	 
	 	 	Following the Facility A Refinancing Date (as defined in the Existing Security Deed), any
instruction given to the Security Agent on behalf of the Majority Lenders or the Lenders (as
the case may be) pursuant to the terms of this Deed will not be effective unless an
instruction on the same terms is also given to the Security Agent under the Existing
Security Deed.
	 
	2.	 	POWERS OF THE SECURITY AGENT
	 
	2.1	 	Authorisation of Security Agent
	 
	 	 	Each of the Beneficiaries hereby authorises the Security Agent (whether or not by or through
employees or agents):

	 	(a)	 	to exercise such rights, remedies, powers and discretions as are specifically
delegated to or conferred upon the Security Agent by the Security Agent Security
Documents together with such powers and discretions as are reasonably incidental
thereto; and
	 
	 	(b)	 	to take such action on its behalf or in its own name as may from time to time
be authorised under or in accordance with the Security Agent Security Documents.

	2.2	 	Extent of Security Agent’s duties
	 
	 	 	The Security Agent shall have no duties, obligations or liabilities to any of the
Beneficiaries beyond those expressly stated in the Security Agent Security Documents.

8

 

	2.3	 	Security Agent’s authority to execute Security Agent Security Documents
	 
	 	 	Each of the Beneficiaries hereby confirms its approval of the Security Agent Security
Documents and authorises, empowers and directs the Security Agent (by itself or by such
person(s) as it may nominate) to enter into and execute:

	 	(a)	 	each of the Original Security Agent Security Documents (and each Beneficiary
ratifies any Original Security Agent Security Document which the Security Agent shall
have entered into prior to the execution of this Deed);
	 
	 	(b)	 	any one or more further Security Agent Security Documents comprising a Further
Assurance Deed; and
	 
	 	(c)	 	any and all such further Security Agent Security Documents as may be approved
by the Instructing Party in writing for entry into by the Security Agent,

and, in each and every case, to (i) hold any and all guarantees and/or security thereby
created, as appropriate, for the Beneficiaries in the manner contemplated by this Deed; and
(ii) enforce the Security Agent Security Documents as trustee or as otherwise provided (and
whether or not expressly) in the names of the Beneficiaries on its behalf or for itself.

	2.4	 	Amendments to Security Agent Security Documents
	 
	 	 	Subject to Clause 2.5 (Matters requiring unanimous consent), the Security Agent may (a)
prior to the Changeover Date, with the consent of all of the Majority Lenders, or (b) on or
after the Changeover Date, with the consent of the Majority Hedging Banks (provided that no
amendment may be made to Clause 11 (Senior Hedging Agreements) unless, contemporaneously
with such change, an identical change is made to clause 11 (Senior Hedging Agreements) of
the Existing Security Deed), or (c) at any time if and to the extent expressly authorised by
any other provision of any relevant Security Agent Security Document, amend, modify or
otherwise vary or waive breaches of, or defaults under, or otherwise excuse performance of,
any provision of any Security Agent Security Document. Any such action so authorised and
effected by the Security Agent shall be promptly notified to the Facility Agent (before the
Changeover Date) and the High Yield Hedging Banks (after the Changeover Date) and shall be
binding on all of the Beneficiaries. For the avoidance of doubt the consent of any
Beneficiary other than those specifically referred to in (a) and (b) above shall not be
required in relation to any of the matters referred to in this Clause 2.4.
	 
	2.5	 	Matters requiring unanimous consent
	 
	 	 	Except (a) prior to the Changeover Date, with the prior written consent of all of the
Lenders, or (b) on or after the Changeover Date, with the prior written consent of all of
the High Yield Hedging Banks, the Security Agent shall not have authority on behalf of the
Beneficiaries:

	 	(a)	 	to agree with any Charging Entity any amendment or waiver that has the effect
of changing or which relates to:

	 	(i)	 	(prior to the Changeover Date only) any of the items set out in
Clause 25.2(a) (Exceptions) of the New Facility Agreement; and
	 
	 	(ii)	 	(on or following the Changeover Date) (A) an extension to the
date of payment of any amount of principal or interest payable under any
Security Agent Security Document, (B) this Clause 2.5, (C) the definition of
Majority Hedging Banks or (D) a change to any provision of any Security Agent
Security Document which expressly requires the consent of all the High Yield
Hedging Banks; or

9

 

	 	(b)	 	to release any asset from a Security Agent Security Document (except as
otherwise expressly permitted in the New Facility Agreement or in such Security Agent
Security Document and except in furtherance of a disposal or any other transaction
which is permitted (or would have been permitted but for the Changeover Date having
occurred) by any Finance Document or Security Agent Security Document); or
	 
	 	(c)	 	to release any Guarantor from its obligations under any guarantee under Clause
14 (Guarantee) of the New Facility Agreement other than in accordance with Clause 26
(Changes to the Parties) of the New Facility Agreement.

For the avoidance of doubt the consent of any Beneficiary other than those specifically
referred to in subparagraphs (a)(i) and (ii) above shall not be required in relation to any
of the matters referred to in this Clause 2.5.

	3.	 	GENERAL DUTIES OF THE SECURITY AGENT
	 
	3.1	 	Duty to act on instructions from the Instructing Party
	 
	 	 	The Security Agent shall (subject always to Clauses 2.4 (Amendments to Security Agent
Security Documents), 2.5 (Matters requiring unanimous consent), 7.7 (Unlawful actions ) and
7.8 (Indemnity by Beneficiaries)) act, in its capacity as trustee of and generally in
relation to the Trust Property or as joint and several creditor or agent (as the case may
be) or (as the case may be) refrain from acting, as directed in writing from time to time by
the Instructing Party in accordance with Clause 5.2 (Duty to act as directed). In taking
(or, as the case may be, in refraining from taking) any such action, the Security Agent may
rely on the indemnities set out in the Finance Documents but, if the Security Agent deems
such indemnities not to be satisfactory, the Security Agent shall not be bound to act (or,
as the case may be, refrain from acting) on such directions unless and until the Security
Agent shall have been indemnified to its satisfaction against all liabilities, damages,
costs and claims liable to be incurred by the Security Agent in so acting (or, as the case
may be, refraining from acting).
	 
	3.2	 	Protection in acting on Facility Agent’s instructions
	 
	 	 	The Security Agent and each Charging Entity shall be entitled (and bound) to assume that any
directions given by the Facility Agent under or pursuant to this Deed are either the
directions of the Majority Lenders or, as the case may be, all the Lenders, being made
through the Facility Agent, or the directions of the Facility Agent itself, acting pursuant
to the provisions of the Finance Documents to which the Facility Agent may from time to time
be party (as appropriate) or as otherwise duly authorised or empowered by or on behalf of
the Lenders.
	 
	3.3	 	Duty to notify
	 
	 	 	The Security Agent shall promptly notify the Facility Agent (prior to the Changeover Date)
and the High Yield Hedging Banks (on or after the Changeover Date) of the contents of each
notice, certificate or other document received by the Security Agent from any Charging
Entity under or pursuant to any of the Security Agent Security Documents.
	 
	4.	 	SUPPLEMENTARY PROVISIONS
	 
	4.1	 	Declaration of Trust
	 
	 	 	The Security Agent hereby declares itself trustee of the Trust Property with effect from the
date of this Deed to hold the same on trust for the Beneficiaries and to apply the same in
accordance with Clause 6 (Application of Proceeds).

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	4.2	 	Duration
	 
	 	 	This Deed shall remain in full force and effect until whichever is the earliest of:

	 	(a)	 	(if the trust is applicable) the expiration of a period of 80 years from the
date of this Deed;
	 
	 	(b)	 	the date on which the Security Agent receives unconditional confirmation in
writing from all the Beneficiaries that there is no longer outstanding any Security
Agent Indebtedness, Senior Indebtedness or High Yield Hedging Indebtedness nor are any
of the Beneficiaries under an obligation to permit such indebtedness to be incurred,
such confirmation to be promptly provided by the Beneficiaries and, in any event, to be
deemed to have been given if not provided within 10 Business Days of written request
from the Security Agent; and
	 
	 	(c)	 	the unconditional release of the Charging Entities from all their respective
obligations under the Security Agent Security Documents,

and the parties to this Deed declare that the perpetuity period applicable to this Deed
shall for the purposes of the Perpetuities and Accumulations Act 1964 be the period of 80
years. The Security Agent shall notify UPC Broadband promptly on receipt by the Security
Agent of any written confirmation referred to in paragraph (b) above.

	4.3	 	Powers of Security Agent
	 
	 	 	In its capacity as trustee in relation to the Security Agent Security Documents and in
relation to the Trust Property, the Security Agent shall, without prejudice to any of the
powers, discretions and immunities conferred upon trustees by law (and to the extent not
inconsistent with the provisions of this Deed or any of the other Security Agent Security
Documents), have all the same powers and discretions as a natural person acting as the
beneficial owner of such property and/or as are conferred upon the Security Agent by this
Deed and/or any other Security Agent Security Document Provided that the Security Agent may
only exercise such powers and discretions to the extent that the Security Agent is
authorised so to exercise the same in accordance with the provisions of this Deed, the New
Facility Agreement and the relevant Security Agent Security Document (including
specifically, but without limitation, Clause 5.2 (Duty to act as directed) of this Deed)
and, in exercising such powers and discretions, the Security Agent shall have regard to and
comply with any applicable constraints and/or restrictions imposed by this Deed.
	 
	4.4	 	Power to invest
	 
	 	 	It is expressly declared that, in its capacity as trustee in relation to the Security Agent
Security Documents, the Security Agent shall be entitled to invest moneys forming part of
the Trust Property and which, in the opinion of the Security Agent, may not be paid out
promptly following receipt in the name or under the control of the Security Agent in any of
the investments for the time being authorised by law for the investment by trustees of trust
moneys or in any other property or investments whether similar to the aforesaid or not or by
placing the same on deposit in the name or under the control of the Security Agent as the
Security Agent may think fit without being under any duty to diversify its investments and
the Security Agent may at any time vary or transpose any such property or investments for or
into any others of a like nature and shall not be responsible for any loss due to
depreciation in value or otherwise of such property or investments except in the case of
fraud, wilful misconduct or gross negligence on the part of the Security Agent. Any
investment of any part or all of the Trust Property may, at the discretion of the Security
Agent, be made or retained in the names of nominees.

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	4.5	 	Power to engage agents
	 
	 	 	The Security Agent may in the conduct of its obligations under and in respect of the
Security Agent Security Documents (otherwise than in relation to its right to make any
declaration, determination or decision), instead of acting personally, employ and pay any
agent to transact or concur in transacting any business and to do or concur in doing any
acts required to be done by the Security Agent (including the receipt and payment of money).
Any such agent engaged in any profession or business shall be entitled to be paid all usual
professional and other charges for business transacted and acts done by him or any partner
or employee of his in connection with such trusts. The Security Agent shall not be bound to
supervise, or be responsible for any loss incurred by reason of any act or omission of, any
such agent if the Security Agent shall have exercised reasonable care in the selection of
such agent.
	 
	4.6	 	Power to appoint new trustees
	 
	 	 	Without prejudice to Clause 10 (Effect of this Deed as regards the Charging Entities), the
statutory power to appoint new or additional trustees of the trusts constituted by this Deed
shall be vested in the Security Agent.
	 
	4.7	 	Power to appoint additional trustees
	 
	 	 	With the prior consent of the Instructing Party, the Security Agent shall have power, by
notice in writing given to the Facility Agent, to appoint any person either to act as
separate trustee or as co-trustee jointly with the Security Agent:

	 	(a)	 	if the Security Agent considers such appointment to be in the interests of the
Beneficiaries; or
	 
	 	(b)	 	for the purpose of conforming with any legal requirement, restriction or
condition in any jurisdiction in which any particular act is to be performed; or
	 
	 	(c)	 	for the purpose of obtaining a judgment in any jurisdiction or the enforcement
in any jurisdiction against any person of a judgment already obtained,

and any person so appointed shall (subject to the provisions of this Deed) have such rights
(including as to reasonable remuneration) and such trusts, powers, authorities and
discretions (not exceeding those conferred on the Security Agent by this Deed) and such
duties and obligations as shall be conferred or imposed by the instrument of appointment.
The Security Agent shall have power to remove any person so appointed. At the request of
the Security Agent, the other parties to this Deed shall forthwith execute all such
documents and do all such things as may be required to perfect such appointment or removal
and each such party irrevocably authorises the Security Agent in its name and on its behalf
to do the same. The Security Agent shall not be bound to supervise, or be responsible for
any loss incurred by reason of any act or omission of, any such person if the Security Agent
shall have exercised reasonable care in the selection of such person.

	4.8	 	Co-trustees to act by majority decision
	 
	 	 	If there ever shall be more than two trustees having equal authority under this Deed the
majority of such trustees shall be competent to execute and exercise all the duties, powers,
trusts, authorities and discretions vested by this Deed in the Security Agent generally.
	 
	4.9	 	Conflicts of law; consent of Beneficiaries to amendments to trusts
	 
	 	 	It is agreed between all parties to this Deed that:

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	 	(a)	 	in relation to any jurisdiction the courts of which would not recognise or give
effect to the trusts expressed to be constituted by this Deed, the relationship of the
Security Agent to the other Beneficiaries shall be construed simply as one of agent and
principal or as otherwise provided in Clause 5.3 (Security Agent as joint and several
creditor) but, to the fullest extent permissible under the laws of each and every such
jurisdiction, this Deed shall have full force and effect as between the parties; and
	 
	 	(b)	 	any of the provisions of this Clause 4 or of Clause 6 (Application of
Proceeds), 7 (Restrictions and Limitations on and Exclusions of the Duties and
Responsibilities of the Security Agent) or 8 (No Restriction on or Liability to Account
for Other Transactions) may be amended by agreement between the Security Agent and the
other Beneficiaries without the consent of any other party to this Deed so long as such
amendments do not impose additional obligations on the Charging Entities and each such
other party irrevocably authorises the Security Agent in its name and on its behalf to
execute all documents necessary to effect any such amendment.

	5.	 	ENFORCEMENT OF AND OTHER ACTION UNDER THE SECURITY AGENT SECURITY DOCUMENTS
	 
	5.1	 	All action through the Security Agent
	 
	 	 	None of the Beneficiaries shall have any independent power to enforce any of the Security
Agent Security Documents or to exercise any rights, discretions or powers or to grant any
consents or releases under or pursuant to any of the Security Agent Security Documents or
otherwise have direct recourse to the security and/or guarantees constituted by any of the
Security Agent Security Documents except through the Security Agent.
	 
	5.2	 	Duty to act as directed
	 
	 	 	Subject to Clause 3.1 (Duty to act on instructions from the Instructing Party), the Security
Agent shall take such action (including, without limitation, the exercise of all rights,
discretions or powers and the granting of consents or releases) or, as the case may be,
refrain from taking such action under or pursuant to the Security Agent Security Documents
as the Instructing Party shall specifically direct the Security Agent in writing from time
to time. Unless and until the Security Agent shall have received such directions, the
Security Agent shall not take any action under the Security Agent Security Documents
provided that it may (but in the absence of such directions shall not be obliged to) take
such action permitted under the terms of the Security Agent Security Documents as it
reasonably believes necessary or appropriate to protect the interests of the Beneficiaries
under the Security Agent Security Documents but the Charging Entities shall not be concerned
with whether the Security Agent shall be acting in accordance with these provisions and
shall be conclusively entitled to assume that the Security Agent has all the necessary
right, title and authority.
	 
	5.3	 	Security Agent as joint and several creditor
	 
	 	 	Each Charging Entity and each of the Beneficiaries agrees that the Security Agent shall be
the joint and several creditor (hoofdelijk crediteur) of each and every obligation of each
Charging Entity towards each of the Beneficiaries under each Finance Document and the High
Yield Hedging Agreements and that accordingly the Security Agent will have its own
independent claim as creditor and not as agent against each Charging Entity to demand
performance of those obligations, provided that it is expressly acknowledged that any
discharge of its payment obligations to either of the Security Agent or the relevant
Beneficiary shall to the same extent discharge the corresponding obligations owing to the
other.

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	5.4	 	Security Agent’s rights as joint and several creditor
	 
	 	 	Without limiting or affecting the Security Agent’s rights against the Charging Entities
(whether under this clause or under any other provision of the Finance Documents) the
Security Agent agrees with each Beneficiary that it will not exercise its rights as a joint
and several creditor with a Beneficiary under Clause 5.3 (Security Agent as joint and
several creditor) except with the prior written consent of the relevant Beneficiary.
However, for the avoidance of doubt, nothing in the previous sentence shall in any way limit
the Security Agent’s rights to act in the protection or preservation of rights under or to
enforce any Security Agent Security Document as contemplated by the Finance Documents. Any
amount recovered by the Security Agent as a result of the operation of this clause shall be
held for the benefit of the Beneficiaries to be applied in accordance with Clause 6.2 (Order
of application on enforcement).
	 
	5.5	 	Security Agent and Dutch Security
	 
	 	 	Subject to the provisions of this Clause, the Security Agent shall obtain any Security
provided under or pursuant to a Security Document governed by Dutch law (the Dutch Security)
in its own name. The Security Agent shall have full and unrestricted entitlement to and
authority in respect of the Dutch Security, provided that it shall be under an obligation to
exercise such rights (and obligations) in accordance with the contractual undertakings set
out in this Deed including but not limited to Clause 5.4 (Security Agent’s rights as joint
and several creditor).

	6.	 	APPLICATION OF PROCEEDS
	 
	6.1	 	Co-operation to achieve agreed priorities of application
	 
	 	 	The Beneficiaries shall co-operate with each other and with the Security Agent in realising
the Secured Assets and in ensuring that the net proceeds realised under the Security Agent
Security Documents after deduction of the expenses of realisation are applied in accordance
with Clause 6.2 (Order of application on enforcement).
	 
	6.2	 	Order of application on enforcement
	 
	 	 	All moneys received by the Security Agent and/or any other moneys otherwise received by it
pursuant to any of the Security Agent Security Documents shall be applied, after the
discharge of the remuneration and expenses of all liabilities having priority to the Secured
Obligations, in the order set out below except that the Security Agent may credit the same
to a suspense account (bearing interest at a commercially competitive rate according to the
currency, amount and period of deposit of such moneys) for so long and in such manner as the
Security Agent may from time to time determine, save that if the amounts standing to the
credit of the suspense account are at least equal to the Secured Obligations such amounts
must be promptly applied in or towards satisfaction of the Secured Obligations. The monies
received by the Security Agent shall be applied as follows:

	 	(a)	 	FIRST, as to a sum equivalent to the aggregate of the Security Agent
Indebtedness for the First Beneficiary absolutely.
	 
	 	(b)	 	SECONDLY, as to a sum equivalent to the sum of the aggregate of (i) the Senior
Indebtedness, and (ii) the Total High Yield Hedging Exposures to the Second
Beneficiaries absolutely (and shall pay (A) to the Senior Beneficiaries in the order
set out in clause 9.7 (Partial payments) of the New Facility Agreement a sum equivalent
to the proportion that the Senior Indebtedness bears to the aggregate of the Senior
Indebtedness and the Total High Yield Hedging Exposures; and (B) to each High Yield
Hedging Bank a sum equivalent to the proportion that the High Yield Hedging Exposure
owing to such High Yield Hedging Bank bears to the aggregate of the Senior Indebtedness
and the Total High Yield Hedging

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	 	 	 	Exposures provided that applications made by the Security Agent pursuant to paragraph
(B) of this Clause 6.2(b) shall not exceed €200,000,000 in aggregate or such
greater amount agreed from time to time by UPC Broadband and the Security Agent
(acting on the instructions of the Majority Lenders).
	 
	 	 	 	If, following application by the Security Agent of amounts in accordance with this
paragraph (b), (x) any amounts received by the Security Agent have not been applied
to reduce Total High Yield Hedging Exposure owing to High Yield Hedging Banks as a
result of the proviso to subparagraph (B) above and (y) the Changeover Date has not
occurred, the Security Agent shall apply any such excess amounts in accordance with
subparagraph (A) above (but disregarding the Total High Yield Hedging Exposure for
this purpose only).
	 
	 	(c)	 	THIRDLY, subject to each of the Changeover Date and the Senior Hedge Discharge
Date (as defined in the Existing Security Deed) having occurred, to each High Yield
Hedging Bank a sum equivalent to the proportion that the outstanding High Yield Hedging
Exposure of such High Yield Hedging Bank bears to the outstanding High Yield Hedging
Exposure of all the High Yield Hedging Banks.
	 
	 	(d)	 	FOURTHLY, subject to the High Yield Hedging Discharge Date having occurred, as
to the balance for the relevant Charging Entity or whoever else is entitled to such
balance absolutely.

	 	 	Distributions pursuant to this Clause 6.2 shall be made as soon as reasonably practicable
after receipt by the Security Agent of the sums being distributed.
	 
	6.3	 	Security Agent to rely on Beneficiaries
	 
	 	 	In considering at any time (and from time to time) the persons entitled to the benefit of
any of the Secured Obligations, the Security Agent may (without prejudice to Clause 7.4
(Limit on Security Agent’s responsibility)), rely and act in reliance upon any information
from time to time furnished to the Security Agent by the Beneficiaries (whether pursuant to
Clause 7.4 (Limit on Security Agent’s responsibility) or otherwise) unless and until the
same is superseded by further such information, so that the Security Agent shall have no
liability or responsibility to any party as a consequence of placing reliance on and acting
in reliance upon any such information unless the Security Agent has actual knowledge that
such information is inaccurate or incorrect.
	 
	6.4	 	Information to be provided to the Security Agent
	 
	 	 	Without prejudice to Clause 6.3 (Security Agent to rely on Beneficiaries), each Beneficiary
(whether directly or through the Facility Agent) shall provide the Security Agent with all
necessary directions in writing so as to apply the proceeds of realisation of the security
constituted by the Security Agent Security Documents as contemplated by this Deed and such
other information as it may reasonably require for the purpose of carrying out its duties
and obligations under the Security Agent Security Documents provided that each Beneficiary
is not obliged to disclose such other information where, in its reasonable opinion, to do so
would materially and adversely prejudice its affairs.
	 
	6.5	 	Waivers by the Charging Entities
	 
	 	 	Each Charging Entity hereby unconditionally waives any right it may have, whether at law or
otherwise, to require demands to be made under the Finance Documents or for the security or
any guarantee created by the Finance Documents to be enforced or realised in any specific
order or manner or to require the proceeds thereof to be appropriated in any specific order
or manner.

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	6.6	 	Security Agent’s duty of care
	 
	 	 	Nothing in this Deed shall in any case where the Security Agent has failed to show the
degree of care and diligence required of it as a trustee having regard to the provisions of
the Security Agent Security Documents exempt the Security Agent from or indemnify it against
any liability for breach of trust or any liability which by virtue of any rule of law would
otherwise attach to it in respect of any fraud, gross negligence, wilful default, gross
breach of duty or gross breach of trust of which it may be guilty in relation to its duties
under any of the Security Agent Security Documents.
	 
	7.	 	RESTRICTIONS AND LIMITATIONS ON AND EXCLUSIONS OF THE DUTIES AND RESPONSIBILITIES OF THE
SECURITY AGENT
	 
	7.1	 	No liability
	 
	 	 	The Security Agent shall not:

	 	(a)	 	be obliged to make any enquiry as to any default by any Charging Entity in the
performance or observance of any provision of any of the Security Agent Security
Documents or as to whether any event or circumstance has occurred as a result of which
the security constituted by any of the Security Agent Security Documents shall have or
may become enforceable; or
	 
	 	(b)	 	be liable to any of the Beneficiaries for any action taken or omitted under or
in connection with any of the Security Agent Security Documents unless caused by its
fraud, gross negligence or wilful misconduct.

	7.2	 	Limited duty to notify
	 
	 	 	The Security Agent shall not have any duty or responsibility, either initially or on a
continuing basis, to provide any of the Beneficiaries with any information with respect to
any Charging Entity whenever coming into its possession other than as provided in Clauses
2.4 (Amendments to Security Agent Security Documents) and 3.3 (Duty to notify).
	 
	7.3	 	Indemnity from Security Agent Security Documents
	 
	 	 	The Security Agent and every agent or other person appointed by it in connection with its
appointment under this Deed shall be entitled to be indemnified out of the proceeds of
enforcement of the Security Agent Security Documents and/or the Trust Property in respect of
all liabilities, damages, costs, claims, charges or expenses whatsoever properly incurred or
suffered by it:

	 	(a)	 	in the execution or exercise or bona fide purported execution or exercise of
the trusts, rights, powers, authorities, discretions and duties created or conferred by
or pursuant to the Security Agent Security Documents; and/or
	 
	 	(b)	 	in respect of any matter or thing done or omitted or in any way relating to the
Trust Property or the provisions of any of the Security Agent Security Documents.

	 	 	The rights conferred by this Clause 7.3 are without prejudice to any right to indemnity by
law given to trustees generally and to any provision of the Security Agent Security
Documents entitling the Security Agent or any other person to indemnity in respect of,
and/or reimbursement of, any liabilities, damages, costs, claims, charges or expenses
incurred or suffered by it in connection with any of the Security Agent Security Documents
or the performance of any duties under any of the Security Agent Security Documents.
Nothing contained in this Clause 7.3 shall entitle the Security Agent or any other person to
be indemnified in respect of any liabilities, damages, costs, claims,

16

 

	 	 	charges or expenses to the extent that the same arise from such person’s own fraud, gross
negligence or wilful misconduct.
	 
	7.4	 	Limit on Security Agent’s responsibility
	 
	 	 	The Security Agent shall not have any responsibility to any Beneficiary (a) to ascertain
whether all deeds and documents which should have been deposited with it under or pursuant
to any Security Agent Security Document have been so deposited or (b) to investigate or make
any enquiry into the title of any Charging Entity to the Secured Assets or any part thereof
or (c) for the failure, omission or defect in perfecting or registering any Security Agent
Security Document in accordance with the requirements of any applicable law or regulation
(other than as a result of gross negligence on the part of the Security Agent) or (d) for
the failure, omission or defect in perfecting or registering any Security Agent Security
Document in accordance with the provisions of the documents of title of any Charging Entity
to any of the Secured Assets (other than as a result of gross negligence on the part of the
Security Agent) or (e) for acting (or, as the case may be, refraining from acting) in
accordance with the directions of any of the Beneficiaries given pursuant to this Deed.
	 
	7.5	 	Reliance on communications and professional advice
	 
	 	 	The Security Agent shall be entitled to rely on any communication, instrument or document
believed by it to be genuine and correct unless notified to the contrary and to have been
signed or sent by the proper person and shall be entitled to rely as to legal or other
professional matters on opinions and statements of any legal or other professional advisers
selected or approved by it.
	 
	7.6	 	Retention of deeds and documents; power to grant access
	 
	 	 	The Security Agent shall not (save where the Security Agent has a pledge of shares) be under
any obligation to hold any Security Agent Security Documents or any other document in
connection with the Security Agent Security Documents or the Secured Assets (including title
deeds) in its own possession or to take steps to protect or preserve the same. The Security
Agent shall be entitled (a) to permit any Beneficiary to retain any Security Agent Security
Documents or other documents in its possession; or (b) to place all deeds, certificates and
other documents relating to the Secured Assets deposited with it under or pursuant to the
Security Agent Security Documents or any of them in any safe deposit, safe or receptacle
selected by the Security Agent or with any solicitor or firm of solicitors and may make any
such arrangements as it thinks fit for allowing the Charging Entity concerned access to, or
its solicitors or auditors possession of, such documents when necessary or convenient and
the Security Agent shall not be responsible for any loss incurred in connection with any
such deposit, access or possession.
	 
	7.7	 	Unlawful actions
	 
	 	 	The Security Agent may refrain from doing anything which would, or might in its opinion, be
contrary to any law of any jurisdiction or any directive, regulation or regulatory
requirement of any State (or any agency thereof) or which would or might render it liable to
any person and may do anything which is, in its opinion, necessary to comply with any such
law, directive, regulation or regulatory requirement.
	 
	7.8	 	Indemnity by Beneficiaries
	 
	 	 	Prior to the Changeover Date each Lender shall reimburse the Security Agent (rateably in
accordance with such Lender’s Commitment) and on or after the Changeover Date each High
Yield Hedging Bank shall reimburse the Security Agent (rateably in accordance with the
proportion that its High Yield Hedging Exposure, bears to the aggregate of the Total High
Yield Hedging Exposure) in either case to the extent that the Security Agent is not
reimbursed by the Charging Entities in respect

17

 

	 	 	of all liabilities, damages, costs, claims, charges or expenses referred to in Clause 7.3
(Indemnity from Security Agent Security Documents).
	 
	8.	 	NO RESTRICTION ON OR LIABILITY TO ACCOUNT FOR OTHER TRANSACTIONS
	 
	8.1	 	Rights as a Beneficiary
	 
	 	 	With respect to its own status as a Beneficiary the Security Agent shall have the same
rights and powers under the Security Agent Security Documents as any other Beneficiary and
may exercise the same as though it were not performing the duties and functions of the
Security Agent.
	 
	8.2	 	Other dealings
	 
	 	 	The Security Agent may, without any liability to account to any of the Beneficiaries, accept
deposits from, lend money to, and generally engage in any kind of trust or banking business
(other than in relation to the Trust Property) with any Charging Entity, or any of their
respective Subsidiaries or Associated Companies as if it were not the Security Agent.
	 
	8.3	 	Separate capacities
	 
	 	 	Notwithstanding that the Facility Agent and the Security Agent may from time to time be the
same entity, the Facility Agent and Security Agent have entered into this Deed in their
separate capacities. Provided that where this Deed provides for the Facility Agent to
communicate with or provide instructions to the Security Agent, while the Facility Agent and
the Security Agent are the same entity, it will not be necessary for there to be any such
formal communication or instructions notwithstanding that this Deed provides in certain
cases for the same to be in writing.
	 
	9.	 	CHANGES TO PARTIES TO THIS DEED
	 
	9.1	 	Retirement of Security Agent
	 
	(a)	 	The Security Agent may, at any time upon 30 days’ notice to UPC Broadband and the Lenders and
conditional upon the successor security agent executing a Security Agent’s Deed of Accession
to give effect to the provisions of subclause (c) below, retire from its appointment as
Security Agent under this Deed. No such retirement shall take effect unless there has been
appointed by the Lenders as a successor security agent:

	 	(i)	 	a Lender nominated by the Majority Lenders with the consent of UPC Broadband
(not to be unreasonably withheld or delayed); or, failing such a nomination
	 
	 	(ii)	 	any other reputable and experienced bank or financial institution with offices
in London nominated by the Security Agent with the consent of UPC Broadband (not to be
unreasonably withheld or delayed).

	(b)	 	On the Changeover Date the provisions of Clause 9.1(a) shall cease to apply and the Security
Agent may, upon 30 days’ notice to UPC Broadband and the High Yield Hedging Banks and
conditional upon the successor security agent executing a Security Agent’s Deed of Accession
to give effect to the provisions of subclause (c) below, retire from its appointment as
Security Agent under this Deed. No such retirement shall take effect unless there has been
appointed as a successor security agent any reputable and experienced bank or financial
institution with offices in London nominated by the Security Agent with the consent of UPC
Broadband (not to be unreasonably withheld or delayed). The High Yield Hedging Banks
undertake to the Security Agent that following receipt of a notice from the Security Agent
pursuant to this Clause 9.1(b) they will ensure that a successor security agent is appointed
in accordance with this Clause 9.1(b) as soon as practicable.

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	(c)	 	Upon any such successor as aforesaid being appointed, and subject to appropriate arrangements
having been made:

	 	(i)	 	in relation to the rights, titles and interests constituted by this Deed; and
	 
	 	(ii)	 	for the purpose of ensuring the preservation of all security interests in the
name of the successor as may be required by the laws applicable to the relevant
Security Documents,

	 	 	to the satisfaction of the Beneficiaries, the retiring Security Agent shall be discharged
from any further obligations under this Deed but shall remain entitled to the benefit of the
provisions of this Deed in relation to the period from and including its appointment up to
and including its retirement as Security Agent and its successor and the other parties to
this Deed shall have the same rights and obligations among themselves as they would have had
if such successor had been a party to this Deed in place of the retiring Security Agent.
	 
	(d)	 	Any corporation into which the Security Agent may be merged or converted or any corporation
with which the Security Agent may be consolidated or any corporation resulting from any
merger, conversion, amalgamation, consolidation or other reorganisation to which the Security
Agent shall be a party shall, to the extent permitted by applicable law and subject to the
preservation of any Security Interest under the laws applicable thereto, be the successor
Security Agent under the Security Agent Security Documents without the execution or filing of
any document or any further act on the part of any of the parties to this Deed or any Security
Agent Security Document, save that notice of any such merger, conversion, amalgamation,
consolidation or other reorganisation shall forthwith be given to UPC Broadband and the
Beneficiaries.
	 
	9.2	 	Effective Date
	 
	 	 	The retirement of the Security Agent and the appointment of the successor agent shall take
effect (subject to compliance with the provisions of Clause 9.1 (Retirement of Security
Agent)) upon the signing by the Security Agent and the successor agent of all deeds and
other documents and the performing of all other acts necessary for the transfer of all the
Security Agent’s title to and interest in the Secured Assets (other than any interest
accruing to the Security Agent by virtue of the Security Agent being a Second Beneficiary)
to the successor agent, such title and interest to be held by the successor trustee on the
same trusts and on the same terms as if the successor agent had been a party to this Deed in
place of the retiring Security Agent.
	 
	9.3	 	Transfer by the Lenders
	 
	 	 	Each party to this Deed agrees and acknowledges that (a) the Lenders may transfer their
respective rights, liabilities and obligations under this Deed in accordance with the
provisions of Clause 26 (Changes to the Parties) of the New Facility Agreement and (b) if a
Lender transfers all of its commitment, rights and obligations under the New Facility
Agreement it shall cease to be a Beneficiary in its capacity as a Lender but if at such time
it is also a High Yield Hedging Bank it shall continue to be a Beneficiary in such capacity.
Each party to this Deed agrees and acknowledges that, subject to the terms of the New
Facility Agreement, any person may become an Additional Facility Lender by delivering to the
Facility Agent an Additional Facility Accession Agreement and that each Additional Facility
Lender will become a party to this Deed in the capacity as a Lender on the date specified in
the Additional Facility Accession Agreement.
	 
	9.4	 	References to Lenders following a transfer
	 
	 	 	If any Lender transfers all or any of its rights and obligations as provided in Clause 9.3
(Transfer by the Lenders) all relevant references in the Security Agent Security Documents
to such Lender shall thereafter be construed as a reference to such Lender and/or a New
Lender (as such term is defined

19

 

	 	 	in Clause 26.2 of the New Facility Agreement) to the extent of their respective rights
and/or obligations and, in the case of a transfer of all or part of such Lender’s rights or
obligations, the other parties to the Security Agent Security Documents shall thereafter
look only to the New Lender in respect of that proportion of that Lender’s rights or
obligations under the relevant Security Agent Security Documents as corresponds to the
rights or obligations assumed by such New Lender.
	 
	9.5	 	Authorisation of Facility Agent
	 
	 	 	Each party to this Deed irrevocably authorises the Facility Agent to countersign each
Novation Certificate on its behalf without any further consent of, or consultation with, any
such party provided that all relevant conditions under the New Facility Agreement have been
satisfied.
	 
	9.6	 	Charging Entities
	 
	 	 	None of the Charging Entities may assign or transfer any of their respective rights or
obligations under this Deed other than pursuant to clause 26.1 (Transfers by Obligors) of
the New Facility Agreement. Each party to this Deed agrees and acknowledges that (a) upon
the execution and delivery of an Obligor Accession Agreement in accordance with Clause 26.4
(Additional Obligors) of the New Facility Agreement, the relevant Additional Guarantor or
Additional Borrower shall become a party to this Deed and to the Intercreditor Agreement as
a Charging Entity; (b) upon the execution and delivery of a Security Provider’s Deed of
Accession in accordance with the New Facility Agreement, the relevant Subordinated Creditor,
Security Provider or High Yield Hedging Counterparty will become a party to this Deed and to
the Intercreditor Agreement as a Charging Entity.
	 
	9.7	 	Assignment and/or transfer by Senior Hedging Banks
	 
	 	 	Each party to this Deed agrees and acknowledges that upon the execution and delivery of a
Senior Hedging Bank’s Deed of Accession the relevant Senior Hedging Bank will become a party
to this Deed as such. Each party to this Deed agrees and acknowledges that a Senior Hedging
Bank may assign or transfer all or any of its rights, liabilities or obligations under this
Deed, provided that:

	 	(a)	 	such assignment or transfer is contemporaneous with and to the same person as
an assignment or transfer by the relevant Senior Hedging Bank of its corresponding
rights and/or obligations in respect of the relevant Senior Hedging Agreements (as the
case may be);
	 
	 	(b)	 	such assignment or transfer shall be conditional upon the relevant assignee or
transferee having executed a Senior Hedging Bank’s Deed of Accession by which such
assignee or transferee agrees to be bound by and comply with the obligations incumbent
upon the relevant Senior Hedging Bank under this Deed and the Security Agent Security
Documents as if it had been a party to this Deed in place of the Senior Hedging Bank;
and
	 
	 	(c)	 	such assignment or transfer is contemporaneous with an assignment or transfer
by the relevant Senior Hedging Bank of its corresponding rights and obligations under
the Existing Security Deed.

	 	 	The Security Agent may deem and treat such assignee or transferee as a Senior Hedging Bank
(as the case may be) for all purposes of this Deed and the Security Agent Security Documents
after the conditions set out in this Clause 9.7 have been satisfied.

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	9.8	 	Assignment and/or transfer by High Yield Hedging Banks
	 
	 	 	Each party to this Deed agrees and acknowledges that upon the execution and delivery of a
High Yield Hedging Bank’s Deed of Accession the relevant High Yield Hedging Bank will become
a party to this Deed as such. Each party to this Deed agrees and acknowledges that a High
Yield Hedging Bank may assign or transfer all or any of its rights, liabilities or
obligations under this Deed, provided that:

	 	(a)	 	such assignment or transfer is contemporaneous with and to the same person as
an assignment or transfer by the relevant High Yield Hedging Bank of its corresponding
rights and/or obligations in respect of the relevant High Yield Hedging Agreements (as
the case may be); and
	 
	 	(b)	 	any such assignment or transfer shall be conditional upon the relevant assignee
or transferee having executed a High Yield Hedging Bank’s Deed of Accession by which
such assignee or transferee agrees to be bound by and comply with the obligations
incumbent upon the relevant High Yield Hedging Bank under this Deed and the Security
Agent Security Documents as if it had been a party to this Deed in place of the High
Yield Hedging Bank; and
	 
	 	(c)	 	such assignment or transfer is contemporaneous with an assignment or transfer
of the relevant High Yield Hedging Bank of its corresponding rights and obligations
under the Existing Security Deed.

	 	 	The Security Agent may deem and treat such assignee or transferee as a High Yield Hedging
Bank (as the case may be) for all purposes of this Deed and the Security Agent Security
Documents after the conditions set out in this Clause 9.8 have been satisfied.
	 
	9.9	 	Discharge of retiring Facility Agent
	 
	 	 	Upon any successor to the Facility Agent being appointed pursuant to Clause 19.15
(Resignation of Agents) of the New Facility Agreement and conditional upon the successor
agent (the New Facility Agent) executing and delivering a Facility Agent’s Deed of
Accession, the retiring Facility Agent shall be discharged from any further obligations
under this Deed and the New Facility Agent and each of the other parties to this Deed shall
have the same rights and obligations among themselves as they would have had if the New
Facility Agent had been a party to this Deed in place of the retiring Facility Agent.
	 
	9.10	 	Deeds of Accession
	 
	(a)	 	Each party to this Deed shall be fully entitled to rely on any Deed of Accession and any
related documents that may be required under Clause 9.2 (Effective Date) delivered to the
Security Agent in connection with this Deed which is complete and regular on its face as
regards its contents and purportedly signed on behalf of the new Facility Agent, Security
Agent, Senior Hedging Bank, High Yield Hedging Bank or new Charging Entity, as appropriate.
	 
	(b)	 	No party to this Deed shall have any liability or responsibility to any other party to this
Deed as a consequence of placing reliance on and acting in accordance with such Deed of
Accession if it proves to be the case that it was not authentic or duly authorised.
	 
	(c)	 	Each of the parties to this Deed hereby irrevocably authorises the Security Agent to execute
any duly completed Deed of Accession as appropriate, on behalf of that party.

21

 

	(d)	 	The Security Agent shall provide a copy of each duly completed Deed of Accession to UPC
Broadband upon request.
	 
	10.	 	EFFECT OF THIS DEED AS REGARDS THE CHARGING ENTITIES
	 
	10.1	 	Consent and agreement to arrangements
	 
	 	 	Each of the Charging Entities joins in this Deed for the purpose of acknowledging the
provisions of this Deed and undertakes with the Security Agent and each of the Beneficiaries
to observe the provisions of this Deed at all times and not in any way to prejudice or
affect the enforcement of such provisions or do anything which would be in breach of the
terms of this Deed.
	 
	10.2	 	No prejudice to other rights and remedies
	 
	 	 	Nothing contained in this Deed shall as between any Charging Entity and the Security Agent
and/or the Beneficiaries or any of them affect or prejudice any rights or remedies of any
such person against any Charging Entity in respect of any of the Secured Obligations.
	 
	11.	 	SENIOR HEDGING AGREEMENTS
	 
	11.1	 	Senior Hedging Agreements
	 
	 	 	Each of the Senior Hedging Banks agrees that any Senior Hedging Agreements to which it is a
party governing the terms of a hedging transaction will provide for “two way payments” in
the event of a termination of that hedging transaction entered into under such Senior
Hedging Agreements howsoever caused, meaning that the defaulting party under those Senior
Hedging Agreements will be entitled to receive payment under the relevant termination
provisions if the net replacement value of all terminated transactions effected under the
Senior Hedging Agreements is in its favour, but that netting will not be permitted between
any Senior Hedging Agreements and any other interest rate or currency hedging arrangements.
For the avoidance of doubt, the parties agree that close out netting within and among any
Senior Hedging Agreements is not prohibited.
	 
	11.2	 	Termination of Senior Hedging Agreements
	 
	 	 	Each of the Senior Hedging Banks agrees with the Security Agent and the other Beneficiaries
that prior to the Changeover Date it will not terminate any of the Senior Hedging Agreements
other than Cash Flow Hedging Agreements to which it is a party except:

	 	(a)	 	as a result of non-payment of any indebtedness under such Senior Hedging
Agreements which non-payment continues for seven days after notice of such non-payment
has been given by such Senior Hedging Bank to the Security Agent (provided that if such
Senior Hedging Bank and the Security Agent are the same entity it will not be necessary
for there to be any formal notice of such non-payment to be given by such Senior
Hedging Bank to the Security Agent); or
	 
	 	(b)	 	a Senior Hedging Bank may terminate a Senior Hedging Agreement upon the
earliest of:

	 	(i)	 	the last day on which a payment of principal is due to be made
under the New Facility Agreement in respect of any Additional Facility in
relation to which that Senior Hedging Agreement provides interest rate or
currency hedging protection from time to time;

22

 

	 	(ii)	 	an acceleration of the principal amount outstanding under the New
Facility Agreement, following consultation with (but without being required to
obtain the consent of) the Security Agent; or
	 
	 	(iii)	 	the date on which the Lenders have been repaid in full in
respect of any Additional Facility in relation to which that Senior Hedging
Agreement provides interest rate or currency hedging protection from time to
time and the Additional Facility Commitment in respect of such Additional
Facility has been reduced to zero; or

	 	(c)	 	following the repudiation of any such Senior Hedging Agreements by the relevant
Senior Hedging Counterparty; or
	 
	 	(d)	 	upon:

	 	(i)	 	it becoming contrary to any law or regulation for the relevant
Senior Hedging Counterparty or such Senior Hedging Bank to perform the payment
obligations expressed to be assumed by it in respect of such Senior Hedging
Agreements or such obligations becoming invalid or unenforceable against the
relevant Senior Hedging Counterparty; or
	 
	 	(ii)	 	any provision of such Senior Hedging Agreements relating to the
termination thereof (including, without limitation, the calculation of or
obligation to pay amounts upon such termination) becoming invalid or
unenforceable against the relevant Senior Hedging Counterparty; or

	 	(e)	 	an order being made either for the administration or winding-up of the relevant
Senior Hedging Counterparty or there occurs in relation to the relevant Senior Hedging
Counterparty in any country or territory in which it carries on business any event
which corresponds with either event or has similar or equivalent effects to either
event; or
	 
	 	(f)	 	with the prior written consent of the Security Agent (acting on the
instructions of the Majority Lenders).

	11.3	 	Proceeds of termination of Senior Hedging Agreements
	 
	 	 	Each Senior Hedging Bank and each Charging Entity which is a party to any Senior Hedging
Agreement agrees that:

	 	(a)	 	if upon the termination of any Senior Hedging Agreement and following the
application of any netting pursuant to the terms thereof an amount falls due from the
Senior Hedging Bank to a Senior Hedging Counterparty that amount shall be paid by the
Senior Hedging Bank, to the extent that it is lawfully possible, to the Security Agent
and shall be treated to the extent that the Security Agent is entitled to do and
subject, without limitation, to Clause 7.7 (Unlawful actions), as the proceeds of
enforcement of the Security Agent Security Documents and shall be applied in accordance
with Clause 6.2 (Order of application on enforcement);
	 
	 	(b)	 	promptly after the Facility Agent takes any action as is referred to in Clause
18.22 (Acceleration) of the New Facility Agreement or the facility agent under the
Existing Facility Agreement takes any action as is referred to in clause 18.22
(Acceleration) of the Existing Facility Agreement or the non-payment of any amount due
under the New Facility Agreement or the Existing Facility Agreement on the last day on
which a payment of principal is due to be made under the New Facility Agreement or the
Existing Facility Agreement (as applicable) each Senior Hedging Bank:

23

 

	 	(i)	 	shall exercise any and all rights it may have to terminate and
close out all Senior Hedging Agreements to which it is a party, unless the
Facility Agent (acting on the instructions of the Majority Lenders) and the
facility agent under the Existing Facility Agreement (acting on the instructions
of the Majority Lenders as defined in the Existing Facility Agreement) otherwise
agrees;
	 
	 	(ii)	 	shall not enter into any new Senior Hedging Agreements without
the consent of the Facility Agent (acting on the instructions of the Majority
Lenders) and the facility agent under the Existing Facility Agreement (acting on
the instructions of the Majority Lenders as defined in the Existing Facility
Agreement); and

	 	(c)	 	promptly following the giving thereof, it will provide the Security Agent with
a copy of any notice of the termination of any Senior Hedging Agreements.

	11.4	 	Copies of Senior Hedging Agreements
	 
	 	 	Each Senior Hedging Bank undertakes to provide the Security Agent with a copy of each
document constituting the Senior Hedging Agreements to which it is a party and each
amendment, supplement or variation to it upon it becoming a party to this Deed or upon the
execution of the same, if later.
	 
	12.	 	HIGH YIELD HEDGING AGREEMENTS
	 
	12.1	 	High Yield Hedging Agreements
	 
	 	 	Each of the High Yield Hedging Banks agrees that any High Yield Hedging Agreements to which
it is a party governing the terms of a hedging transaction will provide for “two way
payments” in the event of a termination of that hedging transaction entered into under such
High Yield Hedging Agreements howsoever caused, meaning that the defaulting party under
those High Yield Hedging Agreements will be entitled to receive payment under the relevant
termination provisions if the net replacement value of all terminated transactions effected
under the High Yield Hedging Agreements is in its favour. The parties hereto agree that
close out netting within and among any High Yield Hedging Agreements and/or within and among
any High Yield Hedging Agreements and any other interest rate or currency hedging
arrangements is not prohibited.
	 
	12.2	 	Copies of High Yield Hedging Agreements
	 
	 	 	Each High Yield Hedging Bank undertakes to provide the Security Agent with a copy of each
document constituting the High Yield Hedging Agreements to which it is a party and each
amendment, supplement or variation to it upon it becoming a party to this Deed or upon the
execution of the same, if later and promptly following the giving thereof a copy of any
notice of the termination of any High Yield Hedging Agreements.
	 
	12.3	 	Release of Security Agent Security Documents
	 
	 	 	Each High Yield Hedging Bank undertakes to the Charging Entities that if the Beneficiaries
request the release of the security created by the Security Agent Security Documents either
after the Changeover Date or in connection with a refinancing of the New Facility Agreement,
they will negotiate in good faith with a view to agreeing replacement arrangements providing
them with equivalent security (taking into account the reduced amount of the Secured
Obligations) to that which was available to them under the Security Agent Security Documents
prior to the Changeover Date or such refinancing (as the case may be) and will instruct the
Security Agent to release the Security Agent Security Documents on such replacement
arrangement coming into effect.

24

 

	13.	 	MISCELLANEOUS
	 
	13.1	 	Rights under other arrangements
	 
	 	 	Nothing contained in this Deed shall prejudice or affect the rights of the Security Agent or
the Beneficiaries or any of them under any guarantee, lien, bill, note, charge or other
security (other than pursuant to the Security Agent Security Documents) now or hereafter
held by it in respect of any moneys, obligations or liabilities thereby secured and so that
(without limitation) each and any such person may apply any moneys recovered under any such
guarantee, lien, bill, note, charge or other security in or towards payment of any money,
obligation or liability, actual or contingent, now or hereafter due, owing or incurred to it
by any Charging Entity or may hold such moneys on a suspense account for such period as it
may in its absolute discretion think fit.
	 
	13.2	 	Several obligations
	 
	 	 	The obligations of all parties under this Deed are several; the failure of all parties to
perform such obligations shall not relieve any other Beneficiary or any of the Charging
Entities of any of their respective obligations or liabilities under the Finance Documents
nor shall any Beneficiary be responsible for the obligations of any other Beneficiary under
this Deed.
	 
	13.3	 	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.
	 
	13.4	 	No partnership
	 
	 	 	This Deed shall not and shall not be construed so as to constitute a partnership between the
parties or any of them.
	 
	13.5	 	No implied waivers, remedies cumulative
	 
	 	 	No failure or delay on the part of the Security Agent or any other Beneficiary to exercise
any power, right or remedy under this Deed or any other Security Agent Security Document
shall operate as a waiver thereof, nor shall any single or partial exercise by the Security
Agent or any other Beneficiary of any power, right or remedy preclude any other or further
exercise thereof or the exercise of any other power, right or remedy. The remedies provided
in this Deed and the other Security Agent Security Documents are cumulative and are not
exclusive of any remedies provided by law.
	 
	13.6	 	Counterparts
	 
	 	 	This Deed 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.
	 
	13.7	 	Release of assets
	 
	 	 	Where UPC Broadband requests that the Security Agent releases a Secured Asset from the
charges created by a Security Agent Security Document and the Facility Agent has certified
that such release is permitted under the terms of the Finance Documents, the Security Agent
is authorised and shall at the cost of UPC Broadband execute such deeds and do all such acts
and things as may be reasonably necessary to release the Secured Asset from the charges
created by the relevant Security Agent

25

 

Security Document. Prior to the Changeover Date the consent of none of the High Yield
Hedging Banks shall be required for such release.

	14.	 	NOTICES
	 
	14.1	 	Mechanics
	 
	 	 	All notices or other communications under or in connection with this Deed shall be
given in writing and, unless stated, may be made by letter, telex or facsimile or (to the
extent that (a) the relevant Party has specified such an address pursuant to Clause 32.2 of
the New Facility Agreement (Addresses for Notices) or pursuant to this Deed and (b) such
notice or communication is not required to be signed by an Authorised Signatory, other
officer or board of the relevant entity and the form of such notice or communication does
not provide for signature by an Authorised Signatory, other officer or board of the relevant
entity) by e-mail. Any such notice will be deemed to be given as follows:

	 	(a)	 	if by letter, when delivered personally or on actual receipt; and
	 
	 	(b)	 	if by facsimile or e-mail, when received in legible form.

However, a notice given in accordance with the above but received on a non-working day
or after business hours in the place of receipt will only be deemed to be given on the next
working day in that place.

The address and facsimile number and (if so specified) e-mail address of each Party for
all notices under or in connection with this Deed are:

	 	(a)	 	that notified by that Party for this purpose to the Facility Agent on or before
it becomes a Party; or
	 
	 	(b)	 	any other notified by that Party for this purpose to the Facility Agent by not
less than five Business Days’ notice.
	 
	 	 	 	Every notice, request, demand, or other communication under this Deed shall be
sent:

	 	(i)	 	to each Charging Entity at:

	 	 	 
	 

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	 

	 	Facsimile: + 3120 778 9453
	 

	 	Attention: Dennis Okhuijsen
	 

	 	Email: dokhuijsen@lgi.com
	 
	 	 
	 

	 	with a copy to:
	 

	 	UGC Europe Inc.
	 
	 	 
	 

	 	Facsimile: + 3120 778 9453
	 

	 	Attention: Dennis Okhuijsen
	 

	 	Email: dokhuijsen@lgi.com
	 
	 	 
	 

	 	or its address or facsimile number specified in any relevant Deed of
Accession;

26

 

	 	(ii)	 	to the Facility Agent and the Security Agent at:

	 	 	 
	 

	 	TD Bank Europe Limited
	 

	 	Triton Court
	 

	 	14/18 Finsbury Square
	 

	 	London EC2A 1DB
	 
	 	 
	 

	 	Contact: Rory McCarthy
	 

	 	Facsimile: + 44 207 638 0006
	 

	 	E-mail: rory.mccarthy@tdsecurities.com
	 
	 	 
	 

	 	and in each case with a copy to:
	 

	 	TD Bank Europe Limited
	 

	 	Royal Trust Tower
	 

	 	77 King Street West
	 

	 	18th Floor
	 

	 	Toronto
	 

	 	Ontario
	 

	 	Canada M5K 1A2
	 
	 	 
	 

	 	Contact: Jim Bridewell / Elhamy Khalil
	 

	 	Facsimile: +1 416 307 3826

	 	(iii)	 	to the Lenders at the address or facsimile number:

	 	(A)	 	notified by each such Lender to the Security
Agent for this purpose on or before it becomes a party hereto; or
	 
	 	(B)	 	any other notified by each such Lender to the
Security Agent for this purpose by not less than five Business Days’
notice.

	 	(iv)	 	to each Senior Hedging Bank at its address or facsimile number
specified in the relevant Senior Hedging Bank’s Deed of Accession,

	 	(v)	 	to each High Yield Hedging Bank at its address or facsimile
number specified in the relevant High Yield Hedging Bank’s Deed of Accession,

or to such other address, or facsimile number as is notified by the relevant
party to the other parties to this Deed save that a change of address of a Charging
Entity, a Senior Hedging Bank, a High Yield Hedging Bank or a Lender need only be
notified to the Facility Agent and the Security Agent.

	14.2	 	Notices through the Security Agent
	 
	 	 	Every notice, request, demand or other communication under this Deed to be given by any
Charging Entity to any other party shall be given to the Security Agent for onward
transmission as appropriate and to be given to any Charging Entity shall (except as
otherwise provided in this Deed) be given by the Security Agent.

27

 

	15.	 	GOVERNING LAW AND JURISDICTION

	15.1	 	Law
	 
	 	 	This Deed is governed by and shall be construed in accordance with English law.
	 
	15.2	 	Submission to jurisdiction
The parties to this Deed agree for the benefit of the Beneficiaries that:

	 	(a)	 	if any party has any claim against any other arising out of or in connection
with this Deed such claim shall (subject to Clause 15.2(c)) be referred to the High
Court of Justice in England, to the jurisdiction of which each of the parties
irrevocably submits;
	 
	 	(b)	 	the jurisdiction of the High Court of Justice in England over any such claim
against any Beneficiary shall be an exclusive jurisdiction and no courts outside
England shall have jurisdiction to hear or determine any such claim; and
	 
	 	(c)	 	nothing in this Clause 15.2 shall limit the right of any Beneficiary to refer
any such claim against any Charging Entity to any other court of competent jurisdiction
outside England, to the jurisdiction of which each Charging Entity hereby irrevocably
agrees to submit, nor shall the taking of proceedings by any Beneficiary before the
courts in one or more jurisdictions preclude the taking of proceedings in any other
jurisdiction whether concurrently or not.

	15.3	 	Agent for service of process

Each Charging Entity which is not incorporated in England and Wales irrevocably
designates, appoints and empowers HRO Registrars Limited of Heathcoat House, 20 Saville Row,
London W1X 1AE to receive for it and on its behalf service of process issued out of the High
Court of Justice in England in relation to any claim arising out of or in connection with
this Deed.

	15.4	 	Inconvenient forum

Each Charging Entity irrevocably waives any objection they may have now or hereafter to
the laying of venue of any action or proceeding in any court or jurisdiction referred to in
Clause 15.2 (Submission to jurisdiction) and any claim they 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 the parties to this Deed have caused this Deed to be duly executed on the
date first above written.

28

 

SCHEDULE 1

THE ORIGINAL GUARANTORS

	 	 	 
	Name

	 	Address
	UPC Financing Partnership

	 	4643 South Ulster Street
	 

	 	Suite 1300
	 

	 	Denver, Co 80237
	 

	 	United States
	 
	 	 
	UPC Broadband Holding B.V.

	 	Boeing Avenue 53
	(previously called UPC Distribution Holding B.V.)

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC France Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Austria Holding B.V.

	 	Boeing Avenue 53
	(previously called Cable Network Austria Holding

	 	1119 PE Schiphol Rijk
	B.V.)

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Central Europe Holding B.V.

	 	Boeing Avenue 53
	(previously called Stipdon Investments B.V.)

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Nederland B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands

29

 

	 	 	 
	Name

	 	Address
	 
	 	 
	UPC Poland Holding B.V.

	 	Boeing Avenue 53
	(previously called UPC Telecom B.V.)

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands

30

 

SCHEDULE 2

LENDERS

Name

ARES LEVERAGED INVESTMENT FUND II LP

B&W MASTER TOBACCO RETIRMENT

BANK OF AMERICA N.A.

BEAR STEARNS CORPORATE LENDING INC.

BNP PARIBAS, BELGIAN BRANCH

CANADIAN IMPERIAL BANK OF COMMERCE, LONDON BRANCH

CITIBANK N.A.

CREDIT LYONNAIS SA

CREDIT SUISSE FIRST BOSTON

DEUTSCHE BANK AG

DEUTSCHE BANK STRUCTURED PRODUCTS INC.

FORTIS BANK (NEDERLAND) N.V.

GE CAPITAL CORPORATION

GOLDEN TREE HY MASTER

GOLDEN TREE HY MASTER FUND II

GOLDEN TREE HY OPPORTUNITIES I

GOLDEN TREE HY OPPORTUNITIES II

GOLDEN TREE HY VALUE MASTER FUND

GOLDMAN SACHS CREDIT PARTNERS, L.P.

ING BANK N.V.

JPMORGAN CHASE BANK

MOORE US RESTRUCTURING, L.P.

MORGAN STANLEY EMERGING MARKETS

MORGAN STANLEY SENIOR FUNDING INC

31

 

MUNICIPAL FIRE AND POLICE RETIREMENT FUND

ORN EUROPEAN DEBT FUND L.P.

PERRY PRINCIPALS LLC

QDRF MASTER LIMITED

QUANTUM PARTNERS LDC

SATELLITE SENIOR INCOME FUND LLC

SCOTIABANK EUROPE PLC

STRATEGIC VALUE MASTER FUND LTD

TORONTO DOMINION (TEXAS), INC

THE ROYAL BANK OF SCOTLAND PLC

THE TORONTO-DOMINION BANK

TRS IO LLC

UNIVERSITY OF CHICAGO

32

 

SCHEDULE 3

FORM OF FACILITY AGENT’S DEED OF ACCESSION

THIS FACILITY AGENT’S DEED OF ACCESSION is dated l and made BETWEEN:

	(1)	 	[NEW FACILITY AGENT] (the New Facility Agent) and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Deed dated 16 January 2004 (as amended) between UPC Broadband (1),
UPC Holding B.V. (2), the Original Guarantors (3), the Lenders (4), the Facility Agent (5), the
Security Agent (6), the Senior Hedging Banks (7) and the High Yield Hedging Banks (8) as amended,
varied, extended, restated, refinanced or replaced from time to time (the Security Deed).

WHEREAS:

The New Facility Agent is to become the Facility Agent for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Facility Agent hereby agree that:

	 	(a)	 	the New Facility Agent shall become a party to the Security Deed in its
capacity as the Facility Agent; and
	 
	 	(b)	 	the New Facility Agent shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of the Facility Agent.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New Facility
Agent at:

[Address]

[Telefax]

[Attention]

33

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

	 	 	 	 	 	 	 
	New Facility Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED and DELIVERED as a DEED

	 	 	)	 	 	 
	by [FACILITY AGENT]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[     ]

	 	 	)	 	 	 
	(as Security Agent and on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed

	 	 	)	 	 	 

34

 

SCHEDULE 4

FORM OF SENIOR HEDGING BANK’S DEED OF ACCESSION

THIS SENIOR HEDGING BANK’S DEED OF ACCESSION is dated l and made BETWEEN:

	(1)	 	[NEW SENIOR HEDGING BANK] (the New Senior Hedging Bank); and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Deed dated 16 January 2004 (as amended) between UPC Broadband (1),
UPC Holding B.V. (2), the Original Guarantors (3), the Lenders (4), the Facility Agent (5), the
Security Agent (6), the Senior Hedging Banks (7) and the High Yield Hedging Banks (8) as amended,
varied, extended, restated, refinanced or replaced from time to time (the Security Deed).

WHEREAS:

The New Senior Hedging Bank is to become a Senior Hedging Bank for the purposes of the
Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Senior Hedging Bank hereby agree
that:

	 	(a)	 	the New Senior Hedging Bank shall become a party to the Security Deed in its
capacity as a Senior Hedging Bank; and
	 
	 	(b)	 	the New Senior Hedging Bank shall observe, perform and be bound by the terms
and provisions of and be entitled to exercise all the rights set out in the Security
Deed in the capacity of a Senior Hedging Bank.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New Senior
Hedging Bank at:

[Address]

[Telefax]

[Attention]

35

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

	 	 	 	 	 	 	 
	New Senior Hedging Bank
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [Senior

	 	 	)	 	 	 
	Hedging Bank]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[     ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed)

	 	 	)	 	 	 

36

 

SCHEDULE 5

FORM OF SECURITY PROVIDER’S DEED OF ACCESSION

THIS CHARGING ENTITY’S DEED OF ACCESSION is dated l and made BETWEEN:

	(1)	 	[NEW CHARGING ENTITY] (the New Charging Entity); and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Deed dated 16 January 2004 (as amended) between UPC Broadband (1),
UPC Holding B.V. (2), the Original Guarantors (3), the Lenders (4), the Facility Agent (5), the
Security Agent (6), the Senior Hedging Banks (7) and the High Yield Hedging Banks (8) as amended,
varied, extended, restated, refinanced or replaced from time to time (the Security Deed).

WHEREAS:

The New Charging Entity is to become a Charging Entity for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.

	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Charging Entity hereby agree that:

	 	(a)	 	the New Charging Entity shall become a party to the Security Deed in its
capacity as a Charging Entity; and
	 
	 	(b)	 	the New Charging Entity shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of a Charging Entity.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.

	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New Charging
Entity at:
	 
	 	 	[Address]

[Telefax]

[Attention]

37

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.

	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New Charging Entity

	 	 	 	 	 
	EXECUTED and DELIVERED as a DEED
	 	)	 	 
	by [CHARGING ENTITY]
	 	)	 	Director
	 
	 	)	 	 
	 
	 	)	 	 
	 
	 	)	 	Director/secretary
	 
	 	 	 	 
	Security Agent
	 	 	 	 
	 
	 	 	 	 
	SIGNED for and on behalf of
	 	)	 	 
	[      ]
	 	)	 	 
	(as Security Agent and on behalf of each
	 	)	 	 
	of the other parties to the Security Deed)
	 	)	 	 

38

 

SCHEDULE 6

FORM OF SECURITY AGENT’S DEED OF ACCESSION

THIS SECURITY AGENT’S DEED OF ACCESSION is dated l and made BETWEEN:

	(1)	 	[NEW SECURITY AGENT] (the New Security Agent); and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Trust Deed dated 16 January 2004 (as amended) between UPC Broadband
(1), UPC Holding B.V. (2), the Original Guarantors (3), the Lenders (4), the Facility Agent (5),
the Security Agent (6), the Senior Hedging Banks (7) and the High Yield Hedging Banks (8) as
amended, varied, extended, restated, refinanced or replaced from time to time (the Security Deed).

WHEREAS:

The New Security Agent is to become the Security Agent for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.

	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Security Agent hereby agree that:

	 	(a)	 	the New Security Agent shall become a party to the Security Deed in its
capacity as a Security Agent; and
	 
	 	(b)	 	the New Security Agent shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of the Security Agent.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.

	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New Security
Agent at:
	 
	 	 	[Address]

[Telefax]

[Attention]

39

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.

	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New Security Agent

	 	 	 	 	 
	EXECUTED and DELIVERED
	 	)	 	 
	as a DEED by [NEW SECURITY AGENT]
	 	)	 	Director
	 
	 	)	 	 
	 
	 	)	 	 
	 
	 	)	 	Director/Secretary
	 
	 	 	 	 
	Security Agent
	 	 	 	 
	 
	 	 	 	 
	SIGNED for and on behalf of
	 	)	 	 
	[     ]
	 	)	 	 
	(as Security Agent and
	 	)	 	 
	on behalf of each
	 	)	 	 
	of the other parties to the Security Deed)
	 	)	 	 

40

 

SCHEDULE 7

FORM OF HIGH YIELD HEDGING BANK’S DEED OF ACCESSION

THIS HIGH YIELD HEDGING BANK’S DEED OF ACCESSION is dated l and made BETWEEN:

	(1)	 	[NEW HIGH YIELD HEDGING BANK] (the New High Yield Hedging Bank); and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Deed dated 16 January 2004 (as amended) between UPC Broadband (1),
UPC Holding B.V. (2), the Original Guarantors (3), the Lenders (4), the Facility Agent (5), the
Security Agent (6), the Senior Hedging Banks (7) and the High Yield Hedging Banks (8) as amended,
varied, extended, restated, refinanced or replaced from time to time (the Security Deed).

WHEREAS:

The New High Yield Hedging Bank is to become a High Yield Hedging Bank for the purposes of the
Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.

	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New High Yield Hedging Bank hereby
agree that:

	 	(a)	 	the New High Yield Hedging Bank shall become a party to the Security Deed in
its capacity as a High Yield Hedging Bank; and
	 
	 	(b)	 	the New High Yield Hedging Bank shall observe, perform and be bound by the
terms and provisions of and be entitled to exercise all the rights set out in the
Security Deed in the capacity of a High Yield Hedging Bank.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.

	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New High Yield
Hedging Bank at:
	 
	 	 	[Address]

[Telefax]

[Attention]

41

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.

	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New High Yield Hedging Bank

	 	 	 	 	 
	EXECUTED and DELIVERED as a DEED
	 	)	 	 
	by [HIGH YIELD HEDGING BANK]
	 	)	 	Director
	 
	 	)	 	 
	 
	 	)	 	 
	 
	 	)	 	Director/secretary
	 
	 	 	 	 
	Security Agent
	 	 	 	 
	 
	 	 	 	 
	SIGNED for and on behalf of
	 	)	 	 
	[     ]
	 	)	 	 
	(as Security Agent and on behalf of each
	 	)	 	 
	of the other parties to the Security Deed)
	 	)	 	 

42

 

SIGNATORIES

[this section is not restated]

43exv4w2

 

Exhibit 4.2

DEED OF AMENDMENT AND RESTATEMENT

DATED 10 May 2006

Between

UPC BROADBAND HOLDING B.V.

and

UPC FINANCING PARTNERSHIP

as Borrowers

and

THE COMPANIES LISTED IN Schedule 1

as Guarantors

and

The Senior Hedging Banks

with

TD BANK EUROPE LIMITED

as Security Agent

and

TORONTO DOMINION (TEXAS) LLC

as Facility Agent

relating to a CREDIT AGREEMENT originally dated 26 October 2000

and

relating to a SECURITY DEED originally dated 26 October 2000

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Interpretation	 	 	1	 
	2. Amendments
	 	 	2	 
	3. Representations and Warranties
	 	 	2	 
	4. Accession of 2004 Facility Agent
	 	 	2	 
	5. Miscellaneous
	 	 	2	 
	6. Counterparts
	 	 	3	 
	7. Governing Law
	 	 	3	 

	 	 	 	 	 
	Schedule	 	 	 	 
	1. Guarantors
	 	 	4	 
	2. Restated Credit Agreement
	 	 	6	 
	3. Restated Security Deed
	 	 	7	 
	 
	 	 	 	 
	Signatories
	 	 	8	 

 

 

THIS DEED is dated 10 May 2006

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (UPC Broadband) and UPC FINANCING PARTNERSHIP (the US Borrower) as
Borrowers;
	 
	(2)	 	THE COMPANIES whose names and addresses are set out in Schedule 1 (Guarantors) as Guarantors;
	 
	(3)	 	TORONTO DOMINION (TEXAS) LLC as Facility Agent;
	 
	(4)	 	TORONTO DOMINION (TEXAS) LLC as Facility Agent under the New Facility Agreement (as defined
below) (the 2004 Facility Agent); and
	 
	(5)	 	TD BANK EUROPE LIMITED as the Security Agent.

BACKGROUND

	(A)	 	This Deed is supplemental to and amends a credit agreement originally dated 26 October 2000
(the Credit Agreement), and a security deed originally dated 26 October 2000 (the Security
Deed), both as amended from time to time, between, among others, the Borrowers, the
Guarantors, the Facility Agent and the Security Agent.
	 
	(B)	 	The Majority Lenders (as defined in the Credit Agreement) have consented to the amendments to
the Credit Agreement and the Security Deed contemplated by this Deed. Accordingly, the
Facility Agent and Security Agent are authorised to execute this Deed on behalf of the Finance
Parties.

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed:
	 
	 	 	Amendment Effective Date has the meaning given to it in Clause 2(c) (Amendments).
	 
	 	 	New Facility Agreement means the €1,072,000,000 senior secured credit agreement between,
among others, the 2004 Facility Agent and UPC Broadband as borrower dated 16 January 2004.
	 
	 	 	New Security Deed means the Security Deed relating to the New Facility Agreement dated 16
January 2004.
	 
	1.2	 	Construction
	 
	(a)	 	Capitalised terms defined in the Credit Agreement or the Security Deed (each as amended and
restated in Schedule 3 pursuant to this Deed) have, unless expressly defined in this Deed, the
same meaning in this Deed.
	 
	(b)	 	The provisions of Clause 1.2 (Construction) of the Credit Agreement apply to this Deed as
though they were set out in full in this Deed except that references to the Credit Agreement
are to be construed as references to this Deed.

1

 

	(c)	 	Reference is made to Clause 1.4 of the Credit Agreement. References in any of the Finance
Documents to the New Facility Agreement and the New Security Deed shall be references to the
New Facility Agreement and the New Security Deed as amended by a deed of amendment and
restatement dated on or about the date of this Deed.
	 
	2.	 	AMENDMENTS
	 
	(a)	 	The Credit Agreement will be amended, with effect from the Amendment Effective Date, so that
it reads as if it were restated in the form set out in Schedule 2 (Restated Credit
Agreement).
	 
	(b)	 	The Security Deed will be amended, with effect from the Amendment Effective Date, so that it
reads as if it were restated in the form set out in Schedule 3 (Restated Security Deed).
	 
	(c)	 	The amendments to be made to the Credit Agreement and the Security Deed by this Deed shall
take effect on the date (the Amendment Effective Date) on which the Facility Agent notifies
UPC Broadband and the Lenders that it has received in form and substance satisfactory to it
(acting reasonably):

	 	(i)	 	evidence of the due authorisation and execution of this Deed by each Obligor;
and
	 
	 	(ii)	 	legal opinions in respect of Dutch, English and New York law from Allen & Overy
LLP, English, Dutch and New York legal advisers to the Facility Agent, addressed to the
Finance Parties.

	3.	 	REPRESENTATIONS AND WARRANTIES
	 
	(a)	 	The representations and warranties set out in clause 15 (Representations and Warranties) of
the Credit Agreement (as amended and restated in Schedule 2 (Restated Credit Agreement) to
this Deed) (with the exception of clauses 15.6(a) (Consents), 15.10 (Financial condition),
15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings), 15.14
(Information), 15.14 A (Business Plan), 15.15 (Tax liabilities), 15.16 (Ownership of assets),
15.18 (Works councils), 15.19 (Borrower Group Structure), 15.20 (ERISA) and 15.24 (US
Borrower)) are true and correct as if made on the date of this Deed, with reference to the
facts and circumstances then existing, and as if each reference to (i) the Finance Documents
includes a reference to this Deed, (ii) the Credit Agreement is a reference to the Credit
Agreement as amended and restated by this Deed and (iii) the Security Deed is a reference to
the Security Deed as amended and restated by this Deed.
	 
	(b)	 	UPC Broadband represents and warrants to each Finance Party that there has been no material
adverse change in the consolidated financial position of the Borrower Group (taken as a whole)
since the date of the financial statements most recently provided under clause 16.2(a)
(Financial Information) of the Credit Agreement which would or is reasonably likely to have a
Material Adverse Effect.
	 
	4.	 	ACCESSION OF 2004 FACILITY AGENT
	 
	 	 	As of the Amendment Effective Date, the 2004 Facility Agent shall become a party to the
Security Deed as amended by this Deed with the rights and liabilities as set out in the
Security Deed and shall to be bound by and entitled to exercise all the rights set out in
the Security Deed.
	 
	5.	 	MISCELLANEOUS
	 
	(a)	 	Each of this Deed, the Credit Agreement, as amended and restated by this Deed and the
Security Deed, as amended and restated by this Deed, is a Finance Document.

2

 

	(b)	 	This Deed and the Security Deed, as amended and restated by this Deed, are each a Finance
Document as defined in the New Facility Agreement for the purposes of clauses 19 (Facility
Agent, Security Agent and Lenders), 21 (Expenses) and 23 (Indemnities) of the New Facility
Agreement.
	 
	(c)	 	Subject to the terms of this Deed, the Credit Agreement and the Security Deed will remain in
full force and effect .
	 
	(d)	 	Each Obligor confirms:

	 	(i)	 	that the Security Interests granted to the Beneficiaries pursuant to the
Security Documents and its obligations under the Finance Documents shall continue and
remain unaffected by the entry into this Deed;
	 
	 	(ii)	 	in accordance with Article 1278 of the Belgian Civil Code, its duties and
obligations under the share pledge listed in paragraph (i) of Schedule 7 (Security
Documents) of the Credit Agreement shall not be affected or impaired by the entry into
of this Agreement and that this Deed does not constitute a novation.

	6.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts and by different parties hereto on
separate counterparts each of which, when executed and delivered shall constitute an
original, but all the counterparts together shall constitute but one and the same Deed.
	 
	7.	 	GOVERNING LAW
	 
	 	 	This Deed is governed by English law.

IN WITNESS whereof, the parties to this Deed have caused this Deed to be duly executed on the date
first above written.

3

 

SCHEDULE 1

GUARANTORS

	 	 	 
	Name	 	Address
	UPC Financing Partnership

	 	4643 South Ulster Street
	 

	 	Suite 1300
	 

	 	Denver, Co 80237
	 

	 	United States
	 
	 	 
	UPC Broadband Holding B.V. (previously called UPC
Distribution Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC France Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Austria Holding B.V. (previously called Cable
Network Austria Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Central Europe Holding B.V. (previously
called Stipdon Investments B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Nederland B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Poland Holding B.V. (previously called UPC
Telecom B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

4

 

	 	 	 
	 

	 	Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands

5

 

SIGNATORIES

Borrowers

UPC BROADBAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FINANCING PARTNERSHIP

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

Guarantors

UPC BROADBAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC HOLDING II B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FINANCING PARTNERSHIP

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC FRANCE HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC SCANDINAVIA HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC AUSTRIA HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC CENTRAL EUROPE HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

6

 

UPC NEDERLAND B.V.

By:  /s/ D.
Kartsen        /s/ D.E.
Tollenaar

UPC POLAND HOLDING B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC BROADBAND N.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

UPC BROADBAND IRELAND B.V.

By:  /s/ W.
Gene Musselman        /s/ Anton Tuijten

Facility Agent

TORONTO DOMINION (TEXAS) LLC

By: /s/ Authorized Signatory

2004 Facility Agent

TORONTO DOMINION (TEXAS) LLC

By: /s/ Authorized Signatory

Security Agent

TD BANK EUROPE LIMITED

By: /s/ Authorized Signatory

7

 

SCHEDULE 2

RESTATED CREDIT AGREEMENT

 

 

RESTATED CREDIT AGREEMENT

ORIGINALLY DATED 26 OCTOBER 2000

and as amended and restated pursuant to a Deed of Amendment and
Restatement dated 10 May 2006

€3,500,000,000

and

US$347,500,000 and €95,000,000

SENIOR SECURED CREDIT FACILITY

for

UPC BROADBAND HOLDING B.V.

and

UPC FINANCING PARTNERSHIP

as Borrowers

with

TORONTO DOMINION (TEXAS)LLC

acting as Facility Agent

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.
	 	Interpretation	 	 	1	 
	2.
	 	The Facilities	 	 	34	 
	3.
	 	Purpose	 	 	36	 
	4.
	 	Conditions Precedent	 	 	37	 
	5.
	 	Advances	 	 	38	 
	6.
	 	Repayment	 	 	40	 
	7.
	 	Cancellation and Prepayment	 	 	43	 
	8.
	 	Interest	 	 	50	 
	9.
	 	Payments	 	 	53	 
	10.
	 	Tax Gross-up and Indemnities	 	 	55	 
	11.
	 	Market Disruption	 	 	58	 
	12.
	 	Increased Costs	 	 	60	 
	13.
	 	Illegality and Mitigation	 	 	61	 
	14.
	 	Guarantee	 	 	61	 
	15.
	 	Representations and Warranties	 	 	65	 
	16.
	 	Undertakings	 	 	72	 
	17.
	 	Financial Covenants	 	 	95	 
	18.
	 	Default	 	 	101	 
	19.
	 	Facility Agent, Security Agent, Lead Arrangers and Lenders	 	 	107	 
	20.
	 	Fees	 	 	112	 
	21.
	 	Expenses	 	 	113	 
	22.
	 	Stamp Duties	 	 	114	 
	23.
	 	Indemnities	 	 	114	 
	24.
	 	Evidence and Calculations	 	 	115	 
	25.
	 	Amendments and Waivers	 	 	116	 
	26.
	 	Changes to the Parties	 	 	117	 
	27.
	 	Disclosure of Information	 	 	123	 
	28.
	 	Set-off	 	 	124	 
	29.
	 	Pro Rata Sharing	 	 	125	 
	30.
	 	Severability	 	 	126	 
	31.
	 	Counterparts	 	 	126	 
	32.
	 	Notices	 	 	126	 
	33.
	 	Language	 	 	128	 
	34.
	 	Jurisdiction	 	 	128	 
	35.
	 	Waiver of Immunity	 	 	129	 
	36.
	 	Waiver of Trial by Jury	 	 	130	 
	37.
	 	Governing Law	 	 	130	 

 

 

	 	 	 	 	 	 	 
	Schedule	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.
	 	Original Parties	 	 	131	 
	 
	 	Part 1      Original Guarantors	 	 	131	 
	 
	 	Part 2      Original Lenders and Commitments	 	 	133	 
	2.
	 	Conditions Precedent Documents	 	 	136	 
	 
	 	Part 1      To be Delivered before the First Advance	 	 	136	 
	 
	 	Part 2      To be Delivered by an Additional Guarantor	 	 	139	 
	3.
	 	Mandatory Cost Formulae	 	 	142	 
	4.
	 	Form of Request and Cancellation Notice	 	 	145	 
	 
	 	Part 1      Form of Request	 	 	145	 
	 
	 	Part 2      Form of Cancellation and/or Prepayment Notice	 	 	146	 
	5.
	 	Forms of Accession Documents	 	 	148	 
	 
	 	Part 1      Novation Certificate	 	 	148	 
	 
	 	Part 2      Guarantor Accession Agreement	 	 	150	 
	6.
	 	Form of Confidentiality Undertaking	 	 	151	 
	 
	 	Part 1      Form of LMA Confidentiality Undertaking	 	 	151	 
	 
	 	Part 2      Form of LSTA Confidentiality Undertaking	 	 	156	 
	7.
	 	Security Documents	 	 	161	 
	8.
	 	Relevant Security Interests	 	 	163	 
	9.
	 	Relevant Financial Indebtedness	 	 	164	 
	10.
	 	Borrower Group Structure	 	 	165	 
	11.
	 	Shareholders’ Agreements	 	 	166	 
	 
	 	 	 	 	 	 
	Signatories	 	 	167	 

 

 

THIS AGREEMENT originally dated 26 October 2000 as amended and restated by the Amendment Deed and
as previously amended by the Amendment and Restatement Agreement and by a series of letters during
the period from 1 March 2002 to 23 July 2003 and by amendment letters dated 22 July 2004, 2
December 2004 and subsequently amended and restated on 7 March 2005 and amended by an amendment
letter dated 15 December 2005 and as amended and restated on 10 May 2006 and made

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (previously called UPC Distribution Holding B.V.) (UPC Broadband);
	 
	(2)	 	UPC FINANCING PARTNERSHIP, a general partnership formed under the laws of Delaware, United
States and, as of the Signing Date, with its principal place of business at 4643 South Ulster
Street, Suite 1300, Denver, Colorado 80237, USA (the US Borrower);
	 
	(3)	 	THE COMPANIES identified as guarantors in Part 1 of Schedule 1 (Original Guarantors) (the
Original Guarantors);
	 
	(4)	 	CHASE MANHATTAN plc, TD BANK EUROPE LIMITED, ABN AMRO BANK N.V., BANK OF AMERICA
INTERNATIONAL LIMITED, BNP PARIBAS, CIBC WORLD MARKETS plc, CRÉDIT LYONNAIS, FORTIS BANK
(NEDERLAND) N.V., and THE ROYAL BANK OF SCOTLAND plc as lead arrangers (in this capacity, the
Lead Arrangers);
	 
	(5)	 	THE BANKS AND FINANCIAL INSTITUTIONS listed in Part 1 of Schedule 1 (Original Lenders and
Commitments) as lenders (the Original Lenders);
	 
	(6)	 	TORONTO DOMINION (TEXAS)LLC, as facility agent (the Facility Agent); and
	 
	(7)	 	TD BANK EUROPE LIMITED as security agent for the Finance Parties (in this capacity, the
Security Agent).

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:

	 	 	2006 Amendment Effective Date means the Amendment Effective Date as defined in the Deed of
Amendment and Restatement dated 10 May 2006 between (among others) UPC Broadband, UPC
Financing and the Facility Agent.
	 
	 	 	Accounting Period in relation to any person means any period of approximately three months
or one year for which accounts of such person are required to be delivered pursuant to this
Agreement.
	 
	 	 	Acquisition means the acquisition, whether by one or a series of transactions, (including,
without limitation, by purchase, subscription or otherwise) of all or any part of the share
capital or equivalent of any company or other person (including, without limitation, any
partnership or joint venture) or any asset or assets of any company or other person
(including,

1

 

	 	 	without limitation, any partnership or joint venture) constituting a business or separate
line of business of that company or other person.

	 	 	Acquisition Business Plan means, in respect of an Acquisition, a business plan for the
Target which has been reviewed by Deloitte & Touche (or such other leading firm of
independent and internationally recognised consultants or accountants appointed by UPC
Broadband) and which sets out the management plan for the period from the date of the
proposed Acquisition (taking into account the Acquisition Cost of such Acquisition and
financial projections relating to the Target) up to and including the last Final Repayment
Date and based on assumptions which are no more aggressive (when taken as a whole) than
those used in preparation of the Business Plan.
	 
	 	 	Acquisition Cost means, in relation to an Acquisition, the value of the consideration for
that Acquisition at the time of completion of the Acquisition and for this purpose:

	 	(a)	 	the value at the time of completion of the Acquisition of any consideration to
be paid or delivered after the time of completion of the Acquisition will be determined
in accordance with GAAP;
	 
	 	(b)	 	if the entity acquired becomes a member of the Borrower Group as a result of
the Acquisition, the aggregate principal amount of Financial Indebtedness of any entity
acquired outstanding at the time of completion of the Acquisition (including without
limitation any Lending Transaction (as defined in Clause 16.14(f) (Loans and
guarantees) made by a member of the Borrower Group in connection with the relevant
Acquisition) will be counted as part of the consideration for that Acquisition;
	 
	 	(c)	 	if the entity acquired does not become a member of the Borrower Group as a
result of the Acquisition, the aggregate principal amount of Financial Indebtedness of
the entity acquired at the time of completion of the Acquisition will be counted as
part of the consideration for that Acquisition to the extent of the aggregate principal
amount of the payment and repayment obligations in respect of such Financial
Indebtedness assumed or guaranteed by any member of the Borrower Group; and
	 
	 	(d)	 	subject to paragraphs (a), (b) and (c) above, the value at the time of
completion of the Acquisition of any non-cash consideration will be determined in
accordance with GAAP,

	 	 	expressed in euros, if required, using the Agent’s Spot Rate of Exchange on the date of
completion of the Acquisition.
	 
	 	 	Additional Facility has the meaning given in the New Facility Agreement.
	 
	 	 	Additional Guarantor means:

	 	(a)	 	a Subsidiary of UPC Broadband; and
	 
	 	(b)	 	any UPC Broadband Holdco (other than UPC Holding),

	 	 	which in each case becomes an Additional Guarantor in accordance with Clause 26.4
(Additional Guarantors).
	 
	 	 	Advance means a Facility A Advance, Facility B Advance or Facility C Advance.

2

 

	 	 	Affiliate means, in respect of a person, a direct or indirect Subsidiary or Holding Company
of that person or any other person which is under common control with that person (and for
this purpose, control has the meaning given to it in section 416 of the Income and
Corporation Taxes Act 1988 in force as at the Signing Date).
	 
	 	 	Agent means the Facility Agent or the Security Agent (or both), as the context requires.
	 
	 	 	Agent’s Spot Rate of Exchange means the spot rate of exchange as determined by the Facility
Agent for the purchase of the relevant Optional Currency in the London foreign exchange
market with euros or US Dollars (or any other relevant currency) (as applicable) at or about
11.00 a.m. on a particular day.
	 
	 	 	Amendment and Restatement Agreement means the amendment and restatement agreement dated 16
January 2004 between, inter alios, UPC Broadband and the Facility Agents, on behalf of the
Finance Parties, pursuant to which this Agreement was amended and restated.
	 
	 	 	Amendment Deed means the agreement dated on or around 24 June 2004 between UPC Broadband,
the US Borrower, the Original Guarantors the Facility Agent and the Security Agent, pursuant
to which this Agreement was amended.
	 
	 	 	Amendment Fee Letter means the letter between the Facility Agent and UPC Broadband dealing
with the amendment fees payable to the Lenders in connection with the Amendment and
Restatement Agreement.
	 
	 	 	Anniversary means an anniversary of the Signing Date.
	 
	 	 	Annualised EBITDA has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Anti-Terrorism Law means each of:

	 	(a)	 	Executive Order No. 13224 of 23 September 2001 – Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (the Executive Order);
	 
	 	(b)	 	the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as
the USA Patriot Act);
	 
	 	(c)	 	the Money Laundering Control Act of 1986, Public Law 99-570; and
	 
	 	(d)	 	any similar law enacted in the United States of America subsequent to the date
of this Agreement.

	 	 	Approved Stock Options means any options, warrants, rights to purchase or other equivalents
(however designated) issued or granted by a member of the Borrower Group to any former,
present or future officers, consultants, directors and/or employees of any member of the
Borrower Group or its Associated Companies to subscribe for share capital or similar rights
of ownership in that member of the Borrower Group provided that the maximum aggregate amount
of such options, warrants, rights to purchase or other equivalents (however designated)
shall not exceed (i) 8 per cent. of its issued share capital, in the case of UPC Central
Europe Holding B.V. and any Subsidiary of UPC Central Europe Holding B.V. (provided that the
aggregate amount of such options, warrants, rights to purchase or other equivalents issued
by UPC Central Europe Holding B.V. and its Subsidiaries does not exceed

3

 

	 	 	8 per cent. of the issued share capital of UPC Central Europe Holding B.V.) and (ii) 7.5 per
cent. of its issued share capital or similar rights of ownership, in the case of each other
member of the Borrower Group.
	 
	 	 	Associated Company of a person means:

	 	(a)	 	any other person which is directly or indirectly Controlled by, under common
Control with or Controlling such person; or
	 
	 	(b)	 	any other person owning beneficially and/or legally directly or indirectly 10
per cent. or more of the equity interest in such person or 10 per cent. of whose equity
is owned beneficially and/or legally directly or indirectly by such person.

	 	 	Auditors means KPMG or such other leading firm of independent and internationally recognised
accountants appointed by UPC Broadband as its auditors for the purposes of preparing the
audited consolidated accounts of UPC Broadband.
	 
	 	 	Beneficiaries has the meaning given to it in the Security Deed.
	 
	 	 	Borrower means each of UPC Broadband and the US Borrower.
	 
	 	 	Borrower Group means:

	 	(a)	 	UPC Broadband and its Subsidiaries from time to time, excluding Unrestricted
Subsidiaries; and
	 
	 	(b)	 	the US Borrower.

	 	 	Borrower Group Business Plan means, in respect of an Acquisition, a business plan for the
Borrower Group (including the Target to be acquired) which has been certified by a director
of UPC Broadband and which sets out the management plan for the period from the date of the
proposed Acquisition (taking into account the Acquisition Cost of such Acquisition and
financial projections relating to the Target) up to and including the Final Maturity Date
and based on assumptions which are no more aggressive (when taken as a whole) than those
used in preparation of the Business Plan.
	 
	 	 	Break Costs means the amount (if any) by which:

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

	 	 	exceeds:

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

4

 

	 	 	Business means any business of the Borrower Group:

	 	(a)	 	that consists of the upgrade, construction, creation, development, marketing,
acquisition (to the extent permitted under this Agreement), operation, utilisation and
maintenance of networks that use existing or future technology for the transmission,
reception and delivery of voice, video and/or other data (including networks that
transmit, receive and/or deliver services such as multi-channel television and radio,
programming, telephony, Internet services and content, high speed data transmission,
video, multi-media and related activities); or
	 
	 	(b)	 	that supports, is incidental to or is related to any such business; or
	 
	 	(c)	 	that comprises being a Holding Company of one or more persons engaged in such
business,

	 	 	and references to business or ordinary course of business shall be similarly construed.
	 
	 	 	Business Day means:

	 	(a)	 	a day (other than a Saturday or Sunday) on which banks are open for general
business in:

	 	(i)	 	London and Amsterdam;
	 
	 	(ii)	 	in relation to a transaction involving US Dollars, New York;
and
	 
	 	(iii)	 	in relation to a transaction involving an Optional Currency,
the principal financial centre of the country of that Optional Currency; or

	 	(b)	 	in relation to a rate fixing day or a payment date for euros, a TARGET Day.

	 	 	Business Plan means the business plan for the Borrower Group for the period from the
Effective Date to, as a minimum, the Final Maturity Date (as defined in the New Facility
Agreement) as provided to the Facility Agent prior to the Effective Date.
	 
	 	 	Cancellation Notice means a notice of cancellation and/or prepayment substantially in the
form of Part 2 of Schedule 4 (Form of Cancellation and/or Prepayment Notice).
	 
	 	 	Capital Expenditure means any expenditure which is or will be treated as a capital
expenditure in the audited consolidated financial statements of the Borrower Group in
accordance with GAAP.
	 
	 	 	Cash Flow means, for any period, as set out in the most recent relevant management accounts
of or in respect of the Target for that period, EBITDA of or relating to the Target for such
period:

	 	(a)	 	minus Capital Expenditure of or relating to the Target for such period;
	 
	 	(b)	 	minus all Taxes actually paid and/or falling due for payment by or in respect
of the Target during such period;
	 
	 	(c)	 	minus the amount of all dividends, redemptions and other distributions payable
by the Target during such period on, or in respect of any of its share capital not held
by a member of the Borrower Group;

5

 

	 	(d)	 	minus any increase or plus any decrease in working capital of or in respect of
the Target for such period;
	 
	 	(e)	 	minus the aggregate of Interest payable by or in respect of the Target during
such period; and
	 
	 	(f)	 	minus all extraordinary or exceptional items (including one off restructuring
costs) which were paid by the Target during such period on (net of any cash proceeds of
insurance or warranty claims which relate to such items) and plus all extraordinary or
exceptional items which were received by or in respect of the Target during such
period.

	 	 	For the purposes of the above calculation no item shall be effectively deducted or credited
more than once.
	 
	 	 	Cash Flow Hedging Agreement has the meaning given to it in Clause 16.17 (Hedging).
	 
	 	 	Change of Control has the meaning given to it in Clause 7.4(a) (Change of Control).
	 
	 	 	Code means the United States Internal Revenue Code of 1986, as amended and any rule or
regulation issued thereunder from time to time in effect.
	 
	 	 	Commitments means the Facility A Commitments, Facility B Commitments and/or Facility C
Commitments.
	 
	 	 	Confidentiality Undertaking means a confidentiality undertaking substantially in the
recommended form of either the LMA as set out in Part 1 of Schedule 6 (Form of LMA
Confidentiality Undertaking) or the LSTA as set out in Part 2 of Schedule 6 (Form of LSTA
Confidentiality Undertaking) or in any other form agreed between UPC Broadband and the
Facility Agent.
	 
	 	 	Consultant means Booz Allen & Hamilton.
	 
	 	 	Consultant’s Report means the report dated on or about July 2000 from the Consultant
addressed to Chase Manhattan plc and TD Securities in relation to the 10 year business plan
of UPC Broadband.
	 
	 	 	Control means the power of a person:

	 	(a)	 	by means of the holding of shares or the possession of voting power in or in
relation to any other person; or
	 
	 	(b)	 	by virtue of any powers conferred by the articles of association or other
documents regulating any other person,

	 	 	to direct or cause the direction of the management and policies of that other person,
	 
	 	 	and Controlled and Controlling have a corresponding meaning.
	 
	 	 	Current Assets means, at any relevant time, the aggregate of the current assets (excluding
cash) of the Borrower Group at such time which would be included as current assets in a
consolidated balance sheet of the Borrower Group drawn up at such time in accordance with
GAAP.

6

 

	 	 	Current Liabilities means, at any relevant time, the aggregate of the current liabilities
(excluding short term debt and overdrafts) of the Borrower Group at such time which would be
included as current liabilities in a consolidated balance sheet of the Borrower Group drawn
up at each time in accordance with GAAP.
	 
	 	 	Dangerous Substance means any radioactive emissions and any natural or artificial substance
(whether in solid or liquid form or in the form of a gas or vapour and whether alone or in
combination with any other substance) which, taking into account the concentrations and
quantities present and the manner in which it is being used or handled, it is reasonably
foreseeable will cause harm to man or any other living organism or damage to the Environment
including any controlled, special, hazardous, toxic, radioactive or dangerous waste.
	 
	 	 	Default means an Event of Default or any event or circumstances specified in Clause 18
(Default) which would (with the expiry of a grace period or the giving of notice) be an
Event of Default.
	 
	 	 	Designated Party means any person listed:

	 	(a)	 	in the Annex to the Executive Order;
	 
	 	(b)	 	on the “Specially Designated Nationals and Blocked Persons” list maintained by
the Office of Foreign Assets Control of the United States Department of the Treasury;
or
	 
	 	(c)	 	in any successor list to either of the foregoing.

	 	 	Distribution Business means:

	 	(a)	 	the business of upgrading, constructing, creating, developing, acquiring,
operating, owning, leasing and maintaining cable television networks (including for
avoidance of doubt master antenna television, satellite master antenna television,
single and multi-channel microwave single or multi-point distribution systems and
direct-to-home satellite systems) for the transmission, reception and/or delivery of
multi-channel television and radio programming, telephony and internet and/or data
services to the residential markets; or
	 
	 	(b)	 	any business which is incidental to or related to and, in either case, material
to such business.

	 	 	Dutch Borrower means a Borrower incorporated in the Netherlands.
	 
	 	 	Dutch Civil Code means the Burgerlijk Wetboek.
	 
	 	 	Dutch Banking Act means the Dutch Act on the Supervision of the Credit System 1992 (Wet
toezicht Kredietwezen 1992), including the Dutch Exemption Regulation.
	 
	 	 	Dutch Exemption Regulation means the Exemption Regulation of the Minister of Finance
(Vrijstellingsregeling Wtk 1992).
	 
	 	 	Eastern Europe means Europe other than Western Europe.

7

 

	 	 	Eastern European Acquisition means an acquisition (including, without limitation, by
purchase, subscription or otherwise) of:

	 	(a)	 	all or any part of the share capital or equivalent of a person or company
(including, without limitation any partnership or joint venture) incorporated or
carrying on a material part of its business in Eastern Europe; or
	 
	 	(b)	 	any asset or assets constituting a business or separate line of business, a
material part of which is being carried on in Eastern Europe,

	 	 	but excluding any such acquisition in relation to an entity which is a Subsidiary of UPC on
the Signing Date and is incorporated or carries on business in Poland on the Signing Date.
	 
	 	 	EBITDA has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Effective Date has the meaning given to it in the Amendment and Restatement Agreement.
	 
	 	 	Environment means the media of air, water and land (wherever occurring) and in relation to
the media of air and water includes, without limitation, the air and water within buildings
and the air and water within other natural or man-made structures above or below ground and
any water contained in any underground strata.
	 
	 	 	Environmental Claim means any claim by any person:

	 	(a)	 	in respect of any loss or liability suffered or incurred by that person as a
result of or in connection with any violation of Environmental Law; or
	 
	 	(b)	 	that arises as a result of or in connection with Environmental Contamination
and that could give rise to any remedy or penalty (whether interim or final) that may
be enforced or assessed by private or public legal action or administrative order or
proceedings including, without limitation, any such claim that arises from injury to
persons or property.

	 	 	Environmental Contamination means each of the following and their consequences:

	 	(a)	 	any release, emission, leakage or spillage of any Dangerous Substance at or
from any site owned or occupied by any member of the Borrower Group into any part of
the Environment; or
	 
	 	(b)	 	any accident, fire, explosion or sudden event at any site owned or occupied by
any member of the Borrower Group which is directly caused by or attributable to any
Dangerous Substance; or
	 
	 	(c)	 	any other pollution of the Environment arising at or from any site owned or
occupied by any member of the Borrower Group.

	 	 	Environmental Law means all legislation, regulations or orders (insofar as such regulations
or orders have the force of law) to the extent that it relates to the protection or
impairment of the Environment or the control of Dangerous Substances (whether or not in
force at the date of this Agreement) which are capable of enforcement in any applicable
jurisdiction by legal process.
	 
	 	 	Environmental Licence means any permit, licence, authorisation, consent, filing,
registration or other approval required by any Environmental Law.

8

 

	 	 	ERISA means the United States Employee Retirement Income Security Act of 1974, as amended.
	 
	 	 	ERISA Affiliate means each trade or business, whether or not incorporated, that would be
treated as a single employer with any member of the Borrower Group under section 414 of the
United States Internal Revenue Code of 1986, as amended. When any provision of this
Agreement relates to a past event, the term ERISA Affiliate includes any person that was an
ERISA Affiliate of a member of the Borrower Group at the time of that past event.
	 
	 	 	EURIBOR means in relation to any Advance or Unpaid Sum denominated in euros:

	 	(a)	 	the applicable Screen Rate for deposits in the currency of the relevant Advance
or Unpaid Sum for a period equal or comparable to the required period at or about 11.00
a.m. (Brussels time) on the applicable Rate Fixing Day; or
	 
	 	(b)	 	if the rate cannot be determined under paragraph (a) above, the arithmetic mean
(rounded upwards, if necessary, to the nearest four decimal places) of the respective
rates, as supplied to the Facility Agent at its request, quoted by the Reference Banks
to leading banks for the offering of deposits in euros for the required period in the
London interbank market at or about 11.00 a.m. on the Rate Fixing Day for such period,

	 	 	and for the purposes of this definition, required period means the Interest Period of an
Advance or the period in respect of which EURIBOR falls to be determined in relation to any
Unpaid Sum.
	 
	 	 	€, euro or euros means the single currency of the Participating Member States.
	 
	 	 	Event of Default means an event specified as such in Clause 18 (Default).
	 
	 	 	Excess Cash Flow means the aggregate consolidated EBITDA of the Borrower Group calculated
for the most recently ended financial year (beginning with the financial year ending on 31
December 2004), as shown in the quarterly management accounts delivered to the Facility
Agent pursuant to Clause 16.2(b) (Financial information) in respect of the financial quarter
ending on 31 December in any relevant year:

	 	(a)	 	less:

	 	(i)	 	any interest and other charges in respect of Financial
Indebtedness of the Borrower Group paid during such financial year;
	 
	 	(ii)	 	repayments and/or prepayments of any Financial Indebtedness of
the Borrower Group paid during such financial year; and
	 
	 	(iii)	 	capital expenditure of the Borrower Group incurred during such
financial year; and

	 	(b)	 	either (i) plus any amount by which Net Working Capital at the commencement of
such financial year exceeds Net Working Capital at the close of such financial year or,
as appropriate, (ii) minus any amount by which Net Working Capital at the end of such
financial year exceeds Net Working Capital at the beginning of such financial year.

9

 

	 	 	For the purposes of this definition of “Excess Cash Flow”, Net Working Capital means, at any
time, the aggregate of the Current Assets of the Borrower Group at such time less the
aggregate of the Current Liabilities of the Borrower Group at such time.
	 
	 	 	Existing Lender has the meaning given to it in Clause 26.2(Transfers by Lenders).
	 
	 	 	Facility means each of Facility A, Facility B and Facility C.
	 
	 	 	Facility A means the €750,000,000 revolving credit facility referred to in Clause 2.1(a)
(Facilities)
	 
	 	 	Facility A Advance means an advance made to UPC Broadband under Facility A.
	 
	 	 	Facility A Availability Period means the period from and including the Signing Date up to
and including the Facility A Final Maturity Date or such earlier date on which the Total
Facility A Commitments have been cancelled in full or such later date as all the Lenders may
agree in writing.
	 
	 	 	Facility A Commitment means:

	 	(a)	 	in relation to an Original Lender, the amount in euros set opposite its name
under the heading “Facility A Commitment” in Part 1 of Schedule 1 (Original Lenders and
Commitments) and the amount of any other Facility A Commitment transferred to it under
this Agreement; and
	 
	 	(b)	 	in relation to any other Lender, the amount in euros of any Facility A
Commitment transferred to it in accordance with this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	Facility A Final Maturity Date means 30 June 2008 or, if that day is not a Business Day, the
preceding Business Day.
	 
	 	 	Facility A Lender means a Lender under Facility A.
	 
	 	 	Facility Agent means:

	 	(a)	 	TD Bank Europe Limited in its capacity as facility agent under or in connection
with Facility A, Facility B or Facility C1;
	 
	 	(b)	 	Toronto Dominion (Texas), Inc., in its capacity as facility agent under or in
connection with Facility C2; or
	 
	 	(c)	 	both,

	 	 	in each case as the context requires; provided that references in this Agreement to Facility
Agent which do not relate solely and specifically to Facility C2 shall be deemed to refer to
TD Bank Europe Limited in its capacity as facility agent under or in connection with the
Facility.
	 
	 	 	Facility B means the €2,750,000,000 term loan facility referred to in Clause 2.1(b)
(Facilities).
	 
	 	 	Facility B Advance means an advance made to UPC Broadband under Facility B.

10

 

	 	 	Facility B Availability Period means the period from and including the Signing Date up to
and including 31 December 2003 or such earlier date on which the Total Facility B
Commitments have been cancelled in full or such later date as all the Lenders may agree in
writing.
	 
	 	 	Facility B Commitment means:

	 	(a)	 	in relation to an Original Lender, the amount in euros set opposite its name
under the heading “Facility B Commitment” in Part 1 of Schedule 1 (Original Lenders and
Commitments) and the amount of any other Facility B Commitment transferred to it under
this Agreement; and
	 
	 	(b)	 	in relation to any other Lender, the amount in euros of any Facility B
Commitment transferred to it in accordance with this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	Facility B Lender means a Lender under Facility B.
	 
	 	 	Facility C means the US$347,500,000 and €95,000,000 term loan facility referred to in
Clause 2.1(a) (Facilities).
	 
	 	 	Facility C Advance means a Facility C1 Advance or a Facility C2 Advance.
	 
	 	 	Facility C1 means the €95,000,000 term loan facility which forms a sub-tranche of
Facility C.
	 
	 	 	Facility C1 Advance means a euro-denominated advance made to UPC Broadband under Facility C.
	 
	 	 	Facility C2 means the US$347,500,000 term loan facility which forms a sub-tranche of
Facility C.
	 
	 	 	Facility C2 Advance means a US Dollar-denominated advance made to the US Borrower under
Facility C.
	 
	 	 	Facility C Availability Period means the period from and including the Signing Date up to
and including the earlier of:

	 	(a)	 	the first Utilisation Date under the Facilities; or
	 
	 	(b)	 	the date falling 30 days after the Signing Date,

	 	 	or such earlier date on which the Total Facility C Commitments have been cancelled in full
or such later date as all the Lenders may agree in writing.
	 
	 	 	Facility C Commitment means, in relation to a Lender, the aggregate for the time being of
its:

	 	(a)	 	Facility C1 Commitments; and
	 
	 	(b)	 	Facility C2 Commitments (translated into euros on the basis of:

	 	(i)	 	(if and to the extent that any member of the Borrower Group has
entered into any currency Senior Hedging Agreement(s) in respect of a Facility
C2

11

 

	 	 	 	Advance) the rate at which any such Facility C2 Advance was swapped into euros; and

	 	(ii)	 	to the extent the Borrower Group has not entered into any
currency Senior Hedging Agreements in relation to Facility C2 Advances or the
Facility C2 Commitments are undrawn, the Agent’s Spot Rate of Exchange on the
Utilisation Date).

	 	 	Facility C1 Commitment means:

	 	(a)	 	in relation to an Original Lender, the amount in euros set opposite its name
under the heading “Facility C1 Commitment” in Part 1 of Schedule 1 (Original Lenders
and Commitments) and the amount of any other Facility C1 Commitment transferred to it
under this Agreement; and
	 
	 	(b)	 	in relation to any other Lender, the amount in euros of any Facility C1
Commitment transferred to it in accordance with this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	Facility C2 Commitment means:

	 	(a)	 	in relation to an Original Lender, the amount in US Dollars set opposite its
name under the heading “Facility C2 Commitment” in Part 1 of Schedule 1 (Original
Lenders and Commitments) and the amount of any other Facility C2 Commitment transferred
to it under this Agreement; and
	 
	 	(b)	 	in relation to any other Lender, the amount in US Dollars of any Facility C2
Commitment transferred to it in accordance with this Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.
	 
	 	 	Facility C Lender means a Lender under Facility C.
	 
	 	 	Facility Office means the office(s) notified by a Lender to the Facility Agent:

	 	(a)	 	on or before the date it becomes a Lender; or
	 
	 	(b)	 	by not less than five Business Days’ notice,

	 	 	as the office(s) through which it will perform all or any of its obligations under this
Agreement.
	 
	 	 	Fee Letter means each of:

	 	(a)	 	the letter between Chase Manhattan plc, TD Bank Europe Limited, Cable Networks
Netherlands Holding B.V. and UPC dated 24 May 2000 dealing with underwriting fees;
	 
	 	(b)	 	the letter between the Facility Agent and the Borrowers dated on or about the
Signing Date dealing with agency fees; and
	 
	 	(c)	 	the Amendment Fee Letter,

	 	 	in each case setting out the amount of various fees referred to in Clause 20 (Fees).

12

 

	 	 	Final Repayment Date means:

	 	(a)	 	when designated Facility B, 30 June 2008; and
	 
	 	(b)	 	when designated Facility C, 31 March 2009,

	 	 	or in each case, if that day is not a Business Day, the immediately preceding Business Day
(and without any such designation means the Facility B Final Repayment Date or the Facility
C Final Repayment Date, as applicable).
	 
	 	 	Finance Document means this Agreement, a Security Document, the Security Deed, a Fee Letter,
a Guarantor Accession Agreement, the Syndication Letter, a Novation Certificate, the
Intercreditor Agreement and any other document designated in writing as such by the Facility
Agent and UPC Broadband.
	 
	 	 	Finance Party means a Lead Arranger, a Lender, the Facility Agent or the Security Agent.
	 
	 	 	Financial Indebtedness means, without double counting, indebtedness in respect of:

	 	(a)	 	money borrowed or raised and debit balances at banks;
	 
	 	(b)	 	any bond, note, loan stock, debenture or similar debt instrument;
	 
	 	(c)	 	acceptance or documentary credit facilities;
	 
	 	(d)	 	receivables sold or discounted (otherwise than on a non-recourse basis and
other than in the normal course of business for collection);
	 
	 	(e)	 	payments for assets acquired or services supplied deferred for a period of over
180 days (or 360 days if such deferral is in accordance with the terms pursuant to
which the relevant assets were or are to be acquired or services were or are to be
supplied) after the relevant assets were or are to be acquired or the relevant services
were or are to be supplied;
	 
	 	(f)	 	finance leases and hire purchase contracts to the extent that they constitute
capital leases within the meaning of GAAP, provided that indebtedness in respect of
network leases shall only be included in this paragraph (f) for the purposes of the
definition of “Excess Cash Flow” and Clause 18.5 (Cross default);
	 
	 	(g)	 	any other transaction (including without limitation forward sale or purchase
agreements) having the commercial effect of a borrowing or raising of money or any of
(b) to (f) above;
	 
	 	(h)	 	(for the purposes of Clause 18.5 (Cross default) only) any derivative
transaction entered into in connection with protection against or benefit from
fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the marked-to-market value shall be taken into account); and
	 
	 	(i)	 	guarantees in respect of indebtedness of any person falling within any of
paragraphs (a) to (g) above (including for the avoidance of doubt, without double
counting, guarantees given by a member of the Borrower Group for the indebtedness of
the type falling within (a) to (g) above of another member of the Borrower Group),

13

 

	 	 	provided that indebtedness which has been cash-collateralised shall not be included in any
calculation of Financial Indebtedness to the extent so cash-collateralised and indebtedness
which is in the nature of equity (other than redeemable shares) shall not be regarded as
Financial Indebtedness.
	 
	 	 	GAAP means generally accepted accounting principles and practices in the United States.
	 
	 	 	Guaranteed Document means each Finance Document, the High Yield Hedging Agreements and the
Senior Hedging Agreements.
	 
	 	 	Guarantor means each Original Guarantor and each Additional Guarantor.
	 
	 	 	Guarantor Accession Agreement means a deed in the form of Part 2 of Schedule 5 (Guarantor
Accession Agreement), with such amendments as the Facility Agent may approve or reasonably
require (including, without limitation, any limitation on the obligations of the relevant
Additional Guarantor which has been approved by the Facility Agent pursuant to Clause
26.4(a)(v) (Additional Guarantors)).
	 
	 	 	Hedging Counterparty means each High Yield Hedging Counterparty and each Senior Hedging
Counterparty.
	 
	 	 	High Yield Hedging Agreements has the meaning given to it in the Security Deed.
	 
	 	 	High Yield Hedging Bank means a Lender or its Affiliate or a “Lender” or its “Affiliate” as
defined in the New Facility Agreement which is or becomes a party to the New Security Deed
and/or the Security Deed as a High Yield Hedging Bank.
	 
	 	 	High Yield Hedging Counterparty means any member of the UGCE Borrower Group that enters into
a High Yield Hedging Agreement.
	 
	 	 	High Yield Notes means high yield debt securities or other instruments not mandatorily
convertible into equity, in each case issued by a company which is a member of the UGCE
Borrower Group.
	 
	 	 	Holding Company means, in relation to a person, an entity of which that person is a
Subsidiary.
	 
	 	 	Information Memorandum means the information memorandum dated June 2000 as updated by the
information memorandum dated July 2000 prepared in connection with syndication of the
Facilities, and as further updated, if applicable, by an information memorandum to be
prepared for the purposes of general syndication of the Facilities.
	 
	 	 	Intellectual Property Rights means all know-how, patents, trade marks, designs and design
rights, trading names, copyrights (including any copyright in computer software), database
rights and other intellectual property rights anywhere in the world (in each case whether
registered or not and including all applications for the same).
	 
	 	 	Interconnect Agreements means each interconnection agreement, network contract, franchise
agreement, telecommunications service agreement and any agreement of a similar nature
entered into by any member of the Borrower Group in connection with the conduct of its
business as may be permitted by the terms of this Agreement (including any interconnect
agreements maintained pursuant to Clause 16.20 (Inter-connection and chello)).

14

 

	 	 	Intercreditor Agreement means the intercreditor deed entered into on or about the date of
the Amendment and Restatement Agreement between, among others, the Facility Agents and the
Security Agent, the facility agent and security agent under the New Facility Agreement and
UPC Broadband.
	 
	 	 	Interest has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Interest Date means the last day of an Interest Period.
	 
	 	 	Interest Period means each period determined in accordance with Clause 8 (Interest).
	 
	 	 	Lender means:

	 	(a)	 	any Original Lender; and
	 
	 	(b)	 	any person which has become a New Lender (as defined in Clause 26.2
(Definitions Transfers by Lenders)) in accordance with Clause 26 (Changes to the
Parties),

	 	 	which in each case has not ceased to be a Party in accordance with the terms of this
Agreement.
	 
	 	 	LGEF means Liberty Global Europe Financing B.V., a private limited liability company
incorporated under the laws of The Netherlands and, as of the Signing Date, with its
registered office at Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol
Rijk, Amsterdam, The Netherlands.
	 
	 	 	LIBOR means in relation to any Advance or Unpaid Sum denominated in US Dollars or in an
Optional Currency (other than euros):

	 	(a)	 	the applicable Screen Rate for deposits in the currency of the relevant Advance
or Unpaid Sum for a period equal or comparable to the required period at or about 11.00
a.m. on the applicable Rate Fixing Day; or
	 
	 	(b)	 	(if no Screen Rate is available for the required currency or required period of
that Advance or Unpaid Sum) the arithmetic mean (rounded upwards, if necessary, to the
nearest four decimal places) of the respective rates, as supplied to the Facility Agent
at its request, quoted by the Reference Banks to leading banks for the offering of
deposits in the required currency and for the required period in the London interbank
market at or about 11.00 a.m. on the Rate Fixing Day for such period,

	 	 	and for the purposes of this definition, required period means the applicable Interest
Period of an Advance or the period in respect of which LIBOR falls to be determined in
relation to any Unpaid Sum.
	 
	 	 	Licence means each approval, consent, authorisation and licence from, and all filings,
registrations and agreements with any governmental or regulatory authority, in each case
granted, issued, made or entered into pursuant to any Telecommunications and Cable Law
necessary in order to enable each member of the Borrower Group to carry on its business as
may be permitted by the terms of this Agreement.
	 
	 	 	LMA means the Loan Market Association.

15

 

	 	 	Majority Acquisition has the meaning given in paragraph (c) of the definition of “Permitted
Acquisition”.
	 
	 	 	Majority Facility C Lenders means, at any time Lenders the aggregate of whose undrawn
Facility C Commitments and participations in outstanding Facility C Advances (calculated by
reference to the Original Euro Amount of such Advances) exceeds 66 2/3 per cent. of the
undrawn Total Facility C Commitments and the Original Euro Amount of outstanding Facility C
Advances.
	 
	 	 	Majority Lenders means, at any time Lenders the aggregate of whose undrawn Facility A
Commitments, undrawn Facility B Commitments and undrawn Facility C Commitments and
participations in outstanding Facility A Advances, Facility B Advances and Facility C
Advances (calculated by reference to the Original Euro Amount of such Advances) exceeds
662/ 3 per cent. of the aggregate undrawn Total Facility A Commitments,
undrawn Total Facility B Commitments, undrawn Total Facility C Commitments and the Original
Euro Amount of outstanding Advances.
	 
	 	 	Management Fees means any management, consultancy or similar fees payable by any member of
the Borrower Group to any Restricted Person.
	 
	 	 	Mandatory Cost means the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 3 (Mandatory Cost Formulae).
	 
	 	 	Margin means, in relation to an Advance at any time, the percentage rate per annum
determined to be the Margin applicable to that Advance in accordance with Clause 8.10
(Margin).
	 
	 	 	Material Adverse Effect means any event or circumstance which has a material adverse effect
on the ability of the Obligors (taken as a whole) to perform their payment or other material
obligations under any of the Finance Documents.
	 
	 	 	Material Contracts means:

	 	(a)	 	the Interconnect Agreements;
	 
	 	(b)	 	the Priority Pledge;
	 
	 	(c)	 	the Shareholders’ Agreements, as from time to time amended, varied, restated or
replaced, in each case in a manner that does not constitute an Event of Default under
Clause 18.18 (Material Contracts); and
	 
	 	(d)	 	each other agreement agreed as such by the Facility Agent and UPC Broadband.

	 	 	Material Subsidiary means any Subsidiary of UPC Broadband which accounts for more than five
per cent. of consolidated EBITDA of the Borrower Group
	 
	 	 	as shown in the financial statements most recently delivered under Clause 16.2(a) or (b)
(Financial information) (except that for purposes of determining the consolidated EBITDA of
the Borrower Group in respect of the financial statements delivered under Clause 16.2(b)
(Financial information), the amount of such EBITDA shall equal two times the consolidated
EBITDA, of the Borrower Group during the relevant Ratio Period ending on the date to which
such financial statements are prepared).

16

 

	 	 	If a Subsidiary which is not a Material Subsidiary on the basis of the most recent such
financial statements most recently delivered receives on any date (the Relevant Date) a
transfer of assets or the right to receive any earnings which, taken together with the
earnings of that Subsidiary, would satisfy the test above, then that Subsidiary shall also
be a Material Subsidiary on and from the Relevant Date. If a Material Subsidiary disposes
of any assets or the right to receive any earnings such that it would on the basis of the
most recent such financial statements most recently delivered cease to be a Material
Subsidiary, then it shall be excluded as a Material Subsidiary on and from the date it makes
such disposal.
	 
	 	 	Mid-Interest Period Transfer means an assignment, transfer or novation by an Existing Lender
of all or any of its rights and/or obligations in respect of an Advance under this Agreement
in accordance with Clause 26.2(Transfers by Lenders) where such assignment, transfer or
novation:

	 	(a)	 	includes the assignment or transfer of the right to receive an amount of
principal and interest under this Agreement; and
	 
	 	(b)	 	is made on a day other than the last day of an Interest Period.

	 	 	Necessary Authorisations means all material approvals, consents, authorisations and licences
(other than the Licences) from, all rights granted by and all filings, registrations and
agreements with, any government or other regulatory authority necessary in order to enable
each member of the Borrower Group to carry on its business as may be permitted by the terms
of this Agreement as carried on by it at the relevant time.
	 
	 	 	Net Equity Proceeds means any cash proceeds (net of issue expenses) received by or for the
account of a member of UGCE Borrower Group from any issued securities constituting or
convertible or exchangeable (with or without conditions) into, share capital of that member
of the UGCE Borrower Group (but excluding any proceeds received from an issue of Relevant
Convertible Preference Shares).
	 
	 	 	Net Proceeds means the aggregate cash (or cash equivalent) proceeds received by any member
of the Borrower Group in consideration for or otherwise in respect of a relevant disposal,
net of all Taxes applicable on, or to any gain resulting from, that disposal and of all
reasonable costs, fees and expenses properly incurred by continuing members of the Borrower
Group in arranging and effecting that disposal.
	 
	 	 	Network means the networks operated from time to time by any member of the Borrower Group
pursuant to the Licences and in accordance with this Agreement.
	 
	 	 	New Lender has the meaning given to it in Clause 26.2(Transfers by Lenders).
	 
	 	 	New Beneficiaries means the Beneficiaries as defined in the New Security Deed.
	 
	 	 	New Facility means the €1,072,000,000 secured credit facility provided pursuant to the
New Facility Agreement, consisting of the New Facility D and the Additional Facility.
	 
	 	 	New Facility D means “Facility D” as defined in the New Security Deed.
	 
	 	 	New Facility Agreement means the €1,072,000,000 secured credit agreement between TD Bank
Europe Limited as facility agent, UPC Broadband as borrower, the New Facility Lenders and
others dated 16 January 2004 as amended from time to time.
	 
	 	 	New Facility Borrower means a Borrower as defined in the New Facility Agreement.

17

 

	 	 	New Facility Lender means a Lender as defined in the New Facility Agreement.
	 
	 	 	New Finance Document means a Finance Document as defined in the New Facility Agreement.
	 
	 	 	New Security Deed means the security deed entered into on or about the date of the Amendment
and Restatement Agreement between, among others, each Obligor, the facility agent and
security agent under the New Facility Agreement, the New Facility Lenders, the High Yield
Hedging Banks and each Subordinated Creditor and includes each Deed of Accession (as defined
in the New Security Deed) entered into in relation to the New Security Deed.
	 
	 	 	New Security Document means:

	 	(a)	 	the Security Documents as defined in paragraph (a) of the definition of
“Security Documents” in the New Facility Agreement; and
	 
	 	(b)	 	any other Security Document as defined in paragraph (b) of the definition of
“Security Documents” in the New Facility Agreement, provided that the Security
Interest(s) granted under any such Security Document are simultaneously granted on the
same terms (save for variations directly attributable to the identity of the parties
and the loan amounts) to the Security Agent on behalf of the Beneficiaries to secure
the Secured Obligations (as defined in the Security Deed).

	 	 	non-Distribution Business Assets has the meaning given to it in Clause 16.10(b)(ii)
(Disposals).
	 
	 	 	Norwegian Kroner means the lawful currency of Norway for the time being.
	 
	 	 	Novation Certificate has the meaning given to it in Clause 26.3(a)(i) (Procedure for
novations).
	 
	 	 	Obligor means a Borrower or a Guarantor including, for the purposes of Clause 18 (Default),
any Subsidiary of UPC Broadband that is required to become a Guarantor under Clause 26.4
(Additional Guarantors) but has not yet become a Guarantor.
	 
	 	 	Obligor Pledge of Shareholder Loans means the deeds of pledge of shareholder loans entered
into between certain Obligors and the Security Agent listed in subparagraphs 3(a), (c), (d),
(e), (f) and (g) of Schedule 7 (Security Documents) and any other deed of pledge of
shareholder loans in substantially the same form entered into by an Obligor pursuant to any
such deed of pledge or Clause 16.14(a) (Loans and guarantees) or Clause 26.4 (Additional
Guarantors).
	 
	 	 	Obligors’ Framework Agreement means the Framework Agreement (as defined in any Obligor
Pledge of Shareholder Loans).
	 
	 	 	Optional Currency means Norwegian Kroner, Swedish Kroner or any other currency readily
available in the amount required and freely convertible into euros in the European interbank
market on the relevant Rate Fixing Day and the relevant Utilisation Date and approved by the
Facility Agent (acting on the instructions of all the Facility A Lenders) on or prior to
receipt by the Facility Agent of the relevant Request for a Facility A Advance denominated
in that currency.

18

 

	 	 	Original Borrower Group Financial Statements means the financial statements of the Borrower
Group for the Accounting Period ended 31 March 2000 (comprising the unaudited compiled
financial statements of each of the Obligors for the Accounting Period ended 31 March 2000
and a combination of those financial statements).
	 
	 	 	Original Euro Amount means:

	 	(a)	 	the principal amount of a Facility A Advance, Facility B Advance or Facility C
Advance (as applicable) denominated in euros; or
	 
	 	(b)	 	the principal amount of a Facility A Advance, Facility B Advance or Facility C
Advance (as applicable) denominated in any other currency, translated into euros on the
basis of the Agent’s Spot Rate of Exchange on the date of receipt by the Facility Agent
of the Request for the relevant Advance (in the case of a Facility A Advance or a
Facility B Advance) or on the Utilisation Date (in the case of a Facility C2 Advance).

	 	 	Participating Member State means a member state of the European Community that adopts or has
adopted the euro as its lawful currency in accordance with legislation of the European
Community for Economic Monetary Union.
	 
	 	 	Party means a party to this Agreement.
	 
	 	 	Permitted Acquisition means:

	 	(a)	 	any Acquisition of a member of the Borrower Group by any other member of the
Borrower Group as part of the solvent reorganisation of the Borrower Group; or
	 
	 	(b)	 	any Acquisition where, upon completion of the Acquisition, the person acquired
will be a Subsidiary of UPC Broadband or where UPC Broadband or one of its Subsidiaries
which is a member of the Borrower Group will own directly or indirectly greater than a
50 per cent. interest in the asset or assets constituting the acquired business (a
Majority Acquisition) and where:

	 	(i)	 	the business of the acquired entity or the business acquired,
as the case may be, is of the same nature as the business of the Borrower Group
as at the Effective Date (as defined in the New Facility Agreement) and is
carried out principally in Europe (other than Great Britain or Germany);
	 
	 	(ii)	 	in the case of any Majority Acquisition where the Acquisition
Cost is €40,000,000 or greater, UPC Broadband delivers to the Facility
Agent:

	 	(A)	 	a Borrower Group Business Plan which must:

	 	(1)	 	contain cash flow projections
which show that the sum of the undrawn Total Facility A
Commitments, any undrawn Additional Facility Commitments (as
defined in the New Facility Agreement) that are available to be
drawn for the general corporate and working capital purposes of
the Borrower Group and Unrestricted Cash, taking into account
the proposed Majority Acquisition, is projected to be greater
than €100,000,000 on the date on which financial covenants
relating to the eleventh quarterly Accounting Period after the

19

 

	 	 	 	quarterly Accounting Period in which the Acquisition is made
are tested under Clause 17 (Financial Covenants); and
	 
	 	(2)	 	contain financial projections
which demonstrate that the Borrowers will be in compliance with
the undertaking set out in Clause 17 (Financial Covenants) for
the period from completion of the Acquisition (taking into
account the Acquisition Cost of such Acquisition) to the Final
Maturity Date; and

	 	(B)	 	an Acquisition Business Plan;

	 	(iii)	 	UPC Broadband delivers to the Facility Agent the most recent
six-months management accounts of or relating to the Target, together with a
certificate signed by two managing directors or the sole managing director, as
the case may be, of UPC Broadband certifying the amount of the Cash Flow of the
Target for the most recent six months and setting out the supporting
calculations;
	 
	 	(iv)	 	no Default has occurred and is continuing or would be caused by
the Majority Acquisition; and
	 
	 	(v)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which certifies that, if the ratio of Senior Debt to Annualised EBITDA of the
Borrower Group was re-calculated for the most recent Ratio Period ending prior
to the date of the Acquisition for which financial statements have been
delivered pursuant to Clause 16.2(a) or (b) (Financial information) (the
Relevant Ratio Period) but adding to the:

	 	(A)	 	amount of Senior Debt used in such calculation
any net increase in the Senior Debt of the Borrower Group since the end
of the Relevant Ratio Period or subtracting from the amount of Senior
Debt used in such calculation any net deduction in the Senior Debt of
the Borrower Group since the end of the Relevant Ratio Period (in each
case taking into account the amount of Senior Debt used to fund the
Acquisition Cost); and
	 
	 	(B)	 	Annualised EBITDA of the Borrower Group the
Annualised EBITDA of the Target for the Relevant Ratio Period,

	 	 	 	the ratio of Senior Debt to Annualised EBITDA of the Borrower Group would
be less than the higher of:

	 	(1)	 	4.0:1; and
	 
	 	(2)	 	the ratio of Senior Debt to Annualised EBITDA
of the Borrower Group for the Relevant Ratio Period.

	 	(c)	 	any Acquisition by a member of the Borrower Group for the purposes of a solvent
reorganisation of the Borrower Group where the Acquisition is of share capital or
equivalent of a company which:

	 	(i)	 	has not traded and does not own any assets; or

20

 

	 	(ii)	 	is a dormant Subsidiary of Liberty Global, Inc. and

	 	 	 	in each case, which has no liabilities.

	 	 	All references in this definition to euro or € shall, where applicable, mean the
equivalent in any other currency, converted to euro, based on the Agent’s Spot Rate of
Exchange at the relevant time.
	 
	 	 	Permitted Borrower Group Guarantee Facilities means the guarantee facilities under which UPC
Broadband and/or any of its Subsidiaries can draw guarantees up to a maximum aggregate
principal amount of €10,000,000.
	 
	 	 	Permitted Borrower Group Revolving Credit Facility means the revolving credit facility to be
entered into after the date of the Amendment Deed by UPC Broadband as borrower, under which
UPC Broadband can borrow revolving advances for general corporate and working capital
purposes of the Borrower Group up to a maximum principal amount of €10,000,000.
	 
	 	 	Permitted Business means the carrying on of the Business in Europe.
	 
	 	 	Permitted Disposal has the meaning given to it in Clause 16.10(b) (Disposals).
	 
	 	 	Permitted Financial Indebtedness has the meaning given to it in Clause 16.12(b)
(Restrictions on Financial Indebtedness).
	 
	 	 	Permitted Joint Venture means:

	 	(a)	 	any Acquisition referred to in paragraph (b) of the definition of “Permitted
Acquisition” and any Acquisition as a result of a reorganisation of a person that is
not a Subsidiary of UPC Broadband but in which a member of the Borrower Group has an
interest, provided that such reorganisation does not result in an overall increase in
the value of the Borrower Group’s interest in that person, other than adjustments to
the basis of any member of the Borrower Group’s interest in accordance with GAAP; or
	 
	 	(b)	 	any Acquisition where, upon completion of the Acquisition, the person acquired
will not be a Subsidiary of UPC Broadband or where UPC Broadband or one of its
Subsidiaries which is a member of the Borrower Group will own directly or indirectly no
more than a 50 per cent. interest in the asset or assets constituting the acquired
business (a JV Minority Acquisition) and where:

	 	(i)	 	the business of the acquired entity or the business acquired,
as the case may be, is of the same nature as the business of the Borrower Group
as at the Effective Date (as defined in the New Facility Agreement) and is
carried out principally in Europe (other than Great Britain or Germany);
	 
	 	(ii)	 	in the case of any JV Minority Acquisition where the
Acquisition Cost is €40,000,000 or greater, UPC Broadband delivers to the
Facility Agent:

	 	(A)	 	a Borrower Group Business Plan which must:

	 	(1)	 	contain cash flow projection
which show that the sum of the undrawn Total Facility A
Commitments, any undrawn Additional Facility Commitments (as
defined in the New

21

 

	 	 	 	Facility Agreement) that are available to be drawn for the
general corporate and working capital purposes of the
Borrower Group and Unrestricted Cash, taking into account
the proposed JV Minority Acquisition, is projected to be
greater than €100,000,000 on the date on which financial
covenants relating to the eleventh quarterly Accounting
Period after the quarterly Accounting Period in which the
Acquisition is made are tested under Clause 17 (Financial
Covenants); and
	 
	 	(2)	 	contain financial projections
which demonstrate that the Borrowers will be in compliance with
the undertaking set out in Clause 17 (Financial Covenants) for
the period from completion of the Acquisition (taking into
account the Acquisition Cost of such Acquisition) to the Final
Maturity Date; and

	 	(B)	 	an Acquisition Business Plan;

	 	(iii)	 	UPC Broadband delivers to the Facility Agent the most recent
six-months management accounts of or relating to the Target, together with a
certificate signed by two managing directors or the sole managing director, as
the case may be, of UPC Broadband certifying the amount of the Cash Flow of the
Target for the most recent six months and setting out the supporting
calculations;
	 
	 	(iv)	 	no Default has occurred and is continuing or would be caused by
the JV Minority Acquisition; and
	 
	 	(v)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which certifies that, if the ratio of Senior Debt to Annualised EBITDA of the
Borrower Group was re-calculated for the most recent Ratio Period ending prior
to the date of the Acquisition for which financial statements have been
delivered pursuant to Clause 16.2(a) or (b) (Financial information) (the
Relevant Ratio Period) but adding to the:

	 	(A)	 	amount of Senior Debt used in such calculation
any net increase in the Senior Debt of the Borrower Group since the end
of the Relevant Ratio Period or subtracting from the amount of Senior
Debt used in such calculation any net deduction in the Senior Debt of
the Borrower Group since the end of the Relevant Ratio Period (in each
case taking into account the amount of Senior Debt used to fund the
Acquisition Cost); and
	 
	 	(B)	 	Annualised EBITDA of the Borrower Group the
Annualised EBITDA of the Target for the Relevant Ratio Period,

	 	 	 	the ratio of Senior Debt to Annualised EBITDA would be less than the higher
of:

	 	(1)	 	4.0:1; and

22

 

	 	(2)	 	the ratio of Senior Debt to Annualised EBITDA
for the Relevant Ratio Period.

	 	 	All references in this definition to euro or € shall, where applicable, mean the
equivalent in any other currency, converted to euro, based on the Agent’s Spot Rate of
Exchange at the relevant time.
	 
	 	 	Permitted Payment has the meaning given to it in Clause 16.13(c) (Restricted Payments).
	 
	 	 	Permitted Security Interest means:

	 	(a)	 	any Security Interest arising hereunder or under any Security Document;
	 
	 	(b)	 	any Security Interest arising under any New Security Document;
	 
	 	(c)	 	any liens arising in the ordinary course of business by way of contract which
secure indebtedness under any agreement for the supply of goods or services in respect
of which payment is not deferred for more than 180 days (or 360 days if such deferral
is in accordance with the terms pursuant to which the relevant goods were acquired or
services were provided);
	 
	 	(d)	 	any Security Interest imposed by any taxation or governmental authority in
respect of amounts which are being contested in good faith and not yet payable and for
which adequate reserves have been set aside in the books of the Borrower Group (or, as
the case may be, UPC Broadband Holdco) in respect of the same in accordance with GAAP;
	 
	 	(e)	 	any Security Interests approved in writing by the Agent (acting on the
instructions of the Majority Lenders);
	 
	 	(f)	 	any Security Interest in favour of any bank incurred in relation to any cash
management arrangements;
	 
	 	(g)	 	rights of set-off arising in the ordinary course of business;
	 
	 	(h)	 	any Security Interest securing any Financial Indebtedness referred to in Clause
16.12(b)(xi) (Restrictions on Financial Indebtedness), provided that (A) such Security
Interest was not created in contemplation of the acquisition of such company, (B) the
debt secured by such Security Interest is not increased beyond that secured at the date
the company in question is acquired and such Security Interest secures only that debt
and (C) such Encumbrance is discharged within 12 months of completion of the relevant
acquisition;
	 
	 	(i)	 	any Security Interest over non-Distribution Business Assets referred to in
Clause 16.12(b)(xii) (Restrictions on Financial Indebtedness), securing Financial
Indebtedness described therein or any other obligation in respect of such
non-Distribution Business Assets;
	 
	 	(j)	 	Security Interests arising under agreements entered into in the ordinary course
of business relating to (i) network leases or (ii) the leasing of (A) buildings; (B)
cars; and (C) other operational equipment;
	 
	 	(k)	 	any Security Interest securing Financial Indebtedness arising under the
Permitted Borrower Group Revolving Credit Facility or the Permitted Borrower Group

23

 

	 	 	 	Guarantee Facilities provided that any such Security Interest will constitute a
Security Interest over assets that are not secured or required to be secured as at
the date of the Amendment Deed under the Finance Documents or the New Finance
Documents; and
	 
	 	(l)	 	any Security Interests not falling within paragraphs (a) to (k) above and
securing indebtedness (other than indebtedness in relation to an Acquisition) not
exceeding €15,000,000 (or its equivalent).

	 	 	Plan means a plan that is subject to section 302 or regulated by Title IV of ERISA
maintained by any member of the Borrower Group or any ERISA Affiliate currently or at any
time within the last five years, or to which any member of the Borrower Group or any ERISA
Affiliate is required to make payments or contributions or has made payments or
contributions within the past five years.
	 
	 	 	Pledge of Subordinated Shareholder Loans means the deed of pledge and subordination of
Subordinated Shareholder Loans entered into between certain Restricted Persons and the
Security Agent listed in subparagraph 3(b) of Schedule 7 (Security Documents) and any other
deed of pledge entered into pursuant to any such deed of pledge or Clause 16.24(a)
(Shareholder Loans).
	 
	 	 	Polska Holdco means:

	 	(a)	 	UPC Poland Holding B.V. (previously called UPC Telecom NV); and
	 
	 	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with or is acquired by any other
person or persons; or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

	 	 	 	the successor person (including any Holding Company which holds all the shares of
Polska Holdco) formed by such consolidation or into which such entity is merged or
to which such conveyance, transfer or lease is made.

	 	 	Priority Pledge means the pledge entered into between UPC Broadband as pledgee and Priority
Telecom Netherlands N.V. as pledgor dated 30 August 2002 in relation to telephony switches.
	 
	 	 	Professional Market Party means a professional market party (professionele marktpartij)
under the Dutch Exemption Regulation.
	 
	 	 	Rate Fixing Day means:

	 	(a)	 	the Utilisation Date of an Advance denominated in Sterling;
	 
	 	(b)	 	the second Business Day before the Utilisation Date of an Advance denominated
in a currency other than euros or Sterling; or
	 
	 	(c)	 	the second TARGET Day before the Utilisation Date of an Advance denominated in
euros,

24

 

	 	 	or such other day on which it is market practice in the London or, as the case may be,
European interbank market for leading banks to give quotations in the relevant currency for
delivery on the first day of the relevant Utilisation Date.
	 
	 	 	Ratio Period has the meaning given to it in Clause 17.1 (Financial definitions).
	 
	 	 	Reference Banks means, subject to Clause 26.5 (Reference Banks), the principal London
offices of JPMorgan Chase Bank, The Toronto-Dominion Bank and CIBC World Markets plc.
	 
	 	 	Related Fund means, with respect to any Facility C Lender that is a fund that invests in
commercial loans, any other fund that invests in commercial loans and is administered or
managed by (a) that Facility C Lender, (b) any Affiliate of that Facility C Lender or (c)
the same investment adviser (or an Affiliate of that investment adviser) that administers or
manages that Facility C Lender.
	 
	 	 	Relevant Convertible Preference Shares means, at any time, convertible preference shares
issued by a member of the UGCE Borrower Group but excluding:

	 	(a)	 	convertible preference shares that cannot in accordance with their terms be
redeemed for cash:

	 	(i)	 	before the date on which all amounts outstanding under the
Finance Documents and the New Finance Documents have been repaid or prepaid in
full; or
	 
	 	(ii)	 	(if they can be redeemed for cash before that date) until the
ratio of Senior Debt to Annualised EBITDA (i) is 3.5:1 or less for the two
immediately preceding consecutive Ratio Periods and (ii) will be less than
3.5:1 immediately after such cash redemption; and

	 	(b)	 	convertible preference shares issued by a member of the UGCE Borrower Group and
subscribed for by a member of the Wider Group.

	 	 	Relevant Eastern European Subsidiary means any Subsidiary of any Obligor which Subsidiary is
incorporated and has all its material operations in Eastern Europe, provided that the
aggregate of the contributions of the Relevant Eastern European Subsidiaries to the
consolidated EBITDA of the Borrower Group attributable to Eastern Europe does not exceed in
aggregate 10 per cent.
	 
	 	 	For the purposes of this definition, consolidated EBITDA of the Borrower Group or any
Subsidiary of an Obligor shall be determined by reference to the 12 month period ending on
the most recent date in respect of which financial statements have been delivered to the
Facility Agent under Clause 16.2(b) (Financial information)
	 
	 	 	Relevant Event means a Default in relation to (a) Clause 18.2 (Non-payment) or (b) Clause
17.2 (Financial ratios).
	 
	 	 	Repayment Date means each date identified in Clause 6.1 (Repayment of Facility A Advances).
	 
	 	 	Repayment Instalment means each Facility B Repayment Instalment (as defined in Clause 6.2
(Repayment of Facility B Advances) and each Facility C Repayment Instalment (as defined in
Clause 6.3 (Repayment of Facility C Advances).

25

 

	 	 	Reportable Event means:

	 	(a)	 	an event specified as such in section 4043 of ERISA or any regulation
promulgated thereunder with respect to a Plan that is subject to Title IV of ERISA,
other than an event in relation to which the requirement to give 30 days notice of that
event is waived by any regulation; or
	 
	 	(b)	 	a failure to meet the minimum funding standard under section 412 of the Code or
section 302 of ERISA with respect to a Plan that is subject to such sections of the
Code and ERISA, whether or not there has been any waiver of notice or waiver of the
minimum funding standard under section 412 of the Code.

	 	 	Request means a request made by a Borrower to utilise any of the Facilities and, subject to
Clause 5.2 (Form of Request), substantially in the form of Part 1 of Schedule 4 (Form of
Request).
	 
	 	 	Requested Amount means the amount requested in a Request.
	 
	 	 	Restricted Payment has the meaning given to it in Clause 16.13(b) (Restricted Payments).
	 
	 	 	Restricted Person means UGCE Inc., UPC, LGEF, UPC Holding, any other company (not being a
member of the Borrower Group) which is a Subsidiary of, or an Associated Company of, UGCE
Inc. (other than Associated Companies of UGCE Inc. which are its Associated Companies by
virtue of controlling UGCE Inc. or owning beneficially and/or legally directly or indirectly
10 per cent. or more of the equity interests in UGCE Inc.).
	 
	 	 	Restricted Person’s Framework Agreement means the Framework Agreement as defined in any
Pledge of Subordinated Shareholder Loans.
	 
	 	 	Restructuring means the transfer of share capital and intercompany receivables that took
place following the Signing Date so that the Borrower Group was restructured to consist of
UPC Broadband and its Subsidiaries as described in the structure chart set out at Schedule
10 (Borrower Group Structure).
	 
	 	 	Rollover Advance means one or more Facility A Advances:

	 	(a)	 	made or to be made on the same day that a maturing Facility A Advance is due to
be repaid;
	 
	 	(b)	 	the aggregate Original Euro Amount of which is equal to or less than the
Original Euro Amount of the maturing Facility A Advance; and
	 
	 	(c)	 	made or to be made to UPC Broadband for the purpose of refinancing a maturing
Facility A Advance.

	 	 	Sale and Purchase Agreements means the following sale and purchase agreements relating to
the sale and transfer of shares and receivables entered into on 9 April 2003 between:

	 	(a)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Broadband Operations B.V.
(previously called UPC Operations B.V.);
	 
	 	(b)	 	UPC, LGEF, UPC Holding and UGC Europe Services B.V. (previously called UPC
Services B.V.);

26

 

	(c)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Broadband Holding Services B.V.
(previously called UPC Holding Services B.V.); and
	 
	(d)	 	UPC, LGEF, UPC Holding, UPC Broadband and UPC Services Ltd.

Screen Rate means:

	(a)	 	in relation to LIBOR, the British Bankers Association Interest Settlement Rate
for the relevant currency and period; and
	 
	(b)	 	in relation to EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant period,

displayed on the appropriate page of the Reuters screen. If that page is replaced or the
service ceases to be available, the Facility Agent may specify another page or service
displaying the appropriate rate after consultation with UPC Broadband and the Lenders.

Security Deed means the Security Deed dated 26 October 2000 between, among others, each
Obligor, the Facility Agent, the Security Agent, the Lenders, the Senior Hedging Banks, the
High Yield Hedging Banks and each Subordinated Creditor and includes each Deed of Accession
(as defined in the Security Deed) entered into in relation to the Security Deed.

Security Documents means:

	(a)	 	the documents listed in Schedule 7 (Security Documents); and
	 
	(b)	 	such other security documents as may from time to time be entered into in
favour of any Beneficiary pursuant to any of the Finance Documents (including without
limitation any other Obligor Pledge of Shareholder Loans or Pledge of Subordinated
Shareholder Loans, any security document referred to in Clause 16.22 (UPC Broadband
Pledged Account), Clause 16.23 (Share security) or Clause 16.25 (Further security over
receivables) and any security document provided to the Security Agent in connection
with the accession of an Additional Guarantor pursuant to Clause 26.4 (Additional
Guarantors) and Part 2 of Schedule 2 (Conditions Precedent Documents) or otherwise.

Security Interest means any mortgage, charge (whether fixed or floating), pledge, lien,
hypothecation, assignment by way of security, trust arrangement for the purpose of providing
security or other security interest of any kind securing any obligation of any person or any
other arrangement having the effect of conferring rights of retention or other disposal
rights over an asset (including without limitation title transfer and/or retention
arrangements having a similar effect or a deposit of money with the primary intention of
affording a right of set-off) and includes any agreement to create any of the foregoing but
does not include (a) liens arising in the ordinary course of business by operation of law
and not by way of contract and (b) any grant of indefeasible rights of use or equivalent
arrangements with respect to network capacity, communications, fibre capacity or conduit.

Security Provider’s Deed of Accession has the meaning given to it in the Security Deed.

Senior Beneficiary has the meaning given to the term in the Security Deed.

Senior Debt has the meaning given to it in Clause 17.1 (Financial definitions).

27

 

Senior Hedging Agreements means any Cash Flow Hedging Agreement and all interest rate and/or
currency swap and/or interest rate and/or currency cap and/or other interest rate and/or
currency hedging agreements entered into or to be entered into by any member of the Borrower
Group with any of the Senior Hedging Banks from time to time in relation to the Borrower
Group’s floating rate interest exposure and/or currency exposure.

Senior Hedging Bank means a Lender or its Affiliate or a “Lender” or its “Affiliate” as
defined in the New Facility Agreement which is or becomes a party to the Security Deed as a
senior hedging bank.

Senior Hedging Counterparty means any member of the Borrower Group that enters into a Senior
Hedging Agreement.

Serviceable Subordinated Debt means any Financial Indebtedness not prohibited by the Finance
Documents or the New Finance Documents (including, for the avoidance of doubt, High Yield
Notes and Relevant Convertible Preference Shares) which is raised by an entity that is not a
member of the Borrower Group, all or part of the proceeds of which are on-lent directly or
indirectly to a member of the Borrower Group by a Subordinated Creditor by means of a
Subordinated Shareholder Loan provided that all or part of such proceeds are applied in
permanent prepayment and cancellation of the Facilities in accordance with this Agreement or
of the New Facility D in accordance with the New Facility Agreement.

Shareholder means UGCE Inc. or a UGCE Inc. Subsidiary.

Shareholders’ Agreements means the agreements listed in Schedule 11 (Shareholders’
Agreements).

Signing Date means the date of this Agreement.

Sterling means the lawful currency for the time being of the United Kingdom.

Subordinated Creditor means any Restricted Person who has, at any relevant time, entered
into a Pledge of Subordinated Shareholder Loans and the Security Deed or a Security
Provider’s Deed of Accession.

Subordinated Shareholder Loans means any Financial Indebtedness of any member of the
Borrower Group owed to a Subordinated Creditor.

Subsidiary of a person means any company or entity directly or indirectly controlled by such
person, for which purpose control means ownership of more than 50 per cent. of the economic
and/or voting share capital (or equivalent right of ownership of such company or entity).

Swedish Kronor means the lawful currency of Sweden for the time being.

Syndication Letter means the letter dated on or about the Signing Date between the Borrowers
and the Lead Arrangers relating to the syndication of the Facilities.

Target means any assets or entity which is or are the subject of an Acquisition or
Additional Acquisition (as applicable) in accordance with the terms of this Agreement.

TARGET Day means a day on which the Trans-European Automated Real-Time Gross Settlement
(TARGET) System is operating.

28

 

Taxes or Tax means all present and future taxes, imposts, duties, levies, fees or charges of
a similar nature, together with interest thereon and penalties in respect thereof.

Telecommunications and Cable Law means all laws, statutes, regulations and judgments
relating to telecommunications, cable television and data services applicable to any member
of the Borrower Group and/or the business carried on by any member of the Borrower Group in
any jurisdiction in which a member of the Borrower Group is incorporated or formed or in
which such member has its principal place of business or owns any material assets.

Telekabel Wien means Telekabel Wien GmbH a company incorporated under the laws of Austria
with its corporate seat at Erlachgasse 116, 1100 Wien, Austria and with registration number
FN 84116a.

Third Party Debt means any Financial Indebtedness which is owed to any person other than a
member of the Wider Group (but, for the avoidance of doubt, excluding any indebtedness
arising under any instrument that does not impose any obligations on the obligor to make any
cash payment and does not permit such obligor to elect to make any cash payments and to the
extent only that such instrument is not amended so as to become an instrument under which
there are (or may be) cash payment obligations).

Total Cash Interest has the meaning given to it in Clause 17.1 (Financial definitions).

Total Debt has the meaning given to it in Clause 17.1 (Financial definitions).

Total Facility A Commitments means the aggregate for the time being of the Facility A
Commitments.

Total Facility B Commitments means the aggregate for the time being of the Facility B
Commitments.

Total Facility C Commitments means the aggregate for the time being of the Facility C
Commitments.

UGC means:

	(a)	 	UnitedGlobalCom, Inc. a corporation incorporated in the State of Delaware,
United States and, as of the Signing Date, having its business office at 4643 South
Ulster Street, Suite 1300, Denver, Colorado 80237 U.S.A.; and
	 
	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with any other person or persons;
or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

the successor person formed by such consolidation or into which such entity is merged or to
which such conveyance, transfer or lease is made.

UGCE Borrower Group means:

	(a)	 	UGCE Inc.;

29

 

	(b)	 	any other company of which UPC Broadband is a Subsidiary and which is a
Subsidiary of UGCE Inc.; and
	 
	(c)	 	UPC Holding II.

UGCE Inc. means:

	(a)	 	UGC Europe Inc. a company organised under the laws of the State of Delaware;
and
	 
	(b)	 	if the entity referred to in (a) above:

	 	(i)	 	consolidates with or merges with any other person or persons;
or
	 
	 	(ii)	 	directly or indirectly, sells, leases, conveys or transfers all
or substantially all of its assets to any other person or persons,

	 	 	the successor person formed by such consolidation or into which such entity is
merged or to which such conveyance, transfer or lease is made.

UGCE Inc. Subsidiary means:

	(a)	 	any corporation, association or other business entity (other than a
partnership, joint venture, limited liability company or similar entity) of which more
than 50 per cent. of the total ordinary voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof (or persons performing similar functions);
or
	 
	(b)	 	any partnership, joint venture limited liability company or similar entity of
which more than 50 per cent. of the capital accounts, distribution rights, total equity
and voting interests or general or limited partnership interests, as applicable, is, in
the case of clauses (a) and (b), at the time owned or controlled, directly indirectly,
by:

	 	(i)	 	UGCE Inc;
	 
	 	(ii)	 	UGCE Inc. and one or more UGCE Inc. Subsidiaries; or
	 
	 	(iii)	 	one or more UGCE Inc. Subsidiaries.

For the purposes of the above definition:

	 	 	Capital Stock of any UGCE Inc. Subsidiary means any and all shares, interests,
rights to purchase, warrants, options, participation or other equivalents of or
interests in (however designated) equity of such UGCE Inc. Subsidiary, including any
Preferred Stock, but excluding any debt securities convertible into such equity; and
	 
	 	 	Preferred Stock, as applied to the Capital Stock of any UGCE Inc. Subsidiary, means
Capital Stock of any class or classes (however designated) which is preferred as to
the payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such UGCE Inc. Subsidiary, over shares of
Capital Stock of any other class of such UGCE Inc. Subsidiary.

United States or US means the United States of America.

Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance
Documents.

30

 

Unrestricted Cash has the meaning given to that term under GAAP.

Unrestricted Subsidiary means each Subsidiary of UPC Broadband and, prior to the
Restructuring, each Subsidiary of each Obligor that is not a Subsidiary of UPC Broadband,
the acquisition cost of which and whose on-going funding requirements are not funded
directly or indirectly (in whole or in part) by any member of the Borrower Group by way of
drawings under the Facilities and which is designated by UPC Broadband in writing as an
Unrestricted Subsidiary.

UPC means United Pan-Europe Communications N.V., a public limited liability company
incorporated under the laws of The Netherlands and, as of the Signing Date, with its
registered office at Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol
Rijk, Amsterdam, The Netherlands.

UPC Austria means UPC Austria Holding B.V. a private limited liability company incorporated
under the laws of The Netherlands and, as of the Signing Date, with its registered office at
Amsterdam and its business office at Boeing Avenue 53, 1119 PE Schiphol Rijk, Amsterdam, The
Netherlands.

UPC Broadband Holdco means the immediate Holding Company of UPC Broadband from time to time,
being UPC Holding as of the Signing Date.

UPC Broadband Pledged Account has the meaning given in Clause 16.22(b) (UPC Broadband
Pledged Account)

UPC Holding means UPC Holding B.V., a limited liability company incorporated under the laws
of The Netherlands and, as of the Signing Date, with its registered office at Amsterdam and
its business office at Boeing Avenue 53, 1119 PE Schiphol Rijk, Amsterdam, The Netherlands.

UPC Holding II means UPC Holding II B.V., a limited liability company incorporated under the
laws of The Netherlands and, as of the Signing Date, with its registered office at Amsterdam
and its business office at Boeing Avenue 53, 1119 PE Schiphol Rijk, Amsterdam, The
Netherlands.

UPC Polska means UPC Polska LLC.

US Dollars and US$ means the lawful currency for the time being of the United States.

US Obligor has the meaning given to it in Clause 18.6(c) (Insolvency).

Utilisation Date means, the date specified as such in the relevant Request or, on and after
the making and/or issue thereof pursuant to such Request, the date on which it was made
and/or issued.

VAT means value added or similar tax.

Western Europe means the countries that comprised the European Community as at the Effective
Date, Scandinavia and Switzerland.

Wider Group means UGCE Inc. and each of its Affiliates including (for the avoidance of
doubt) UGC, Liberty Global, Inc. and Liberty Media International, Inc. or any of their
respective Subsidiaries.

31

 

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

	 	(i)	 	a document being in the agreed form means a document (A) in a form previously
agreed in writing by or on behalf of the Facility Agent and UPC Broadband, or (B) in a
form substantially as set out in any Schedule to any Finance Document, or (C) (if not
falling within (A) or (B) above) in form and substance satisfactory to the Lenders and
initialled by or on behalf of the Facility Agent and UPC Broadband for the purposes of
identification;
	 
	 	 	 	amendment includes a supplement, novation or re-enactment and amended is to be
construed accordingly;
	 
	 	 	 	assets includes all or any part of any business, undertaking, real property,
personal property, uncalled capital and any rights (whether actual or contingent,
present or future) to receive, or require delivery of, any of the foregoing;
	 
	 	 	 	references to the equivalent of an amount specified in a particular currency (the
specified currency amount) shall be construed as a reference to the amount of the
other relevant currency which can be purchased with the specified currency amount in
the London foreign exchange market at or about 11.00 a.m. on the day on which the
calculation falls to be made for spot delivery as determined by the Facility Agent
in accordance with its customary practices;
	 
	 	 	 	European interbank market means the interbank market for euro operating in
Participating Member States;
	 
	 	 	 	a guarantee includes a reference 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;
	 
	 	 	 	indebtedness is a reference to any obligation for the payment or repayment of money,
whether as principal or as surety and whether present or future, actual or
contingent;
	 
	 	 	 	a month is a reference to a period starting on one day in a calendar month and
ending on the numerically corresponding day in the next calendar month, except that,
if there is no numerically corresponding day in the month in which that period ends,
that period shall end on the last Business Day in that month;
	 
	 	 	 	permanent prepayment and cancellation means, in relation to any facility, a
permanent prepayment of outstanding advances under that facility with a
corresponding permanent cancellation of the total commitments in relation to that
facility;
	 
	 	 	 	a person includes any individual, firm, company, corporation, unincorporated body of
persons or any state or any of its agencies;
	 
	 	 	 	a regulation includes any present or future regulation, rule, directive,
requirement, request or guideline (whether or not having the force of law but, if
not having the force of law, only if compliance therewith is in accordance with the
general practice of the relevant persons to whom it is intended to apply or, in the
case of Clause 12 

32

 

	 	 	 	(Increased Costs) only, the relevant Finance Party or its Holding
Company) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

	 	(ii)	 	a provision of a law is a reference to that provision as amended, re-enacted or
extended;
	 
	 	(iii)	 	a Clause or a Schedule is a reference to a clause of or a schedule to this
Agreement;
	 
	 	(iv)	 	a person includes its successors, transferees and assigns;
	 
	 	(v)	 	(or to any specified provision of) this Agreement or any other document shall
be construed, save where expressly provided to the contrary in this Agreement, as a
reference to this Agreement, that provision or that document as in force for the time
being and as from time to time amended in accordance with its terms, or, as the case
may be, with the agreement of the relevant parties and (where such consent is, by the
terms of this Agreement or the relevant document, required to be obtained as a
condition to such amendment being permitted) the prior written consent of the Facility
Agent, all of the Lenders or the Majority Lenders or Majority Facility C Lenders (as
the case may be);
	 
	 	(vi)	 	other than in the definition of “EURIBOR” in Clause 1.1 (Definitions), a time
of day is a reference to London time; and
	 
	 	(vii)	 	words importing the plural include the singular and vice versa.

	(b)	 	Unless the contrary intention appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.
	 
	(c)	 	The index to and the headings in this Agreement are for convenience only and are to be
ignored in construing this Agreement.
	 
	(d)	 	Unless expressly provided to the contrary in a Finance Document, a person who is not a party
to a Finance Document may not enforce any of its terms under the Contracts (Rights of Third
Parties) Act 1999.
	 
	(e)	 	Notwithstanding any term of any Finance Document, the consent of any third party is not
required for any variation (including any release or compromise of any liability under) or
termination of that Finance Document.

	1.3	 	Replacement Facility
	 
	 	 	This Agreement, the other Finance Documents and any related notes, guarantees, collateral
documents, instruments and agreements executed in connection therewith replace the
€1,000,000,000 Loan and Note Issuance Agreement dated 27 July 1999 between, amongst
others, UPC Facility B.V., Telekabel Wien and UPC Norge A/S (formerly Janco Multicom A/S) as
borrowers and The Toronto-Dominion Bank as agent (the UPCF Facility Agreement) and any
related notes, guarantees, collateral documents, instruments and agreements executed in
connection with the UPCF Facility Agreement except as provided in this Agreement or
otherwise.

33

 

	1.4	 	New Facility Agreement
	 
	(a)	 	Unless expressly stated to the contrary and subject to paragraph (b), references in any of
the Finance Documents to the New Finance Documents and to terms defined in, and provisions of,
any of the New Finance Documents, shall be references to the relevant New Finance Document and
such terms and provisions as at the Effective Date, as the same may be amended with the prior
written approval of the Facility Agent (acting on the instructions of the Majority Lenders)
from time to time.
	 
	(b)	 	References in any of the Finance Documents to any Finance Party (as defined in the New
Facility Agreement) shall include such Finance Party’s permitted successors, transferees or
assigns from time to time.
	 
	2.	 	THE FACILITIES
	 
	2.1	 	Facilities
	 
	 	 	The relevant Lenders grant to the Borrowers:

	 	(a)	 	a committed €750,000,000 multicurrency revolving credit facility under which
the relevant Lenders will, when requested by UPC Broadband, make cash advances in euros
or Optional Currencies to UPC Broadband on a revolving basis during the Facility A
Availability Period;
	 
	 	(b)	 	a committed €2,750,000,000 term loan facility under which the relevant
Lenders will, when requested by UPC Broadband, make cash advances in euros or Optional
Currencies to UPC Broadband during the Facility B Availability Period; and
	 
	 	(c)	 	a committed US$347,500,000 and €95,000,000 term loan facility under which
the relevant Lenders will, when requested by the relevant Borrower, make cash advances
in euros (in the case of UPC Broadband) or US Dollars (in the case of the US Borrower)
(as applicable) to the relevant Borrower during the Facility C Availability Period,

	 	 	in each case subject to the terms of this Agreement.

	2.2	 	Overall facility limits
	 
	(a)	 	The aggregate Original Euro Amount of all outstanding Facility A Advances shall not at any
time exceed the Total Facility A Commitments.
	 
	(b)	 	The aggregate Original Euro Amount of all outstanding Facility B Advances shall not at any
time exceed the Total Facility B Commitments.

	(c)	 	(i)   The aggregate amount of all outstanding Facility C1 Advances shall not at any time exceed
the aggregate of the Facility C1 Commitments;

	 	(ii)	 	The aggregate amount of all outstanding Facility C2 Advances shall not at any
time exceed the aggregate of the Facility C2 Commitments.

	(d)	 	The aggregate Original Euro Amount of:

	 	(i)	 	the participations of a Lender in Facility A Advances shall not at any time
exceed that Lender’s Facility A Commitment at that time; and

34

 

	 	(ii)	 	the participations of a Lender in Facility B Advances shall not at any time
exceed that Lender’s Facility B Commitment at that time.

	(e)	 	(i)   The aggregate amount of the participations of a Lender in Facility C1 Advances shall not
at any time exceed that Lender’s Facility C1 Commitment at that time; and

	 	(ii)	 	The aggregate amount of the participations of a Lender in Facility C2 Advances
shall not at any time exceed that Lender’s Facility C2 Commitment at that time.

	2.3	 	Number of Requests and Advances
	 
	(a)	 	Unless the Facility Agent agrees otherwise, no more than one Request for Advances may be
delivered on any one day but that Request may, subject to paragraph (b) below, specify any
number of Advances from any Facility or all of them.
	 
	(b)	 	Unless the Facility Agent agrees otherwise, no more than 50 Advances may be outstanding at
any one time.
	 
	(c)	 	No more than one Request may be made for Facility C Advances under this Agreement.
	 
	2.4	 	Nature of a Finance Party’s rights and obligations
	 
	(a)	 	The obligations of a Finance Party under the Finance Documents are several. Failure of a
Finance Party to carry out those obligations does not relieve any other Party of its
obligations under the Finance Documents. No Finance Party is responsible for the obligations
of any other Finance Party under the Finance Documents.
	 
	(b)	 	The rights of a Finance Party under the Finance Documents are divided rights. A Finance
Party may, except as otherwise stated in the Finance Documents, separately enforce those
rights.
	 
	(c)	 	Each of the Obligors and each of the Finance Parties agrees that the Security Agent shall be
the joint and several creditor (hoofdelijk crediteur) of each and every obligation of any
Obligor towards each of the Finance Parties under any Finance Document, and that accordingly
the Security Agent will have its own independent claim as creditor and not as agent against
each Obligor to demand performance by the relevant Obligor of those obligations. However, any
discharge of any such obligation to either of the Security Agent or the relevant Finance Party
shall, to the same extent, discharge the corresponding obligation owing to the other.
	 
	(d)	 	Without limiting or affecting the Security Agent’s rights against any Obligor (whether under
this paragraph or under any other provision of the Finance Documents), the Security Agent
agrees with each other Finance Party (on a several and divided basis) that, subject as set out
in the next sentence, it will not exercise its rights as a joint and several creditor with a
Finance Party except with the prior written consent of the relevant Finance Party. However,
for the avoidance of doubt, nothing in the previous sentence shall in any way limit the
Agent’s right to act in the protection or preservation of rights under or to enforce any
Security Document or the Security Deed as contemplated by the Finance Documents (or to do any
act reasonably incidental to any of the foregoing).

35

 

	2.5	 	UPC Broadband as Obligors’ agent
	 
	 	 	Each Obligor:

	 	(a)	 	irrevocably authorises and instructs UPC Broadband to give and receive as agent
on its behalf all notices (including Requests) and sign all documents in connection
with the Finance Documents on its behalf (including but not limited to amendments and
variations and execution of any new Finance Documents) and take such other action as
may be necessary or desirable under or in connection with the Finance Documents; and
	 
	 	(b)	 	confirms that it will be bound by any action taken by UPC Broadband under or in
connection with the Finance Documents.

	2.6	 	Actions of UPC Broadband as Obligors’ agent
	 
	 	 	The respective liabilities of each of the Obligors under the Finance Documents shall not be
in any way affected by:

	 	(a)	 	any irregularity (or purported irregularity) in any act done by or any failure
(or purported failure) by UPC Broadband;
	 
	 	(b)	 	UPC Broadband acting (or purporting to act) in any respect outside any
authority conferred upon it by any Obligor; or
	 
	 	(c)	 	the failure (or purported failure) by or inability (or purported inability) of
UPC Broadband to inform any Obligor of receipt by it of any notification under this
Agreement or any other Finance Document.

	3.	 	PURPOSE
	 
	3.1	 	Purpose
	 
	(a)	 	Each Advance will be applied:

	 	(i)	 	in the case of Facility A, to finance the general corporate and working capital
purposes of the Borrower Group, including to finance capital expenditure and the making
of acquisitions by the Borrower Group (to the extent permitted by this Agreement);
	 
	 	(ii)	 	in the case of Facility B, to refinance in part the Financial Indebtedness
described in Schedule 9 (Relevant Financial Indebtedness) and to finance capital
expenditure and the making of acquisitions by the Borrower Group; and
	 
	 	(iii)	 	in the case of Facility C, to refinance in part the Financial Indebtedness
described in Schedule 9 (Relevant Financial Indebtedness)

	(b)	 	(i)   Each Obligor (other than UPC Broadband Holdco) will
not, and will procure that none of its Subsidiaries which are members
of the Borrower Group will, use the proceeds of Advances drawn under
the Facilities in aggregate in excess of €750,000,000 (including
without limitation by way of transfer, loan, subscription of equity or
other investment (each a Relevant Investment)) in the business of
members of the Borrower Group incorporated or principally carrying on
business in Eastern Europe.

36

 

	3.2	 	Lender’s declarations and representations as Professional Market Party
	 
	(a)	 	Each Lender under a Facility made available to a Dutch Borrower makes the following
declarations and representations to those relevant Dutch Borrowers:

	 	(i)	 	it is a Professional Market Party; and
	 
	 	(ii)	 	it acknowledges that as a consequence it has no benefit from the (creditor)
protection under the Dutch Banking Act for non-Professional Market Parties.

	(b)	 	Each declaration and representation set out in paragraph (a) above is made by each relevant
Lender on the 2006 Amendment Effective Date and on each date that this Agreement is amended,
restated or supplemented.
	 
	(c)	 	If on the date on which a Dutch Borrower accedes to this Agreement, it is a requirement under
Dutch law that a Lender needs to be qualified as a Professional Market Party in respect of
Advances to be made to that Dutch Borrower, each then current Lender under a Facility to which
that Dutch Borrower is a Borrower shall make the declaration and representation set out under
paragraph (a) above to such Dutch Borrower.
	 
	3.3	 	No monitoring
	 
	 	 	Without affecting the obligations of the Borrowers in any way, no Finance Party is bound to
monitor or verify the application of the proceeds of any Advance.
	 
	4.	 	CONDITIONS PRECEDENT
	 
	4.1	 	Documentary conditions precedent
	 
	 	 	No Borrower may draw an Advance under this Agreement until the Facility Agent has notified
UPC Broadband and the Lenders that it has received all of the documents set out in Part 1 of
Schedule 2 (Conditions Precedent Documents) in form and substance satisfactory to the
Facility Agent. The Facility Agent will confirm to UPC Broadband that it has received such
documents as soon as practicable upon receiving all of them in form and substance
satisfactory to it.
	 
	4.2	 	Further conditions precedent
	 
	 	 	The obligations of each Lender in respect of each Advance are subject to the further
conditions precedent that on the date of the Request for that Advance and on the proposed
Utilisation Date:

	 	(a)	 	except in the case of a Rollover Advance, the representations and warranties in
Clause 15 (Representations and Warranties) to be repeated on those dates are and will
be immediately after the relevant Advance is drawn down correct in all material
respects; and
	 
	 	(b)	 	in the case of a Rollover Advance, no Event of Default is outstanding or would
result from the proposed Advance and, in the case of other Advances, no Default is
outstanding or would result from the proposed Advance; and
	 
	 	(c)	 	except in the case of a Rollover Advance, no Change of Control has occurred
where the event has not been waived by the Majority Lenders.

37

 

	4.3	 	Pro forma covenant compliance
	 
	 	 	No Borrower may Request or obtain any Advance in an amount which, when aggregated with all
other Advances (other than Rollover Advances) (and all Advances (in each case as defined in
the New Facility Agreement) (the Relevant Advances) made since the last day of the most
recent Ratio Period ending prior to the proposed date of that Advance for which financial
statements have been delivered pursuant to Clause 4.1 (Documentary conditions precedent) or
Clause 16.2(a) or (b) (Financial information) (the Relevant Ratio Period) would cause UPC
Broadband to fail to be in compliance with the financial ratios set out in Clause 17.2
(Financial ratios) for the Relevant Ratio Period, if such financial ratios were re-tested
for the Relevant Ratio Period after adding the aggregate amount of all such Relevant
Advances to the amount of Senior Debt and Total Debt used in calculating such ratios.
	 
	4.4	 	Deferred Acquisition Costs
	 
	 	 	Where a member of the Borrower Group has made an Acquisition permitted by Clause 16.11
(Acquisitions and mergers), no Borrower may Request, or apply the proceeds of, any Advance
for the purpose of paying any consideration referred to in paragraph (a) of the definition
of “Acquisition Cost” in relation to that Acquisition, unless UPC Broadband delivers to the
Facility Agent on or before the date of each relevant Request:

	 	(a)	 	where the Acquisition Cost of the acquisition was greater than €100,000,000
and no more than €150,000,000, a certificate signed by two managing directors or the
sole managing director, as the case may be, of UPC Broadband and certifying; or
	 
	 	(b)	 	where the Acquisition Cost of the acquisition was greater than €150,000,000,
financial projections based on assumptions which are no more aggressive (when taken as
a whole) than those used in the preparation of the Business Plan which demonstrate,

	 	 	that the Borrowers will be in compliance with Clause 6 (Repayment) and the undertakings set
out in Clause 17 below (Financial Covenants) for the period from the Utilisation Date of
such Advance (taking into account (i) the Acquisition Cost of such acquisition (but
deducting from that Acquisition Cost the value of any consideration referred to in paragraph
(a) of the definition of “Acquisition Cost” which has yet to be paid or delivered), (ii) the
amount of such Advance and (iii) financial projections relating to the acquired business or
asset(s)) to the last Final Repayment Date.

	5.	 	ADVANCES
	 
	5.1	 	Delivery of Request
	 
	 	 	Subject to the terms of this Agreement, a Borrower may request an Advance by delivering to
the Facility Agent by not later than 11.00 a.m. on the third Business Day, before the
proposed Utilisation Date, a duly completed Request.
	 
	5.2	 	Form of Request
	 
	 	 	Each Request shall specify (where applicable):

	 	(a)	 	the relevant Facility;
	 
	 	(b)	 	the proposed Utilisation Date, which shall be a Business Day falling during the
Facility A Availability Period (in the case of a Facility A Advance), the Facility B

38

 

	 	 	 	Availability Period (in the case of a Facility B Advance) or the Facility C
Availability Period (in the case of a Facility C Advance);

	 	(c)	 	the currency of the proposed Advance which must be euros or an Optional
Currency (in the case of a Facility A Advance or Facility B Advance), euros (in the
case of a Facility C1 Advance) or US Dollars (in the case of a Facility C2 Advance);
	 
	 	(d)	 	the principal amount of the proposed Advance which:

	 	(i)	 	for an Advance denominated in euros, shall be a minimum amount
of €10,000,000;
	 
	 	(ii)	 	for an Advance denominated in US Dollars, shall be a minimum
amount of US$10,000,000; and
	 
	 	(iii)	 	for an Advance denominated in any other Optional Currency,
shall be a minimum amount equivalent to €5,000,000 (in each case using the
Agent’s Spot Rate of Exchange);

	 	(e)	 	the Interest Period of the Advance, which must be a period complying with
Clause 8 (Interest); and
	 
	 	(f)	 	unless previously notified to the Facility Agent in writing and not revoked,
the details of the bank and account to which the proceeds of the proposed Advance are
to be made available, which must comply with Clause 9 (Payments).

	 	Subject to the terms of this Agreement, each Request shall be irrevocable and the relevant
Borrower shall be bound to borrow an Advance in accordance with such Request.

	5.3	 	Notification to the Lenders
	 
	 	 	The Facility Agent shall promptly notify each Lender participating in the relevant Advance
of each Request for an Advance and the amount of its participation in the Advance.
	 
	5.4	 	Participations in Advances
	 
	(a)	 	Subject to the terms of this Agreement, each Lender shall, on the date specified in any
Request for an Advance, make available to the Facility Agent for the account of the relevant
Borrower the amount of its participation in that Advance. All such amounts shall be made
available to the Facility Agent in accordance with Clause 9.2 (Funds) for disbursement to or
to the order of the relevant Borrower in accordance with the provisions of this Agreement.
	 
	(b)	 	The amount of a Lender’s participation in an Advance will be the proportion (applied to the
amount set out in the Request) which:

	 	(i)	 	in the case of a Facility A Advance, its Facility A Commitment bears to the
Total Facility A Commitments;
	 
	 	(ii)	 	in the case of a Facility B Advance, its Facility B Commitment bears to the
Total Facility B Commitments;
	 
	 	(iii)	 	in the case of a Facility C1 Advance, its Facility C1 Commitment bears to the
aggregate of the Facility C1 Commitments; and

39

 

	 	(iv)	 	in the case of a Facility C2 Advance, its Facility C2 Commitment bears to the
aggregate of the Facility C2 Commitments.

	(c)	 	If an Advance is to be drawn down in an Optional Currency, the amount of each Lender’s
participation in that Advance will be determined by converting into that Optional Currency the
Lender’s participation in the Original Euro Amount of that Advance on the basis of the Agent’s
Spot Rate of Exchange three Business Days before its Utilisation Date.
	 
	5.5	 	Conditions relating to Optional Currencies
	 
	(a)	 	If the Facility Agent has received a written request from a Borrower for a currency to be
approved as an Optional Currency, the Facility Agent will confirm to that Borrower by 10.00
a.m. on the day two Business Days after receipt of such request:

	 	(i)	 	whether or not the Lenders have granted their approval; and
	 
	 	(ii)	 	if approval has been granted, the minimum amount (and, if required, integral
multiples) for any subsequent Advance to be drawn in that currency.

	(b)	 	Advances denominated in euro will only be made available in the euro unit.
	 
	6.	 	REPAYMENT
	 
	6.1	 	Repayment of Facility A Advances
	 
	(a)	 	UPC Broadband shall repay each Facility A Advance in full on the Interest Date for that
Advance to the Facility Agent for the Lenders, but since Facility A is available on a
revolving basis amounts repaid may be reborrowed during the Facility A Availability Period
subject to the terms of this Agreement.
	 
	(b)	 	On each date on which the Facility A Commitments are cancelled under Clause 7.1(d) (Automatic
Cancellation of the Commitments), UPC Broadband shall repay sufficient Facility A Advances to
ensure that the Facility A Advances do not exceed the Total Facility A Commitments as so
reduced.
	 
	(c)	 	No Facility A Advance may be outstanding after the end of the Facility A Availability Period.
	 
	6.2	 	Repayment of Facility B Advances
	 
	 	 	UPC Broadband shall procure that, subject to the application of Clause 7 (Cancellation and
Prepayment) the outstanding Facility B Advances shall be repaid in full by payment of
semi-annual instalments (each a Facility B Repayment Instalment) on each date set out in
column (1) below (each date for repayment being a Facility B Repayment Date) up to and
including the Final Repayment Date for Facility B. Each Facility B Repayment Instalment
(other than the last) shall be in an Original Euro Amount equal as nearly as possible
(rounded upwards if necessary) to the percentage, set out in column (2) below opposite the
relevant Facility B Repayment Date, of the total outstanding amount of Facility B Advances
on the last day of the Facility B Availability Period. The final Facility B Repayment
Instalment shall comprise all Facility B Advances outstanding on the Facility B Final
Repayment Date:

40

 

	 	 	 	 	 	 	 
	 
	 	(1)	 	(2)	 	 
	 
	 	 	 	 	 	 
	 
	 	Facility B Repayment Date	 	Relevant Percentage	 	 
	 
	 	30 June 2004	 	6.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2004	 	6.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2005	 	11.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2005	 	11.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2006	 	16.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2006	 	16.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2007	 	11.25%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2007	 	11.25%	 	 
	 
	 	 	 	 	 	 
	 	 	Facility B Final Repayment Date The aggregate amount of all
outstanding Facility B Advances

	6.3	 	Repayment of Facility C Advances
	 
	(a)	 	The Borrowers shall procure that, subject to the application of Clause 7 (Cancellation and
Prepayment), the outstanding Facility C Advances shall be repaid in full by payment of semi
annual instalments (each a Facility C Repayment Instalment) on each date specified in column
(1) below (each date for repayment being a Facility C Repayment Date) up to and including the
Final Repayment Date for Facility C. Each Facility C Repayment Instalment (other than the
last) shall be in an Original Euro Amount equal as nearly as possible (rounded upwards if
necessary) to the percentage, set out in column (2) below opposite the relevant Facility C
Repayment Date, of the total outstanding amount of Facility C Advances on the last day of the
Facility C Availability Period. The Final Facility C Repayment Instalment shall comprise all
Facility C Advances outstanding on the Facility C Final Repayment Date.

	 	 	 	 	 	 	 
	 
	 	(1)	 	(2)	 	 
	 
	 	 	 	 	 	 
	 
	 	Facility C Repayment Date	 	Relevant Percentage	 	 
	 
	 	30 June 2004	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2004	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2005	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2005	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2006	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2006	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2007	 	0.50%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2007	 	0.50%	 	 

41

 

	 	 	 	 	 	 	 
	 
	 	30 June 2008	 	24.00%	 	 
	 
	 	 	 	 	 	 
	 
	 	31 December 2008	 	24.00%	 	 
	 
	 	 	 	 	 	 
	 	 	Facility C Final Repayment Date The aggregate amount of all
outstanding Facility C Advances

	(b)	 	Each such Facility C Repayment Instalment shall be applied pro rata against the outstanding
Original Euro Amount of Facility C1 Advances and Facility C2 Advances. For the avoidance of
doubt, any amounts paid under this Clause 6.3 to a Lender in respect of a Facility C2 Advance
shall be paid in US Dollars, as required pursuant to Clause 9.4(a) (Currency).
	 
	6.4	 	Adjustment of Facility B Advances
	 
	(a)	 	For each Facility B Advance in an Optional Currency, there shall be calculated the difference
between the amount of the relevant Advance (in that Optional Currency) for the current
Interest Period and for the next Interest Period. The amount of the Facility B Advance for
the next Interest Period will be determined by notionally converting into that Optional
Currency the Original Euro Amount of the Facility B Advance on the basis of the Agent’s Spot
Rate of Exchange three Business Days before the commencement of that Interest Period.
	 
	(b)	 	At the end of the current Interest Period (but subject always to paragraph (c) below):

	 	(i)	 	if the amount of the Facility B Advance for the next Interest Period is less
than for the preceding Interest Period, UPC Broadband shall repay the difference; or
	 
	 	(ii)	 	if the amount of the Facility B Advance for the next Interest Period is
greater, each Lender shall forthwith make available to the Facility Agent for UPC
Broadband its participation in the difference.

	(c)	 	If the Agent’s Spot Rate of Exchange for the next Interest Period shows an appreciation or
depreciation of the Optional Currency against euros of less than five per cent. when compared
with the Original Exchange Rate, no amounts are payable in respect of the difference. In this
Clause 6, Original Exchange Rate means the Agent’s Spot Rate of Exchange used for determining
the amount of the Optional Currency for the Interest Period which is the later of the
following:

	 	(i)	 	the first Interest Period of the relevant Advance; and
	 
	 	(ii)	 	the most recent Interest Period immediately prior to which a difference was
required to be paid under this Clause 6.4.

	6.5	 	Prepayments and repayments
	 
	 	 	If a Facility B Advance is to be repaid or prepaid by reference to an Original Euro Amount,
the Optional Currency amount to be repaid or prepaid shall be determined by reference to the
Agent’s Spot Rate of Exchange used for determining the Optional Currency amount of that
Facility B Advance under Clause 5.4(c) (Participations in Advances) or, if applicable, the
Original Exchange Rate.

42

 

	6.6	 	Notification
	 
	 	 	The Agent shall notify the Lenders and UPC Broadband of Optional Currency amounts (and the
applicable Agent’s Spot Rate of Exchange) promptly after they are ascertained under this
Agreement.
	 
	7.	 	CANCELLATION AND PREPAYMENT
	 
	7.1	 	Automatic Cancellation of the Commitments
	 
	(a)	 	The Facility A Commitment of each Lender shall be automatically cancelled at the close of
business in London on the last day of the Facility A Availability Period.
	 
	(b)	 	The undrawn Facility B Commitment of each Lender shall be automatically cancelled at the
close of business in London on the last day of the Facility B Availability Period.
	 
	(c)	 	The undrawn Facility C Commitment of each Lender shall be automatically cancelled at the
close of business in London on the last day of the Facility C Availability Period.
	 
	(d)	 	The Facility A Commitments will be cancelled, such that, at the close of business in London
on each date set out in column (1) below, the Total Facility A Commitments will be reduced to
the amount set opposite that date in column (2) below.

	 	 	 	 	 	 	 
	 
	 	(1)	 	(2)	 	 
	 
	 	 	 	 	 	 
	 
	 	Date	 	Facility A Total Commitment after reduction	 	 
	 
	 	 	 	€	 	 
	 
	 	30 June 2005	 	666,750,000	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2006	 	583,400,000	 	 
	 
	 	 	 	 	 	 
	 
	 	30 June 2007	 	500,000,000	 	 

	 	 	Each reduction of the Facility A Commitments under paragraph (d) above shall be applied
against the Facility A Commitment of each Lender pro rata.

	7.2	 	Voluntary cancellation
	 
	 	 	UPC Broadband may, by delivering to the Facility Agent a duly completed Cancellation Notice
not less than five Business Days prior to the due date of cancellation, cancel the
unutilised portion of the Total Facility A Commitments and/or Total Facility B Commitments
and/or Total Facility C Commitments in whole or in part (but, if in part, in an aggregate
minimum amount of €10,000,000 (in the case of Facility A or Facility B) and an aggregate
minimum Original Euro Amount of €10,000,000 (in the case of Facility C) in such
proportions as UPC Broadband may specify in the Cancellation Notice) on the date specified
in the Cancellation Notice. Any cancellation in part shall be applied against the relevant
Facility A Commitment, Facility B Commitment or, as the case may be, Facility C Commitment
of each Lender pro rata.

43

 

	7.3	 	Voluntary prepayment
	 
	(a)	 	UPC Broadband may, by delivering to the Facility Agent a duly completed Cancellation Notice
not less than five Business Days prior to the due date of prepayment, prepay the whole or any
part, (but if in part in an aggregate minimum Original Euro Amount of €10,000,000) of the
outstanding Advances made to it under Facility A, Facility B or (subject to Clause 7.10(c)
(Facility C Call protection)) Facility C.
	 
	(b)	 	Any voluntary prepayment made under paragraph (a) above will be applied (subject to Clause
7.8 (Order of application) and Clause 7.10(c) (Facility C Call protection)) against:

	 	(i)	 	Facility A, Facility B or Facility C in such proportions as may be specified by
UPC Broadband in the notice of prepayment;
	 
	 	(ii)	 	(in the case of Facility A), all the Facility A Advances pro rata or against
such Facility A Advances as UPC Broadband may designate in the Cancellation Notice;
	 
	 	(iii)	 	(in the case of Facility B or Facility C), the Repayment Instalments for
Facility B or (as the case may be) Facility C, in whole or in part and in any order
designated by UPC Broadband in the Cancellation Notice.

	7.4	 	Change of Control
	 
	(a)	 	If:

	 	(i)	 	UGC ceases:

	 	(A)	 	directly or indirectly to own more than 50 per cent. of the
issued share capital of UGCE Inc.; and
	 
	 	(B)	 	to Control UGCE Inc.; or

	 	(ii)	 	UGCE Inc. does not or ceases to own, directly or indirectly through one or more
of its Subsidiaries or other persons Controlled by it, the legal and beneficial
interest in more than 50 per cent. of the voting and economic rights attaching to the
issued share capital of, or otherwise ceases to Control, UPC Broadband Holdco, (except
as a result of a merger or consolidation of UPC Broadband Holdco with or into a
Shareholder, provided that such merger or consolidation is in accordance with paragraph
(b) below); or
	 
	 	(iii)	 	in accordance with the terms of any share pledge in favour of the Security
Agent over the issued share capital of UPC Broadband Holdco and UPC Holding II, UPC
Broadband Holdco does not or ceases to own directly (or indirectly through one or more
of its Subsidiaries or other persons Controlled by it, subject to such Subsidiary or
person complying with Clause 26.4(a) (Additional Guarantors)) the legal and beneficial
interest in 100 per cent. of the issued share capital of UPC Broadband and UPC Holding
II or otherwise ceases to Control UPC Broadband and UPC Holding II; or
	 
	 	(iv)	 	in accordance with the terms of the share pledges in favour of the Security
Agent over the issued share capital of each of the Obligors (other than UPC Broadband
Holdco, UPC Holding II, the US Borrower and UPC Broadband), UPC Broadband does not or
ceases to own directly or indirectly through one or more of its Subsidiaries or other
persons Controlled by it, the legal and beneficial interest in at least 75 per cent. of
the 

44

 

	 	 	 	voting and economic rights attaching to the issued share capital of any Obligor
(other than UPC Broadband Holdco, UPC Holding II, the US Borrower or UPC Broadband) or
otherwise ceases to Control such Obligor; or

	 	(v)	 	UPC Broadband and UPC Holding II do not or cease to own, in accordance with the
terms of the pledge referred to in paragraph 2 of Schedule 7 (Security Documents), the
legal and beneficial interest in 100 per cent. of the partnership interests and
economic rights attaching to the partnership interests of, or otherwise ceases to
Control, the US Borrower,

	 	 	(any of the events described in (i) to (v) above being a Change of Control):

	 	(A)	 	UPC Broadband shall promptly notify the Facility Agent upon becoming aware of a
Change of Control; and
	 
	 	(B)	 	if the Majority Lenders so require, the Facility Agent shall, by not less than
20 Business Days’ notice to UPC Broadband, cancel each Facility and declare all
outstanding Advances, together with accrued interest and all other relevant amounts
accrued under the Finance Documents immediately due and payable, whereupon each
Facility will be cancelled and all such outstanding amounts will become immediately due
and payable.

	(b)	 	UPC Broadband Holdco shall not enter into a merger or consolidation with or into a
Shareholder (the resulting entity being the UPC Merged Entity) unless:

	 	(i)	 	reasonable details of the proposed merger concerning the matters set out in
subparagraphs (ii) and (iii) below are provided to the Facility Agent at least 10 days
before the merger is to be entered into;
	 
	 	(ii)	 	the UPC Merged Entity will be liable for the obligations of UPC Broadband
Holdco (including the obligations under the Finance Documents), which obligations will
continue in full force and effect after the merger, and entitled to the benefit of all
rights of UPC Broadband Holdco; and
	 
	 	(iii)	 	the UPC Merged Entity has entered into Security Documents (if applicable)
which provide security over the same assets of at least an equivalent nature and
ranking to the security provided by UPC Broadband Holdco pursuant to any Security
Documents entered into by it and such Security Documents are the legal, valid and
binding obligations of the UPC Merged Entity enforceable in accordance with their terms
subject (to the extent applicable) to substantially similar qualifications to those
made in the legal opinions referred to in Schedule 2 (Conditions Precedent Documents).

	7.5	 	Mandatory prepayment from Excess Cash Flow and Net Equity Proceeds
	 
	(a)	 	Subject to paragraph (b) below and Clause 7.7 (Date for prepayment), within 10 Business Days
of the delivery of the Borrower Group’s audited consolidated financial statements which relate
to any financial year of the Borrower Group (starting with the annual Accounting Period ending
31 December 2004) under Clause 16.2 (Financial information) the Borrowers (unless otherwise
agreed in writing by the Facility Agent acting on the instructions of the Majority Lenders)
shall prepay, or procure that there is prepaid, an amount of the Facilities equal to 50 per
cent. of the Excess Cash Flow for such financial year.
	 
	(b)	 	The Borrowers shall not be required to make any prepayments under (a) above:

45

 

	 	(i)	 	after the date on which the Facility Agent receives financial statements
delivered under Clause 16.2(b) (Financial information) which show that, for the two
most recent Ratio Periods, the ratio of Senior Debt to Annualised EBITDA is less than
or equal to 4:1; or
	 
	 	(ii)	 	if the amount of Excess Cash Flow in respect of the relevant financial year is
less than €5,000,000.

	(c)	 	Subject to paragraph (d) below and Clause 7.7 (Date for prepayment) UPC Broadband shall,
within ten Business Days of receipt by or for the account of a member of the UGCE Borrower
Group of the proceeds of an issue of Relevant Convertible Preference Shares, prepay or procure
that there is prepaid an amount of the Facilities equal to 40 per cent. of the balance of the
proceeds of the Relevant Convertible Preference Shares. Such amount shall be applied pro rata
against all outstanding Advances in accordance with Clause 7.8 (Order of application).
	 
	(d)	 	UPC Broadband shall not be required to make any prepayments of the Facilities under paragraph
(c) above provided that the most recently delivered financial statements provided to the
Facility Agent under Clause 16.2(b) (Financial information) show that, for the two most recent
Ratio Periods, the applicable ratio for the purposes of Clause 17.2(a) (Financial ratios) is
3.5:1 or less.
	 
	7.6	 	Mandatory prepayment from disposal proceeds
	 
	(a)	 	Other than as provided in paragraphs (b) and(c) below, on a Permitted Disposal (other than a
disposal in accordance with paragraphs (b)(i) to (xiii) of Clause 16.10 (Disposals)), the
Borrowers shall immediately prepay, or procure that there is prepaid, an amount of the
Facilities equal to four times Annualised EBITDA (calculated in accordance with Clause
16.10(c) (Disposals)) of the person or asset that is being disposed of for the Ratio Period
which ends on the most recent quarterly Accounting Period end date for which financial
information has been delivered to the Facility Agent under Clause 16.2 (Financial
information). Such amount shall be applied against the Facilities in accordance with Clause
7.8 (Order of application).
	 
	(b)	 	No prepayment in accordance with paragraph (a) above is required where the amount of any such
prepayment would be less than €100,000,000.
	 
	(c)	 	The Facility Agent may, with the approval of the Majority Lenders, waive the requirement for
the Borrowers to make a prepayment in accordance with paragraph (a). Notwithstanding any such
waiver, the Borrowers shall in any event be required to prepay an amount of the Facilities to
ensure that the financial ratios set out in Clause 17.2 (Financial ratios) for the Latest
Ratio Period (as defined in Clause 16.10(d) (Disposals)) in respect of the relevant disposal
would not be breached if such financial ratios were tested for that Latest Ratio Period taking
into account (on a pro forma basis) all disposals made since the last day of that Latest Ratio
Period and the amount of such prepayment.
	 
	7.6A	 	Mandatory prepayment from Third Party Debt proceeds
	 
	 	 	Subject to Clause 7.7 (Date for prepayment), if any member of the UGCE Borrower Group incurs
Third Party Debt and Clause 16.12(d)(i) (Restrictions on Financial Indebtedness) applies to
such Third Party Debt, UPC Broadband shall, within ten Business Days of receipt by such
member of the UGCE Borrower Group of the proceeds of Third Party Debt prepay or procure that
there is prepaid, an amount of the Facilities equal to 50 per cent. of such Third Party
Debt. Such amount shall be applied first pro-rata against outstanding Facility B 

46

 

	 	 	Advances and outstanding Facility C Advances in order of maturity and second against outstanding
Facility A Advances, in each case in accordance with Clause 7.8(a)(ii) (Order of
application).

	7.7	 	Date for prepayment
	 
	 	 	Each amount of the Facilities to be prepaid under Clause 7.5 (Mandatory prepayment from
Excess Cash Flow and Net Equity Proceeds), Clause 7.6 (Mandatory prepayment from disposal
proceeds), Clause 7.6A (Mandatory prepayment from Third Party Debt proceeds) and Clause 17.4
(Cure provisions) shall be applied in prepayment of the Facility within the period required
by the relevant Clause or deposited before the end of such period with the Security Agent or
as the Security Agent may reasonably direct in an account (or accounts) (each a Blocked
Account) in the name of any Obligor bearing interest at rates customarily offered by the
Security Agent in such circumstances, secured (if requested by the Security Agent) by a
first ranking security interest in favour of the Security Agent on behalf of the
Beneficiaries, on terms that the principal amount so deposited may only be released by
making the relevant prepayment on Interest Dates falling immediately thereafter, in
accordance with Clause 7.8 (Order of application) (where applicable), until the prepayment
obligations under Clause 7.5 (Mandatory prepayment from Excess Cash Flow and Net Equity
Proceeds), Clause 7.6 Mandatory prepayment from disposal proceeds, Clause 7.6A (Mandatory
prepayment from Third Party Debt proceeds) and Clause 17.4 (Cure provisions) have been
satisfied.
	 
	7.8	 	Order of application
	 
	(a)	 	Subject to Clause 7.10(c) (Facility C Call protection):

	 	(i)	 	the amount of each prepayment of the Facilities made under Clause 7.5(a),
Clause 7.5(b) and Clause 7.5(c)(Mandatory prepayment from Excess Cash Flow and Net
Equity Proceeds) shall be applied, unless otherwise stated:

	 	(A)	 	first, pro rata between outstanding Facility B Advances and
Facility C Advances (and pro rata against the Repayment Instalments for
Facility B and Facility C respectively) with a corresponding permanent
cancellation of the Total Facility B Commitments and Total Facility C
Commitments (pro rata between the Commitments of the Lenders under the relevant
Facility); and
	 
	 	(B)	 	second, against outstanding Facility A Advances (pro rata
against all Facility A Advances) with a corresponding permanent cancellation of
the Total Facility A Commitments, (pro rata between the Commitments of the
Lenders under that Facility) and a corresponding reduction of each amount
specified in column 2 of Clause 7.1(d) (Automatic Cancellation of the
Commitments) by the amount of each such prepayment;

	 	(ii)	 	the amount of each prepayment of the Facilities made under Clause 7.6 Mandatory
prepayment from disposal proceeds) shall be applied against the Facilities in such
proportion as may be specified to the Facility Agent by UPC Broadband not less than two
Business Days before the date on which the prepayment is due to be made and against all
the outstanding Advances made under the relevant Facility pro rata (and, if applicable,
against the Repayment Instalments for the relevant Facility or Facilities in such order
as may be specified by UPC Broadband); and
	 
	 	(iii)	 	if UPC Broadband does not give a notice to the Facility Agent specifying how
amounts are to be applied in prepayment under Clause 7.6 (Mandatory prepayment 

47

 

	 	 	 	from disposal proceeds) within the time period specified in subparagraph (a)(ii) above, the
amount of the relevant prepayment shall be applied in accordance with subparagraph
(a)(i) above.

	 	(iv)	 	the amount of each prepayment of:

	 	(A)	 	the Facilities made under Clause 7.3 (Voluntary prepayment), as
a result of the application of the proceeds of an Additional Facility; and
	 
	 	(B)	 	outstanding Facility B Advances made under Clause 7.5
(Mandatory prepayment from Excess Cash Flow and Net Equity Proceeds),
	 
	 	 	 	shall be applied:

	 	I.	 	(in the case of Facility B or Facility C)
against the Repayment Instalments for the relevant Facility in order of
maturity, starting with amounts due to be paid on the next Facility B
Repayment Date or Facility C Repayment Date (as applicable) with a
corresponding permanent cancellation of the Total Facility B
Commitments or Total Facility C Commitments (as applicable) (pro rata
between the Commitments of the Lenders under the relevant Facility);
and
	 
	 	II.	 	(in the case of Facility A) against all the
Facility A Advances pro rata or against such Facility A Advances as UPC
Broadband may designate in the Cancellation Notice delivered under
Clause 7.3 (Voluntary prepayment).

	7.9	 	Right of prepayment and cancellation in relation to a single Lender
	 
	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by a Borrower is required to be increased under
of Clause 10.2(c) (Tax gross-up); or
	 
	 	(ii)	 	any Lender claims indemnification from a Borrower under Clause 10.3 (Tax
indemnity) or Clause 12.1 (Increased Costs),

	 	 	UPC Broadband may, whilst the circumstance giving rise to the requirement or indemnification
continues, in respect only of the Facilities made available to it, give the Facility Agent
notice of cancellation of the Facility A Commitment, Facility B Commitment, Facility C1
Commitment and/or Facility C2 Commitment (as applicable) of that Lender and its intention to
procure the repayment of that Lender’s participation in all relevant Advances.
	 
	(b)	 	On receipt of a notice referred to in paragraph (a) above, the Facility A Commitment,
Facility B Commitment, Facility C1 Commitment and/or Facility C2 Commitment (as applicable) of
that Lender shall each immediately be reduced to zero.
	 
	(c)	 	On the last day of each Interest Period which ends after a Borrower has given notice under
paragraph (a) above (or, if earlier, the date specified by the relevant Borrower in that
notice), the relevant Borrower shall repay that Lender’s participation in all relevant
Advances.
	 
	(d)	 	Prepayments made pursuant to this Clause 7.9 shall be applied against the outstanding
Facility A Advances and (in the case of Facility B Advances and Facility C Advances) the
outstanding Repayment Instalments pro rata.

48

 

	7.10	 	Facility C Call protection
	 
	(a)	 	Upon any prepayment of Facility C Advances under this Clause 7 made up to and including the
Second Anniversary, the Borrowers shall pay to the Facility Agent for distribution to Facility
C Lenders:

	 	(i)	 	during the period commencing on the Signing Date to and including the first
Anniversary, a prepayment fee in respect of the principal amount of such Advances so
prepaid equal to 3 per cent. of such principal amount; and
	 
	 	(ii)	 	during the period following the first Anniversary up to and including the
second Anniversary, a prepayment fee in respect of the principal amount of such Loans
so prepaid equal to 1.5 per cent. of such principal amount.

	(b)	 	In the event that:

	 	(i)	 	the Lenders, the Majority Lenders or the Facility C Lenders (as applicable)
agree to modify or waive any of the provisions of this Agreement and, as a result
thereof, a prepayment that would otherwise have been required under this Clause 7 shall
not be made; or
	 
	 	(ii)	 	on receipt by the Facility Agent of a notice under Clause 7.4(a)(A) (Change of
Control) notifying it of a Change of Control, the Majority Lenders agree not to require
the cancellation of the Facility and prepayment of all outstanding amounts under the
Finance Documents,

	 	 	the Borrowers shall nevertheless pay to all the Facility C Lenders a fee equal to the amount
of prepayment fee that would otherwise have been paid under paragraph (a) above had such
prepayment occurred. This fee is in addition to any further prepayment fee under paragraph
(a) above that may be payable on any subsequent prepayment of the relevant amount.
	 
	(c)	 	Subject to paragraph (b), prior to the repayment or prepayment in full of all outstanding
Facility B Advances, the Facility C Lenders may elect not to accept prepayments of Facility C
Advances under Clause 7.3 (Voluntary prepayment, 7.5 Mandatory prepayment from Excess Cash
Flow and Net Equity Proceeds) or 7.6 (Mandatory prepayment from disposal proceeds). In the
event of such election any amounts which would otherwise have been applied in prepayment of
Facility C Advances shall not, unless UPC Broadband so elects, be applied in prepayment of
Facility A Advances or Facility B Advances but may be retained by the Borrowers for use in the
business of the Borrower Group.
	 
	7.11	 	Miscellaneous provisions
	 
	(a)	 	Any Cancellation Notice delivered under this Agreement is irrevocable. The Facility Agent
shall notify the Lenders promptly of receipt of any such notice.
	 
	(b)	 	All prepayments under this Agreement shall be made together with accrued interest on the
amount prepaid and any other amounts due under this Agreement in respect of that prepayment
and, subject to Clause 7.10 (Facility C Call protection) and Clause 23.4 (Break Costs),
without premium or penalty.
	 
	(c)	 	No prepayment or cancellation is permitted except in accordance with the express terms of
this Agreement.

49

 

	(d)	 	The amount of any Facility A Advance prepaid by UPC Broadband in accordance with Clause 7.3
(Voluntary prepayment) (other than any permanent prepayment and cancellation of Facility A out
of the proceeds of a drawing under an Additional Facility pursuant to Clause
16.12(b)(ii)(B)(I) (Restrictions on Financial Indebtedness)) or Clause 17.4 (Cure provisions)
may, subject to the terms of this Agreement, be re-borrowed. No other amount prepaid under
this Agreement may subsequently be re-borrowed.
	 
	(e)	 	No amount of any Commitment cancelled under this Agreement may subsequently be reinstated.
	 
	(f)	 	Any prepayment in part of any Advance shall be applied against the participations of the
Lenders in that Advance pro rata.
	 
	(g)	 	Any cancellation or prepayment in relation to Facility C shall be applied pro rata between
Facility C1 Commitments and Facility C2 Commitments or (as the case may be) Facility C1
Advances and Facility C2 Advances according to their respective Original Euro Amounts.
	 
	8.	 	INTEREST
	 
	8.1	 	Interest rate
	 
	 	 	The rate of interest on each Advance for its Interest Period is the rate per annum
determined by the Facility Agent to be the aggregate of:

	 	(a)	 	the applicable Margin; and

	 	(b)	 	(i)    LIBOR (in the case of an Advance denominated in a currency other than
euros); or

	 	(ii)	 	EURIBOR (in the case of an Advance denominated in euros); and

	 	(c)	 	the Mandatory Costs.

	8.2	 	Selection of Interest Periods
	 
	(a)	 	The Interest Period (in the case of each Facility A Advance) or the first Interest Period (in
the case of each Facility B Advance or Facility C Advance) of each Advance will be the period
selected in the Request for that Advance and (in the case of each Facility B Advance or
Facility C Advance) each subsequent Interest Period will be the period selected by the
relevant Borrower by notice (a Selection Notice) to the Facility Agent received not later than
the third Business Day before the end of the then current Interest Period.
	 
	(b)	 	Each Interest Period shall be one month, two, three or six months or in any case such other
period not exceeding six months as the relevant Borrower and the Facility Agent (acting on the
instructions of all the Lenders) may agree from time to time. Each Interest Period for an
Advance will commence on its Utilisation Date or (in the case of each subsequent Interest
Period for a Facility B Advance or Facility C Advance) the expiry of its preceding Interest
Period.
	 
	(c)	 	Each Facility A Advance will have only one Interest Period.

50

 

	8.3	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period shall instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	8.4	 	Further Adjustments to Interest Periods
	 
	 	 	If an Interest Period:

	 	(a)	 	for a Facility A Advance would otherwise overrun the Facility A Final Maturity
Date, it shall be shortened so that it ends on the Facility A Final Maturity Date;
	 
	 	(b)	 	for a Facility B Advance would otherwise overrun the Facility B Final Repayment
Date, it shall be shortened so that it ends on the Facility B Final Repayment Date; and
	 
	 	(c)	 	for a Facility C Advance would otherwise overrun the Facility C Final Repayment
Date, it shall be shortened so that it ends on the Facility C Final Repayment Date.

	8.5	 	Other adjustments
	 
	 	 	The Facility Agent and the Borrowers may enter into such other arrangements as they may
agree for the adjustment of Interest Periods and the consolidation and/or splitting of
Advances.
	 
	8.6	 	Notification
	 
	 	 	The Facility Agent shall notify the relevant Borrower and the Lenders of the duration of
each Interest Period promptly after ascertaining its duration.
	 
	8.7	 	Due dates
	 
	 	 	Except as otherwise provided in this Agreement, accrued interest on each Advance is payable
by the relevant Borrower on its Interest Date and also, in the case of:

	 	(a)	 	any Facility A Advance or Facility B Advance with an Interest Period longer
than six months, at six monthly intervals after the first day of that Interest Period
for so long as the Interest Period continues; and
	 
	 	(b)	 	in the case of any Facility C Advance with an Interest Period longer than three
months, at three monthly intervals after the first day of that Interest Period for so
long as the Interest Period continues.

	8.8	 	Default interest
	 
	(a)	 	If an Obligor fails to pay any amount payable by it under the Finance Documents, it shall
forthwith on demand by the Facility Agent pay interest on the overdue amount from the due date
up to the date of actual payment, both before and after judgment, at a rate (the default rate)
determined by the Facility Agent to be two per cent. per annum above the rate which would have
been payable if the Unpaid Sum had, during the period of non-payment, constituted an Advance
at the Margin applicable to a new Facility A Advance or (if the Unpaid Sum relates to an
overdue amount payable under or in connection with Facility C) a new Facility C Advance if it
had been drawn down at such time in the currency of the Unpaid Sum for such successive
Interest Periods of such duration (not being more than three months) 

51

 

	 	 	as the Facility Agent may determine, having regard to the likely duration of the default (a Designated Term).

	(b)	 	The default rate will be determined on each Business Day or the first day of, or two Business
Days before the first day of, the relevant Designated Term, as appropriate.
	 
	(c)	 	Default interest will be compounded at the end of each Designated Term.
	 
	8.9	 	Notification of rates of interest
	 
	 	 	The Facility Agent will promptly notify each relevant Party of the determination of a rate
of interest under this Agreement.
	 
	8.10	 	Margin
	 
	(a)	 	The Margin will be:

	 	(i)	 	in the case of a Facility A Advance or Facility B Advance, 2.75 per cent. per
annum until the first Anniversary and thereafter shall be 4.00 per cent. per annum
unless adjusted in accordance with the following provisions of this Clause 8.10; and
	 
	 	(ii)	 	in the case of a Facility C Advance, 5.50 per cent. per annum.

	(b)	 	Commencing with the first Anniversary (by reference, in the case of the first Anniversary, to
the Relevant Financial Statements delivered for the most recent financial quarter to end prior
to the first Anniversary) UPC Broadband will deliver to the Facility Agent (by no later than
the date of the first Anniversary or, as the case may be, the date it delivers to the Facility
Agent each subsequent set of Relevant Financial Statements) a notice referring to this Clause
8.10 (a Margin Notice) and specifying the ratio of Senior Debt to Annualised EBITDA as
calculated in accordance with Clause 17 (Financial Covenants) as at the date to which the
Relevant Financial Statements were prepared for the purposes of calculating whether the Margin
for Facility A Advances and Facility B Advances is to be adjusted in accordance with this
Clause 8.10.
	 
	(c)	 	The Margin for Facility A Advances and Facility B Advances will be adjusted (upwards or
downwards) to the percentage rates per annum set out in column (1) below set opposite the
range set out in column (2) below into which the ratio of Senior Debt to Annualised EBITDA, as
shown in the Margin Notice, falls:

	 	 	 	 	 	 	 
	 
	 	(1)	 	(2)	 	 
	 
	 	 	 	 	 	 
	 
	 	Margin	 	Senior Debt/	 	 
	 
	 	 	 	Annualised EBITDA ratio	 	 
	 
	 	4.00%	 	3 7.00:1	 	 
	 
	 	 	 	 	 	 
	 
	 	3.50%	 	3 6.00:1 but < 7.00:1	 	 
	 
	 	 	 	 	 	 
	 
	 	3.00%	 	3 5.00:1 but < 6.00:1	 	 
	 
	 	 	 	 	 	 
	 
	 	2.75%	 	3 4.00:1 but < 5.00:1	 	 
	 
	 	 	 	 	 	 
	 
	 	2.50%	 	3 3.00:1 but < 4.00:1	 	 
	 
	 	 	 	 	 	 
	 
	 	2.25%	 	< 3.00:1	 	 

52

 

	(d)	 	The adjustment (if any) specified in (c) above will apply to the Margin for all Facility A
Advances and Facility B Advances with effect from the date falling five Business Days after
the relevant Margin Notice (or, if later, the related Relevant Financial Statements) is
delivered to the Facility Agent.
	 
	(e)	 	If UPC Broadband fails to deliver a Margin Notice in accordance with paragraph (b) above the
Margin with effect from the last date permitted for delivery of the Relevant Financial
Statements will be as stated in paragraph (a) above provided that if that Margin Notice is
delivered later, the Margin will be adjusted in accordance with this Clause 8.10 with effect
from the date falling five Business Days after the Margin Notice (or, if later, the related
Relevant Financial Statements) is delivered.
	 
	(f)	 	In this Clause 8.10, Relevant Financial Statements means each set of quarterly financial
statements delivered under Clause 16.2(b) (Financial information).
	 
	9.	 	PAYMENTS
	 
	9.1	 	Place of Payment
	 
	 	 	All payments by an Obligor or a Lender under this Agreement shall be made to the Facility
Agent to its account at such office or bank in the principal financial centre of the country
of the currency concerned (or, in the case of euros, the financial centre of such of the
Participating Member States or London) as the Facility Agent may notify to the Obligor or
Lender for this purpose.
	 
	9.2	 	Funds
	 
	 	 	Payments under this Agreement to the Facility Agent shall be made for value on the due date
at such times and in such funds as the Facility Agent may specify to the Party concerned as
being customary at the time for the settlement of transactions in the relevant currency in
the place for payment.
	 
	9.3	 	Distribution
	 
	(a)	 	Each payment received by the Facility Agent under this Agreement for another Party shall,
except as set out in paragraph (d) below and subject to paragraphs (b) and (c) below, be made
available by the Facility Agent to that Party by payment (on the date of value of receipt and
in the currency and funds of receipt) to its account with such bank in the principal financial
centre of the country of the relevant currency (or, in the case of euros, in the principal
financial centre of such of the Participating Member States or London) as it may notify to the
Facility Agent for this purpose by not less than five Business Days’ prior notice.
	 
	(b)	 	The Facility Agent may apply any amount received by it for an Obligor in or towards payment
(on the date and in the currency and funds of receipt) of any amount due from an Obligor under
this Agreement in the same currency on such date or in or towards the purchase of any amount
of any currency to be so applied.
	 
	(c)	 	Where a sum is to be paid under this Agreement to the Facility Agent for the account of
another Party, the Facility Agent is not obliged to pay that sum to that Party until it has
established that it has actually received that sum. The Facility Agent may, however, assume
that the sum has been paid to it in accordance with this Agreement and, in reliance on that
assumption, make available to that Party a corresponding amount. If the sum has not been made
available but the Facility Agent has paid a corresponding amount to another Party, that Party
shall forthwith on demand refund the corresponding amount to the Facility Agent 

53

 

	 	 	together with interest on that amount from the date of payment to the date of receipt, calculated at a rate
reasonably determined by the Facility Agent to reflect its cost of funds.

	(d)	 	Subject to paragraph (c) above, in the case of a Mid-Interest Period Transfer, the Facility
Agent shall:

	 	(i)	 	make any interest payable in respect of the principal amount that is assigned,
transferred or novated under a Mid-Interest Period Transfer, that accrues on and prior
to the date on which the Mid-Interest Period Transfer becomes effective, available to
the Existing Lender; and
	 
	 	(ii)	 	make any interest payable in respect of the principal amount that is assigned,
transferred or novated as a Mid-Interest Period Transfer, that accrues after the date
on which the Mid-Interest Period Transfer becomes effective, available to the New
Lender,

	 	 	such payments shall be paid (on the date of value of receipt and in the currency and funds
of receipt) to the Existing Lenders’ account or the New Lenders’ account (as applicable)
with such bank and in the principal financial centre of the country of the relevant currency
(or in the case of euros, in the principal financial centre of one of the Participating
Member States or London) as it may notify to the Facility Agent for this purpose by not less
that five Business Days’ prior notice.
	 
	9.4	 	Currency
	 
	(a)	 	A repayment or prepayment of an Advance is payable in the currency in which the Advance is
denominated.
	 
	(b)	 	All interest is payable in the currency in which the relevant amount in respect of which it
is payable is denominated.
	 
	(c)	 	Amounts payable in respect of costs, expenses, Taxes and the like are payable in the currency
in which they are incurred.
	 
	(d)	 	Any other amount payable under this Agreement is, except as otherwise provided in this
Agreement, payable in euros or, to the extent it relates to Facility C2, US Dollars.
	 
	9.5	 	Set-off and counterclaim
	 
	 	 	All payments made by an Obligor under this Agreement shall be made without set-off or
counterclaim.
	 
	9.6	 	Non-Business Days
	 
	(a)	 	If a payment under this Agreement is due on a day which is not a Business Day, the due date
for that payment shall instead be the next Business Day in the same calendar month (if there
is one) or the preceding Business Day (if there is not).
	 
	(b)	 	During any extension of the due date for payment of any principal under this Agreement
interest is payable on the principal at the rate payable on the original due date.

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	9.7	 	Partial payments
	 
	(a)	 	Subject to the Security Deed, if the Facility Agent receives a payment insufficient to
discharge all the amounts then due and payable by an Obligor under this Agreement, the
Facility Agent shall apply that payment towards the obligations of the Obligors under this
Agreement in the following order:

	 	(i)	 	first, in or towards payment pro rata of any unpaid costs, fees and expenses of
the Facility Agent under this Agreement;
	 
	 	(ii)	 	secondly, in or towards payment pro rata of any accrued fees (other than any
commitment fees payable under Clause 20.1 (Commitment fee)) due but unpaid under Clause
20 (Fees);
	 
	 	(iii)	 	thirdly, in or towards payment to the Lenders pro rata of any accrued interest
(including, where a Mid-Interest Period Transfer has taken place towards payment to the
Existing Lenders and the New Lenders pro rata) and commitment fees due but unpaid under
this Agreement;
	 
	 	(iv)	 	fourthly, in or towards payment to the Lenders pro rata of any principal due
but unpaid under this Agreement; and
	 
	 	(v)	 	fifthly, in or towards payment pro rata of any other sum due but unpaid under
the Finance Documents.

	(b)	 	Subject to the Security Deed, the Facility Agent shall, if so directed by all of the Lenders,
vary the order set out in subparagraphs (a)(ii) to (v) above. The Facility Agent shall notify
UPC Broadband of any such variation.
	 
	(c)	 	Paragraphs (a) and (b) above shall override any appropriation made by any Obligor.
	 
	10.	 	TAX GROSS-UP AND INDEMNITIES
	 
	10.1	 	Definitions
	 
	(a)	 	In this Clause 10:
	 
	 	 	Protected Party means a Finance Party which is or will be, for or on account of Tax, subject
to any liability or required to make any payment in relation to a sum received or receivable
(or any sum deemed for the purposes of Tax to be received or receivable) under a Finance
Document.
	 
	 	 	Tax Credit means a credit against, relief or remission for, or repayment of any Tax.
	 
	 	 	Tax Deduction means a deduction or withholding for or on account of Tax from a payment under
a Finance Document.
	 
	 	 	Tax Payment means an increased payment made by an Obligor to a Finance Party under Clause
10.2 (Tax gross-up) or a payment under Clause 10.3 (Tax indemnity).
	 
	 	 	Treaty Lender means a Lender which is (on the date a payment falls due), entitled to that
payment under a double taxation agreement in force on the date (subject to the completion of
any necessary procedural formalities) without a Tax Deduction.

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	(b)	 	In this Clause 10 a reference to determines or determined means a determination made in the
absolute discretion of the person making the determination.
	 
	10.2	 	Tax gross-up
	 
	(a)	 	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax
Deduction is required by law.
	 
	(b)	 	UPC Broadband or a Lender shall promptly upon becoming aware that an Obligor must make a Tax
Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the
Facility Agent accordingly. If the Facility Agent receives such notification from a Lender it
shall notify UPC Broadband and that Obligor.
	 
	(c)	 	Subject to Clause 10.5 (U.S. Taxes), if a Tax Deduction is required by law to be made by an
Obligor, the amount of the payment due from that Obligor shall be increased to an amount which
(after making any Tax Deduction) leaves an amount equal to the payment which would have been
due if no Tax Deduction had been required.
	 
	(d)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction
and any payment required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law.
	 
	(e)	 	Within 30 days of making either a Tax Deduction or any payment required in connection with
that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Facility Agent
for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance
Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing authority.
	 
	(f)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is
entitled shall co-operate and use its reasonable efforts to complete any procedural
formalities and provide any information, in each case on a timely basis, necessary for that
Obligor to obtain authorisation to make that payment without a Tax Deduction (or with a
reduced rate of such Tax Deduction).
	 
	10.3	 	Tax indemnity
	 
	(a)	 	The Obligors shall (within three Business Days of demand by the Facility Agent) pay to a
Protected Party an amount equal to the loss, liability or cost which that Protected Party
determines will be or has been (directly or indirectly) suffered for or on account of Tax by
that Protected Party.
	 
	(b)	 	Paragraph (a) above shall not apply with respect to any Tax assessed on:

	 	(i)	 	a Finance Party:

	 	(A)	 	under the law of the jurisdiction in which that Finance Party
is incorporated or, if different, the jurisdiction (or jurisdictions) in which
that Finance Party is treated as resident for tax purposes; or
	 
	 	(B)	 	under the law of the jurisdiction in which that Finance Party’s
Facility Office is located in respect of amounts received or receivable in that
jurisdiction,

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	 	 	 	if that Tax is imposed on or calculated by reference to the net income or net
profits received or receivable (but not any sum deemed to be received or receivable)
by that Finance Party; or
	 
	 	(ii)	 	the Facility Agent, as a result of the failure by a Lender to satisfy on the
due date of a payment of interest either of the conditions set out in Clause
19.16(b)(ii)(A) and (B) (Lenders).

	(c)	 	A Protected Party making or intending to make a claim pursuant to paragraph (a) above shall
promptly notify the Facility Agent in writing of the event which will give, or has given, rise
to the claim, including details of the nature of the Tax due or paid by that Protected Party,
following which the Facility Agent shall promptly provide such information to UPC Broadband.
	 
	(d)	 	A Protected Party shall, on receiving a payment from an Obligor under this Clause 10.3,
notify the Facility Agent.
	 
	10.4	 	Tax Credit
	 
	(a)	 	If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(i)	 	a Tax Credit is attributable to that Tax Payment; and
	 
	 	(ii)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

	 	 	the Finance Party shall pay an amount to the Obligor which that Finance Party determines
will leave it (after that payment) in the same after-Tax position as it would have been in
had the Tax Payment not been made by the Obligor.
	 
	(b)	 	No provision of this Agreement shall:

	 	(i)	 	interfere with the right of any Finance Party to arrange its tax or any other
affairs in whatever manner it thinks fit or oblige any Finance Party to claim any
credit, relief, remission or repayment in respect of any payment of Tax in priority to
any other credit, relief, remission or repayment available to it, except that the
Finance Party’s sole reason (acting in good faith) for not claiming or for deferring
such credit, relief, remission or repayment shall not be its obligation to make a
payment under this Clause 10.4; or
	 
	 	(ii)	 	oblige any Finance Party to disclose any information relating to its Tax or
other affairs or any computations in respect thereof.

	10.5	 	U.S. Taxes
	 
	 	 	The US Borrower shall not be required to pay any additional amount pursuant to Clause 10.2
(Tax gross-up) in respect of United States Taxes (including, without limitation, federal,
state, local or other income Taxes), branch profits or franchise Taxes with respect to a sum
payable by it pursuant to this Agreement to a Lender if on the date such Lender becomes a
Party to this Agreement or has designated a new Facility Office either:

	 	(a)	 	in the case of a Lender which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code), such Lender has not provided the Borrower
with two accurate and complete original signed copies of (i) U.S. Internal Revenue
Service Form W-8BEN (relating to such Lender and claiming a complete exemption from

57

 

	 	 	 	withholding under an income tax treaty) (or successor form) or (ii) U.S. Internal
Revenue Service Form W-8ECI (or successor form) certifying, in each case, to such
Lender’s entitlement as of such date to a complete exemption from United States
withholding with respect to all amounts payable pursuant to the Finance Documents;

	 	(b)	 	after the date such Lender becomes a Party to this Agreement, when a lapse in
time or change in circumstances renders the previous certification of such Lender made
pursuant to Clause 10.5(a) above obsolete or inaccurate, such Lender has not delivered
to UPC Broadband two new accurate and complete original signed copies of Internal
Revenue Service Form W-8ECI or Form W-8BEN (with respect to the benefit of any income
tax treaty), as the case may be, and such other forms as may be required in order to
confirm or establish the entitlement of such Lender to a continued exemption from or
reduction in United States withholding tax with respect to amounts payable pursuant to
the Finance Documents; or
	 
	 	(c)	 	such Lender is subject to such Tax by reason of any connection between the
jurisdiction imposing such Tax and the Lender or its Facility Office other than a
connection arising solely from this Agreement or any transaction contemplated hereby.

	10.6	 	Value added tax
	 
	(a)	 	All consideration payable under a Finance Document by an Obligor to a Finance Party shall be
deemed to be exclusive of any VAT. If VAT is chargeable, the Obligor shall, following
delivery of a VAT invoice, pay to the Finance Party (in addition to and at the same time as
paying the consideration) an amount equal to the amount of the VAT.
	 
	(b)	 	Where a Finance Document requires an Obligor to reimburse a Finance Party for any costs or
expenses, that Obligor shall also at the same time pay and indemnify that Finance Party
against all VAT incurred by that Finance Party in respect of the costs or expenses save to the
extent that that Finance Party is entitled to repayment or credit in respect of the VAT.
	 
	11.	 	MARKET DISRUPTION
	 
	11.1	 	Absence of quotations
	 
	 	 	Subject to Clause 11.2 (Market disruption), if LIBOR or, if applicable, EURIBOR is to be
determined by reference to the Reference Banks but a Reference Bank does not supply a
quotation by noon on the Rate Fixing Day, the applicable LIBOR or EURIBOR shall be
determined on the basis of the quotations of the remaining Reference Banks.
	 
	11.2	 	Market disruption
	 
	(a)	 	If a Market Disruption Event occurs in relation to an Advance for any Interest Period, then
the rate of interest on each Lender’s share of that Advance for the Interest Period shall be
the rate per annum which is the sum of:

	 	(i)	 	the Margin;
	 
	 	(ii)	 	the rate notified to the Facility Agent by that Lender as soon as practicable
and in any event before interest is due to be paid in respect of that Interest Period,
to be that which expresses as a percentage rate per annum the cost to that Lender of
funding its participation in that Advance from whatever source it may reasonably
select; and

58

 

	 	(iii)	 	the Mandatory Cost.

	(b)	 	In this Agreement Market Disruption Event means:

	 	(i)	 	at or about noon on the Rate Fixing Day for the relevant Term or Interest
Period the Screen Rate is not available and none or only one of the Reference Banks
supplies a rate to the Facility Agent to determine LIBOR or, if applicable, EURIBOR for
the relevant currency and period; or
	 
	 	(ii)	 	before close of business in London on the Rate Fixing Day for the relevant
Interest Period, the Facility Agent receives notifications from a Lender or Lenders
(whose participations in an Advance aggregate not less than one-third of that Advance)
that the cost to it of obtaining matching deposits in the London Interbank Market or,
as the case may be, the European Interbank Market would be in excess of LIBOR or, if
applicable, EURIBOR.

	11.3	 	Alternative basis of interest or funding
	 
	(a)	 	If a Market Disruption Event occurs and the Facility Agent or UPC Broadband so requires, the
Facility Agent and UPC Broadband shall enter into negotiations (for a period of not more than
30 days) with a view to agreeing a substitute basis for determining the rate of interest.
	 
	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of
all the Lenders and UPC Broadband, be binding on all Parties.
	 
	11.4	 	Revocation of currency
	 
	 	 	If before 9.30 a.m. on any Rate Fixing Day, the Facility Agent receives notice from a Lender
that:

	 	(a)	 	it is impracticable for the Lender to fund its participation in an Advance in
the relevant Optional Currency during that Interest Period in the ordinary course of
business in the London or (in the case of euro) European Interbank Market; and/or
	 
	 	(b)	 	the use of the proposed Optional Currency might contravene any law or
regulation,

	 	 	the Facility Agent shall give notice to UPC Broadband and to the Lenders to that effect
before 11.00 a.m. on that day. In this event:

	 	(i)	 	UPC Broadband and the Lenders may agree that the drawdown will not be made; or
	 
	 	(ii)	 	in the absence of agreement:

	 	(A)	 	that Lender’s participation in the Advance (or, if more than
one Lender is similarly affected, those Lender’s participations in the Advance)
shall be treated as a separate Advance denominated in euros (in the case of a
Facility A Advance, Facility B Advance or Facility C1 Advance) or Dollars (in
the case of a Facility C2 Advance) during the relevant Interest Period;
	 
	 	(B)	 	in the definitions of “LIBOR” or, as applicable, “EURIBOR”,
(insofar as it applies to that Advance) in Clause 1.1 (Definitions):

	 	I.	 	there shall be substituted for the time “11.00
a.m.” the time “1.00 p.m.”; and

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	 	II.	 	paragraph (c) of the relevant definition shall
apply.

	12.	 	INCREASED COSTS
	 
	12.1	 	Increased Costs
	 
	(a)	 	Subject to Clause 12.3 (Exceptions) the Borrowers shall, within three Business Days of a
demand by the Facility Agent, pay to the Facility Agent for the account of a Finance Party the
amount of any Increased Costs incurred by that Finance Party or any of its Holding Companies
as a result of (i) the introduction of or any change in (or in the interpretation or
application of) any law or regulation after the Signing Date or (ii) compliance with any law
or regulation made after the Signing Date.
	 
	(b)	 	In this Agreement Increased Costs means:

	 	(i)	 	a reduction in the rate of return from the Facilities or on a Finance Party’s
(or any of its Holding Companies’) overall capital;
	 
	 	(ii)	 	an additional or increased cost; or
	 
	 	(iii)	 	a reduction of any amount due and payable under any Finance Document,

	 	 	which is incurred or suffered by a Finance Party or any of its Holding Companies to the
extent that it is attributable to that Finance Party having entered into its Commitment or
funding or performing its obligations under any Finance Document.
	 
	12.2	 	Increased cost claims
	 
	(a)	 	A Finance Party intending to make a claim pursuant to Clause 12.1 (Increased Costs) as soon
as is reasonably practicable after that Finance Party becomes aware that circumstances have
arisen which entitle it to make such claim, shall notify the Facility Agent of the event
giving rise to the claim, following which the Facility Agent shall promptly notify UPC
Broadband.
	 
	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Facility Agent,
provide a certificate confirming the amount of its Increased Costs.
	 
	12.3	 	Exceptions
	 
	(a)	 	Clause 12.1 (Increased Costs) does not apply to the extent any Increased Cost is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an Obligor;
	 
	 	(ii)	 	compensated for by Clause 10.3 (Tax indemnity) (or would have been compensated
for under Clause 10.3 (Tax indemnity) but was not so compensated solely because one of
the exclusions in Clause 10.3(b) (Tax indemnity) applied);
	 
	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or
	 
	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party or any of its
Holding Companies of any law or regulation.

	(b)	 	In this Clause 12.3, a reference to a Tax Deduction has the same meaning given to the term in
Clause 10.1 (Definitions).

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	13.	 	ILLEGALITY AND MITIGATION
	 
	13.1	 	Illegality
	 
	 	 	If it is or will become unlawful in any applicable jurisdiction for a Lender to give effect
to any of its obligations as contemplated by this Agreement or to fund or allow to remain
outstanding all or part of its participation in any Advance:

	 	(a)	 	that Lender shall promptly notify the Facility Agent upon becoming aware of the
same;
	 
	 	(b)	 	upon the Facility Agent notifying UPC Broadband, the Commitment of that Lender
will be immediately cancelled; and
	 
	 	(c)	 	if the Facility Agent on behalf of such Lender requires, the relevant Borrower
or Borrowers shall repay that Lender’s participation in any Advance made to that
Borrower on the last day of the Interest Period for each Advance occurring after the
Facility Agent has notified UPC Broadband or, if earlier, the date specified by the
Lender in the notice delivered to the Facility Agent (being no earlier than the last
day of any applicable grace period permitted by law).

	13.2	 	Mitigation
	 
	(a)	 	Each Finance Party shall, in consultation with UPC Broadband, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount (including without
limitation, VAT) becoming payable under, or cancelled pursuant to, any of Clause 10 (Tax
Gross-up and Indemnities), Clause 12 (Increased Costs) or Clause 13.1 (Illegality) including
(but not limited to) transferring its rights and obligations under the Finance Documents to
another Affiliate or Facility Office.
	 
	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor under the
Finance Documents.
	 
	13.3	 	Limitation of Liability
	 
	(a)	 	The Borrowers shall indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause 13.2
(Mitigation).
	 
	(b)	 	A Finance Party is not obliged to take any steps under Clause 13.2 (Mitigation) if, in the
opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.
	 
	14.	 	GUARANTEE
	 
	14.1	 	Guarantee and indemnity
	 
	 	 	In consideration of the Finance Parties entering into this Agreement and, where applicable,
the other Finance Documents and performing their obligations thereunder and the Senior
Hedging Banks and the High Yield Hedging Banks from time to time entering into the Senior
Hedging Agreements and the High Yield Hedging Agreements respectively, each Guarantor
irrevocably and unconditionally, jointly and severally:

	 	(a)	 	guarantees to each Finance Party and the Security Agent on behalf of the
Beneficiaries punctual performance by each Borrower and each Hedging Counterparty of
all their respective obligations under the Guaranteed Documents;

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	 	(b)	 	undertakes with each Finance Party and the Security Agent on behalf of the
Beneficiaries that whenever a Borrower or a Hedging Counterparty does not pay any
amount when due under or in connection with any Guaranteed Document, that Guarantor
shall immediately on demand pay that amount as if it was the principal obligor; and
	 
	 	(c)	 	indemnifies each Finance Party and the Security Agent on behalf of the
Beneficiaries immediately on demand against any cost, loss or liability suffered by
that Finance Party or Beneficiary if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be
equal to the amount which that Finance Party or Beneficiary would otherwise have been
entitled to recover.

	 	 	Any demand issued to a Guarantor under this Clause 14.1 shall be copied to UPC Broadband at
the same time as it is issued to the relevant Guarantor, provided that failure to do so
shall not affect the validity or effectiveness of the demand or the obligations of the
Guarantor under this Clause 14 (Guarantee).
	 
	14.2	 	Continuing guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor or any Hedging Counterparty under the Guaranteed Documents,
regardless of any intermediate payment or discharge in whole or in part.
	 
	14.3	 	Reinstatement
	 
	 	 	If any payment by an Obligor or a Hedging Counterparty or any discharge given by a
Beneficiary (whether in respect of the obligations of any Obligor or any Hedging
Counterparty or any security for those obligations or otherwise) is avoided or reduced as a
result of insolvency or any similar event:

	 	(a)	 	the liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and
	 
	 	(b)	 	each Beneficiary shall be entitled to recover the value or amount of that
security or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

	14.4	 	Waiver of defences
	 
	 	 	The obligations of each Guarantor under this Clause 14 will not be affected by any act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice any
of its obligations under this Clause 14 (without limitation and whether or not known to it
or any Beneficiary) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or any
Hedging Counterparty or other person;
	 
	 	(b)	 	the release of any other Obligor or any Hedging Counterparty or any other
person under the terms of any composition or arrangement with any creditor of any
member of the Borrower Group or any Hedging Counterparty;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, 

62

 

	 	 	 	any Obligor or any Hedging Counterparty or other person or any non-presentation or
non-observance of any formality or other requirement in respect of any instrument or
any failure to realise the full value of any security;

	 	(d)	 	any incapacity or lack of power, authority or legal personality of, or
dissolution or change in, the members or status of an Obligor or a Hedging Counterparty
or any other person;
	 
	 	(e)	 	any amendment (however fundamental) or replacement of a Guaranteed Document or
any other document or security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Guaranteed Document or any other document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	14.5	 	Immediate recourse
	 
	 	 	None of the Beneficiaries shall be obliged to make any claim or demand on the Borrowers or
any Hedging Counterparty or to resort to any security document or other means of payment now
or hereafter held by or available to them or it before enforcing its rights under this
Clause 14 and no action taken or omitted by 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 Guarantor under this Clause 14 nor shall any of the
Beneficiaries be obliged to apply 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 in reduction of the obligations and liabilities expressed to be guaranteed by the
Guarantors pursuant to this Clause 14.
	 
	14.6	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Obligors and the Hedging
Counterparties under or in connection with the Guaranteed Documents have been irrevocably
paid in full, each Beneficiary (or any trustee or agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held or
received by that Beneficiary (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and
	 
	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this Clause 14.

	14.7	 	Deferral of Guarantors’ rights
	 
	 	 	Until all amounts which may be or become payable by the Obligors and the Hedging
Counterparties under or in connection with the Guaranteed Documents have been irrevocably
paid in full (and notwithstanding payment of a dividend in any liquidation or under any
compromise or arrangement) each Guarantor agrees that, without the prior written consent of
the Facility Agent, it will not:

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

63

 

	 	(b)	 	demand or accept any security to be executed in respect of any of its
obligations under this guarantee or any other indebtedness now or hereafter due to such
Guarantor from any other member of the Borrower Group or any Hedging Counterparty or
from any other person liable; or
	 
	 	(c)	 	take any step or enforce any right against any Obligor or any Hedging
Counterparty or any other person liable in respect of any obligations and liabilities
expressed to be guaranteed by the Guarantors pursuant to this Clause 14; or
	 
	 	(d)	 	exercise any right of set-off or counterclaim against any other Obligor or any
Hedging Counterparty or any other person liable or claim or prove or vote as a creditor
in competition with any of the Beneficiaries in the bankruptcy, liquidation,
administration or other insolvency proceeding of any other Obligor or any Hedging
Counterparty or any other person liable or have the benefit of, or share in, any
payment from or composition with, any other Obligor or any Hedging Counterparty or any
other person liable or any other security document now or hereafter held by any of the
Beneficiaries for the obligations and liabilities expressed to be guaranteed by the
Guarantors pursuant to this Clause 14 or for the obligations or liabilities of any
other person liable, but so that, if so directed by the Facility Agent, it will prove
for the whole or any part of its claim in the liquidation of any other Obligor or any
Hedging Counterparty, as the case may be, on terms that the benefit of such proof and
of all money received by it in respect thereof shall immediately be transferred to an
account to be designated by the Security Agent for the Beneficiaries and applied in or
towards discharge of the obligations and liabilities expressed to be guaranteed by the
Guarantors pursuant to this Clause 14 in accordance with the Security Deed.

	14.8	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by any Beneficiary.
	 
	14.9	 	Limitation
	 
	 	 	Notwithstanding any other provision of this Clause 14, the obligations of each US Guarantor
under this Clause 14, shall be limited to a maximum aggregate amount equal to the largest
amount that would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Bankruptcy Code,
any applicable provisions of comparable state law or any applicable case law (collectively,
the Fraudulent Transfer Laws), in each case after giving effect to all other liabilities of
such US Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer
Laws and after giving effect as assets to the value (as determined under the applicable
provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution,
reimbursement, indemnity or similar rights of such US Guarantor pursuant to (i) applicable
law or (ii) any agreement providing for an equitable allocation among such US Guarantors and
other Affiliates of the Borrower Group of the obligations arising under guarantees by such
parties.
	 
	 	 	For the purposes of this Clause 14.9, US Guarantor means each Guarantor incorporated (or in
the case of a non-corporate Guarantor, formed and subsisting) in the United States of
America (or any of its states or territories or any political or legal subdivision thereof).

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	15.	 	REPRESENTATIONS AND WARRANTIES
	 
	15.1	 	Representations and warranties
	 
	(a)	 	Subject to paragraph (b), each Obligor makes the representations and warranties set out in
this Clause 15, in respect of itself and (where applicable) its Subsidiaries which are members
of the Borrower Group, other than:

	 	(i)	 	Clauses 15.9 (Accounts), 15.10 (Financial condition), 15.14 (Information),
15.14A (Business Plan) and 15.25 (Dutch Banking Act), which shall only be made by UPC
Broadband; and
	 
	 	(ii)	 	Clause 15.24 (US Borrower), which shall only be made by the US Borrower,

	 	 	to each Finance Party.
	 
	(b)	 	UPC Broadband Holdco does not make the representations and warranties set out in Clauses
15.6(b) or (c) (Consents), 15.7 (Material Contracts), 15.9 (Accounts), 15.10 (Financial
condition), 15.11 (Environmental), 15.13(a) (Litigation and insolvency proceedings), 15.14
(Information), 15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.17 (Intellectual
Property Rights), 15.19 (Borrower Group structure) and 15.24 (US Borrower).
	 
	15.2	 	Status
	 
	(a)	 	It is a corporation, duly incorporated and validly existing under the laws of its place of
incorporation and, in the case of the US Borrower only, it is a Delaware general partnership
duly formed and wholly existing under the laws of its place of formation.
	 
	(b)	 	It has the power to own its assets and carry on its business as it is being conducted.
	 
	15.3	 	Powers and authority
	 
	 	 	It has the power:

	 	(a)	 	to enter into and comply with all obligations expressed on its part under the
Finance Documents; and
	 
	 	(b)	 	(in the case of a Borrower) to borrow under this Agreement; and
	 
	 	(c)	 	(in the case of a Guarantor) to give the guarantee in Clause 14 (Guarantee),

	 	 	and has taken all necessary actions to authorise the execution, delivery and performance of
the Finance Documents to which it is a party.
	 
	15.4	 	Legal validity
	 
	(a)	 	Each Finance Document to which it is or will be a party constitutes, or when executed in
accordance with its terms will constitute, its legal, valid and binding obligations
enforceable, subject to any relevant reservations or qualifications as to matters of law
contained in any legal opinion referred to in paragraph 3 of Part 1 of Schedule 2 (Conditions
Precedent Documents) or (as applicable) paragraph 12 of Part 2 of Schedule 2 (Conditions
Precedent Documents), in accordance with its terms.
	 
	(b)	 	The choice of English law as the governing law of the Finance Documents and its irrevocable
submission to the jurisdiction of the courts of England in respect of any proceedings relating

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	 	 	to the Finance Documents (in each case other than any Finance Document which is expressly to
be governed by a law other than English law) will be recognised and enforced in its
jurisdiction of incorporation, subject to any relevant reservation or qualification as to
matters of law contained in any legal opinion referred to in paragraph (a) above.

	(c)	 	Any judgment obtained in England in relation to a Finance Document (in each case other than
any Security Document which is expressly to be governed by a law other than English law) will
be recognised and enforced in its jurisdiction of incorporation, subject to any relevant
reservation or qualification as to matters of law contained in any legal opinion referred to
in paragraph (a) above.
	 
	15.5	 	Non-violation
	 
	 	 	The execution and delivery by it of, the Finance Documents to which it is a party, and its
performance of the transactions contemplated thereby, will not violate:

	 	(a)	 	in any material respect, any law or regulation or official judgment or decree
applicable to it;
	 
	 	(b)	 	in any material respect, its constitutional documents; or
	 
	 	(c)	 	any agreement or instrument to which it is a party or binding on any of its
assets or binding upon any other member of the Borrower Group or any other member of
the Borrower Group’s assets, where such violation would or is reasonably likely to have
a Material Adverse Effect.

	15.6	 	Consents
	 
	(a)	 	Subject to any relevant reservations or qualifications contained in any legal opinion
referred to in Clause 15.4(a) (Legal validity) above, all material and necessary
authorisations, registrations, consents, approvals, licences (other than the Licences), and
filings required by it in connection with the execution, validity or enforceability of the
Finance Documents to which it is a party and performance of the transactions contemplated by
the Finance Documents have been obtained (or, if applicable, will be obtained within the
required time period) and are validly existing.
	 
	(b)	 	The Licences are in full force and effect and each member of the Borrower Group is in
compliance in all material respects with all provisions thereof such that the Licences are not
the subject of any pending or, to the best of its knowledge, threatened attack, suspension or
revocation by a competent authority except, in each case, to the extent that any lack of
effect, non-compliance or attack, suspension or revocation of a Licence would not have or be
reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	All the Necessary Authorisations are in full force and effect, each member of the Borrower
Group is in compliance in all material respects with all provisions thereof and the Necessary
Authorisations are not the subject of any pending or, to the best of its knowledge, threatened
attack or revocation by any competent authority except, in each case, to the extent that any
lack of effect, non-compliance or attack or revocation of a Necessary Authorisation would not
have or be reasonably likely to have a Material Adverse Effect.
	 
	15.7	 	Material Contracts
	 
	(a)	 	Each Material Contract to which any member of the Borrower Group is a party constitutes, or
will when executed constitute, the legal, valid and binding obligation of such member, subject

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	 	 	to the application of any relevant insolvency, bankruptcy or similar laws or other laws
affecting the interests of creditors generally, enforceable against it in accordance with its
terms.

	(b)	 	No member of the Borrower Group is in breach of any of its material obligations under any
Material Contract to which such member is a party, nor (to the best of its knowledge and
belief), is any other party thereto, in each case in such a manner or to such an extent as
would or is reasonably likely to have a Material Adverse Effect. To the best of its knowledge
and belief there is no material dispute between any member of the Borrower Group and any other
party to a Material Contract and there have been no amendments to any Material Contract in the
form provided to the Facility Agent prior to the date of this Agreement which would or is
reasonably likely to have a Material Adverse Effect.
	 
	15.8	 	No default
	 
	(a)	 	No Event of Default has occurred and is continuing or will result from the making of any
Advance.
	 
	(b)	 	None of it or any other member of the Borrower Group is in default under any law, regulation
or agreement to which it is subject, except for a default which will not have or be reasonably
likely to have a Material Adverse Effect.
	 
	15.9	 	Accounts
	 
	 	 	The consolidated financial statements of it and the Borrower Group most recently delivered
to the Facility Agent (which, at the date of this Agreement are the Original Borrower Group
Financial Statements):

	 	(a)	 	present a true and fair view of (in the case of audited financial statements)
or fairly present (in the case of unaudited financial statements) its financial
position and the consolidated financial position of the Borrower Group respectively as
at the date to which they were drawn up; and
	 
	 	(b)	 	have been prepared in all material respects in accordance with GAAP (except
that such consolidated financial statements do not include all consolidated
Subsidiaries to the extent they are Unrestricted Subsidiaries).

	15.10	 	Financial condition
	 
	 	 	There has been no material adverse change in the consolidated financial position of the
Borrower Group (taken as a whole) since the date of the Original Borrower Group Financial
Statements which would or is reasonably likely to have a Material Adverse Effect.
	 
	15.11	 	Environmental
	 
	(a)	 	It and each other member of the Borrower Group (i) have obtained all requisite Environmental
Licences required for the carrying on of its business as currently conducted and (ii) have at
all times complied with the terms and conditions of such Environmental Licences and (iii) have
at all times complied with all other applicable Environmental Law, which in each such case, if
not obtained or complied with, would or is reasonably likely to have a Material Adverse
Effect.

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	(b)	 	There is no Environmental Claim in existence, pending or, to the best of its knowledge,
threatened, against it which is reasonably likely to be decided against it and which, if so
decided, would or is reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	So far as it is aware, no Dangerous Substance has been used, disposed of, generated, stored,
transported, dumped, released, deposited, buried or emitted at, on, from or under any premises
(whether or not owned, leased, occupied or controlled by it or any member of the Borrower
Group and including any offsite waste management or disposal location utilised by it or any
member of the Borrower Group) in circumstances where this would be reasonably likely to result
in a liability on it which would or is reasonably likely to have a Material Adverse Effect.
	 
	15.12	 	Security Interests
	 
	 	 	Its execution and delivery of this Agreement does not necessitate and will not result in the
creation or imposition of any Security Interest over any of its material assets or those of
any member of the Borrower Group (except for any Security Interest created pursuant to the
Security Documents).
	 
	15.13	 	Litigation and insolvency proceedings
	 
	(a)	 	No litigation, arbitration or administrative proceedings of or before any court, arbitral
body or agency have been started against any member of the Borrower Group and, to its
knowledge, no such proceedings are threatened, where in any such case, there is a reasonable
likelihood of an adverse outcome to any member of the Borrower Group where that outcome is of
a nature which would or is reasonably likely to have a Material Adverse Effect.
	 
	(b)	 	None of the circumstances referred to in Clause 18.7 (Insolvency proceedings) are pending or,
to its knowledge, threatened against it or any member of the Borrower Group which is a
Material Subsidiary.
	 
	15.14	 	Information
	 
	(a)	 	To the best of its knowledge after due inquiry, as of the date of any Information Memorandum:

	 	(i)	 	the factual information relating to the Borrower Group and UPC contained in
that Information Memorandum is accurate in all material respects;
	 
	 	(ii)	 	all UPC Broadband’s projections and forecasts contained in that Information
Memorandum were based on and arrived at after due and careful consideration and have
been prepared by UPC Broadband on the basis of assumptions that UPC Broadband believed
were reasonable as of the date of the projections;
	 
	 	(iii)	 	there are no material facts or circumstances which have not been disclosed to
the Lenders in writing prior to the date of that Information Memorandum and which would
make any material factual information referred to in (i) above untrue, inaccurate or
misleading in any material respect as at the date of that Information Memorandum, or
any such opinions, projections, or assumptions referred to in (ii) above misleading in
any material respect as at the date of that Information Memorandum.

	(b)	 	To the best of its knowledge after due inquiry, the factual information furnished by or on
behalf of UPC or any member of the Borrower Group to the Consultant and contained or

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	 	 	referred to in the Consultant’s Report was true in all material respects at the respective dates as of
which that information speaks.
	 
	(c)	 	Notwithstanding paragraphs (a) and (b) above, no representation is made in respect of (i) any
information, facts, statements, opinions, projections, forecasts, demographic statistics or
circumstances relating to the cable, media, telecommunications and data services industry as a
whole, (ii) the research reports contained in Book Two of the Information Memorandum and (iii)
any person other than any member of the Borrower Group.
	 
	15.14A	 	Business Plan
	 
	 	 	To the best of its knowledge after due inquiry, as of the date of the Business Plan:

	 	(a)	 	the factual information relating to the Borrower Group contained in the
Business Plan is accurate in all material respects;
	 
	 	(b)	 	all UPC Broadband’s projections and forecasts contained in the Business Plan
were based on and arrived at after due and careful consideration and have been prepared
by UPC Broadband on the basis of assumptions that UPC Broadband believed were
reasonable as of the date of the projections;
	 
	 	(c)	 	there are no material facts or circumstances which have not been disclosed to
the Lenders in writing prior to the date of the Business Plan and which would make any
material factual information referred to in (a) above untrue, inaccurate or misleading
in any material respect as at the date of the Business Plan, or any such opinions,
projections, or assumptions referred to in (b) above misleading in any material respect
as at the date of the Business Plan.

	15.15	 	Tax liabilities
	 
	 	 	No claims are being asserted against it or any member of the Borrower Group with respect to
Taxes which are reasonably likely to be determined adversely to it or to such member and
which, if so adversely determined, would or is reasonably likely to have a Material Adverse
Effect. It is not materially overdue in the filing of any Tax returns required to be filed
by it (where such late filing might result in any material fine or penalty on it) and it has
paid within any period required by law all Taxes shown to be due on any Tax returns required
to be filed by it or on any assessments made against it (other than Tax liabilities being
contested by it in good faith and where it has made adequate reserves for such liabilities
or where such overdue filing, or non-payment, or a claim for payment, of which in each such
case would not have or be reasonably likely to have a Material Adverse Effect).
	 
	15.16	 	Ownership of assets
	 
	 	 	It and each member of the Borrower Group has good title to or valid leases or licences of or
is otherwise entitled to use all assets necessary to conduct its business, except where the
failure to do so would not have or be reasonably likely to have a Material Adverse Effect.
	 
	15.17	 	Intellectual Property Rights
	 
	(a)	 	It (and each member of the Borrower Group) owns or has the legal right to use all the
Intellectual Property Rights which are required for the conduct of the business of the
Borrower Group as a whole from time to time or are required by it (or such member) in order
for it to carry on such business as it is then being conducted, except where the failure to do
so would not have or be reasonably likely to have a Material Adverse Effect. As far as it is

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	 	 	aware it does not (nor does any member of the Borrower Group), in carrying on its business,
infringe any Intellectual Property Rights of any third party in any way which would or is
reasonably likely to have a Material Adverse Effect.
	 
	(b)	 	None of the Intellectual Property Rights owned by any member of the Borrower Group is, to its
knowledge, being infringed nor, to its knowledge, is there any threatened infringement of
those Intellectual Property Rights, by any third party which, in either case, would or is
reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	All registered Intellectual Property Rights owned by it (or any member of the Borrower Group)
are subsisting and all actions (including payment of all fees) required to maintain the same
in full force and effect have been taken except where the absence of such rights or the
failure to take any such action would not have or be reasonably likely to have a Material
Adverse Effect.
	 
	15.18	 	Works councils
	 
	 	 	All of the requirements of Section 25 of The Netherlands Works Council Act (Wet op de
Ondernemingsraden) in connection with the transactions contemplated by the Finance Documents
which are applicable to an Obligor have been complied with by that Obligor.
	 
	15.19	 	Borrower Group structure
	 
	 	 	Schedule 10 (Borrower Group Structure) sets out a description which is true and complete in
all material respects as at the Effective Date of the corporate ownership structure of the
Borrower Group and of the ownership of the Borrower (but does not describe any level of
ownership above UGCE Inc.).
	 
	15.20	 	ERISA
	 
	 	 	Neither it nor any member of the Borrower Group or ERISA Affiliate maintains, contributes to
or has any obligation to contribute to or any liability under, any Plan, or in the past five
years has maintained or contributed to or had any obligation to, or liability under, any
Plan.
	 
	15.21	 	United States Regulations
	 
	 	 	Neither it nor any member of the Borrower Group is:

	 	(a)	 	a holding company as defined in the United States Public Utility Holding
Company Act of 1935 or subject to regulation thereunder;
	 
	 	(b)	 	a public utility as defined in the United States Federal Power Act of 1920 or
subject to regulation thereunder;
	 
	 	(c)	 	required to be registered as an investment company as defined in the United
States Investment Company Act of 1940 or subject to regulation thereunder; or
	 
	 	(d)	 	subject to regulation under any United States Federal or State law or
regulation that limits its ability to incur or guarantee indebtedness.

	15.22	 	Anti-Terrorism Laws
	 
	 	 	To the best of its knowledge, neither it nor any member of the Borrower Group:

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	 	(a)	 	is, or is controlled by, a Designated Party;
	 
	 	(b)	 	has received funds or other property from a Designated Party; or
	 
	 	(c)	 	is in material breach of or is the subject of any action or investigation under
any Anti-Terrorism Law.

	 	 	It and each of its Affiliates have taken commercially reasonable measures to ensure
compliance with the Anti-Terrorism Laws.
	 
	15.23	 	Margin stock
	 
	(a)	 	(In the case of the Borrowers only) the proceeds of the Facilities have been and will be used
only for the purposes described in Clause 3 (Purpose).
	 
	(b)	 	Neither it nor any member of the Borrower Group is engaged principally in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulations U and X of the Board of Governors of the United States Federal Reserve System),
and no portion of any Advance has been or will be used, directly or indirectly, to purchase or
carry margin stock or to extend credit to others for the purpose of purchasing or carrying
margin stock.
	 
	15.24	 	US Borrower
	 
	 	 	The US Borrower did not trade or carry on any business from the date it was formed up to and
including 26 October 2000 except for investment in or proposed investment in other members
of the Borrower Group by way of intercompany loan or subscription of shares.
	 
	15.25	 	Dutch Banking Act
	 
	 	 	On the Effective Date, UPC Broadband is in compliance with the applicable provisions of the
Dutch Banking Act and any implementing regulations.
	 
	15.26	 	Investment Company Act
	 
	 	 	Neither it nor any member of the Borrower Group is an “investment company” or a company
“controlled” by an “investment company”, within the meaning of the United States Investment
Company Act of 1940, as amended.
	 
	15.27	 	Public Utility Holding Company Act and Federal Power Act
	 
	 	 	Neither it nor any member of the Borrower Group is a “holding company”, or an “affiliate” of
a “holding company” or a “subsidiary company” of a “holding company”, within the meaning of,
or otherwise subject to regulation under, the United States Public Utility Holding Company
Act of 1935, as amended. Neither it nor any member of the Borrower Group is a “public
utility” within the meaning of, or otherwise subject to regulation under, the United States
Federal Power Act.
	 
	15.28	 	Times for making representations and warranties
	 
	(a)	 	The representations and warranties set out in this Clause 15 (Representations and Warranties)
are made by each Obligor on the Signing Date and (except for Clauses 15.6 (Consents), 15.10
(Financial condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency
proceedings), 15.14 (Information), 15.14A (Business Plan), 15.15 (Tax liabilities), 15.16

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	 	 	(Ownership of assets), 15.18 (Works councils), 15.19 (Borrower Group structure), 15.20
(ERISA), 15.24 (US Borrower) and 15.25 (Dutch Banking Act)) are deemed to be made again by
each relevant Obligor on the date of each Request, the first day of each Interest Period and
on each Utilisation Date with reference to the facts and circumstances then existing.

	(b)	 	The representations and warranties set out in this Clause 15 (Representations and Warranties)
(except Clauses 15.9 (Accounts), 15.10 (Financial condition), 15.14 (Information), 15.14A
(Business Plan), 15.19 (Borrower Group structure) and 15.24 (US Borrower)) are repeated by
each Additional Guarantor with respect to itself on the date of the Guarantor Accession
Agreement relating to that Additional Guarantor, with reference to the facts and circumstances
then subsisting.
	 
	(c)	 	The representation and warranty made by UPC Broadband in Clause 15.14 (Information) will be
deemed to be repeated on the date any updated Information Memorandum is delivered to the
Facility Agent by UPC Broadband, but only in respect of that updated Information Memorandum,
by reference to the facts and circumstances existing on the relevant date.
	 
	(d)	 	The representation and warranty made by UPC Broadband in Clause 15.14A (Business Plan) will
be deemed to be repeated on the date any updated Business Plan is delivered to the Facility
Agent by UPC Broadband, but only in respect of that updated Business Plan, by reference to the
facts and circumstances existing on the relevant date.
	 
	16.	 	UNDERTAKINGS
	 
	16.1	 	Duration
	 
	 	 	The undertakings in this Clause 16 (Undertakings) will remain in force from the Signing Date
for so long as any amount is or may be outstanding under any Finance Document or any
Commitment is in force.
	 
	16.2	 	Financial information
	 
	 	 	UPC Broadband shall supply to the Facility Agent in sufficient copies for all the Lenders:

	 	(a)	 	as soon as the same are available (and in any event within 150 days of the end
of each of its financial years) audited consolidated financial statements of UPC
Broadband Holdco for that financial year;
	 
	 	(b)	 	as soon as the same are available (and, in any event, (in the case of its first
three financial quarters in any financial year) within 60 days of the end of each of
its financial quarters and (in the case of its fourth financial quarter in each
financial year) within 150 days of the end of each such financial quarter), unaudited
quarterly consolidated management accounts of UPC Broadband Holdco for that financial
quarter in the agreed form;
	 
	 	(c)	 	by no later than 60 days after the last day of each of its financial years, an
annual budget for the Distribution Business of the Borrower Group in the agreed form
for the immediately following financial year;
	 
	 	(d)	 	together with any financial statements specified in paragraphs (a) or (b)
above, a certificate signed by a director of UPC Broadband:

	 	(i)	 	confirming that no Default is outstanding or if a Default is
outstanding, specifying the Default and the steps, if any, being taken to
remedy it;

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	 	(ii)	 	setting out in reasonable detail computations establishing, as
at the date of such financial statements, whether each of the financial ratios
set out in Clause 17 (Financial Covenants) were complied with;
	 
	 	(iii)	 	(in the case of financial statements specified in paragraph
(a) above, starting with the annual financial statements for 31 December 2004)
setting out in reasonable detail computations establishing the Excess Cash Flow
(if any) for the financial year to which such financial statements were
delivered for the purposes of Clause 7.5 (Mandatory prepayment from Excess Cash
Flow and Net Equity Proceeds);
	 
	 	(iv)	 	certifying current compliance with the Borrowers’ obligations
under Clause 7.6 (Mandatory prepayment from disposal proceeds); and
	 
	 	(v)	 	certifying compliance with Clause 16.11(a) (Acquisitions and
mergers);

	 	(e)	 	as soon as the same is available (and in any event within 90 days after each of
its financial quarters) the consolidated financial statements of UGC for that financial
quarter on Form 10Q as filed with the United States Securities and Exchange Commission
(the Commission) or such other comparable form as UGC is required to file with the
Commission under the United States Securities Exchange Act of 1934 (the 1934 Act) or,
if UGC is no longer subject to the reporting requirements of the 1934 Act, in the form
required to be filed with the regulatory body comparable to the Commission then having
jurisdiction over UGC;
	 
	 	(f)	 	as soon as the same is available (and in any event within 180 days after each
of its financial years) the audited consolidated financial statements of UGC for that
financial year on Form 10K as filed with the Commission or such other comparable form
as UGC is required to file with the Commission under the 1934 Act or, if UGC is no
longer subject to the reporting requirements of the 1934 Act, in the form required to
be filed with the regulatory body comparable to the Commission then having jurisdiction
over UGC;
	 
	 	(g)	 	together with the financial statements and accounts referred to in paragraphs
(a) and (b), a reconciliation demonstrating the effect of excluding from such financial
statements or accounts the results of any business or activity other than the
Distribution Business of the Borrower Group, provided that non-Distribution Business
Assets need not be so excluded (and the reconciliation need not apply to such assets)
unless they are subject to any Security Interest referred to in paragraph (i) of the
definition of “Permitted Security Interest” or any other form of recourse as
contemplated by Clause 16.12(b)(xii) (Restrictions on Financial Indebtedness);and
	 
	 	(h)	 	details of the principal terms (including without limitation, details of the
notional amount, the termination date and applicable rates) of any Senior Hedging
Agreements or High Yield Hedging Agreements to which any member of the Borrower Group
is a party within five Business Days of any Senior Hedging Agreement or High Yield
Hedging Agreement being entered into.

	16.3	 	Information — Miscellaneous
	 
	 	 	UPC Broadband shall supply promptly (and in any event in the case of paragraph (d) below
within five Business Days of the date on which UPC Broadband becomes aware of such
information) or procure that there shall be supplied (both in hard copy and in electronic
form) promptly to the Facility Agent:

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	 	(a)	 	all notices, reports or other documents despatched by or on behalf of any
Obligor to its creditors generally in relation to it or any of its Subsidiaries;
	 
	 	(b)	 	a copy of any material report or other notice, statement or circular, sent or
delivered by any member of the Borrower Group whose shares are pledged to the Security
Agent pursuant to any Security Document to any person in its capacity as shareholder of
such member of the Borrower Group, which materially adversely affects the interest of
the Finance Parties under such Security Document;
	 
	 	(c)	 	such other material information regarding the Borrower Group and which is in
the possession or control of any member of the Borrower Group as the Facility Agent may
from time to time reasonably request; and
	 
	 	(d)	 	written notification of:

	 	(i)	 	the Priority Pledge becoming enforceable;
	 
	 	(ii)	 	any breach by Priority Telecom N.V. of its obligations set out
in the Priority Pledge; and
	 
	 	(iii)	 	any breach of the Sale and Purchase Agreements.

	16.3A	 	Enforcement of and undertakings in relation to certain agreements
	 
	(a)	 	UPC Broadband agrees promptly after (and in any event within five Business Days of) receiving
notice from the Facility Agent to do so, to take all necessary action to:

	 	(i)	 	if the Priority Pledge becomes enforceable, enforce the Priority Pledge;
	 
	 	(ii)	 	if Priority Telecom N.V. has breached its obligations set out in the Priority
Pledge in any material respect, enforce its rights in respect of any such breaches by
Priority Telecom N.V. of its obligations under the Priority Pledge; and
	 
	 	(iii)	 	if any party to the Sale and Purchase Agreements is in default under any one
or more of the Sale and Purchase Agreements in any material respect, enforce its rights
in respect of such default.

	(b)	 	UPC Broadband undertakes to keep the Lenders informed and to take such action in connection
with the enforcement of the Priority Pledge or its rights under the Priority Pledge or any of
the Sale and Purchase Agreements (as the case may be) as may be requested by the Facility
Agent (acting on the instructions of the Majority Lenders).
	 
	(c)	 	UPC Broadband undertakes not to agree to any amendment, variation, supplement or waiver of
the Priority Pledge or the Sale and Purchase Agreements without the written consent of the
Facility Agent (acting on the instructions of the Majority Lenders) where the same would
prejudice in any material respect the interests of the Lenders under such arrangements.
	 
	16.4	 	Notification of Default and inspection rights
	 
	(a)	 	Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of it (unless that Obligor is aware that such
a notification has already been provided by another Obligor).

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	(b)	 	Each Obligor (other than UPC Broadband Holdco) shall, if required by the Facility Agent
(acting on the instructions of the Majority Lenders), at any time whilst an Event of Default
is continuing or the Facility Agent has reasonable grounds to believe that an Event of Default
may exist and at other times if the Facility Agent has reasonable grounds for such request,
permit representatives of the Facility Agent upon reasonable prior written notice to UPC
Broadband to:

	 	(i)	 	visit and inspect the properties of any member of the Borrower Group during
normal business hours;
	 
	 	(ii)	 	inspect its books and records other than records which the relevant member of
the Borrower Group is prohibited by law, regulation or contract from disclosing to the
Facility Agent; and
	 
	 	(iii)	 	discuss with its principal officers and Auditors its business, assets,
liabilities, financial position, results of operations and business prospects provided
that (A) any such discussion with the Auditors shall only be on the basis of the
audited financial statements of the Borrower Group and any compliance certificates
issued by the Auditors and (B) representatives of UPC Broadband shall be entitled to be
present at any such discussion with the Auditors.

	(c)	 	Any Obligor must promptly upon becoming aware of it notify the Facility Agent of:

	(i)	 	any Reportable Event;
	 
	(ii)	 	the termination of or withdrawal from, or any circumstances reasonably likely
to result in the termination of or withdrawal from, any Plan subject to Title IV of
ERISA; and
	 
	(iii)	 	material non-compliance with any law or regulation relating to any Plan
which would or is reasonably likely to have a Material Adverse Effect.

	16.5	 	Authorisations
	 
	 	 	Each Obligor (other than UPC Broadband Holdco, in the case of paragraphs (b) and (c) below)
will, and will procure that each of its Subsidiaries which is a member of the Borrower Group
will:

	 	(a)	 	obtain or cause to be obtained, maintain and comply with the terms of:

	 	(i)	 	every material consent, authorisation, licence or approval of,
or filing or registration with or declaration to, governmental or public bodies
or authorities or courts; and
	 
	 	(ii)	 	every material notarisation, filing, recording, registration or
enrolment in any court or public office,

	 	 	 	in each case required under any law or regulation to enable it to perform its
obligations under, or for the validity, enforceability or admissibility in evidence
of any Finance Document to which it is a party; and

	 	(b)	 	obtain or cause to be obtained every Necessary Authorisation and the Licences
and ensure that (i) none of the Necessary Authorisations or Licences is revoked,
cancelled, suspended, withdrawn, terminated, expires and is not renewed or otherwise

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	 	 	 	ceases to be in full force and effect and (ii) no Necessary Authorisation or Licence is
modified and no member of the Borrower Group commits any breach of the terms or
conditions of any Necessary Authorisation or Licence which, in each case, would or is
reasonably likely to have a Material Adverse Effect.

	16.6	 	Pari passu ranking
	 
	 	 	Each Obligor will procure that its payment obligations under the Finance Documents do and
will rank at least pari passu with all the claims of its other present and future unsecured
and unsubordinated creditors (save for those obligations mandatorily preferred by applicable
law applying to companies generally).
	 
	16.7	 	Negative pledge
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not permit any Security Interest (other
than the Permitted Security Interests) by any member of the Borrower Group to subsist, arise
or be created or extended over all or any part of their respective present or future
undertakings, assets, rights or revenues to secure or prefer any present or future
indebtedness of any member of the Borrower Group or any other person.
	 
	(b)	 	UPC Broadband Holdco will not create or permit to subsist any Security Interest over its
assets which are subject to the Security Documents to which it is a party (other than any
Permitted Security Interest referred to in paragraphs (a), (b), (d), (e) or (g) of the
definition of “Permitted Security Interest”).

	(c)	 	(i)   UPC Broadband will procure that none of LGEF, UPC,
UGCE Inc. or any other member of the UGCE Borrower Group
(each a Relevant Company) will create or permit to subsist
any Security Interest (other than an Agreed Security
Interest) over all or part of that Relevant Company’s
present or future undertakings, assets, rights or revenues.

	 	(ii)	 	For the purposes of subparagraph (c)(i) above:

	 	 	 	Agreed Security Interest means:

	 	(a)	 	any liens arising in the ordinary course of business by way of
contract which secure indebtedness under any agreement for the supply of goods
or services in respect of which payment is not deferred for more than 180 days
(or 360 days if such deferral is in accordance with the terms pursuant to which
the relevant goods were acquired or services were provided);
	 
	 	(b)	 	any Security Interest imposed by any taxation or governmental
authority in respect of amounts which are being contested in good faith and not
yet payable and for which adequate reserves have been set aside in the accounts
of the Relevant Company in respect of the same in accordance with GAAP;
	 
	 	(c)	 	any Security Interest in favour of any bank incurred in
relation to any cash management arrangements;
	 
	 	(d)	 	rights of set-off arising in the ordinary course of business;
	 
	 	(e)	 	any Security Interest granted by a Relevant Company over its
shareholding in any of its Subsidiaries which is not itself a Relevant Company;

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	 	(f)	 	any Security Interest granted by a Relevant Company under any
New Security Documents provided that, (other than in the case of the Security
Interests referred to in paragraph (a) of the definition of “New Security
Documents”) at the same time that such Security Interest is granted, the
Relevant Company grants an identical Security Interest over the same assets to
the Beneficiaries and under the terms of the Intercreditor Agreement, such
Security Interest ranks pari passu with the Security Interest(s) arising under
the corresponding Security Document which purports to create a Security
Interest over the same property, assets or rights, provided that any such New
Security Document will be in the same form as the corresponding Security
Document (save for changes directly attributable to the identity of the parties
and the loan amounts);
	 
	 	(g)	 	any Security Interest granted by a Relevant Party to secure any
Third Party Debt permitted under Clause 16.12(d) (Restrictions on Financial
Indebtedness); and
	 
	 	(h)	 	any Security Interest not falling within subparagraphs (a) to
(g) above securing any indebtedness which, when aggregated with all other
indebtedness secured by that Relevant Company and each other Relevant Company,
does not exceed €15,000,000 (or its equivalent).

	16.8	 	Permitted Business
	 
	(a)	 	Each Obligor will ensure that it and its Subsidiaries which are members of the Borrower Group
(other than any Relevant Eastern European Subsidiary) engage:

	 	(i)	 	in no material activity outside the Permitted Business; and/or
	 
	 	(ii)	 	in the business of acting as the holder of shares and/or interests in other
members of the Borrower Group (which shall include the raising of Permitted Financial
Indebtedness and the on-lending of such Financial Indebtedness to its Subsidiaries in
accordance with the provisions of this Agreement and the entry into of hedging
arrangements on behalf of its Subsidiaries).

	(b)	 	The Borrowers will ensure that the US Borrower will engage primarily in the business of a
finance company for and in respect of the Borrower Group in connection with the Facilities and
the transactions contemplated by this Agreement.
	 
	16.9	 	Compliance with laws
	 
	 	 	Each Obligor will, and will procure that each of its Subsidiaries which is a member of the
Borrower Group will, comply in all material respects with all applicable laws, rules,
regulations and orders of any governmental authority, having jurisdiction over it or any of
its assets, except where failure to comply with which would not have or be reasonably likely
to have a Material Adverse Effect.
	 
	16.10	 	Disposals
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not and will procure that no other member
of the Borrower Group (other than a Relevant Eastern European Subsidiary) will, sell,
transfer, lend (subject to Clause 16.14 (Loans and guarantees)) or otherwise dispose of or
cease to exercise direct control over (each a disposal) any part of its present or future

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undertaking, assets, rights or revenues whether by one or a series of transactions related or
not (other than Permitted Disposals).

	(b)	 	As used herein a Permitted Disposal means:

	 	(i)	 	disposals (including, for the avoidance of doubt, the outsourcing of activities
that support or are incidental to the Permitted Business) on arm’s length commercial
terms in the ordinary course of business;
	 
	 	(ii)	 	the disposal by UPC Scandinavia Holding B.V. of:

	 	(A)	 	the shares in UPC Norge A.S. and/or NBS Nordic Broadband
Services A.B.; or
	 
	 	(B)	 	the business or a substantial part of the business of UPC Norge
A.S. and/or NBS Nordic Broadband Services A.B.,

provided that, in each case, an amount equal to four times Annualised EBITDA of the
entity (or the business) that is being disposed of under this Subclause for the
Ratio Period which ends on the most recent quarterly Accounting Period end date for
which financial information has been delivered under Clause 16.2 (Financial
information) (the Scandinavia Repayment Amount) is deposited immediately with the
Facility Agent and/or the facility agent under the New Facility Agreement and
applied in prepayment and cancellation or repayment of the Facilities in accordance
with paragraphs (d), (e), (f) and (g) below and/or the Additional Facilities in
accordance with clauses 16.10(d), (e), (f) and (g) (Disposals) of the New Facility
Agreement.

the disposal of property or other assets on bona fide arm’s length commercial terms
in the ordinary course of business in consideration for, or to the extent that the
net proceeds of disposal are applied within 120 days after such disposal in the
acquisition of, property or other assets of a similar nature and approximately equal
value to be used in the Permitted Business;

	 	(iii)	 	disposals of assets on bona fide arm’s length commercial terms where such
assets are obsolete or no longer required for the purposes of the Permitted Business;
	 
	 	(iv)	 	the application of cash in payments which are not otherwise restricted by the
terms of this Agreement and the Security Documents including, for the avoidance of
doubt, Permitted Acquisitions and Permitted Payments;
	 
	 	(v)	 	disposals (or the payment of management, consultancy or similar fees):

	 	(A)	 	by an Obligor to another Obligor; or
	 
	 	(B)	 	from a member of the Borrower Group which is not an Obligor, to
any member of the Borrower Group; or
	 
	 	(C)	 	from an Obligor to another member of the Borrower Group which
is not an Obligor;

	 	(vi)	 	disposals of any interest in an Unrestricted Subsidiary;
	 
	 	(vii)	 	disposals made in connection with Approved Stock Options;

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	 	(viii)	 	disposals of undertakings, assets, rights or revenues comprising interests in the
share capital of persons not holding or engaged in the Distribution Business of the
Borrower Group or other undertakings, assets, rights or revenues not constituting part
of the Distribution Business of the Borrower Group (non-Distribution Business Assets);
	 
	 	(ix)	 	payment, transfer or other disposal of consideration for any Acquisition,
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers);
	 
	 	(x)	 	disposals of cash or cash equivalents constituting any distribution, dividend,
transfer, loan or other transaction permitted by Clause 16.13 (Restricted Payments);
and
	 
	 	(xi)	 	the grant of indefeasible rights of use or equivalent arrangements with respect
to network capacity, communications, fibre capacity or conduit, in each case on arm’s
length commercial terms or on terms that are fair and reasonable and in the best
interests of the Borrower Group; and
	 
	 	(xii)	 	disposal of any interest (whether direct or indirect) held by Polska Holdco in
Fox Kids Inc., Telewizja Korporacja Partycypacyjana SA and/or @media S.p.zoo.

For the avoidance of doubt and without limiting the generality of sub-paragraph
(viii) above, non-Distribution Business Assets shall include:

	 	(A)	 	undertakings, assets, rights and revenues comprising interests
in the share capital of any person engaged solely in the competitive local
exchange carrier (CLEC) business, including without limitation, the business of
providing traditional voice and data services and services based on
Transmission Control Protocol/Internet Protocol (TCP/IP) technology and other
undertakings, assets, rights or revenues constituting a part of such
businesses; and
	 
	 	(B)	 	undertakings, assets, rights and revenues comprising interests
in the share capital of any person engaged solely in the business of television
and radio programming, including without limitation, the business or creating
and distributing special interest television channels, radio programmes, pay
per view programmes and near video on demand services and other undertakings,
assets, rights or revenues constituting a part of such businesses.

	 	(xiii)	 	any disposal made after the 2006 Amendment Effective Date (in addition to those
described in sub paragraphs (i) to (xiii) above) of any person or asset the Annualised
EBITDA of or attributable to which does not exceed the Remaining Percentage of the
Annualised EBITDA of the Borrower Group for the Latest Ratio Period Provided that:

	 	(A)	 	no Default has occurred and is continuing or would occur as a
result of such disposal;
	 
	 	(B)	 	where required, a prepayment is made in accordance with Clause
7.6(a) (Mandatory prepayment from disposal proceeds) in respect of such
disposal; and
	 
	 	(C)	 	UPC Broadband delivers to the Facility Agent a certificate
signed by two managing directors or the sole managing director of UPC Broadband
which

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	 	 	 	certifies that, if the financial ratios set out in Clause 17.2 (Financial
ratios) were re-calculated for the Latest Ratio Period but adjusting the:

	 	I.	 	amount of Senior Debt and Total Debt used in
such calculations by adding any net increase in Senior Debt or Total
Debt (respectively) of the Borrower Group since the end of the Latest
Ratio Period or subtracting any net reduction in the Senior Debt or
Total Debt (respectively) of the Borrower Group since the end of the
Latest Ratio Period and any such reduction which will occur from a
prepayment of a Facility made under Clause 7.3 (Voluntary prepayment)
or Clause 7.6(a) (Mandatory prepayment from disposal proceeds) of this
Agreement from the proceeds of such disposal; and
	 
	 	II.	 	Annualised EBITDA of the Borrower Group used in
such calculations by subtracting the Annualised EBITDA attributable to
persons or assets disposed of since the end of the Latest Ratio Period
and the Annualised EBITDA attributable to the person or asset the
subject of such disposal, in each case for the Latest Ratio Period,

those financial ratios would not be breached.

	(c)	 	The Remaining Percentage is:

	 	(i)	 	the greater of (A) 17.5 per cent. and (B) the percentage of the Annualised
EBITDA of the Borrower Group represented by the Annualised EBITDA of the French Group
for the Latest Ratio Period;
	 
	 	(ii)	 	less the aggregate percentage value of all previous disposals made after the
2006 Amendment Effective Date; and
	 
	 	(iii)	 	plus the aggregate percentage value of all Reinvestments made after the 2006
Amendment Effective Date,

as calculated in accordance with paragraph (d) below.

Provided that:

	 	(x)	 	the percentage of the Annualised EBITDA of the Borrower Group represented by
the Annualised EBITDA of the person or asset disposed of can never be more than the
Remaining Percentage immediately prior to such disposal;
	 
	 	(y)	 	the percentage value of a Reinvestment shall be disregarded if, immediately
after and taking account of the Reinvestment under consideration, the Annualised EBITDA
of the members of the Borrower Group which is derived from persons or assets located in
Western Europe is less than 66 2/3 per cent. of the Annualised EBITDA of the Borrower
Group (in each case for the Latest Ratio Period but taking into account each disposal
and Reinvestment made after the date on which that Latest Ratio Period ended); and
	 
	 	(z)	 	the Remaining Percentage can never be more than 17.5 per cent., except in
respect of a disposal of the French Group.

	(d)	 	For the purposes of paragraphs (b)(xiii) and (c) above:

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Annualised EBITDA and EBITDA have the meaning given to them in Clause 17.1 (Financial
definitions) but, when calculating EBITDA in relation to a person or asset that is being (or
has been) acquired or disposed of, any amounts will be calculated using the methodology for
calculating operating cash flow used in the accounts most recently filed with the Securities
and Exchange Commission by or on behalf of UPC Holding prior to the date of that acquisition
or disposal, and, for the avoidance of doubt, any corporate costs or allocations paid or
payable during the relevant period by a member of the Borrower Group which is being disposed
of to one of its Affiliates pursuant to any general services (or similar) arrangement shall
be deducted from the EBITDA of the member of the Borrower Group being disposed of.

French Group means the group of companies of which UPC France Holding B.V. is the holding
company as at the 2006 Amendment Effective Date;

Latest Ratio Period means the most recent Ratio Period for which financial statements have
been delivered pursuant to Clause 16.2 (Financial information);

percentage value means:

	 	(i)	 	in relation to a disposal, the percentage of the Annualised EBITDA of the
Borrower Group for what was the Latest Ratio Period at the time of the disposal which
is represented by the Annualised EBITDA of the person or asset disposed of (the EBITDA
Percentage), after deducting a percentage equal to the EBITDA Percentage multiplied by
the Proportion Repaid; and
	 
	 	(ii)	 	in relation to a Reinvestment, the percentage of the Annualised EBITDA of the
Borrower Group for what was the Latest Ratio Period at the time of the Reinvestment
(but taking into account each disposal made by the Borrower Group after the last day of
that Latest Ratio Period and prior to the date of the relevant Reinvestment) which is
represented by the Annualised EBITDA of the person or asset acquired multiplied by the
Proportion Reinvested,

Where:

the Proportion Reinvested is that proportion of the purchase price for the person or asset
acquired which is represented by the amount of the Net Proceeds of a previous disposal that
were reinvested pursuant to the relevant Reinvestment;

the Proportion Repaid is that proportion of the Net Proceeds of that disposal prepaid
pursuant to Clause 7.6(a) (Mandatory prepayment from disposal proceeds) and/or repaid
pursuant to Clause 7.3 (Voluntary prepayment);and

Reinvestment means the reinvestment of all or any part of the Net Proceeds of a previous
disposal made under paragraph (b)(xiv) above by the Borrower Group after the 2006 Amendment
Effective Date, including in circumstances where all or any part of such Net Proceeds are
distributed as a Permitted Payment and an equity subscription is subsequently made in, or a
Subordinated Shareholder Loan is subsequently made to, a member of the Borrower Group.

	(e)	 	Except as otherwise expressly permitted in this Agreement or the relevant Security Document,
UPC Broadband Holdco will not sell, transfer, lease or otherwise dispose of all or any part of
its assets which are subject to a Security Document to which it is a party.

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	(f)	 	Any prepayment and cancellation or repayment made under sub-paragraph (b)(ii) above will be
applied against the Additional Facilities and/or the Facilities in such proportion as may be
specified by UPC Broadband in the notice of prepayment and cancellation or repayment and in
the case of a prepayment and cancellation or repayment of Advances, against all outstanding
Advances made under the relevant Facilities pro rata (and, if applicable, against the
Repayment Instalments for the relevant Facility in such order as may be specified by UPC
Broadband).
	 
	(g)	 	Subject to paragraph (f) below, each Lender may elect not to accept prepayment and
cancellation of Advances under sub-paragraph (b)(ii) above by notifying the Facility Agent in
writing on or before 29 November 2005. In the event of such election, any amounts which would
otherwise have been applied in prepayment and cancellation of the relevant Advances (the
balance), shall be applied in prepayment and cancellation or repayment pro rata of any other
outstanding Advances or Additional Facility Advances in accordance with paragraph (d) above
(and paragraph (d) above and this paragraph (e) shall continue to be applied to any balance
until it has been exhausted or until all Advances and Additional Facility Advances in respect
of which the relevant Lenders or lenders under the New Facility Agreement have not elected not
to accept prepayment and cancellation have been repaid or prepaid and cancelled in full).
	 
	(h)	 	Any election under paragraph (g) above not to accept prepayment and cancellation of an
Advance will only apply in relation to disposals made under sub-paragraph (b)(ii) above on or
before 8 May 2006.
	 
	(i)	 	The amount of a Facility A Advance prepaid or repaid by UPC Broadband in accordance with
sub-paragraph (b)(ii) above may be re-borrowed in accordance with the terms of this Agreement.

	16.11	 	Acquisitions and mergers
	 
	(a)	 	No Obligor (other than UPC Broadband Holdco) will, and each Obligor (other than UPC Broadband
Holdco) will procure that none of its Subsidiaries which is a member of the Borrower Group
will, make any Acquisition, other than:

	 	(i)	 	any Acquisition approved in writing by the Majority Lenders;
	 
	 	(ii)	 	any Permitted Acquisition;
	 
	 	(iii)	 	any Permitted Joint Venture; or
	 
	 	(iv)	 	any Acquisition from any person which is a member of the Borrower Group or
subscription of an interest in the share capital (or equivalent) in any person which is
a member of the Borrower Group.

	(b)	 	Each Obligor (other than UPC Broadband Holdco) will not merge or consolidate with any other
company or person and will procure that no member of the Borrower Group will merge or
consolidate with any other company or person (other than, in each case, in connection with the
Romania Restructuring) save for:

	 	(i)	 	Acquisitions permitted by paragraph (a) above and disposals permitted by Clause
16.10 (Disposals); or
	 
	 	(ii)	 	with the prior written consent of the Facility Agent (acting on the
instructions of the Majority Lenders); or

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	 	(iii)	 	mergers between any member of the Borrower Group with (I) any or all of the
other members of the Borrower Group or (II) an Unrestricted Subsidiary (Original
Entities), into one or more entities (each a Merged Entity) provided that:

	 	(A)	 	reasonable details of the proposed merger in order to
demonstrate satisfaction with subparagraphs (C) to (G) below are provided to
the Facility Agent at least 10 days before the merger is to be entered into;
	 
	 	(B)	 	if the proposed merger is between a member of the Borrower
Group and an Unrestricted Subsidiary, UPC Broadband has delivered to the
Facility Agent financial projections based on assumptions which are no more
aggressive than those used in the preparation of the Business Plan which
demonstrate that the Borrower Group will be in compliance with the undertakings
set out in Clause 17.2 (Financial ratios) for the period commencing on the date
of merger and ending on the last Final Repayment Date under this Agreement;
	 
	 	(C)	 	such Merged Entity will be a member of the Borrower Group and
will be liable for the obligations of the relevant Original Entities (including
the obligations under this Agreement and the Security Documents), which
obligations remain unaffected by the merger, and entitled to the benefit of all
rights of such Original Entities;
	 
	 	(D)	 	(if all or any part of the share capital of any of the relevant
Original Entities was charged pursuant to a Security Document) the equivalent
part of the issued share capital of such Merged Entity is charged pursuant to a
Security Document on terms of at least an equivalent nature and equivalent
ranking as any Security Document relating to the shares in each relevant
Original Entity within 60 days of the merger;
	 
	 	(E)	 	such Merged Entity has entered into Security Documents (if
applicable) within 60 days of the merger which provide security over the same
assets of at least an equivalent nature and ranking to the security provided by
the relevant Original Entities pursuant to any Security Documents entered into
by them;
	 
	 	(F)	 	any possibility of the Security Documents referred to in
subparagraphs (D) or (E) above being challenged or set aside is not materially
greater than any such possibility in relation to the Security Documents entered
into by, or in respect of the share capital of, any relevant Original Entity;
and
	 
	 	(G)	 	all the property and other assets of the relevant Original
Entities are vested in the Merged Entity and the Merged Entity has assumed all
the rights and obligations of the relevant Original Entities under any relevant
Material Contracts, material Necessary Authorisations and Licences and other
licences or registrations (to the extent reasonably necessary for the business
of the relevant Original Entities) granted in favour of the Original Entities
under Telecommunications and Cable Laws and/or all such rights and obligations
have been transferred to the Merged Entity and/or the relevant Material
Contracts, Necessary Authorisations and Licences and other licences or
registrations (to the extent reasonably necessary for the business of the
relevant Original Entities) granted in favour of the Original Entities under
Telecommunications and Cable Laws have been reissued to the Merged Entity.

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	 	 	 	except that the requirements of paragraphs (C) to (G) above will not apply
in respect of any merger between Original Entities:

	 	I.	 	both of which are not Obligors; and
	 
	 	II.	 	neither one of which is party to a Security
Document, neither one of whose share capital is charged pursuant to a
Security Document and neither one of whom owes any receivables to
another member of the Borrower Group which are pledged pursuant to a
Security Document.

	16.12	 	Restrictions on Financial Indebtedness
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no other
member of the Borrower Group (other than a Relevant Eastern European Subsidiary) will, create,
incur or otherwise permit to be outstanding any Financial Indebtedness (other than Permitted
Financial Indebtedness).
	 
	(b)	 	As used herein, Permitted Financial Indebtedness means, without duplication:

	 	(i)	 	any Financial Indebtedness arising hereunder or under the Security Documents;
	 
	 	(ii)	 	any Financial Indebtedness arising under the New Facility Agreement;
	 
	 	(iii)	 	any Financial Indebtedness or guarantees permitted pursuant to Clause 16.14
(Loans and guarantees);
	 
	 	(iv)	 	any Financial Indebtedness incurred through a Subordinated Shareholder Loan
made to any member of the Borrower Group;
	 
	 	(v)	 	any Financial Indebtedness of any member of the Borrower Group arising as a
result of the issue by it or a financial institution of a surety or performance bond in
relation to the performance by such member of the Borrower Group or its obligations
under contracts entered into in the ordinary course of its business (other than for the
purpose of raising finance);
	 
	 	(vi)	 	any Financial Indebtedness approved in writing by the Facility Agent (acting on
the instructions of the Majority Lenders);
	 
	 	(vii)	 	any Financial Indebtedness incurred in connection with the Senior Hedging
Agreements and any other hedging arrangements permitted by Clause 16.17 (Hedging);
	 
	 	(viii)	 	any deposits or prepayments constituting Financial Indebtedness received by any
member of the Borrower Group from a customer or subscriber for its services;
	 
	 	(ix)	 	any Financial Indebtedness owing by any member of the Borrower Group being
Management Fees or management, consultancy or similar fees payable to another member of
the Borrower Group in respect of which payment has been deferred;
	 
	 	(x)	 	any Financial Indebtedness being Permitted Payments in respect of which payment
has been deferred;
	 
	 	(xi)	 	any Financial Indebtedness of a company which is acquired by a member of the
Borrower Group after the date hereof as an acquisition permitted by Clause 16.11

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	 	 	 	(Acquisitions and mergers) where such Financial Indebtedness existed at the date of
completion of such Permitted Acquisition provided that (A) such Financial
Indebtedness was not incurred in contemplation of the acquisition, (B) the amount of
such Financial Indebtedness is not increased beyond the amount in existence at the
date of completion of the acquisition and (C) such Financial Indebtedness is
discharged within six months of the date of completion of the acquisition;

	 	(xii)	 	any Financial Indebtedness of any member of the Borrower Group, in respect of
which the person or persons to whom such Financial Indebtedness is or may be owed has
or have no recourse whatever to any member of the Borrower Group for any payment or
repayment in respect thereof other than recourse to such member of the Borrower Group
for the purpose only of enabling amounts to be claimed in respect of such Financial
Indebtedness in an enforcement of any Security Interest given by any member of the
Borrower Group over non-Distribution Business Assets, provided that:

	 	(A)	 	the extent of such recourse to such member is limited solely to
the amount of any recoveries made on any such enforcement;
	 
	 	(B)	 	such person or persons are not entitled, pursuant to the terms
of any agreement evidencing any right or claim arising out of or in connection
with such Financial Indebtedness, to commence proceedings for the winding up,
dissolution or administration of any member of the Borrower Group (or
proceedings having an equivalent effect) or to appoint or procure the
appointment of any receiver, trustee or similar person or officer in respect of
any member of the Borrower Group or any of its assets (save only for the
non-Distribution Business Assets the subject of that Security Interest) until
after the Commitments have been reduced to zero and all amounts outstanding
under the Finance Documents have been repaid or paid in full; and
	 
	 	(C)	 	the aggregate outstanding amount of all such Financial
Indebtedness of all members of the Borrower Group does not exceed
€100,000,000 (or its equivalent in other currencies);

	 	(xiii)	 	any Financial Indebtedness of any member of the Borrower Group (other than any
Obligor) constituting Financial Indebtedness to all the holders (or their Associated
Companies) of the share capital of any such member of the Borrower Group on a basis
that is substantially proportionate to their interests in such share capital (with any
disproportionately large interest received by any member of the Borrower Group or any
disproportionately small interest received by any person other than a member of the
Borrower Group, in each case relative to its interests in such share capital, being
ignored for this purpose), provided such Financial Indebtedness does not bear interest
(other than by way of addition to its principal amount on a proportionate basis as
described above) and is made on terms that repayment or pre-payment of such Financial
Indebtedness shall only be made to each such holder (A) in proportion to their
respective interests in such share capital (ignoring any disproportionately large
interest held by any member of the Borrower Group or any disproportionately small
interest received by any person other than a member of the Borrower Group, in each case
relative to its interests in such share capital, for this purpose) and (B) only on and
in connection with the liquidation or winding up (or equivalent) of such member of the
Borrower Group; and

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	 	(xiv)	 	any Financial Indebtedness arising under the Permitted Borrower Group
Revolving Credit Facility or the Permitted Borrower Group Guarantee Facilities; and
	 
	 	(xv)	 	any other Financial Indebtedness in addition to the Financial Indebtedness
falling within paragraphs (i) to (xiv) above not exceeding at any time more than
€25,000,000 in aggregate (or its equivalent) provided that such Financial
Indebtedness is not indebtedness incurred in respect of Acquisitions.

	(c)	 	No Obligor will, and each Obligor will procure that none of its Subsidiaries which is a
member of the Borrower Group will, incur or have outstanding any Financial Indebtedness due to
or for the benefit of UPC or any Subsidiary of UPC (not being a member of the Borrower
Group), other than Subordinated Shareholder Loans and any Permitted Financial Indebtedness
referred to in Clause 16.12(b)(vi), (viii), (ix), (x) or (xii).
	 
	(d)	 	(i) Subject to subparagraph (ii) below, UPC Broadband will ensure that no member of the UGCE
Borrower Group will incur any Third Party Debt (other than any Third Party Debt subsisting
prior to 28 September 2002) unless:

	 	(A)	 	UPC Broadband prepays or procures the prepayment of the
Facilities in accordance with Clause 7.6A (Mandatory prepayment from the Third
Party Debt proceeds); and
	 
	 	(B)	 	such Third Party Debt will not become due and payable until
after the 31 December 2011.

	 	(ii)	 	Subparagraph (d)(i) above shall not apply if:

	 	(A)	 	the most recently delivered financial statements provided to
the Facility Agent under Clause 16.2(b) (Financial information) show that, for
the two most recent Ratio Periods, the applicable ratio for the purposes of
Clause 17.2(a) (Financial ratios) is 3.5:1 or less; or
	 
	 	(B)	 	the principal amount of such Third Party Debt, when aggregated
with (I) any other Third Party Debt incurred by that member of the UGCE
Borrower Group after 28 September 2002, and (II) any Third Party Debt incurred
by any other member of the UGCE Borrower Group after 28 September 2002, is
equal to or less than €15,000,000.

	16.13	 	Restricted Payments
	 
	(a)	 	Except for any payment or transfer of consideration for the transfer of shares or receivables
to a member of the Borrower Group pursuant to the Restructuring, each Obligor (other than UPC
Broadband Holdco) will not, and will procure that no member of the Borrower Group will, make
any Restricted Payments other than Permitted Payments or enter into any transaction with a
Restricted Person other than on bona fide arm’s length commercial terms or on terms which are
fair and reasonable and in the best interests of the Borrower Group.
	 
	(b)	 	As used herein, a Restricted Payment means, in each case whether in cash, securities,
property or otherwise:

	 	(i)	 	any direct or indirect distribution, dividend or other payment on account of
any class of its share capital or capital stock or other securities;
	 
	 	(ii)	 	any payment of principal of, or interest on, any loan; or

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	 	(iii)	 	any transfer of assets, loan or other payment,

in the case of each of (i), (ii) and (iii), to a Restricted Person.

	(c)	 	As used herein, a Permitted Payment means any distribution, dividend, transfer of assets,
loan or other payment:

	 	(i)	 	to any Restricted Person in relation to transactions carried out on bona fide
arm’s length commercial terms in the ordinary course of business or on terms which are
fair and reasonable and in the best interests of the Borrower Group (including, but not
limited to, such transactions under Clause 16.21 (Priority));
	 
	 	(ii)	 	by way of payment of Management Fees (A) which are paid on bona fide arm’s
length terms in the ordinary course of business to a Restricted Person or (B) of up to
€15,000,000 in any financial year provided that, at the time of payment, no Default
is outstanding or would occur as a result of such payment;
	 
	 	(iii)	 	by way of payment of principal or interest on Subordinated Shareholder Loans
or by way of distributions, dividends or other payments paid by UPC Broadband in
respect of its share capital provided that:

	 	(A)	 	the applicable ratio for the purposes of Clause 17.2(a)
(Financial ratios) is 4:1 or less prior to making the relevant payment and will
be 4:1 or less after such payment has been made; and
	 
	 	(B)	 	no Default has occurred and is continuing or would occur as a
result of such payment;

	 	(iv)	 	by way of payment to any Restricted Person of consideration for an acquisition,
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers);
	 
	 	(v)	 	by way of transfer to any Restricted Person of any non-Distribution Business
Assets (as defined in Clause 16.10(b)(viii) (Disposals)) permitted in accordance with
Clause 16.10(b)(viii) (Disposals); and
	 
	 	(vi)	 	by way of distributions, dividends or other payments paid by UPC Broadband in
respect of its share capital or by way of repayment or payment by UPC Broadband or UPC
Scandinavia Holding B.V. (as the case may be) in respect of a Subordinated Shareholder
Loan (each an Applicable Payment) but only to the extent that (A) UPC Broadband or UPC
Scandinavia Holding B.V. (as the case may be) makes the Applicable Payment from the
proceeds of sale or a disposal by UPC Scandinavia Holding B.V. permitted by Clause
16.10(b)(ii) (Disposals); and (B) the aggregate of all Applicable Payments is less than
or equal to the Net Proceeds of the sale or disposal by UPC Scandinavia Holding B.V.
permitted by Clause 16.10(b)(ii) (Disposals) less the Scandinavia Repayment Amount (as
defined in Clause 16.10(b)(ii) (Disposals)) and provided that no Default has occurred
and is continuing or would occur as a result of such payment.

	(d)	 	The restriction contained in paragraph (a) on the payment by any member of the Borrower Group
of Management Fees shall cease to apply during such period as the applicable ratio for the
purposes of Clause 17.2(a) (Financial ratios) is 3.50:1 (or less), provided that no Management
Fees may be paid by any member of the Borrower Group at any time after a Relevant Event has
occurred or if a Relevant Event would result from such payment.

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	16.14	 	Loans and guarantees
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will make any loans, grant any credit or give any guarantee, to or for
the benefit of, or enter into any transaction having the effect of lending money to, any
person,

other than:

	 	(a)	 	loans from a member of the Borrower Group to another member of the Borrower
Group, provided that no Obligor shall make a loan to any other member of the Borrower
Group unless:

	 	(i)	 	such Obligor has first entered into an Obligor Pledge of
Shareholder Loans which creates an effective pledge in favour of the Security
Agent in relation to such loan and provided the Security Agent with such
evidence as it may reasonably request as the power and authority of such
Obligor to enter into such Obligor Pledge of Shareholder Loans and that such
Obligor Pledge of Shareholder Loans constitutes valid and legally binding
obligations of such Obligor enforceable in accordance with its terms subject
(to the extent possible) to substantially similar qualifications to those made
in the legal opinions referred to in Schedule 2 (Conditions Precedent
Documents); and
	 
	 	(ii)	 	the relevant member of the Borrower Group to whom the
shareholder loan is to be made has given a notification of pledge to the
Security Agent in respect of such shareholder loans;

	 	(b)	 	as permitted by Clause 16.12 (Restrictions on Financial Indebtedness);
	 
	 	(c)	 	normal trade credit in the ordinary course of business;
	 
	 	(d)	 	guarantees given:

	 	(i)	 	by any Obligor in respect of the liabilities of another
Obligor;
	 
	 	(ii)	 	by a member of the Borrower Group in respect of the liabilities
of an Obligor; or
	 
	 	(iii)	 	by a member of the Borrower Group (which is not an Obligor) in
respect of the liabilities of another member of the Borrower Group (which is
not an Obligor);
	 
	 	(iv)	 	by an Obligor in respect of the liabilities of any other member
of the Borrower Group to the extent that such liabilities could have been
incurred by such Obligor directly without breaching this Agreement; or
	 
	 	(v)	 	by an Obligor in respect of the liabilities of any other member
of the Borrower Group which is not an Obligor provided that that other member
of the Group must become an Additional Guarantor in accordance with Clause
26.4(a) (Additional Guarantors) within 30 days of the granting of the guarantee
made pursuant to this paragraph (v); or

	 	(e)	 	to the extent that the same constitute Permitted Payments or a Permitted
Disposal (not being a Permitted Disposal of cash or cash equivalents);

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	 	(f)	 	loans, the granting of credit, guarantees and other transactions having the
effect of lending money (each a Lending Transaction) from a member of the Borrower
Group, in connection with an acquisition by that member which is permitted by Clause
16.11 (Acquisitions and mergers), to the relevant person being acquired or one or more
of its Subsidiaries, provided that:

	 	(i)	 	no Lending Transaction may have a term longer than 12 months
(including any extensions or refinancings of the original Lending Transaction);
and
	 
	 	(ii)	 	the aggregate outstanding principal amount of all Lending
Transactions (which principal amount shall be deemed to be no longer
outstanding for this purpose at the time the beneficiary of the relevant
Lending Transaction becomes a member of the Borrower Group upon completion of
the relevant acquisition, provided such Lending Transaction was made to or in
favour of the person acquired or its Subsidiaries) shall not exceed
€100,000,000 at any time; and

	 	(g)	 	Lending Transactions from a member of the Borrower Group to any person of the
proceeds of equity subscribed by any Restricted Person in, or Subordinated Shareholder
Loans provided to, such member (other than any such proceeds which are otherwise
applied in mandatory prepayment of any or all of the Facilities under this Agreement or
the New Facility Agreement or pursuant to Clause 17.4 (Cure provisions) or otherwise).

	16.15	 	Environmental matters
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will and will procure that each of its
Subsidiaries which is a member of the Borrower Group will:

	 	(a)	 	(i) obtain all requisite Environmental Licences, (ii) comply with the terms and
conditions of all Environmental Licences applicable to it and (iii) comply with all
other applicable Environmental Law, in each case where failure to do so would or is
reasonably likely to have a Material Adverse Effect;
	 
	 	(b)	 	promptly upon receipt of the same, notify the Facility Agent and the Security
Agent of any claim, notice or other communication served on it in respect of any
alleged breach of, or corrective or remedial obligation or liability under, any
Environmental Law which, if substantiated, would or is reasonably likely to have a
Material Adverse Effect.

	16.16	 	Insurance
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that each of its
Material Subsidiaries which is a member of the Borrower Group will, maintain insurance cover
of a type and level which a prudent company in the same business would effect.

	16.17	 	Hedging
	 
	(a)	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, enter into any interest rate or currency swaps, other interest rate
or currency derivative transactions or other hedging arrangements other than:

	 	(i)	 	transactions and arrangements entered into with a High Yield Hedging Bank or a
Senior Hedging Bank directly relating to the management of interest rate and/or

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	 	 	 	currency exchange rate risk arising out of any Financial Indebtedness of any member
of the Borrower Group permitted to subsist by the terms of this Agreement (or
transactions and arrangements relating to interest rate or currency swaps, other
interest rate or currency derivative transactions or other hedging arrangements that
themselves relate to the management of interest rate and/or currency exchange rate
risk arising out of any Financial Indebtedness of any member of the Borrower Group
permitted to subsist by the terms of this Agreement), in each case excluding any
such transactions or arrangements that directly or indirectly relate to Subordinated
Shareholder Loans;

	 	(ii)	 	transactions and arrangements entered into by any Obligor with
a Senior Hedging Bank directly relating to the management of currency exchange
risk arising out of income denominated in a currency other than euro (each such
transaction or arrangement, a Cash Flow Hedging Agreement); and

	 	(iii)	 	to the extent they constitute interest rate or currency swaps or other hedging
arrangements, the guarantees granted by each of the Guarantors pursuant to Clause 14
(Guarantee) or clause 14 (Guarantee) of the New Facility Agreement or (as applicable)
in respect of any High Yield Hedging Agreements or Senior Hedging Agreements.

	(b)	 	UPC Broadband will procure that any member of the Borrower Group that enters into a Senior
Hedging Agreement and any member of the UGCE Borrower Group that enters into a High Yield
Hedging Agreement accedes to the Security Deed and the Intercreditor Agreement as a Charging
Entity by delivering to the Security Agent a Security Provider’s Deed of Accession duly
executed by that company.

	16.18	 	Intellectual Property Rights
	 
	 	 	Except as otherwise permitted by this Agreement, each Obligor (other than UPC Broadband
Holdco) will, and will procure that each of its Subsidiaries which is a member of the
Borrower Group will:

	 	(a)	 	make such registrations and pay such fees and similar amounts as are necessary
to keep those registered Intellectual Property Rights owned by any member of the
Borrower Group and which are material to the conduct of the business of the Borrower
Group as a whole from time to time;
	 
	 	(b)	 	take such steps as are necessary and commercially reasonable (including,
without limitation, the institution of legal proceedings) to prevent third parties
infringing those Intellectual Property Rights referred to in paragraph (a) above and
(without prejudice to paragraph (a) above) take such other steps as are reasonably
practicable to maintain and preserve its interests in those rights, except where
failure to do so will not have or be reasonably likely to have a Material Adverse
Effect;
	 
	 	(c)	 	ensure that any licence arrangements in respect of the Intellectual Property
Rights referred to in paragraph (a) above entered into with any third party are entered
into on arm’s length terms and in the ordinary course of business (which shall include,
for the avoidance of doubt, any such licensing arrangements entered into in connection
with outsourcing on normal commercial terms) and will not have or be reasonably likely
to have a Material Adverse Effect;
	 
	 	(d)	 	not permit any registration of any of the Intellectual Property Rights referred
to in paragraph (a) above to be abandoned, cancelled or lapsed or to be liable to any
claim

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of abandonment for non-use or otherwise to the extent the same would or is
reasonably likely to have a Material Adverse Effect; and

	 	(e)	 	pay all fees, and comply with each of its material obligations under, any
licence of Intellectual Property Rights which are material to the conduct of the
business of the Borrower Group as a whole from time to time.

	16.19	 	Share capital
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group (other than in respect of such other members of the Borrower Group in
order to permit a solvent reorganisation permitted under Clause 16.11(b)(iii) (Acquisitions
and mergers)) will, reduce its capital or purchase or redeem any class of its shares or any
other ownership interest in it, except to the extent the same constitutes a Permitted
Payment or in the case of members of the Borrower Group other than the Obligors, is
otherwise permitted by Clause 16.13 (Restricted Payments) or is in connection with the
Romania Restructuring.

	16.20	 	Inter-connection and chello
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will ensure that each member of the Borrower
Group which is not a Relevant Eastern European Subsidiary:

	 	(a)	 	which offers residential telephony services in any country, maintains
inter-connection arrangements with one or more major fixed line telephony operators in
that country; and
	 
	 	(b)	 	which offers internet and/or data services is provided with such services by
UPC Broadband N.V. or by another provider on arm’s length commercial terms.

	16.21	 	Priority
	 
	 	 	For as long as Priority Telecom N.V. is a Restricted Person, each Obligor (other than UPC
Broadband Holdco) will not and will not permit any contractual arrangements between and
Priority Telecom N.V. and the Borrower Group to be entered into other than on bona fide
arm’s length commercial terms or on terms that are fair and reasonable and in the best
interests of the Borrower Group.

	16.22	 	UPC Broadband Pledged Account
	 
	(a)	 	Subject to receipt of all necessary legal, regulatory, shareholder and partner approvals (all
of which each Obligor will, and will ensure that each of its Subsidiaries will, use all
reasonable efforts to obtain as soon as practicable), each Obligor (other than UPC Broadband
Holdco) shall on receipt of a request from the Facility Agent (acting on the instructions of
the Majority Lenders) ensure that it and each of its Subsidiaries which is a member of the
Borrower Group, promptly following the last day of either each calendar month or each calendar
quarter as may be directed by the Facility Agent in its request of UPC Broadband ending after
31 March 2006, transfers an amount equal to its Excess Cash on that date to the UPC Broadband
Pledged Account.
	 
	(b)	 	For the purposes of this Clause 16.22:

	 	(i)	 	Excess Cash means, in relation to any member of the Borrower Group at any time,
the aggregate cash in hand and at bank (less withdrawals and other transfers of cash

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	 	 	 	that have not cleared at bank) of that member at that time in excess of
€5,000,000 (or its equivalent in other currencies); and

	 	(ii)	 	the UPC Broadband Pledged Account means one or more accounts in the name of UPC
Broadband or any other member of the Borrower Group, held with a branch of a bank or
financial institution, which has been pledged to the Beneficiaries pursuant to a
Security Document in the agreed form and in respect of which account(s) all notices
required by that Security Document have been served upon the relevant bank or financial
institution in the manner required by that Security Document and the relevant account
bank(s) have waived any lien, right of set-off or other Security Interest, other than
in respect of routine account keeping charges and set offs between UPC Broadband
Pledged Accounts.

	(c)	 	UPC Broadband may withdraw amounts standing to the credit of the UPC Broadband Pledged
Account at any time provided that:

	 	(i)	 	any such withdrawn amount is to be applied to meet expenditure arising in the
course of the Business of the Borrower Group as carried on in accordance with this
Agreement or for any other purpose permitted under this Agreement; and
	 
	 	(ii)	 	no Event of Default has occurred which is continuing.

	16.23	 	Share security
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, issue any shares of any class provided that:

	 	(a)	 	notwithstanding paragraph (b), an Obligor (other than UPC Broadband, UPC
Holding II or UPC Broadband Holdco) may issue shares to any person other than a member
of the Borrower Group and shall not be required to procure that such shares are charged
or pledged in favour of the Beneficiaries, provided that such share issue does not
result in a Change of Control;
	 
	 	(b)	 	any member of the Borrower Group may issue shares to or otherwise acquire
additional rights from any other member of the Borrower Group so long as (if any of the
existing shares in the relevant member of the Borrower Group are charged or pledged in
favour of any Beneficiary) such shares are charged or pledged in favour of the
Beneficiaries pursuant to the terms of a Security Document and there are delivered at
the same time to the Security Agent the relevant share certificates and blank stock
transfer forms (or equivalent documents) in respect thereof together with such other
documents and evidence and legal opinions as the Security Agent may reasonably require;
	 
	 	(c)	 	UPC Broadband and UPC Holding II may issue shares to UPC Broadband Holdco
provided that such shares are charged or pledged in favour of the Beneficiaries
pursuant to the terms of a Security Document and there are delivered at the same time
to the Security Agent the relevant share certificates and blank stock transfer forms
(or equivalent documents) in respect thereof together with such other documents and
evidence and legal opinions as the Security Agent may reasonably require;
	 
	 	(d)	 	any member of the Borrower Group may issue shares pursuant to the exercise of
Approved Stock Options;

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	 	(e)	 	a member of the Borrower Group may issue shares as part of an Acquisition or
merger or consolidation permitted by Clause 16.11 (Acquisitions and mergers), provided
that the issue of such shares does not cause a Change of Control;
	 
	 	(f)	 	a member of the Borrower Group (other than an Obligor) may issue shares to all
the holders of the share capital of such member pro rata to their interests in such
share capital provided that, if any existing shares in that member of the Borrower
Group are charged or pledged in favour of any Beneficiary under any Security Document,
upon issue the shares that are issued to any other member of the Borrower Group or any
Shareholder are charged or pledged in favour of the Beneficiaries as provided in
paragraph (b) above; and
	 
	 	(g)	 	any member of the Borrower Group (other than UPC Broadband or UPC Holding II)
may issue shares to any person pursuant to any agreement or other legally binding
arrangement existing, and disclosed to the Lead Arrangers in writing, on or before the
Signing Date, provided that such share issue does not result in a Change of Control.

	16.24	 	Shareholder Loans
	 
	(a)	 	Each Obligor will procure that prior to any Restricted Person making any Financial
Indebtedness (other than Permitted Payments) available to any member of the Borrower Group,
such Restricted Person shall enter into a Pledge of Subordinated Shareholder Loans on terms
and conditions satisfactory to the Facility Agent and a Security Provider’s Deed of Accession
and provides (i) the Facility Agent with such documents and evidence as it may reasonably
require as to the power and authority of the Restricted Person to enter into such Pledge of
Subordinated Shareholder Loans and Security Provider’s Deed of Accession and that the same
constitute valid and legally binding obligations of such Restricted Person enforceable in
accordance with their terms subject (to the extent applicable) to substantially similar
qualifications to those made in the legal opinions referred to in Schedule 2 (Conditions
Precedent Documents); and (ii) notification of such pledge to the relevant member of the
Borrower Group.
	 
	(b)	 	Each Obligor shall ensure that each Subordinated Shareholder Loan and each shareholder loan
entered into between an Obligor which is a party to an Obligor Pledge of Shareholder Loans as
a creditor and a member of the Borrower Group is governed by the law of The Netherlands.

	16.25	 	Further security over receivables
	 
	 	 	UPC Broadband shall:

	 	(a)	 	on each date on which it is required to deliver the financial statements
referred to in Clause 16.2(b) (Financial information) in respect of its second and
fourth financial quarters in each financial year, notify the Facility Agent of the
details of any contracts, agreements or other arrangements entered into by any member
of the Borrower Group with Priority Telecom N.V. at any time under which receivables
owing to such member of the Borrower Group aggregating €10,000,000 (or its
equivalent in other currencies) or more are outstanding on such date, together with
details of such receivables; and
	 
	 	(b)	 	if the Facility Agent (acting on the instructions of the Majority Lenders)
requires, promptly grant, or procure the grant by the relevant member of the Borrower
Group of (in each case subject to receipt of all necessary legal, regulatory,
shareholder and partner approvals, other than approvals from Priority Telecom N.V, all
of which UPC

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	 	 	 	Broadband will and will ensure that each member of the Borrower Group will use all
reasonable efforts to obtain as soon as possible) (i) a pledge in favour of the
Beneficiaries over the receivables referred to in (a) above in substantially the
same form as a receivables pledge already granted to the Security Agent by a member
of the Borrower Group in respect of receivables located in, or governed by the laws
of, or (as the case may be) owed by or to a person incorporated in, the same
jurisdiction as the relevant receivables or (as the case may be) relevant person by
or to whom such receivables are owed or in such other form as the Security Agent may
reasonably request and (ii) a Security Provider’s Deed of Accession and shall
provide the Security Agent with such evidence as it may reasonably request as to the
power and authority of such member of the Borrower Group to enter into such pledge
of receivables and Security Provider’s Deed of Accession and that the same
constitute valid and legally binding obligations of such member enforceable in
accordance with their terms subject (to the extent possible) to substantially
similar qualifications to those made in the legal opinions referred to in Schedule 2
(Conditions Precedent Documents), together with all such notices and other documents
as the Security Agent may reasonably require to perfect the receivables pledge.

	16.26	 	Financial year end
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that its Subsidiaries
which are members of the Borrower Group will, maintain a financial year end of 31 December
save with the prior written consent of the Facility Agent (acting on the instructions of the
Majority Lenders in each case not to be unreasonably withheld).
	 
	16.27	 	Capital expenditure
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will not, and will procure that no member of
the Borrower Group will, incur any material Capital Expenditure other than in relation to
the Permitted Business.
	 
	16.28	 	Constitutive documents
	 
	 	 	Each Obligor will not, and will procure that no member of the Borrower Group will, amend its
constitutive documents in any way which would or is reasonably likely to materially
adversely affect (in terms of value, enforceability or otherwise) any charge or pledge over
the shares or partnership interest of any member of the Borrower Group granted to the
Beneficiaries pursuant to the Security Documents.
	 
	16.29	 	ERISA
	 
	 	 	Each Obligor (other than UPC Broadband Holdco) will, and will procure that its Subsidiaries
which are members of the Borrower Group will, give the Facility Agent prompt notice of the
adoption of, participation in or contribution to any Plan by it or any ERISA Affiliate, or
any action by any of these to adopt, participate in or contribute to any Plan, or the
incurrence by any of them of any liability or obligation to any Plan.
	 
	16.30	 	US Borrower
	 
	(a)	 	Each Borrower will ensure that the proceeds of any loan made to the US Borrower by UPC
Broadband or UPC Holding II and the proceeds of any drawing made by the US Borrower under
Facility C shall be invested by way of intercompany loan or equity subscription in one or more
other members of the Borrower Group within five Business Days of receipt of such proceeds or,
as the case may be, the relevant Utilisation Date.

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	(b)	 	Each Obligor (other than UPC Broadband Holdco) will ensure that, in accordance with the terms
of any pledge of intercompany loans made by the US Borrower, any intercompany loan made by the
US Borrower to any Obligor or any Subsidiary of an Obligor which is a member of the Borrower
Group is made on bona fide arm’s length commercial terms or on terms which are fair and
reasonable and in the best interests of the US Borrower and entered into in good faith.

	17.	 	FINANCIAL COVENANTS
	 
	17.1	 	Financial definitions
	 
	 	 	In this Clause 17:
	 
	 	 	Annualised EBITDA means:

	 	(a)	 	for the purposes of the definition of Permitted Acquisition Clause 16.10
(Disposals) and Clause 7.6(a) (Mandatory prepayment from disposal proceeds) in respect
of any person, in respect of any six month period, two times EBITDA of that person
(calculated on a consolidated basis) for that period; and
	 
	 	(b)	 	for all other purposes, in respect of any Ratio Period, two times EBITDA of the
Borrower Group for that Ratio Period.

EBITDA means, in respect of any period or person, the Net Income of that person (plus, in
the case of the Borrower Group, any amount attributable to non-cash compensation payable to
employees or directors of members of the Borrower Group deducted in calculating Net Income,
any depreciation, amortisation, other non-cash charges (such as deferred Taxes), accrued
Management Fees (whether or not paid), fees accrued (whether or not paid) in respect of
Financial Indebtedness and interest expense and other charges in respect of Financial
Indebtedness) for such period adjusted as follows:

	 	(a)	 	minus extraordinary income of the relevant person for such period;
	 
	 	(b)	 	plus any extraordinary expenses (including one off restructuring costs) of the
relevant person for such period;
	 
	 	(c)	 	minus any interest income of the relevant person for such period; and
	 
	 	(d)	 	in the case of the Borrower Group, minus any Management Fees paid during such
period,

to the extent attributed to the Distribution Business of the Borrower Group and all as
determined in accordance with GAAP and (in the case of the Borrower Group or any part of the
Borrower Group) as shown in the relevant financial statements prepared and delivered to the
Facility Agent pursuant to Clause 16.2(a) or (b) (Financial information) (as the case may
be).

Interest means:

	 	(a)	 	interest and amounts in the nature of interest (including, without limitation,
the interest element of finance leases) accrued;

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	 	(b)	 	discount fees and acceptance fees payable or deducted in respect of any
Financial Indebtedness (including all commissions payable in connection with any letter
of credit); and
	 
	 	(c)	 	any net payment (or, if appropriate in the context, receipt) under any interest
rate hedging agreement or instrument (including without limitation under the Senior
Hedging Agreements and (as applicable) High Yield Hedging Agreements), taking into
account any premiums payable.

Net Income means, in respect of any period and for any period, the net profit after Taxes
and (in the case of the Borrower Group only) Management Fees, in the case of the Borrower
Group to the extent attributed to the Distribution Business of the Borrower Group for such
period as determined in accordance with GAAP and (in the case of the Borrower Group) as
shown in the financial statements in respect of such period prepared and delivered to the
Facility Agent pursuant to Clause 16.2(a) or (b) (Financial information).

Ratio Period means each period of approximately 6 months covering two quarterly Accounting
Periods of the Borrower Group ending on each date to which each set of financial statements
required to be delivered under Clause 16.2(a) or (b) (Financial information) are prepared.

Senior Debt means at any time, the consolidated Financial Indebtedness of the Borrower
Group, excluding:

	 	(a)	 	any Financial Indebtedness which is a contingent obligation of a member of the
Borrower Group; and
	 
	 	(b)	 	any Subordinated Shareholder Loans and any Financial Indebtedness referred to
in Clause 16.12(b)(viii), (xi), (xii) and (xiii) (Restrictions on Financial
Indebtedness).

Senior Debt Service means, for any Ratio Period, the sum of:

	 	(a)	 	all scheduled repayments (including scheduled reductions of revolving credits
to the extent they are drawn) of Senior Debt which fell due during such Ratio Period
excluding any scheduled repayments of facilities under this Agreement or the New
Facility Agreement that are funded by drawings of New Facility D or an Additional
Facility in accordance with the terms of the New Facility Agreement; and
	 
	 	(b)	 	Total Cash Interest for that Ratio Period.

Senior Interest means, in respect of any period, the amount of Total Cash Interest accrued
in respect of Senior Debt during that period.

Total Cash Interest means, in respect of any period, the total amount of all Interest
accrued in respect of Senior Debt and Subordinated Shareholder Loans during such period and
payable in cash (either during such period or after such period) (having taken into account
the effect of any Senior Hedging Agreements), except in each case, to the extent that such
payments (other than payments in respect of Senior Debt) are funded by distributions made by
Unrestricted Subsidiaries to UPC Broadband or any other member of the Borrower Group and
excluding, for the avoidance of doubt, capitalisation of Interest accrued in respect of
Subordinated Shareholder Loans.

Total Debt means, at any time, the aggregate amount of:

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	 	(a)	 	Senior Debt; and
	 
	 	(b)	 	Financial Indebtedness of each other member of the UGCE Borrower Group, but
excluding any Financial Indebtedness (i) owing between members of the UGCE Borrower
Group and (ii) owing between a member of the UGCE Borrower Group and a member of the
Wider Group (other than a member of the UGCE Borrower Group).

	17.2	 	Financial ratios
	 
	 	 	UPC Broadband will procure that:

	 	(a)	 	the ratio of Senior Debt to Annualised EBITDA for each Ratio Period which ends
on a date or in a period specified in column 1 below shall not exceed the ratio
specified in column 2 below opposite such date or period:

	 	 	 
	Test Dates	 	Ratio
	30 September 2003

	 	7.75:1
	 
	31 December 2003

	 	6.75:1
	 
	31 March 2004

	 	6.75:1
	 
	30 June 2004

	 	5.90:1
	 
	30 September 2004

	 	5.40:1
	 
	31 December 2004

	 	4.90:1
	 
	31 March 2005

	 	4.80:1
	 
	30 June 2005

	 	4.60:1
	 
	30 September 2005

	 	4.40:1
	 
	31 December 2005

	 	4.10:1
	 
	Thereafter

	 	4.00:1

	 	(b)	 	the ratio of EBITDA to Total Cash Interest for each Ratio Period which ends on
a date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date and period:

	 	 	 
	Test Dates	 	Ratio
	30 September 2003

	 	2.25:1
	 
	31 December 2003

	 	2.25:1
	 
	31 March 2004

	 	2.00:1

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	Test Dates	 	Ratio
	30 June 2004

	 	2.25:1
	 
	30 September 2004

	 	2.50:1
	 
	31 December 2004

	 	2.50:1
	 
	31 March 2005

	 	2.50:1
	 
	30 June 2005

	 	2.50:1
	 
	30 September 2005

	 	2.75:1
	 
	31 December 2005

	 	2.75:1
	 
	31 March 2006

	 	2.75:1
	 
	30 June 2006

	 	2.75:1
	 
	Thereafter

	 	3.00:1

	 	(c)	 	the ratio of EBITDA to Senior Debt Service for each Ratio Period which ends on
a date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date or period:

	 	 	 
	Test Dates	 	Ratio
	31 December 2003

	 	1.00:1
	 
	31 March 2004

	 	1.00:1
	 
	30 June 2004

	 	1.50:1
	 
	30 September 2004

	 	1.50:1
	 
	31 December 2004

	 	1.50:1
	 
	31 March 2005

	 	2.25:1
	 
	30 June 2005

	 	2.25:1
	 
	30 September 2005

	 	2.25:1
	 
	31 December 2005

	 	2.25:1
	 
	31 March 2006

	 	2.25:1
	 
	30 June 2006

	 	1.00:1
	 
	30 September 2006

	 	1.00:1

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	Test Dates	 	Ratio
	31 December 2006

	 	1.00:1
	 
	31 March 2007

	 	1.00:1
	 
	Thereafter

	 	1.00:1

	 	(d)	 	the ratio of EBITDA to Senior Interest for each Ratio Period which ends on a
date or in a period specified in column 1 below shall not be less than the ratio
specified in column 2 below opposite such date or period:

	 	 	 	 	 
	Test Dates	 	Ratio	 	 
	30 September 2003

	 	2.25:1	 	 
	 
	31 December 2003

	 	2.25:1	 	 
	 
	31 March 2004

	 	2.10:1	 	 
	 
	30 June 2004

	 	2.10:1	 	 
	 
	30 September 2004

	 	2.50:1	 	 
	 
	31 December 2004

	 	2.65:1	 	 
	 
	31 March 2005

	 	2.80:1	 	 
	 
	30 June 2005

	 	2.85:1	 	 
	 
	30 September 2005

	 	3.05:1	 	 
	 
	31 December 2005

	 	3.15:1	 	 
	 
	Thereafter

	 	3.40:1
	 	; and

	 	(e)	 	the ratio of Total Debt to Annualised EBITDA for each Ratio Period shall not
exceed 5.75:1.

	17.3	 	Calculations
	 
	 	 	For the purposes of Clause 17.2 (Financial ratios), Senior Debt for any Ratio Period will be
calculated on the basis of Senior Debt outstanding on the last day of that Ratio Period.

	17.4	 	Cure provisions
	 
	(a)	 	UPC Broadband may cure a breach of the financial ratios set out in Clause 17.2(a), (b), (c),
(d) and (e) (Financial ratios) by procuring that additional equity is injected into the
Borrower Group by one or more Restricted Persons and/or additional Subordinated Shareholder
Loans are provided to the Borrower Group in an aggregate amount equal to:

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	 	(i)	 	in the case of a breach of Clause 17.2(a) or (e) (Financial ratios), the amount
which, if it had been deducted from Senior Debt or Total Debt (as applicable) for the
Ratio Period in respect of which the breach arose, would have avoided the breach; or
	 
	 	(ii)	 	in the case of a breach of Clause 17.2(b), (c) or (d) (Financial ratios), the
amount which, if it had been added to EBITDA for the Ratio Period in respect of which
the breach arose, would have avoided the breach; or
	 
	 	(iii)	 	in the case of a breach of more than one paragraph of Clause 17.2 (Financial
ratios), the higher of the relevant amount referred to in (i) or (ii) above.

	(b)	 	A cure under paragraph (a) above will not be effective unless:

	 	(i)	 	the required amount of additional equity or the proceeds of Subordinated
Shareholder Loans is received by the Borrower Group before delivery of the financial
statements delivered under Clause 16.2(a) or (b) (Financial information) which show
that Clause 17.2 (Financial ratios) has been breached; and
	 
	 	(ii)	 	in the case of a cure of Clause 17.2(a) or (e) (Financial ratios), the proceeds
of the relevant additional equity or Subordinated Shareholder Loans are applied in full
in or towards repayment or prepayment of Facility A Advances in accordance with Clause
7 (Cancellation and Prepayment) and, to the extent of any surplus after such repayment
or prepayment, for the purposes of the Permitted Business.

	(c)	 	No cure may be made under this Clause 17.4:

	 	(i)	 	in respect of more than five Ratio Periods during the life of the Facilities;
or
	 
	 	(ii)	 	in respect of consecutive Ratio Periods.

	(d)	 	Where a cure is exercised under this Clause 17.4 in respect of a breach of Clause 17.2(b),
(c) or (d) (Financial ratios) and the next Ratio Period ends approximately three months after
the Ratio Period in respect of which the cure was made, EBITDA in respect of that next Ratio
Period will be deemed, for the purposes of Clause 17.2(b), (c) and (d) (Financial ratios), to
be increased by the amount determined under subparagraph 17.4(a)(ii) above in respect of the
relevant cure. This deemed increase will not be treated as a separate cure.

	17.5	 	Determinations
	 
	(a)	 	Any amount outstanding in a currency other than euros is to be taken into account at its euro
equivalent calculated at the rate used in the latest accounts delivered to the Facility Agent.
	 
	(b)	 	All the terms used above are to be calculated in accordance with the GAAP on which the
preparation of the Original Borrower Group Financial Statements was based.
	 
	(c)	 	If there is a dispute as to any interpretation of or computation for Clause 17.1 (Financial
definitions), the interpretation or computation of the auditors of UPC Broadband shall
prevail.
	 
	(d)	 	If UPC Broadband is obliged or chooses to prepare its financial statements on a different
basis from the basis used in the preparation of the Original Borrower Group Financial
Statements, such financial statements shall be accompanied by a statement (providing
reasonable detail) from UPC Broadband either:

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	 	(i)	 	confirming that the change(s) would have no effect on the operation of the
ratios set out in Clause 17.2 (Financial ratios); or
	 
	 	(ii)	 	unless otherwise agreed in writing by the Facility Agent (acting upon the
instructions of the Majority Lenders), if the change(s) would have such an effect,
containing a reconciliation demonstrating the effect of the change(s) (and, for the
purpose of calculating the ratios set out in Clause 17.2 (Financial ratios), such
financial statements will be treated as though adjusted by that reconciliation so as to
exclude the effect of the changes).

	18.	 	DEFAULT
	 
	18.1	 	Events of Default
	 
	 	 	Each of the events set out in Clauses 18.2 (Non-payment) to 18.20 (ERISA) is an Event of
Default (whether or not caused by any reason whatsoever outside the control of any Obligor
or any other person).
	 
	18.2	 	Non-payment
	 
	 	 	An Obligor does not pay on the due date any amount payable by it under the Finance Documents
(other than any amount payable by UPC Broadband under Clause 7.6(a)(Mandatory prepayment
from disposal proceeds) of this Agreement) at the place at, and in the currency in, which it
is expressed to be payable, unless the relevant amount is paid in full within one Business
Day (in the case of principal amounts) or three Business Days (in the case of other amounts)
of the due date.

	18.3	 	Breach of other obligations
	 
	(a)	 	An Obligor does not comply with any of Clauses 16.6 (Pari passu ranking), 16.7 (Negative
pledge), 16.10 (Disposals), 16.11 (Acquisitions and mergers), 16.13 (Restricted Payments),
16.14 (Loans and guarantees), 16.19 (Share capital) or 17 (Financial Covenants)
	 
	(b)	 	An Obligor does not comply with any provision of the Finance Documents (other than those
referred to in paragraph (a) above or in Clause 18.2 (Non-payment) and other than non-payment
by UPC Broadband of any amount under Clause 7.6(a)(Mandatory prepayment from disposal
proceeds) of this Agreement) and such failure (if capable of remedy before the expiry of such
period) continues unremedied for a period of 28 days from the earlier of the date on which (i)
such Obligor has become aware of the failure to comply or (ii) the Facility Agent gives notice
to UPC Broadband requiring the same to be remedied.

	18.4	 	Misrepresentation
	 
	 	 	A representation or warranty made or repeated by any Obligor in or in connection with any
Finance Document or in any certificate or statement delivered by or on behalf of any Obligor
under or in connection with any Finance Document (other than the representation in Clause
15.25 (Dutch Banking Act) but only to the extent that an Obligor has relied on the
declaration of a Lender that it qualified as a Professional Market Party) or is incorrect in
any material respect when made or deemed to have been made or repeated and, in the event
that any representation or warranty is capable of remedy, the misrepresentation is not
remedied within 28 days of the earlier of the date on which (i) such Obligor has become
aware of the misrepresentation or (ii) the Facility Agent gives notice to UPC Broadband
requiring the same to be remedied.

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	18.5	 	Cross default
	 
	(a)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group is not paid when due or within any originally
applicable grace period.
	 
	(b)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group becomes prematurely due and payable or is placed on
demand, in each case as a result of an event of default (howsoever described) under the
document relating to that Financial Indebtedness.
	 
	(c)	 	Subject to paragraph (d) below, any Financial Indebtedness of a member of the Borrower Group
or a member of the UGCE Borrower Group becomes capable of being declared prematurely due and
payable or placed on demand, in each case as a result of an event of default (howsoever
described) under the document relating to that Financial Indebtedness.
	 
	(d)	 	It shall not be an Event of Default under:

	 	(i)	 	this Clause 18.5 where the aggregate principal amount of all Financial
Indebtedness to which any event specified in paragraphs (a), (b) or (c) relates is less
than €15,000,000 (in the case of the Borrower Group) or €50,000,000 (in the case
of any member of the UGCE Borrower Group) or, as the case may be, the equivalent in
other currencies;
	 
	 	(ii)	 	this Clause 18.5 in respect of Financial Indebtedness owing by a member of the
Borrower Group to another member of the Borrower Group which is permitted under this
Agreement; and
	 
	 	(iii)	 	paragraph (c) above, in the case of the Acquisition of an entity which results
in that entity becoming a member of the Borrower Group, for a period of 180 days
following completion of that Acquisition, by reason only of an event of default
(however described) arising in relation to the Financial Indebtedness of that acquired
entity as a result only of the Acquisition of that acquired entity, provided that such
Financial Indebtedness is not placed on demand, becomes prematurely due and payable or
is otherwise accelerated during that period.

	(e)	 	Any Financial Indebtedness of a member of the Borrower Group under a New Finance Document
becomes capable of being due and payable or placed on demand, in each case as a result of an
Event of Default as defined under the relevant New Finance Document.

	18.6	 	Insolvency
	 
	(a)	 	The Netherlands: any Obligor, any Material Subsidiary or member of the UGCE Borrower Group
organised in The Netherlands is declared bankrupt (in staat van faillissement verklaard) or
enters into a preliminary or definitive moratorium (in voorlopige of definitieve surseance van
betaling gaan) pursuant to the Dutch Bankruptcy Act (Faillissementswet); or
	 
	(b)	 	General: any of the following occurs in respect of an Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group:

	 	(i)	 	it is, or is deemed for the purposes of any law to be, unable to pay its debts
as they fall due or insolvent;
	 
	 	(ii)	 	it admits its inability to pay its debts as they fall due;

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	 	(iii)	 	it suspends making payments on any of its debts or announces an intention to
do so; or
	 
	 	(iv)	 	a moratorium is declared in respect of any of its indebtedness.

If a moratorium occurs in respect of any Obligor, any Material Subsidiary or any member of
the UGCE Borrower Group, the ending of the moratorium will not remedy any Event of Default
caused by the moratorium.

	(c)	 	United States of America: any Obligor, any Material Subsidiary or any member of the UGCE
Borrower Group which is a partnership, or a partner of any partnership, formed under the laws
of the states of Colorado or Delaware, United States or which is incorporated under the laws
of a State of the United States or that resides or has a domicile, a place of business or
property in the United States (each a U.S. Obligor):

	 	(i)	 	admit in writing its inability to, or be generally unable to, pay its debts as
such debts become due;
	 
	 	(ii)	 	makes a general assignment for the benefit of creditors;
	 
	 	(iii)	 	shall have had appointed a receiver, a custodian, trustee or similar official
for, or a receiver, custodian, trustee or similar official shall have taken possession
of, all or substantially all of its assets, in proceedings brought by or against such
Obligor or Material Subsidiary, and such appointment shall not have been discharged or
such possession shall not have been terminated within 60 days after the effective date
thereof or such Obligor or Material Subsidiary shall have consented to or acquiesced in
such appointment or possession;
	 
	 	(iv)	 	shall have filed a petition for relief under the insolvency, bankruptcy or
similar laws of the United States of America or any state thereof, or an involuntary
petition for such relief shall have been filed against any such Obligor or Material
Subsidiary under such laws and shall not have been dismissed or terminated within 60
days after such involuntary petition is filed; or
	 
	 	(v)	 	shall have failed to have discharged or obtained a stay of any proceeding to
enforce, within a period of 45 days after the commencement thereof, any attachment,
sequestration or similar proceeding asserted against all or substantially all of the
assets of such Obligor or Material Subsidiary,

in each case other than in connection with the solvent liquidation of UPC Polska following
the transfer of its assets to Polska Holdco.

	18.7	 	Insolvency proceedings
	 
	(a)	 	Any formal voluntary step commencing legal proceedings (including petition or convening a
meeting) is taken by any Obligor, any Material Subsidiary or any member of the UGCE Borrower
Group with a view to a moratorium or a composition, assignment or arrangement with any class
of creditors of any Obligor, any Material Subsidiary or any member of the UGCE Borrower Group;
or
	 
	(b)	 	a meeting of any Obligor, any Material Subsidiary or any member of the UGCE Borrower Group is
convened by its shareholders, directors, managing partner (in the case of the US Borrower),
secretary or other officers for the purpose of considering any resolution for, to petition for
or to file documents with a court for its winding-up, dissolution or for its

103

 

	 	 	administration, suspension of payments, composition or bankruptcy or any such resolution is
passed; or
	 
	(c)	 	any person presents a petition or files documents , with the appropriate legal authorities,
for the winding-up or for the administration or for the bankruptcy of any Obligor, any
Material Subsidiary or any member of the UGCE Borrower Group and the petition is not
discharged or stayed within 45 days (or, in the case of a US Obligor, 60 days); or
	 
	(d)	 	an order for the winding-up or administration of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group is made,
	 
	 	 	in each case other than in connection with a reconstruction or amalgamation on terms
approved by the Facility Agent (acting on the instructions of the Majority Lenders) or in
connection with the solvent liquidation of UPC Polska following the transfer of its assets
to Polska Holdco.

	18.8	 	Appointment of receivers and managers
	 
	(a)	 	Any liquidator, trustee-in-bankruptcy, preliminary trustee, composition trustee, judicial
custodian, compulsory manager, receiver, administrative receiver or administrator is
appointed in respect of any Obligor, any Material Subsidiary or any member of the UGCE
Borrower Group or any part of its assets which is material in the context of the Borrower
Group (taken as a whole) and, only in the case of the appointment of a judicial custodian,
compulsory manager or receiver, is not discharged within 45 days (or, in the case of a US
Obligor, 60 days); or
	 
	(b)	 	the directors, shareholders or other officers of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group request the appointment of, or give notice of their
intention to appoint, a liquidator, trustee in bankruptcy, preliminary trustee, composition
trustee, judicial custodian, compulsory manager, receiver, administrative receiver or
administrator,
	 
	 	 	in each case other than in connection with a reconstruction or amalgamation on terms
approved by the Facility Agent (acting on the instructions of the Majority Lenders).

	18.9	 	Creditors’ process
	 
	 	 	A distress, execution, attachment or other legal process is levied, enforced or sued out
upon or against all or any part of the assets of any Obligor, any Material Subsidiary or any
member of the UGCE Borrower Group which is material in the context of the Borrower Group
(taken as a whole), except where the same is being contested in good faith or is removed,
discharged or paid within 45 days (or, in the case of a US Obligor, 60 days).
	 
	18.10	 	Similar proceedings
	 
	 	 	Anything which has an equivalent effect to any of the events specified in Clauses 18.6
(Insolvency) to 18.9 (Creditors’ process) (inclusive) shall occur under the laws of any
applicable jurisdiction in relation to any Obligor, any Material Subsidiary or any member of
the UGCE Borrower Group.
	 
	18.11	 	Unlawfulness
	 
	 	 	It is or becomes unlawful for any Obligor or Subordinated Creditor to perform any of its
payments or other material obligations under the Finance Documents to which it is a party.

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	18.12	 	Repudiation
	 
	 	 	Any Obligor or Subordinated Creditor repudiates, or evidences an intention to repudiate, any
Finance Document to which it is a party.
	 
	18.13	 	Cessation of Distribution Business
	 
	 	 	The Borrower Group (taken as a whole) ceases to carry on all or substantially all of its
Distribution Business.
	 
	18.14	 	Seizure
	 
	 	 	All or a material part of the undertakings, assets, rights or revenues of, or shares or
other ownership interests in, UGCE Inc., UPC Broadband Holdco or the Borrower Group (taken
as a whole but excluding any undertaking, assets, rights or revenues which do not form part
of the Distribution Business) are seized, nationalised, expropriated or compulsorily
acquired by or under the authority of any government.
	 
	18.15	 	Environmental Matters
	 
	 	 	As a result of any Environmental Law any of the Finance Parties becomes subject to a
material obligation (actual or contingent and, in the case of any contingent obligation,
being one which, at the relevant time, would be likely to arise) directly as a result of it
entering into any of the Finance Documents which was not caused by its negligence or wilful
default.

	18.16	 	Breach of Security Deed and Intercreditor Agreement
	 
	(a)	 	A Subordinated Creditor fails to comply with any of its obligations under the Security Deed
or the Pledge of Subordinated Shareholder Loans to which it is party and such failure (if
capable of remedy before the expiry of such period) continues unremedied for a period of 28
days from the earlier of the date on which (i) UPC or UPC Broadband has become aware of the
failure to comply or (ii) the Facility Agent gives notice to the relevant Subordinated
Creditor and UPC Broadband requiring the same to be remedied.
	 
	(b)	 	Any representation or warranty made by a Subordinated Creditor under the Security Deed or the
Pledge of Subordinated Shareholder Loans is incorrect in any material aspect when made or
repeated and, in the event that any representation or warranty is capable of remedy, the
misrepresentation is not remedied within 28 days of the earlier of the date on which (i) such
Obligor has become aware of the misrepresentation or (ii) the Facility Agent gives notice to
that Subordinated Creditor requiring the same to be remedied.
	 
	(c)	 	Any representation or warranty made by a Finance Party (as defined in the New Facility
Agreement) is incorrect in any material respect when made or repeated.

	18.17	 	Loss of Licences
	 
	 	 	Any Licence is in whole or part:

	 	(a)	 	terminated, suspended or revoked or does not remain in full force and effect or
otherwise expires and is not renewed prior to its expiry (in each case, without
replacement by Licence(s) having substantially equivalent effect) in any case in a
manner which would or is reasonably likely to have a Material Adverse Effect; or

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	 	(b)	 	is modified or is breached in a manner which would or is reasonably likely to
have a Material Adverse Effect.

	18.18	 	Material Contracts
	 
	(a)	 	Except as is required by any term of this Agreement, any Material Contract to which a member
of the Borrower Group is a party is terminated, suspended, revoked or cancelled or otherwise
ceases to be in full force and effect, unless:

	 	(i)	 	in the case of an Interconnect Agreement only, services of a similar nature to
those provided pursuant to such Material Contract are at all times provided to the
Borrower Group on terms which are not materially more onerous on the relevant member of
the Borrower Group or on the terms imposed by the mandatory requirements of any
regulatory body; or
	 
	 	(ii)	 	such termination, suspension, revocation, cancellation or cessation (in the
reasonable opinion of the Facility Agent) would not or is not reasonably likely to have
a Material Adverse Effect.

	(b)	 	Any alteration or variation is made to any term of any Material Contract to which a member of
the Borrower Group is a party which individually or cumulatively (in the reasonable opinion of
the Facility Agent) would or is reasonably likely to have a Material Adverse Effect.
	 
	(c)	 	Any party breaches any term of or repudiates any of its obligations under any Material
Contract to which a member of the Borrower Group is a party where such breach or repudiation
(in the opinion of the Facility Agent exercised reasonably) would or is reasonably likely to
have a Material Adverse Effect unless, in the case of a breach of a Material Contract by any
person other than any member of the Borrower Group, the relevant services are at all relevant
times provided to the appropriate members of the Borrower Group on the basis set out in (a)
above.

	18.19	 	Material Adverse Change
	 
	 	 	Any event or series of events occurs which would or is reasonably likely to have a Material
Adverse Effect.

	18.20	 	ERISA
	 
	 	 	The occurrence of:

	 	(a)	 	any event or condition that presents a material risk that any member of the
Borrower Group or any ERISA Affiliate may incur a material liability to a Plan or to
the United States Internal Revenue Service or to the United States Pension Benefit
Guaranty Corporation; or
	 
	 	(b)	 	an “accumulated funding deficiency” (as that term is defined in section 412 of
the United States Internal Revenue Code of 1986, as amended, or section 302 of ERISA),
whether or not waived, by reason of the failure of any member of the Borrower Group or
any ERISA Affiliate to make a contribution to a Plan.

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	18.21	 	Acceleration
	 
	 	 	On and at any time after the occurrence of an Event of Default while such event is
continuing the Facility Agent may, and if so directed by the Majority Lenders will, by
notice to UPC Broadband declare that an Event of Default has occurred and:

	 	(a)	 	cancel the Total Commitments; and/or
	 
	 	(b)	 	declare that all the Advances be payable on demand, whereupon they shall
immediately become payable on demand by the Facility Agent on the instructions of the
Majority Lenders; and/or
	 
	 	(c)	 	demand that all the Advances be immediately due and payable, whereupon they
shall become immediately due and payable together with all interest accrued on those
Advances and all other amounts payable by the Obligors under the Finance Documents.

	18.22	 	Automatic Acceleration
	 
	 	 	If an Event of Default described in Clause 18.6(c)(ii), (ii), (iii) or (iv) (United States
of America) occurs, or upon the entry of an order for relief in a voluntary or involuntary
bankruptcy of the US Borrower, all outstanding Advances drawn by the US Borrower under this
Agreement will be immediately and automatically due and payable and the Total Commitments
(to the extent they relate to such Advances) will, if not already cancelled under this
Agreement, be immediately and automatically cancelled.

	19.	 	FACILITY AGENT, SECURITY AGENT, LEAD ARRANGERS AND LENDERS
	 
	19.1	 	Appointment and duties of the Agents
	 
	(a)	 	Each Lender and Lead Arranger irrevocably appoints each Agent to act as its agent under and
in connection with the Finance Documents.
	 
	(b)	 	Each Finance Party appointing each Agent irrevocably authorises each Agent on its behalf to:

	 	(i)	 	perform the duties and to exercise the rights, powers and discretions that are
specifically delegated to it under or in connection with the Finance Documents,
together with any other incidental rights, powers and discretions; and
	 
	 	(ii)	 	execute each Finance Document expressed to be executed by the Facility Agent on
that Finance Party’s behalf.

	(c)	 	Each Agent shall have only those duties which are expressly specified in this Agreement.
Those duties are solely of a mechanical and administrative nature.

	19.2	 	Role of the Lead Arrangers
	 
	 	 	Except as otherwise provided in this Agreement, no Lead Arranger has any obligations of any
kind to any other Party under or in connection with any Finance Document.

	19.3	 	Relationship
	 
	 	 	The relationship between each Agent and the other Finance Parties is that of agent and
principal only. Nothing in this Agreement constitutes either Agent as trustee or fiduciary
for

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	 	 	any other Party or any other person and neither Agent need hold in trust any moneys paid to
it for a Party save as provided in the Finance Documents or be liable to account for
interest on those moneys.

	19.4	 	Majority Lenders’ directions
	 
	(a)	 	Each Agent will be fully protected if it acts in accordance with the instructions of the
Majority Lenders in connection with the exercise of any right, power or discretion or any
matter not expressly provided for in the Finance Documents. Any such instructions given by
the Majority Lenders will be binding on all the Lenders. In the absence of such instructions
each Agent may act as it considers to be in the best interests of all the Lenders.
	 
	(b)	 	No Agent is authorised to act on behalf of a Lender (without first obtaining that Lender’s
consent) in any legal or arbitration proceedings relating to any Finance Document.

	19.5	 	Delegation
	 
	 	 	Each Agent may act under the Finance Documents through its personnel and agents.
	 
	19.6	 	Responsibility for documentation
	 
	 	 	Neither Agent nor any Lead Arranger is responsible to any other Party for:

	 	(a)	 	the execution, genuineness, validity, enforceability or sufficiency of any
Finance Document or any other document by any other Party;
	 
	 	(b)	 	the collectability of amounts payable under any Finance Document;
	 
	 	(c)	 	the accuracy of any statements (whether written or oral) made in or in
connection with any Finance Document (including the Information Memorandum) by any
other Party; or
	 
	 	(d)	 	the integrity or security of any Finance Document or other document or
information posted or distributed electronically on any intranet based system (or
similar) in connection with the preparation, negotiation and execution of the Finance
Documents or the syndication or administration of the Facilities.

	19.7	 	Default
	 
	(a)	 	Neither Agent is obliged to monitor or enquire as to whether or not a Default has occurred.
Neither Agent will be deemed to have knowledge of the occurrence of a Default. However, if an
Agent receives notice from a Party referring to this Agreement, describing the Default and
stating that the event is a Default, it shall promptly notify the Lenders of such notice.
	 
	(b)	 	Each Agent may require the receipt of security satisfactory to it whether by way of payment
in advance or otherwise, against any liability or loss which it will or may incur in taking
any proceedings or action arising out of or in connection with any Finance Document before it
commences these proceedings or takes that action.
	 
	19.8	 	Exoneration
	 
	(a)	 	Without limiting paragraph (b) below, neither Agent will be liable for any action taken or
not taken by it under or in connection with any Finance Document, unless directly caused by
its gross negligence or wilful misconduct.

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	(b)	 	No Party may take any proceedings against any officer, employee or agent of either Agent in
respect of any claim it might have against that Agent or in respect of any act or omission of
any kind (including negligence or wilful misconduct) by that officer, employee or agent in
relation to any Finance Document.
	 
	(c)	 	Any officer, employee or agent of either Agent may rely on this Clause 19.8 and enforce its
terms under the Contracts (Rights of Third Parties) Act 1999.

	19.9	 	Reliance
	 
	 	 	Each Agent may:

	 	(a)	 	rely on any notice or document believed by it to be genuine and correct and to
have been signed by, or with the authority of, the proper person;
	 
	 	(b)	 	rely on any statement made by a director or employee of any person regarding
any matters which may reasonably be assumed to be within his knowledge or within his
power to verify; and
	 
	 	(c)	 	engage, pay for and rely on legal or other professional advisers selected by it
(including those in the Facility Agent’s employment and those representing a Party
other than the Facility Agent).

	19.10	 	Credit approval and appraisal
	 
	 	 	Without affecting the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms that it:

	 	(a)	 	has made its own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation in this Agreement and has not relied exclusively on any information
provided to it by either Agent or the Lead Arrangers in connection with any Finance
Document; and
	 
	 	(b)	 	will continue to make its own independent appraisal of the creditworthiness of
each Obligor and its related entities while any amount is or may be outstanding under
the Finance Documents or any Commitment is in force.

	19.11	 	Information
	 
	(a)	 	Each Agent shall promptly forward to the person concerned the original or a copy of any
document which is delivered to that Agent by a Party for that person.
	 
	(b)	 	Except where this Agreement specifically provides otherwise, neither Agent is obliged to
review or check the accuracy or completeness of any document it forwards to another Party.
	 
	(c)	 	Except as provided above, neither Agent has a duty:

	 	(i)	 	either initially or on a continuing basis to provide any Lender with any credit
or other information concerning the financial condition or affairs of any Obligor or
any related entity of any Obligor whether coming into its possession or that of any of
its related entities before, on or after the Signing Date; or
	 
	 	(ii)	 	unless specifically requested to do so by a Lender in accordance with this
Agreement, to request any certificates or other documents from any Obligor.

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	19.12	 	Each Agent and the Lead Arrangers individually
	 
	(a)	 	If it is also a Lender, each of the Facility Agent, the Security Agent and the Lead Arrangers
has the same rights and powers under this Agreement as any other Lender and may exercise those
rights and powers as though it were not the Facility Agent, Security Agent or (as applicable)
a Lead Arranger.
	 
	(b)	 	Each of the Agents and the Lead Arrangers may:

	 	(i)	 	carry on any business with an Obligor or its related entities;
	 
	 	(ii)	 	act as agent or trustee for, or in relation to any financing involving, an
Obligor or its related entities; and
	 
	 	(iii)	 	retain any profits or remuneration in connection with its activities under the
Finance Documents, or in relation to any of the foregoing.

	19.13	 	Indemnities
	 
	 	 	Each Lender shall indemnify each Agent, within three Business Days of demand, against any
cost, loss or liability incurred by the relevant Agent (otherwise than by reason of the
relevant Agent’s gross negligence or wilful misconduct) in acting as Agent under the Finance
Documents (unless the relevant Agent has been reimbursed by an Obligor pursuant to a Finance
Document). Such indemnification shall be pro rata to its Commitments (and for the purposes
of calculating this proportion, the amount of the Total Facility C Commitments and each
Lender’s Facility C Commitments shall be converted to euros at the Agent’s Spot Rate of
Exchange on the date of the relevant calculation).

	19.14	 	Compliance
	 
	(a)	 	Each Agent may refrain from doing anything which might, in its reasonable opinion, constitute
a breach of any law or regulation or be otherwise actionable at the suit of any person, and
may do anything which, in its reasonable opinion, is necessary or desirable to comply with any
law or regulation of any jurisdiction.
	 
	(b)	 	Without limiting paragraph (a) above, neither Agent need disclose any information relating to
any Obligor or any of its related entities if the disclosure might, in the opinion of the
relevant Agent, constitute a breach of any law or regulation or any duty of secrecy or
confidentiality or be otherwise actionable at the suit of any person.

	19.15	 	Resignation of Agents
	 
	(a)	 	Notwithstanding its irrevocable appointment (but subject to paragraphs (f) and (g) below),
each Agent may resign by giving notice to the Lenders and UPC Broadband, in which case the
relevant Agent may, following consultation with and with the consent of UPC Broadband (not to
be unreasonably withheld or delayed) forthwith appoint one of its Affiliates as successor
Agent or, failing that, the Majority Lenders may with the consent of UPC Broadband (not to be
unreasonably withheld or delayed) appoint a reputable and experienced bank as successor Agent.
The resignation of the Security Agent is subject to compliance with clause 9.1 (Retirement of
Security Agent) of the Security Deed.
	 
	(b)	 	If the appointment of a successor Agent is to be made by the Majority Lenders but they have
not, within 30 days after notice of resignation, appointed a successor Agent which accepts the

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	 	 	appointment, the retiring Agent may, following consultation with and with the consent of UPC
Broadband (not to be unreasonably withheld or delayed), appoint a successor Agent.
	 
	(c)	 	The resignation of the retiring Agent and the appointment of any successor Agent will both
become effective only upon the successor Agent notifying all the Parties that it accepts the
appointment. On giving the notification and receiving such approval, the successor Agent will
succeed to the position of the retiring Facility Agent and the term Facility Agent or Security
Agent (as the case may be) will mean the successor Facility Agent or Security Agent,
respectively.
	 
	(d)	 	The retiring Agent shall, at its own cost, make available to the successor Agent such
documents and records and provide such assistance as the successor Agent may reasonably
request for the purposes of performing its functions as the Agent under this Agreement.
	 
	(e)	 	Upon its resignation becoming effective, this Clause 19 shall continue to benefit the
retiring Agent in respect of any action taken or not taken by it under or in connection with
the Finance Documents while it was the relevant Agent and, subject to paragraph (d) above, it
shall have no further obligation under any Finance Document.
	 
	(f)	 	The Majority Lenders may by notice to an Agent require it to resign in accordance with
paragraph (a) above. In this event, the relevant Agent shall resign in accordance with
paragraph (a) above but it shall not be entitled to appoint one of its Affiliates as successor
Agent.
	 
	(g)	 	UPC Broadband may, if it is unsatisfied (acting reasonably) with the performance by an Agent
of its role as Agent, following a period of consultation with the relevant Agent of not less
than 14 days, by notice to that Agent require it to resign in accordance with paragraph (a)
above. Such notice must specify the reasons for which UPC Broadband is seeking the Agent’s
resignation, which must be based on reasonable grounds. In this event, the relevant Agent
shall resign in accordance with paragraph (a) above but it shall not be entitled to appoint
one of its Affiliates as successor Agent.

	19.16	 	Lenders
	 
	(a)	 	Each Agent may treat each Lender as a Lender, entitled to payments under this Agreement and
as acting through its Facility Office(s) until it has received notice from the Lender to the
contrary by not less than five Business Days prior to the relevant payment.
	 
	(b)	 	Each Lender, on the date on which it becomes a party to this Agreement, represents to the
Facility Agent that it is:

	 	(i)	 	either:

	 	(A)	 	not resident in the United Kingdom for United Kingdom Tax
purposes; or
	 
	 	(B)	 	a “bank” as defined in section 840A of the Income and
Corporation Taxes Act 1988 and resident in the United Kingdom; and

	 	(ii)	 	beneficially entitled to the interest payable by the Facility Agent to it under
this Agreement,

and shall forthwith notify the Facility Agent if either representation ceases to be correct.

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	(c)	 	Each Facility A Lender, (if it is a requirement of Dutch law that such Facility A Lender is a
Professional Market Party) represents to the Finance Parties and UPC Broadband on the
Effective Date that it is a Professional Market Party. Such Lender acknowledges that the
Finance Parties and UPC Broadband have relied upon such representation.
	 
	(d)	 	Each Facility A Lender shall provide the Facility Agent with a duly completed and signed
Verification Letter by the date falling 30 days after the Effective Date. If such Facility A
Lender fails to provide such Verification Letter it shall, within ten Business Days of demand,
indemnify each Obligor and each Finance Party against any cost, loss or liability incurred by
that Obligor or Finance Party as a result of its representation in paragraph (c) above being
incorrect or its failure to comply with its undertaking in this paragraph (d).

	19.17	 	Separate divisions
	 
	 	 	In acting as an Agent or Lead Arranger, the agency and syndication’s division of each of the
Agents and the Lead Arrangers shall be treated as a separate entity from its other divisions
and departments. Any information acquired at any time by either Agent or any Lead Arranger
otherwise than in the capacity of Agent or Lead Arranger through its agency and
syndication’s division (whether as financial adviser to any member of the Borrower Group or
otherwise) may be treated as confidential by the relevant Agent or Lead Arranger and shall
not be deemed to be information possessed by the relevant Agent or Lead Arranger in its
capacity as such. Each Finance Party acknowledges that each Agent and the Lead Arrangers
may, now or in the future, be in possession of, or provided with, information relating to
the Obligors which has not or will not be provided to the other Finance Parties. Each
Finance Party agrees that, except as expressly provided in this Agreement, neither Agent nor
any Lead Arranger will be under any obligation to provide, or be under any liability for
failure to provide, any such information to the other Finance Parties.

	20.	 	FEES
	 
	20.1	 	Commitment fee
	 
	(a)	 	Subject to paragraph (b) below UPC Broadband shall pay to the Facility Agent for distribution
to each Lender pro rata to the proportion that the relevant Lender’s Facility A Commitment,
Facility B Commitment or Facility C Commitment bears to the Total Facility A Commitment, Total
Facility B Commitment or Total Facility C Commitment respectively from time to time a
commitment fee (subject to sub-clause (b) below) computed at the rate of 0.75 per cent. per
annum on any undrawn, uncancelled amount of the Total Facility A Commitment, Total Facility B
Commitment and Total Facility C Commitment, PROVIDED THAT on any day that the aggregate
outstanding Advances exceed 50 per cent. of the aggregate drawn and undrawn Total Facility A
Commitments, Total Facility B Commitments and Total Facility C Commitments the commitment fee
shall be computed at the rate which is the lower of:

	 	(i)	 	50 per cent. of the then applicable Margin; and
	 
	 	(ii)	 	0.50 per cent. per annum,

on any undrawn, uncancelled amount of the Total Facility A Commitment, Total Facility B
Commitment and Total Facility C Commitment.

In calculating aggregate outstanding Facility C2 Advances and Total Facility C Commitments
for the purposes of the proviso to this Clause 20.1(a), outstanding Facility C2 Advances and

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Facility C2 Commitments shall be converted to euros on the date of the relevant
calculation on the basis of the Agent’s Spot Rate of Exchange on that date.

	(b)	 	Commitment fee is calculated and accrues on a daily basis on and from the Signing Date and is
payable quarterly in arrear from the Signing Date and (in the case of the Total Facility A
Commitment) on the last day of the Facility A Availability Period, (in the case of the Total
Facility B Commitment) on the last day of the Facility B Availability Period and (in the case
of the Total Facility C Commitment) on the last day of the Facility C Availability Period.
Accrued commitment fee is also payable to the Facility Agent for the relevant Lender(s) on the
cancelled amount of its (their) Facility A Commitment, Facility B Commitment or Facility C
Commitment, as the case may be, at the time the cancellation takes effect (but only in respect
of the period up to the date of cancellation).
	 
	(c)	 	Commitment fee is payable in euros in respect of Facility A, Facility B and Facility C1 and
in Dollars in respect of Facility C2.
	 
	20.2	 	Agents’ fees
	 
	 	 	UPC Broadband shall pay to the Facility Agent and the Security Agent for their own account
an agency fee in the amounts and on the dates agreed in the relevant Fee Letter.
	 
	20.3	 	Underwriting Fee
	 
	 	 	UPC Broadband shall pay the arrangement fee and underwriting fees in accordance with the
relevant Fee Letter.
	 
	20.4	 	Amendment Fee
	 
	 	 	UPC Broadband will pay to the Facility Agent for distribution to each Lender the amendment
fees set out in the Amendment Fee Letter on the date set out therein.
	 
	20.5	 	VAT
	 
	 	 	Any fee referred to in this Clause
is exclusive of any applicable value added tax. If any value added tax
is so chargeable and is invoiced, it shall be paid by UPC Broadband at the same time as it
pays the relevant fee. Where appropriate, the relevant Finance Party will supply a VAT
invoice in respect of such fees.
	 
	21.	 	EXPENSES
	 
	21.1	 	Transaction Expenses
	 
	 	 	UPC Broadband shall within ten Business Days of demand pay the Agent the amount of all costs
and expenses (including legal fees) reasonably incurred by any of them in connection with
the negotiation, preparation, printing, execution, perfection and syndication of:

	 	(a)	 	this Agreement and any other documents referred to in this Agreement; and
	 
	 	(b)	 	any other Finance Document executed after the date of this Agreement.

	21.2	 	Amendment Costs
	 
	 	 	If:

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	 	(a)	 	an Obligor requests an amendment, waiver or consent under or in connection with
any Finance Document;
	 
	 	(b)	 	an amendment is required under Clause 25.3 (Change of Currency),

	 	 	UPC Broadband shall, within ten Business Days of demand, reimburse the Facility Agent or, as
the case may be, the Security Agent, for the amount of all costs and expenses (including
legal fees) reasonably incurred by the Facility Agent or, as the case may be, the Security
Agent in responding to, evaluating, negotiating or complying with that request or
requirement.
	 
	21.3	 	Enforcement Costs
	 
	 	 	UPC Broadband shall, within ten Business Days of demand, pay to the Facility Agent on behalf
of each Finance Party the amount of all costs and expenses (including legal fees) incurred
by that Finance Party in connection with the enforcement of, or the preservation of any
rights under, any Finance Document.
	 
	22.	 	STAMP DUTIES
	 
	 	 	UPC Broadband shall pay and, within ten Business Days of demand, indemnify each Finance
Party against any cost, loss or liability which that Finance Party incurs in relation to all
stamp duty, registration and other similar Taxes payable in respect of any Finance Document
(other than those imposed by reason of any assignment or novation by any Finance Party).
	 
	23.	 	INDEMNITIES
	 
	23.1	 	Currency indemnity
	 
	(a)	 	If any sum due from an Obligor under the Finance Documents (a Sum), or any order, judgment or
award given or made in relation to a Sum, has to be converted from the currency (the First
Currency) in which that Sum is payable into another currency (the Second Currency) for the
purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor;
	 
	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

	 	 	that Obligor shall as an independent obligation, within ten Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or liability
arising out of or as a result of the conversion including any discrepancy between (A) the
rate of exchange used to convert that Sum from the First Currency into the Second Currency
and (B) the rate or rates of exchange available to that person at the time of its receipt of
that Sum.
	 
	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is expressed to
be payable.
	 
	23.2	 	Other indemnities
	 
	 	 	UPC Broadband shall (or shall procure that an Obligor will), within ten Business Days of
demand, indemnify each Lender against any cost, loss or liability incurred by that Lender as
a result of:

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	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on its
due date, including without limitation, any cost, loss or liability arising as a result
of Clause 29 (Pro Rata Sharing);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in an Advance
requested by a Borrower in a Request but not made by reason of the operation of any one
or more of the provisions of this Agreement (other than by reason of default or
negligence by that Lender alone); or
	 
	 	(d)	 	an Advance (or part of an Advance) not being prepaid in accordance with a
notice of prepayment given by a Borrower.

	23.3	 	Indemnity to the Facility Agent
	 
	 	 	UPC Broadband shall, within ten Business Days of demand, indemnify the Facility Agent
against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a
result of:

	 	(a)	 	investigating any event which it reasonably believes is a Default; or
	 
	 	(b)	 	acting or relying on any notice, request or instruction which it reasonably
believes to be genuine, correct and appropriately authorised.

	23.4	 	Break Costs
	 
	(a)	 	UPC Broadband shall, within ten Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of an Advance or Unpaid Sum
being paid by that Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum.
	 
	(b)	 	Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent,
provide a certificate (which shall be provided to UPC Broadband) confirming the amount of its
Break Costs for any Interest Period in which they accrue.
	 
	24.	 	EVIDENCE AND CALCULATIONS
	 
	24.1	 	Accounts
	 
	 	 	Accounts maintained by a Finance Party in connection with this Agreement are prima facie
evidence of the matters to which they relate.
	 
	24.2	 	Certificates and determinations
	 
	 	 	Any certification or determination by a Finance Party of a rate or amount payable under this
Agreement or otherwise expressed to be determined by a Finance Party is, in the absence of
manifest error, prima facie evidence of the matters to which it relates.
	 
	24.3	 	Calculations
	 
	 	 	The interest and the fees payable under Clause 20.1 (Commitment fee) accrue from day to day and are calculated on the basis of the
actual number of days elapsed and a year of 360

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	 	 	days or, where practice in the London inter-
bank market, in the case of non-euro amounts, or the European interbank market, in the case
of euro amounts, otherwise dictates, 365 days.
	 
	25.	 	AMENDMENTS AND WAIVERS
	 
	25.1	 	Required consents
	 
	(a)	 	Subject to Clause 25.2 (Exceptions) any term of the Finance
Documents may be amended or waived
only with the written consent of the Majority
Lenders and UPC Broadband and any such
amendment or waiver will be binding on
all Parties.
	 
	(b)	 	The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this Clause 25.
	 
	25.2	 	Exceptions
	 
	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definitions of “Majority Lenders” or “Majority Facility C Lenders” in
Clause 1.1 (Definitions);
	 
	 	(ii)	 	an extension to the date of payment of any amount of principal, interest or
commitment fees under this Agreement or the Security Documents or the extension of the
Facility A Availability Period, Facility B Availability Period or Facility C
Availability Period;
	 
	 	(iii)	 	a reduction in the Margin other than in accordance with Clause 8.10 (Margin)
or the amount of any payment of principal, interest, fees or commission payable under
this Agreement or the Security Documents;
	 
	 	(iv)	 	an increase in a Lender’s Facility A Commitment, Facility B Commitment or
Facility C Commitment;
	 
	 	(v)	 	an assignment, transfer, novation or other disposal of any of, or any interest
in, an Obligor’s rights and/or obligations under this Agreement other than in
accordance with Clause 26 (Changes to the Parties);
	 
	 	(vi)	 	any provision which expressly requires the consent of all the Lenders;
	 
	 	(vii)	 	Clause 2.4 (Nature of a Finance Party’s rights and obligations), Clause 26.2
(Transfers by Lenders) or this Clause 25;
	 
	 	(viii)	 	a release of the guarantee under Clause 14 (Guarantee) other than in accordance with
Clause 26 (Changes to the Parties);
	 
	 	(ix)	 	the selection of an Interest Period exceeding six months; or
	 
	 	(x)	 	the release of an asset from a Security Document (except as otherwise expressly
permitted herein or in any such Security Document and except in furtherance of a
disposal or any other transaction which is permitted by any Finance Document),

shall not be made without the prior consent of all the Lenders.

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	 	(b)	 	An amendment or waiver which relates to the rights or obligations of the Facility Agent or
the Lead Arrangers may not be effected without the consent of the Facility Agent or, as the
case may be, the Lead Arrangers.
	 
	 	(c)	 	An amendment or waiver which has the effect of changing or relates to Clause 7.10 (Facility C
Call protection) may not be effected without the consent of the Majority Facility C Lenders.
	 
	 	(d)	 	The Facility Agent may agree with UPC Broadband any amendment to or the modification of the
provisions of any of the Finance Documents or any schedule thereto, which is necessary to
correct a manifest error.
	 
	 	(e)	 	If authorised by the Majority Lenders, the Security Agent may, subject to paragraph (a)
above, grant any waiver or consent in relation to, or variation of the material provisions of,
any Security Document.

	25.3	 	Change of Currency
	 
	(a)	 	If more than one currency or currency unit are at the same time recognised by the central
bank of any country as the lawful currency of that country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations arising under
the Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the Agent; and
	 
	 	(ii)	 	any translation from one currency or currency unit to another shall be at the
official conversion rate recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Agent acting
reasonably.

	(b)	 	If a change in any currency of a country occurs, this Agreement will be amended to the extent
the Agent specifies to be necessary to reflect the change in currency and to put the Banks in
the same position, so far as possible, that they would have been in if no change in currency
had occurred.
	 
	25.4	 	Waivers and remedies cumulative
	 
	 	 	The rights of each Party under the Finance Documents:

	(a)	 	may be exercised as often as necessary, subject to the terms of the relevant
Finance Documents;
	 
	(b)	 	are cumulative and not exclusive of its rights under the general law; and
	 
	(c)	 	may be waived only in writing and specifically.
	 
	Delay in the exercise or non-exercise of any such right is not a waiver of that right.

	26.	 	CHANGES TO THE PARTIES
	 
	26.1	 	Transfers by Obligors
	 
	(a)	 	No Obligor may assign, transfer, novate or dispose of any of, or any interest in, its rights
and/or obligations under this Agreement, except:

	 	(i)	 	pursuant to a merger in accordance with Clause 16.11(b) (Acquisitions and
mergers); and

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	 	(ii)	 	that UPC Broadband Holdco (Existing UPC Broadband Holdco) may at any time
assign, transfer, novate or dispose of all of its rights and obligations under this
Agreement and the other Finance Documents to which it is a party to another person
which is the immediate Holding Company of UPC Broadband (New UPC Broadband Holdco) in
accordance with the terms of this Agreement and the terms of such other Finance
Document, provided that any transfer or novation of obligations by Existing UPC
Broadband Holdco will not be effective until New UPC Broadband Holdco has become an
Additional Guarantor in accordance with Clause 26.4 (Additional Guarantors) and has
delivered or delivers the documents specified in Clause 26.4(a)(iv) (Additional
Guarantors).

	(b)	 	At the time the foregoing conditions for the transfer or novation of Existing UPC Broadband
Holdco’s obligations shall have been satisfied (or waived, as the case may be) and such
transfer or novation has taken effect:

	 	(i)	 	Existing UPC Broadband Holdco will be released from its obligations under this
Agreement and the other Finance Documents, without prejudice to any such obligations
which may have accrued and shall not have been discharged prior to such time; and
	 
	 	(ii)	 	Existing UPC Broadband Holdco will cease to be an Original Guarantor.

	26.2	 	Transfers by Lenders
	 
	(a)	 	A Lender (the Existing Lender) may at any time assign, transfer or novate any of its rights
and/or obligations under this Agreement and the other Finance Documents to another person (the
New Lender), provided that:

	 	(i)	 	in the case of a partial assignment, transfer or novation of rights and/or
obligations, such assignment, transfer or novation shall be in a minimum amount (in
relation to Facility A Commitment) of €5,000,000, or (in relation to Facility B
Commitment) of €1,000,000, or (in relation to Facility C Commitment) of $1,000,000,
or its euro equivalent (save that in the case of a partial assignment, transfer or
novation by a Facility C Lender of its rights and/or obligations under Facility C to an
Affiliate or Related Fund of that Facility C Lender, such assignment, transfer or
novation shall be in a minimum amount (in relation to Facility C Commitment) of
$500,000 or its euro equivalent); and
	 
	 	(ii)	 	if an Existing Lender is both a Facility B Lender and holds undrawn commitments
under New Facility D and that Existing Lender assigns, transfers or novates any of its
rights and/or obligations in respect of Facility B to a New Lender that Existing Lender
shall also assign transfer or novate its undrawn commitments under New Facility D, in
accordance with clause 26.3 (Transfers to Lenders) and clause 26.3 (Procedure for
novation) of the New Facility Agreement to the extent necessary to ensure that it and
the New Lender (to the extent it is or becomes a lender under New Facility D) are and
remain in compliance with clause 26.2(a)(ii) of the New Facility Agreement.

	(b)	 	The prior consent of UPC Broadband is required for any such assignment, transfer or novation
(unless to an Affiliate or to a Lender, but without prejudice to Clause 26.2(a)), provided
that:

	 	(i)	 	UPC Broadband’s consent must not be unreasonably withheld or delayed;

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	 	(ii)	 	the consent of UPC Broadband to an assignment, transfer or novation must not be
withheld solely because the assignment, novation or transfer may result in an increase
to the Mandatory Cost;
	 
	 	(iii)	 	the prior consent of UPC Broadband is not required when (A) the assignment,
novation or transfer of a Lender’s rights and/or obligations is to an Affiliate or
Related Fund of that Lender or (B) an Event of Default is outstanding;
	 
	 	(iv)	 	nothing in this Clause 26.2 restricts the ability of any Lender to enter into
any sub-participation or other arrangement with any third party relating to the Finance
Documents which does not transfer to that third party any obligation and/or legal or
equitable interest in any of the rights arising under this Agreement.

	(c)	 	A transfer of obligations will be effective only if the obligations are novated in accordance
with Clause 26.3 (Procedure for novations).
	 
	(d)	 	If, on the date of an assignment, transfer or novation of rights and/or obligations, it is a
requirement of Dutch law that each Lender must be a Professional Market Party, then on the
date that such assignment, transfer or novation becomes effective, the New Lender must make
the declaration and representation on the terms set out in paragraph 2 of the Novation
Certificate.
	 
	(e)	 	On each occasion an Existing Lender assigns, transfers or novates any of its rights and/or
obligations under this Agreement (other than to an Affiliate or Related Fund of that Existing
Lender), the New Lender shall, on the date the assignment, transfer and/or novation takes
effect, pay to the Facility Agent for its own account a fee of €1,500 (in relation to
Facility A, Facility B or Facility C1) or US$3,500 (in relation to Facility C2); provided
that, in the case of contemporaneous assignments by a Lender under Facility C2 to more than
one fund managed by the same investment adviser (which funds are not then Lenders hereunder),
only a single such US$3,500 fee shall be payable for all such contemporaneous assignments.
	 
	(f)	 	An Existing Lender is not responsible to a New Lender for:

	 	(i)	 	the execution, genuineness, validity, enforceability or sufficiency of any
Finance Document or any other document;
	 
	 	(ii)	 	the collectability of amounts payable under any Finance Document; or
	 
	 	(iii)	 	the accuracy of any statements (whether written or oral) made in connection
with any Finance Document.

	(g)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that:

	 	(i)	 	it has made its own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation in this Agreement and has not relied exclusively on any information
provided to it by the Existing Lender in connection with any Finance Document;
	 
	 	(ii)	 	it will continue to make its own independent appraisal of the creditworthiness
of each Obligor and its related entities while any amount is or may be outstanding
under this Agreement or any Facility A Commitment, Facility B Commitment or Facility C
Commitment is in force; and

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	 	(iii)	 	where such New Lender is a Lender under a Facility to which a Dutch Borrower
is a Borrower it is a Professional Market Party and that it is aware that it therefore
does not benefit from the (creditor) protection under the Dutch Banking Act for
non-Professional Market Parties.

	(h)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and/or obligations
assigned, transferred or novated under this Clause 26; or
	 
	 	(ii)	 	support any losses incurred by the New Lender by reason of the non-performance
by any Obligor of its obligations under this Agreement or otherwise.

	 	(i)	 	Any reference in this Agreement to a Lender includes a New Lender (to the extent rights have
been assigned, transferred or novated to that New Lender and to the extent that obligations
have been assumed by the New Lender) but excludes a Lender if no amount is or may be owed to
or by it under this Agreement and its Facility A Commitment (if any), Facility B Commitment
(if any), and Facility C Commitment (if any) has been cancelled or reduced to nil.
	 
	 	(j)	 	If any assignment, transfer or novation results, or will result by reason of circumstances
existing at the time of the assignment, transfer or novation, in additional amounts becoming
due under Clause 10 (Tax Gross-up and Indemnities) or amounts becoming due under Clause 12
(Increased Costs), the New Lender shall be entitled to receive such additional amounts only to
the extent that the Existing Lender would have been so entitled had there been no such
assignment, transfer or novation.
	 
	 	(k)	 	Any Facility C Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including
without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release a Lender from any of its obligations
under this Agreement or substitute any such pledgee or assignee for such Facility C Lender as
a party hereto.
	 
	 	26.3	 	Procedure for novations
	 
	 	(a)	 	A novation is effected if:

	 	(i)	 	the Existing Lender and the New Lender deliver to the Facility Agent a duly
completed certificate (a Novation Certificate), substantially in the form of Part 1 of
Schedule 5 (Novation Certificate), with, for the purposes of primary syndication of the
Facilities or to facilitate novations of Facility C2 Advances (and Facility C2
Commitments, if applicable), such amendments as the Facility Agent approves to achieve
a substantially similar effect; and

	 	(ii)	 	the Facility Agent executes it (which the Facility Agent shall promptly do).

	(b)	 	Each Finance Party (other than the Existing Lender and the New Lender) irrevocably authorises
the Facility Agent to execute any duly completed Novation Certificate on its behalf if that
Novation Certificate effects a novation permitted by Clause 26.2 (Transfers by Lenders).
	 
	(c)	 	To the extent that they are expressed to be the subject of the novation in the Novation
Certificate:

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	 	(i)	 	the Existing Lender and the other Parties (the existing Parties) will be
released from their obligations to each other (the discharged obligations);
	 
	 	(ii)	 	the New Lender and the existing Parties will assume obligations towards each
other which differ from the discharged obligations only insofar as they are owed to or
assumed by the New Lender instead of the Existing Lender;
	 
	 	(iii)	 	the rights of the Existing Lender against the existing Parties and vice versa
(the discharged rights) will be cancelled;
	 
	 	(iv)	 	the New Lender and the existing Parties will acquire rights against each other
which differ from the discharged rights only insofar as they are exercisable by or
against the New Lender instead of the Existing Lender; and
	 
	 	(v)	 	the New Lender shall become, by the execution by the Facility Agent of such
Novation Certificate, bound by the terms of the Security Deed as if it were an original
party thereto as a Senior Beneficiary and shall acquire the same rights and assume the
same obligations towards the other parties to the Security Deed as would have been
acquired and assumed had the New Lender been an original party to the Security Deed as
a Senior Beneficiary,

all on the later of (i) five Business Days after receipt of a Novation Certificate executed
by the Existing Lender and the New Lender; (ii) the date of execution of such Novation
Certificate by the Facility Agent; and (iii) the date specified in the Novation Certificate.

	(d)	 	If the effective date of a novation is after the date a Request is received by the Facility
Agent but before the date the requested Advance is disbursed to the relevant Borrower, the
Existing Lender shall be obliged to participate in that Advance in respect of its discharged
obligations notwithstanding that novation, and the New Lender shall reimburse the Existing
Lender for its participation in that Advance and all interest and fees thereon up to the date
of reimbursement (in each case to the extent attributable to the discharged obligations)
within three Business Days of the Utilisation Date of that Advance.
	 
	(e)	 	If an Existing Lender effects a Mid-Interest Period Transfer:

	 	(i)	 	the Facility Agent has an obligation to make interest accruing on and prior to
the date on which the Mid-Interest Period Transfer took effect (the Pre-Transfer
Accrued Interest) available to the Existing Lender in accordance with Clause 9.3
(Distribution). Once such Accrued Interest has been made available to the Existing
Lender in accordance with Clause 9.3 (Distribution), the Facility Agent will be
released from all obligations towards the Existing Lender;
	 
	 	(ii)	 	the Facility Agent will have no obligation to pay Pre Transfer Accrued Interest
to the New Lender;
	 
	 	(iii)	 	such Existing Lender will continue to have the right to receive Pre Transfer
Accrued Interest. Once such Pre Transfer Accrued Interest has been made available to
such Existing Lender in accordance with Clause 9.3 (Distribution), all rights of such
Existing Lender against the Facility Agent will be cancelled; and
	 
	 	(iv)	 	the New Lender will have no right to receive Pre Transfer Accrued Interest from
the Facility Agent.

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	26.4	 	Additional Guarantors

	 	(a)	 	(i) Subject to paragraph (b) below, a Subsidiary of UPC
Broadband may become an Additional Guarantor by
delivering to the Facility Agent a Guarantor
Accession Agreement, duly executed by that company.
	 
	 	(ii)	 	A person which (a) becomes the immediate Holding Company of UPC Broadband or
(b) becomes an Additional Obligor under the New Facility Agreement shall, prior to or
contemporaneously with becoming such Holding Company or Additional Obligor (as
applicable), become an Additional Guarantor by delivering to the Facility Agent a
Guarantor Accession Agreement, duly executed by that company.
	 
	 	(iii)	 	Upon execution and delivery of a Guarantor Accession Agreement and delivery of
the documents specified in sub-paragraph (iv) below, the relevant Subsidiary or person
referred to in sub-paragraph (i) or (ii) above will become an Additional Guarantor.
	 
	 	(iv)	 	UPC Broadband shall procure that, at the same time as a Guarantor Accession
Agreement is delivered to the Facility Agent, there is also delivered to the Facility
Agent all those documents listed in Part 2 of Schedule 2 (Conditions Precedent
Documents), in each case in form and substance satisfactory to the Facility Agent
(acting reasonably).
	 
	 	(v)	 	The Guarantor Accession Agreement referred to in sub-paragraph (i) above may,
with the prior written approval of the Facility Agent, include a limitation of the
obligations or liabilities of the relevant Additional Guarantor under Clause 14
(Guarantee) where such limitation is required by any applicable law.

	(b)	 	UPC Broadband shall:

	 	(i)	 	procure that at all times the value of the aggregate EBITDA, total assets and
total revenues of:

	 	(A)	 	the Guarantors as of the Effective Date (other than, UPC
Broadband, any UPC Broadband Holdco, UPC Holding and UPC Holding II) and their
respective Subsidiaries (as calculated by reference to the relevant financial
statements most recently provided under Clause 16.2(a) or (b) (Financial
information)); and
	 
	 	(B)	 	any Additional Guarantors which have become Guarantors since
the Effective Date and their respective Subsidiaries (as calculated by
reference to the relevant financial statements most recently provided under
Clause 16.2(a) or (b) (Financial information) or, if no such financial
statements have been provided in respect of such Additional Guarantors, as
calculated by reference to the financial statements referred to in paragraph
11 of Part 2 of Schedule 2 (Conditions Precedent Documents) provided under
Clause 26.4(a)(iii) (Additional Guarantors) in respect of each Additional
Guarantor),

is equal to or greater than 95 per cent. of the Borrower Group’s consolidated EBITDA
(as calculated by reference to the relevant financial statements most recently
provided under Clause 16.2(a) or (b) (Financial information) but, for the avoidance
of doubt, deducting any corporate costs or allocations paid or payable by a member
of the Borrower Group to one of its Affiliates pursuant to any general services

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arrangement), if necessary by procuring that additional Subsidiaries of UPC
Broadband become Additional Guarantors; and

	 	(ii)	 	consult with the Facility Agent prior to any entity becoming an Additional
Guarantor in order to ensure that no material adverse change would or be reasonably
likely to occur, as a result of such entity becoming an Additional Guarantor, in the
consolidated financial position of the Borrower Group (taken as a whole) which would or
be reasonably likely to have a Material Adverse Effect.

	(c)	 	UPC Broadband represents and warrants to the Finance Parties that it is in compliance with
paragraph (b) above as of the Effective Date (all relevant calculations being made by
reference to the financial statements most recently provided under Clause 16.2(a) or (b)
(Financial Information).
	 
	(d)	 	After the Effective Date, UPC Broadband shall be in compliance with its obligations under
paragraph (b) above if it procures that any of its Subsidiaries which are required to become
Additional Guarantors do so within 60 days after the delivery to the Facility Agent of any
financial statements delivered under Clause 16.2(a) or (b) (Financial information) which
demonstrate that additional Subsidiaries of UPC Broadband are required to be become Additional
Guarantors under paragraph (b).
	 
	(e)	 	The execution of a Guarantor Accession Agreement constitutes confirmation by the relevant
Additional Guarantor that the relevant representations and warranties set out in Clause 15
(Representations and Warranties) to be made by it on the date of the Guarantor Accession
Agreement are correct, as if made with reference to the facts and circumstances then existing.
	 
	26.5	 	Reference Banks
	 
	(a)	 	If a Reference Bank ceases to be a Lender, the Facility Agent shall (after consulting with
UPC Broadband) appoint another Lender which is not a Reference Bank to replace that Reference
Bank.
	 
	(b)	 	UPC Broadband and the Facility Agent may agree to add one or more additional Reference
Bank(s) from among the Lenders.
	 
	26.6	 	Register
	 
	 	 	The Facility Agent shall maintain at its address referred to in Clause 32.2(b) (Addresses
for notices) a copy of each Novation Certificate delivered to and accepted by it and a
register of the names and addresses all the Parties including, in the case of Lenders, their
Commitments under each Facility, the principal amount of the Advances owing under each
Facility to each Lender from time to time and the details of their Facility Office notified
to the Facility Agent from time to time, and shall supply any other Party (at that Party’s
expense) with a copy of the register on request. The entries in such register shall be
conclusive and binding for all purposes, absent manifest error, and the Obligors, the
Facility Agent and the Lenders shall treat each person whose name is recorded in the
register as a Lender hereunder for all purposes of this Agreement.
	 
	27.	 	DISCLOSURE OF INFORMATION
	 
	27.1	 	Any Lender may disclose to any of its Affiliates and any other person:

	 	(a)	 	to (or through) whom that Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights and obligations under this Agreement;

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	 	(b)	 	with (or through) whom that Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or any Obligor; or
	 
	 	(c)	 	to whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation,
	 
	 	any information about any Obligor, the Borrower Group and the Finance Documents as that
Lender shall consider appropriate (acting reasonably) if, in relation to subparagraphs (i)
and (ii) above, the person to whom the information is to be given has entered into a
Confidentiality Undertaking.

	27.2	 	Notwithstanding any other provision of this Agreement, any Party to this Agreement (and any
of its affiliates, officers, directors, employees, representatives, professional advisers, or
other agents) may (and has since the commencement of discussions with respect to the Facility
been permitted to) disclose to any and all persons, without limitation of any kind:

	 	(a)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the
Facility; and
	 
	 	(b)	 	all material of any kind (including opinions and other tax analyses) that are
provided to such party relating to such U.S. tax treatment or U.S. tax structure,

except to the extent reasonably necessary to comply with applicable federal or state
securities laws.

For the purposes of this subsection, the U.S. tax treatment of the Facility is the purported
or claimed U.S. federal, state and local income tax treatment of the Facility, and the U.S.
tax structure of the Facility is any fact that may be relevant to understanding the
purported or claimed U.S. federal, state and local income tax treatment of the Facility.
This authorisation is not intended to permit disclosure of any information (other than
information relating to US tax treatment or US tax structure of the Facility) including
(without limitation) (i) any portion of any materials to the extent not related to the U.S.
tax treatment or U.S. tax structure of the Facility, (ii) the identities of participants or
potential participants in the Facility (except to the extent such identities are related to
the tax treatment or the U.S. tax structure of the Facility), (iii) the existence or status
of any negotiations, (iv) any pricing or financial information (except to the extent such
pricing or financial information is related to the U.S. tax treatment or the U.S. tax
structure of the Facility), or (v) any other term or detail not relevant to the U.S. tax
treatment or the U.S. tax structure of the Facility.

	28.	 	SET-OFF
	 
	28.1	 	Contractual set-off
	 
	 	 	A Finance Party may set off any matured obligation owed by an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to that Obligor, regardless of the place of payment,
booking branch or currency of either obligation. If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of exchange in
its usual course of business for the purpose of the set-off.

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	28.2	 	Set-off not mandatory
	 
	 	 	No Finance Party shall be obliged to exercise any right given to it by Clause 28.1
(Contractual set-off).
	 
	28.3	 	Notice of set-off
	 
	 	 	Any Finance Party exercising its rights under Clause 28.1 (Contractual set-off) shall notify
the relevant Obligor promptly after set-off is applied.
	 
	29.	 	PRO RATA SHARING
	 
	29.1	 	Redistribution
	 
	 	 	If any amount owing by an Obligor under any Finance Document to a Finance Party (the
recovering Finance Party) is discharged by payment, set-off or any other manner other than
through the Facility Agent in accordance with Clause 9 (Payments) (a recovery), then:

	 	(a)	 	the recovering Finance Party shall, within three Business Days, notify details
of the recovery to the Facility Agent;
	 
	 	(b)	 	the Facility Agent shall determine whether the recovery is in excess of the
amount which the recovering Finance Party would have received had the recovery been
received by the Facility Agent and distributed in accordance with Clause 9 (Payments);
	 
	 	(c)	 	subject to Clause 29.3 (Exceptions), the recovering Finance Party shall, within
three Business Days of demand by the Facility Agent, pay to the Facility Agent an
amount (the redistribution) equal to the excess;
	 
	 	(d)	 	the Facility Agent shall treat the redistribution as if it were a payment by
the Obligor concerned under Clause 9 (Payments) and shall pay the redistribution to the
Finance Parties (other than the recovering Finance Party) in accordance with Clause 9.7
(Partial payments); and
	 
	 	(e)	 	after payment of the full redistribution, the recovering Finance Party will be
subrogated to the portion of the claims paid under paragraph (d) above, and that
Obligor will owe the recovering Finance Party a debt which is equal to the
redistribution, immediately payable and of the type originally discharged.

	29.2	 	Reversal of redistribution
	 
	 	 	If under Clause 29.1 (Redistribution):

	 	(a)	 	a recovering Finance Party must subsequently return a recovery, or an amount
measured by reference to a recovery, to an Obligor; and
	 
	 	(b)	 	the recovering Finance Party has paid a redistribution in relation to that
recovery,
	 
	 	each Finance Party shall, within three Business Days of demand by the recovering Finance
Party through the Facility Agent, reimburse the recovering Finance Party all or the
appropriate portion of the redistribution paid to that Finance Party. Thereupon the
subrogation in Clause 29.1(e) (Redistribution) will operate in reverse to the extent of the
reimbursement.

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	 	 	 	Each Finance Party agrees with the Facility Agent that it will comply with any notice given
to it by the Facility Agent under this Clause 29.2.

	29.3	 	Exceptions
	 
	(a)	 	A recovering Finance Party need not pay a redistribution to the extent that it would not,
after the payment, have a valid claim against the Obligor concerned in the amount of the
redistribution pursuant to Clause 29.1(e) (Redistribution).
	 
	(b)	 	A recovering Finance Party is not obliged to share with any other Finance Party any amount
which the recovering Finance Party has received or recovered as a result of taking legal
proceedings, if the other Finance Party had an opportunity to participate in those legal
proceedings but did not do so and did not take separate legal proceedings.
	 
	30.	 	SEVERABILITY
	 
	 	 	If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in
any jurisdiction, that shall not affect:

	 	(a)	 	the legality, validity or enforceability in that jurisdiction of any other
provision of the Finance Documents; or
	 
	 	(b)	 	the legality, validity or enforceability in other jurisdictions of that or any
other provision of the Finance Documents.

	31.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of this Agreement.
	 
	32.	 	NOTICES
	 
	32.1	 	Giving of notices
	 
	 	 	All notices or other communications under or in connection with this Agreement shall be
given in writing and, unless stated, may be made by letter, telex or facsimile or (to the
extent that (i) the relevant Party has specified such an address pursuant to Clause 32.2
(Addresses for notices) and (ii) such notice or communication is not required to be signed
by an Authorised Signatory, other officer or board of the relevant entity and the form of
such notice or communication does not provide for signature by an Authorised Signatory,
other officer or board of the relevant entity) by e-mail. Any such notice will be deemed to
be given as follows:

	 	 	(a)  if by letter, when delivered personally or on actual receipt; and

	 	 	(b)  if by facsimile or e-mail, when received in legible form.

	 	 	However, a notice given in accordance with the above but received on a non-working day or
after business hours in the place of receipt will only be deemed to be given on the next
working day in that place.

126

 

	32.2	 	Addresses for notices
	 
	(a)	 	The address and facsimile number and (if so specified) e-mail address of each Party (other
than the Facility Agent and the Borrowers) for all notices under or in connection with this
Agreement are:

	 	(i)	 	that notified by that Party for this purpose to the Facility Agent on or before
it becomes a Party; or
	 
	 	(ii)	 	any other notified by that Party for this purpose to the Facility Agent by not
less than five Business Days’ notice.

	(b)	 	The address, facsimile numbers and e-mail address of the Facility Agent and the Security
Agent are:

	 	 	 
	 

	 	Toronto Dominion (Texas) LLC/TD Bank Europe Limited
	 

	 	Triton Court
	 

	 	14/18 Finsbury Square
	 

	 	London EC2A 1DB

	 	 	 	 	 
	 

	 	Contact:
	 	Rory McCarthy
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+44 20 7638 0006
	 
	 	 	 	 
	 

	 	E-mail:
	 	rory.mccarthy@tdsecurities.com
	 
	 	 	 	 
	 	 	in the case of notices relating to Facility C2 only:
	 
	 	 	Toronto Dominion (Texas), Inc.,
	 	 	909 Fannin Street, Suite 1700
	 	 	Houston, Texas 77010

	 	 	 	 	 
	 

	 	Attention:
	 	Jim Bridwell
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+1 713 951 9921
	 
	 	 	 	 
	 

	 	Email:
	 	jimmie.bridwell@tdsecurities.com
	 
	 	 	 	 
	 	 	and in each case with a copy to:
	 
	 	 	TD Bank Europe Limited
	 	 	Royal Trust Tower
	 	 	77 King Street West,
	 	 	18th Floor
	 	 	Toronto
	 	 	Ontario, Canada
	 	 	M5K 1A2
	 
	 	 	 	 
	 

	 	Contact:
	 	Jim Bridwell/Elhamy Khalil
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+1 416 307 3826

or such other as the Facility Agent may notify to the other Parties by not less than five
Business Days’ notice.

127

 

	(c)	 	The address, facsimile numbers and e-mail address of each Borrower are:

	 	 	 	 	 
	 	 	UPC Broadband Holding B.V.
	 	 	Boeing Avenue 53
	 	 	1119 PE Schiphol Rijk
	 	 	Amsterdam
	 
	 	 	 	 
	 

	 	Contact:
	 	Dennis Okhuijsen
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+ 3120 778 9453; and
	 
	 	 	 	 
	 

	 	E-mail:
	 	dokhuijsen@lgi.com
	 
	 	 	 	 
	 	 	UPC Financing Partnership
	 
	 	 	c/o UPC Broadband
	 
	 	 	 	 
	 

	 	Contact:
	 	Dennis Okhuijsen
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+ 3120 778 9453
	 
	 	 	 	 
	 

	 	E-mail:
	 	dokhuijsen@lgi.com

or such other as the relevant Borrower may notify to the other Parties by not less than five
Business Days’ notice.

	(d)	 	The Facility Agent shall, promptly upon request from any Party, give to that Party the
address, facsimile number or e-mail address (if applicable) of any other Party applicable at
the time for the purposes of this Clause 32.
	 
	33.	 	LANGUAGE
	 
	(a)	 	Any notice given under or in connection with any Finance Document shall be in English.
	 
	(b)	 	All other documents provided under or in connection with any Finance Document shall be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English and the Facility Agent so requests, accompanied by a
certified English translation and, in this case, the English translation shall prevail
unless the document is a statutory or other official document.

	34.	 	JURISDICTION
	 
	34.1	 	Submission
	 
	 	 	For the benefit of each Finance Party, each Obligor agrees that the courts of England have
jurisdiction to settle any disputes in connection with any Finance Document (other than any
Security Document expressed to be governed by laws other than the laws of England) and
accordingly submits to the jurisdiction of the English courts.
	 
	34.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service, each Obligor which is not incorporated in
England and Wales:

128

 

	 	(a)	 	irrevocably appoints UPC Services Ltd, 4th Floor, Michelen House, 81 Fulham
Road, London, SW3 6RD as its agent for service of process relating to any proceedings
before the English courts in connection with any Finance Document;
	 
	 	(b)	 	agrees to maintain an agent for service of process in England until all
Facility A Commitments, Facility B Commitments and Facility C Commitments have
terminated and the Advances and all other amounts payable under the Finance Documents
have been finally, irrevocably and indefeasibly repaid in full;
	 
	 	(c)	 	agrees that failure by a process agent to notify the Obligor of the process
will not invalidate the proceedings concerned;
	 
	 	(d)	 	consents to the service of process relating to any such proceedings by prepaid
posting of a copy of the process to its address for the time being applying under
Clause 32.2 (Addresses for notices); and
	 
	 	(e)	 	agrees that if the appointment of any person mentioned in paragraph (a) above
ceases to be effective, the relevant Obligor shall immediately appoint a further person
in England to accept service of process on its behalf in England and, failing such
appointment within 15 days, the Facility Agent is entitled and authorised to appoint a
process agent for the Obligor by notice to the Obligor.

	34.3	 	Forum convenience and enforcement abroad
	 
	 	 	Each Obligor:

	 	(a)	 	waives objection to the English courts on grounds of inconvenient forum or
otherwise as regards proceedings in connection with a Finance Document; and
	 
	 	(b)	 	agrees that a judgment or order of an English court in connection with a
Finance Document is conclusive and binding on it and may be enforced against it in the
courts of any other jurisdiction.

	34.4	 	Non-exclusivity
	 
	 	 	Nothing in this Clause 34 limits the right of a Finance Party to bring proceedings against an
Obligor in connection with any Finance Document:
	 
	(a)	 	in any other court of competent jurisdiction; or
	 
	(b)	 	concurrently in more than one jurisdiction.
	 
	35.	 	WAIVER OF IMMUNITY
	 
	 	 	Each Obligor irrevocably and unconditionally:

	 	(a)	 	agrees that if a Finance Party brings proceedings against it or its assets in
relation to a Finance Document, no immunity from those proceedings (including, without
limitation, suit, attachment prior to judgment, other attachment, the obtaining of
judgment, execution or other enforcement) will be claimed by or on behalf of itself or
with respect to its assets;
	 
	 	(b)	 	waives any such right of immunity which it or its assets now has or may
subsequently acquire; and

129

 

	 	(c)	 	consents generally in respect of any such proceedings to the giving of any
relief or the issue of any process in connection with those proceedings, including,
without limitation, the making, enforcement or execution against any assets whatsoever
(irrespective of its use or intended use) of any order or judgment which may be made or
given in those proceedings.

	36.	 	WAIVER OF TRIAL BY JURY
	 
	 	 	EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN
CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE
DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT.
	 
	37.	 	GOVERNING LAW
	 
	 	 	This Agreement is governed by and construed in accordance with English law.

THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

130

 

SCHEDULE 1

ORIGINAL PARTIES

ORIGINAL GUARANTORS

	 	 	 
	Name	 	Address
	UPC Financing Partnership

	 	4643 South Ulster Street
Suite 1300
Denver, Co 80237
United States
	 
	 	 
	UPC Broadband Holding B.V. (previously called UPC

	 	Boeing Avenue 53
	Distribution Holding B.V.)

	 	1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC France Holding B.V

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Austria Holding B.V. (previously called Cable

	 	Boeing Avenue 53
	Network Austria Holding B.V.)

	 	1119 PE Schiphol Rijk

Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Central Europe Holding B.V. (previously

	 	Boeing Avenue 53
	called Stipdon Investments B.V.)

	 	1119 PE Schiphol Rijk

Amsterdam

The Netherlands

131

 

	 	 	 
	Name	 	Address
	UPC Nederland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Poland Holding B.V. (previously called UPC

	 	Boeing Avenue 53
	Telecom B.V.)

	 	1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

132

 

PART 1

ORIGINAL LENDERS AND COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Facility A	 	 	Facility B	 	 	Facility C1	 	 	Facility C2	 
	 	 	Commitments	 	 	Commitments	 	 	Commitments	 	 	Commitments	 
	Lender	 	(€)	 	 	(€)	 	 	(€)	 	 	(US$)	 
	The Chase
Manhattan Bank
	 	 	102,857,145	 	 	 	377,142,855	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Toronto-Dominion
Bank
	 	 	102,857,145	 	 	 	377,142,855	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Toronto
Dominion (Texas), Inc.,
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	295,400,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ABN AMRO Bank N.V.
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BNP Paribas, Belgian Branch
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CIBC World
Markets plc
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Crédit Lyonnais S.A.
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fortis Bank (Nederland) N.V.
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	N.B.
International Finance B.V.
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Royal
Bank of Scotland plc
	 	 	37,500,000	 	 	 	137,500,000	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Abbey
National Treasury Services
plc
	 	 	7,500,000	 	 	 	27,500,000	 	 	 	5,000,000	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lehman
Commercial Paper Inc
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,000,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Banca
Commerciale Italiana S.p.A.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 

133

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Facility A	 	 	Facility B	 	 	Facility C1	 	 	Facility C2	 
	 	 	Commitments	 	 	Commitments	 	 	Commitments	 	 	Commitments	 
	Lender	 	(€)	 	 	(€)	 	 	(€)	 	 	(US$)	 
	Bear Stearns Corporate Lending Inc.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Citibank, N.A.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit Suisse First Boston
	 	 	10,714,286	 	 	 	39,285,714	 	 	 	50,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Daimler Chrysler Capital Services (Debis)
	 	 	6,428,571	 	 	 	23,571,429	 	 	 	10,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DLJ Capital Funding, Inc.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dresdner Bank AG, London Branch
	 	 	17,142,857	 	 	 	62,857,143	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Goldman Sachs Credit Partners, L.P.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Goldman Sachs Credit Partners, L.P.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Governor and Company of the Bank of
Scotland
	 	 	17,142,857	 	 	 	62,857,143	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Harbourmaster Loan Corporation B.V.
	 	 	 	 	 	 	 	 	 	 	15,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IBM Nederland Financieringen B.V.
	 	 	3,214,286	 	 	 	11,785,714	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ING Bank N.V.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Eurocredit CDO I, B.V. and Eurocredit
CDO II, B.V.
	 	 	 	 	 	 	 	 	 	 	15,000,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	KBC Bank NV
	 	 	5,357,143	 	 	 	19,642,857	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Merrill Lynch Capital Corporation
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 

134

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Facility A	 	 	Facility B	 	 	Facility C1	 	 	Facility C2	 
	 	 	Commitments	 	 	Commitments	 	 	Commitments	 	 	Commitments	 
	Lender	 	(€)	 	 	(€)	 	 	(€)	 	 	(US$)	 
	Debt Strategies Fund III, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	820,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debt Strategies Fund II, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,200,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debt Strategies Fund, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,800,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Senior High Income Portfolio, Inc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,180,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Morgan Stanley Senior Funding, Inc.
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Oppenheimer Senior Floating Rate Fund
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,100,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scotiabank Europe plc 
	 	 	21,428,571	 	 	 	8,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Van Kampen Prime Rate Income Trust
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	15,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Van Kampen Senior Income Trust
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UBS AG, London Branch
	 	 	21,428,571	 	 	 	78,571,429	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	€	750,000,000	 	 	€	2,750,000,000	 	 	€	95,000,000	 	 	US$	347,500,000	 

135

 

SCHEDULE 2

CONDITIONS PRECEDENT DOCUMENTS

PART 1

TO BE DELIVERED BEFORE THE FIRST ADVANCE

	1.	 	Constitutional Documents
	 
	 	 	A copy of the memorandum and articles of association and certificate of incorporation of
each Obligor (other than the US Borrower) and the partnership agreement in relation to the
US Borrower.
	 
	2.	 	Authorisations
	 
	(a)	 	A copy of an extract of a resolution of the board of directors (or equivalent) of each
Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by, the Finance
Documents to which it is a party (including, in the case of each Guarantor, the giving
of the guarantee under Clause 14 (Guarantee)) and resolving that it execute and, where
applicable, deliver the Finance Documents;
	 
	 	(ii)	 	authorising a specified person or persons to execute and, where applicable,
deliver the Finance Documents to which it is a party on its behalf; and
	 
	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents and notices (including Requests) to be signed and/or despatched
by it under or in connection with the Finance Documents to which it is a party;

	(b)	 	a specimen of the signature of each person authorised by the resolutions referred to in
paragraph (a) above;
	 
	(c)	 	certificate of an authorised signatory of each of UPC Broadband and the US Borrower
respectively certifying that each copy of the documents specified in Part 1 of this Schedule 2
and supplied by UPC Broadband or the US Borrower (as the case may be) is a true copy and in
full force and effect as at a date no earlier than the Signing Date; and
	 
	(d)	 	Evidence that all of the requirements of Section 25 of the Netherlands Works Council Act (Wet
op de Ondernemingsraden) in connection with the transactions contemplated by the Finance
Documents have been complied with.
	 
	3.	 	Legal opinions
	 
	(a)	 	Legal opinions of:

	 	(i)	 	Allen & Overy, London, Amsterdam and New York, legal advisers to the Lead
Arrangers;
	 
	 	(ii)	 	Loeff Claeys Verbeke, Brussels, legal advisers to the Lead Arrangers;
	 
	 	(iii)	 	Vinge KB, Stockholm, legal advisers to the Lead Arrangers;
	 
	 	(iv)	 	Wiersholm, Mellbye & Bech, Oslo, legal advisers to the Lead Arrangers.

136

 

	(b)	 	Legal opinion of Holme Roberts & Owen LLP, legal advisers to the Borrowers, addressed to the
Finance Parties and confirming that the Facility will not cause any default under the existing
high yield indentures of UPC or UGC.
	 
	4.	 	Existing Financial Indebtedness
	 
	 	 	Evidence that:

	 	(a)	 	all availability under the facility agreements or other documentation relating
to any Financial Indebtedness (Relevant Financial Indebtedness) described in Schedule 9
(Relevant Financial Indebtedness) has irrevocably been cancelled in full or will be
irrevocably cancelled in full as at the first Utilisation Date;
	 
	 	(b)	 	all indebtedness under such facility agreements or other documentation relating
to any Relevant Financial Indebtedness has been repaid in full or will be repaid in
full upon the making of the first Advance;
	 
	 	(c)	 	all letters of credit and guarantees and similar instruments issued under such
facility agreements or other documentation relating to any Relevant Financial
Indebtedness have been cancelled and that no cash collateral is held by the relevant
issuing banks in respect of those instruments (or that the foregoing will be achieved
upon the making of the first Advance); and
	 
	 	(d)	 	all Security Interests described in Schedule 8 (Relevant Security Interests)
have been released (or will be released upon the making of the first Advance) and that
all parties with an interest in such Security Interests have consented to such release.

	5.	 	Capital and corporate structure
	 
	(a)	 	A certificate from a director of UPC Broadband addressed to the Finance Parties confirming
that as at the first Utilisation Date (following the first Utilisation hereunder) there will
be no Subordinated Shareholder Loans outstanding from the Borrower Group to any Subordinated
Creditors other than Subordinated Shareholder Loans owing by UPC Broadband to UPC Holdco in a
principal amount of not less than €1,400,000,000.
	 
	(b)	 	Evidence as to the capital and corporate structure of the Borrower Group as at the first
Utilisation Date, such structure being consistent with the description set out in Schedule 10
(Borrower Group Structures).
	 
	6.	 	Finance Documents
	 
	(a)	 	The Security Documents listed in Schedule 7 (Security Documents) duly executed by all parties
thereto.
	 
	(b)	 	The Security Deed duly executed by all parties thereto.
	 
	(c)	 	All relevant notices of security required to be delivered under any Security Document
together with acknowledgements of such notices, in each case in the form required by the
relevant Security Document.
	 
	(d)	 	Delivery to the Security Agent of share certificates and duly completed blank stock transfer
forms (or equivalent) in respect of all shares or partnership interests (as applicable)
subject to the Security Documents listed in Schedule 7 (Security Documents).

137

 

	(e)	 	UCC-1 Financing Statements duly executed by each of UPC Holding and UPC Holding II.
	 
	(f)	 	Completion of all other steps specified by the Security Agent as being necessary to perfect
the Security Interests intended to be created by the Security Documents listed in Schedule 7
(Security Documents).
	 
	(g)	 	Syndication Letter duly executed by all parties thereto.
	 
	(h)	 	Guarantor Accession Agreements duly executed by each of UPC Nederland B.V., UPC Central
Europe Holding B.V. (previously called Stipdon Investments B.V.) and Austria Holding B.V.
(previously called Cable Networks Austria Holding B.V.)
	 
	7.	 	Financial information
	 
	(a)	 	Audited consolidated financial statements for UPC for the financial year ending 31 December
1999.
	 
	(b)	 	The Original Borrower Group Financial Statements, together with the financial statements of
the Borrower Group for the Accounting Period ended 30 June 2000.
	 
	(c)	 	The Consultant’s Report.
	 
	(d)	 	A certificate from a director of UPC Broadband confirming that as at the first Utilisation
Date (following the first Utilisation) Borrower Group Capitalisation will be equal to the
figure specified in Clause 17.2(d) (Financial ratios).
	 
	8.	 	Other documents
	 
	(a)	 	Copies of the Material Contracts listed in 15.7 (Material Contracts).
	 
	(b)	 	A copy of (and of all applications for) any and all approvals, consents, licences, exemptions
and other requirements of governmental and other authorities required for the entering into or
performance of the Finance Documents to be entered into on or about the Signing Date by each
party.
	 
	(c)	 	Restricted Person’s Framework Agreement and Obligors’ Framework Agreement, in each case duly
executed by all parties thereto.

138

 

PART 2

TO BE DELIVERED BY AN ADDITIONAL GUARANTOR

	1.	 	A Guarantor Accession Agreement, duly executed as a deed (or using any equivalent necessary
formality, in the case of an Additional Guarantor incorporated outside the United Kingdom) by
the Additional Guarantor.
	 
	2.	 	In the case of an Additional Guarantor (other than any UPC Broadband Holdco), a pledge over
all the issued shares of the Additional Guarantor owned by any member of the Borrower Group in
substantially the same form as a share pledge already granted to the Security Agent over
shares of another Obligor incorporated in the same jurisdiction as the Additional Guarantor or
in such other form as the Security Agent may reasonably require, together with a Security
Provider’s Deed of Accession executed by such member of the Borrower Group, such notices and
other documents as the Security Agent may require to perfect such share pledge.
	 
	3.	 	Details of:

	 	(a)	 	(in the case of an Additional Guarantor, other than any UPC Broadband Holdco)
all material receivables (aggregating €10,000,000 (or its equivalent in other
currencies) or more) which are owed to the Additional Guarantor by Priority Telecom
N.V.;
	 
	 	(b)	 	(in the case of an Additional Guarantor, other than UPC Broadband Holdco) all
intercompany loans owed to the Additional Guarantor by any member of the Borrower
Group, together with an Obligor Pledge of Shareholder Loans executed by the Additional
Guarantor in respect of such intercompany loans and the other documents referred to in
Clause 16.14(a) (Loans and guarantees); and
	 
	 	(c)	 	where the Additional Guarantor will become a UPC Broadband Holdco at the same
time as, or after, it becomes an Additional Guarantor, details of all Financial
Indebtedness owing to the Additional Guarantor by any member of the Borrower Group,
together with a Pledge of Subordinated Shareholder Loans executed by the Additional
Guarantor in respect of such Financial Indebtedness and the other documents referred to
in Clause 16.24(a) (Shareholder Loans); and
	 
	 	(d)	 	(in the case of an Additional Guarantor, other than any UPC Broadband Holdco)
all Financial Indebtedness owing by the Additional Guarantor to any Restricted Person,
together with a Pledge of Subordinated Shareholder Loans executed by the relevant
Restricted Person(s) (if any) in respect of such Financial Indebtedness and the other
documents referred to in Clause 16.24(a) (Shareholder Loans).

	4.	 	A pledge over such of the receivables referred to in subparagraph 3(a) above (in the case of
an Additional Guarantor, other than any UPC Broadband Holdco) as in the opinion of the
Security Agent is necessary to maintain the coverage of the Security Documents over such
receivables owed to the Borrower Group on a basis consistent with Clause 16.25 (Further
security over receivables) in substantially the same form as a receivables pledge already
granted to the Security Agent (i) by a member of the Borrower Group incorporated in the same
jurisdiction as the Additional Guarantor or (ii) in respect of receivables located in the same
jurisdiction as the relevant receivables or (iii) in such other form as the Security Agent may
reasonably request, together with all such notices and other documents as the Security Agent
may require to perfect the receivables pledge.

139

 

	5.	 	A copy of the memorandum and articles of association and certificate of incorporation (or
other equivalent constitutional documents) of the Additional Guarantor (and any Subsidiary of
the Additional Guarantor (a Relevant Subsidiary), the issued shares of which are to be subject
to a share pledge referred to in paragraph 6 below).

	 	6.	 	(a) Where the Additional Guarantor will become a UPC Broadband Holdco at the same time as, or
after, it becomes an Additional Guarantor, a pledge over all the issued shares of UPC
Broadband substantially in the same form as a share pledge already granted to the Security
Agent over shares of UPC Broadband or in such other form as the Security Agent may reasonable
require, together with such notices and other documents as the Security Agent may require to
perfect such share pledge.
	 
	 	(b)	 	In the case of an Additional Guarantor (other than any UPC Broadband Holdco), a
pledge over all the issued shares of any Subsidiary (a Relevant Subsidiary) of the
Additional Guarantor (other than shares not owned by the Additional Guarantor or any
Subsidiary of the Additional Guarantor) if in the opinion of the Security Agent such
pledge is necessary to maintain the coverage of the Security Documents over shares in
Obligors (other than UPC Holding and any other UPC Broadband Holdco) or other key
members of the Borrower Group (being holding companies in respect of one or more
members of the Borrower Group which carry on business in a particular jurisdiction).
Such share pledge shall be in substantially the same form as a Share Pledge already
granted to the Security Agent over shares in a person incorporated in the same
jurisdiction as the Relevant Subsidiary or in such other form as the Security Agent may
reasonably require, together with such notices and other documents as the Security
Agent may require to perfect such pledge.

	7.	 	A copy of a resolution of the board of directors of the Additional Guarantor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the Guarantor
Accession Agreement (and any relevant Security Document referred to in paragraphs 2, 3,
4 or 6 above (each an Additional Security Document) resolving that it execute the
Guarantor Accession Agreement (and each Additional Security Document));
	 
	 	(b)	 	authorising a specified person or persons to execute the Guarantor Accession
Agreement and each Additional Security Document; and
	 
	 	(c)	 	authorising a specified person or persons, on its behalf, to sign and/or
despatch all documents to be signed and/or despatched by it under or in connection with
the Finance Documents.

	8.	 	A copy of any other authorisation or other document, opinion or assurance which the Facility
Agent reasonably considers to be necessary in connection with the entry into and performance
of, and the transactions contemplated by, the Guarantor Accession Agreement or any Additional
Security Document.
	 
	9.	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 7 above.
	 
	10.	 	A certificate of an authorised signatory of the Additional Guarantor certifying that each
copy of the documents specified in 0 of this 0 and provided by it is a true copy and in full
force and effect as at a date no earlier than the date of the Guarantor Accession Agreement
(and, in the
case of an Additional Guarantor other than any UPC Broadband Holdco, if required by the
Facility Agent, a certificate of each Relevant Subsidiary in respect

140

 

\

of each copy of the
documents provided by it in accordance with the provisions of
Part 2 of this Schedule 2).

	11.	 	A copy of the latest financial statements (audited, if available) of the Additional
Guarantor.
	 
	12.	 	A legal opinion of legal advisers to the Facility Agent, and, if applicable, other lawyers
approved by the Facility Agent in the place of incorporation of the Additional Guarantor
(and/or each Relevant Subsidiary) addressed to the Finance Parties.
	 
	13.	 	All other notices, documents and other steps required to perfect the security constituted by
each Additional Security Document (including, without limitation, accession to, or entry into
(as the case may be), by:

	 	(a)	 	the relevant Additional Guarantor (and any member of the Borrower Group which
is an intercompany debtor in respect of the Additional Guarantor) of an Obligors’
Framework Agreement; or
	 
	 	(b)	 	as the case may be, the relevant Restricted Person referred to subparagraph
3(d) above (and the Additional Guarantor) of a Restricted Person’s Framework Agreement.

141

 

SCHEDULE 3

MANDATORY COST FORMULAE

	1.	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions)
or (b) the requirements of the European Central Bank.

	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the Facility
Agent shall calculate, as a percentage rate, the arithmetic mean (rounded up, if necessary, to
four decimal places) of the respective rates notified by each Reference Bank to the Facility
Agent at its request as the rate resulting from the application of the formulae set out in
paragraphs 3 and 4 below (the Additional Cost Rate).

	3.	 	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Facility Agent. This
percentage will be certified by that Lender in its notice to the Facility Agent to be its
reasonable determination of the cost (expressed as a percentage of that Lender’s participation
in all Loans made from that Facility Office) of complying with the minimum reserve
requirements of the European Central Bank in respect of loans made from that Facility Office.

	4.	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom
will be calculated by the Facility Agent as follows:

	 	(a)	 	in relation to a Sterling Advance:

	 	 	 	 	 
	 

	 	AB+C(B-D)+Ex0.01	 	 
	 

	 	 

100-(A-C)
	 	 per
cent. per annum

	 	(b)	 	in relation to an Advance in any currency other than sterling:

	 	 	 	 	 
	 

	 	Ex0.01	 	 
	 

	 	 

300
	 	 per
cent. per annum.

	 	 	Where:

	 	A	 	is the percentage of Eligible Liabilities (assuming these to be in excess of
any stated minimum) which that Reference Bank is from time to time required to maintain
as an interest-free cash ratio deposit with the Bank of England to comply with cash
ratio requirements;
	 
	 	B	 	is the percentage rate of interest (excluding the Margin and the Mandatory
Cost) and, if the Loan is an Unpaid Sum, the additional rate of interest specified in
Clause 8.8(a)(Default interest) payable for the relevant Interest Period on the Advance;
	 
	 	C	 	is the percentage (if any) of Eligible Liabilities which that Reference Bank is
required from time to time to maintain as interest-bearing Special Deposits with the
Bank of England;
	 
	 	D	 	is the percentage rate per annum payable by the Bank of England to the Facility
Agent on interest-bearing Special Deposits;

142

 

	 	E	 	is designed to compensate the Reference Banks for amounts payable under the
Fees Rules (but, for this purpose, ignoring any minimum fee required pursuant to the
Fees Rules) and is calculated by the Facility Agent as being the average for the most
recent rates of charge supplied by the Reference Banks to the Facility Agent pursuant
to paragraph 7 below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	Eligible Liabilities and Special Deposits have the meanings given to them from
time to time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England;
	 
	 	(b)	 	Fees Rules means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect
of the payment of fees for the acceptance of deposits;
	 
	 	(c)	 	Fee Tariffs means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
required pursuant to the Fees Rules but taking into account any applicable discount
rate; and
	 
	 	(d)	 	Tariff Base has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting
figures shall be rounded to four decimal places.

	7.	 	If requested by the Facility Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Facility Agent, the rate of
charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees
Rules in respect of the relevant financial year of the Financial Services Authority
(calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in pounds per
£1,000,000 of the Tariff Base of that Reference Bank.

	8.	 	Each Lender shall supply any information required by the Facility Agent for the purpose of
calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information on or prior to the date on which its becomes a Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and
	 
	 	(b)	 	any other information that the Facility Agent may reasonably require for such
purpose.

	 	 	Each Lender shall promptly notify the Facility Agent of any change to the information
provided by it pursuant to this paragraph.

	9.	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Facility Agent based
upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the
assumption that, unless a Lender notifies the Facility Agent to the contrary, each Lender’s
obligations in relation to cash ratio deposits and Special Deposits are the same as those of
a 

143

 

	 	 	typical bank from its jurisdiction of incorporation with a Facility Office in the same
jurisdiction as its Facility Office.

	10.	 	The Facility Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Reference Bank pursuant to paragraph 3 above is
true and correct in all respects.

	11.	 	The Facility Agent shall distribute the additional amounts received as a result of the
Mandatory Costs to the Lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Reference Bank pursuant to paragraphs 3, 7 and 8 above.

	12.	 	Any determination by the Facility Agent pursuant to this Schedule in relation to a formula,
the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.

	13.	 	The Facility Agent may from time to time, after consultation with UPC Broadband and the
Lenders, determine and notify to all Parties any amendments which are required to be made to
this Schedule in order to comply with any change in law, regulation or any requirements from
time to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all Parties.

144

 

SCHEDULE 4

FORM OF REQUEST AND CANCELLATION NOTICE

PART 1

FORM OF REQUEST

	 	 	 	 	 
	To:

	 	[                     ]	 	 
	 
	 	 	 	 
	Attention:

	 	[                ]	 	 
	 
	 	 	 	 
	From:

	 	[Borrower]
	 	Date: [                ]

REQUEST (ADVANCE)

UPC Broadband Holding B.V. — €3,500,000,000 and US$347,500,000 and €95,000,000 Term and

Revolving Credit Agreement dated [           ] 2000

Dear Sirs,

We hereby
give you notice pursuant to Clause 5.1 (Delivery of Request)
of the above Credit Agreement that we require an Advance to be made to that
Borrower under the Credit Agreement, as follows:

	 	 	 	 	 
	(a)

	 	Facility:
	 	[A, B, C1 or C2]
	 
	 	 	 	 
	(b)

	 	Utilisation Date:
	 	[                               ]
	 
	 	 	 	 
	(c)

	 	Requested Amount:
	 	[                               ]
	 
	 	 	 	 
	(d)

	 	Currency:
	 	[                               ]
	 
	 	 	 	 
	(e)

	 	Interest Period:
	 	[                               ]

Payment instructions with respect to the proceeds of the Advance to be made in relation to this
Request are as follows: [            ].

We confirm
that each condition specified in Clause 4.2 (Further conditions precedent)
is satisfied on the date of this Request.

Terms used in this Request and defined in the Credit Agreement have the same meaning in this
Request as in the Credit Agreement.

Yours faithfully

[Authorised Signatory]

[Borrower]

145

 

PART 2

FORM OF CANCELLATION AND/OR PREPAYMENT NOTICE

	 	 	 	 	 	 	 
	To:

	 	[       ] as Facility Agent	 	 	 	 
	 
	 	 	 	 	 	 
	From:

	 	[BORROWER]	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	[            ]

UPC Broadband Holding B.V. — €3,500,000,000 and US$347,500,000 and €95,000,000 Term and

Revolving Credit Agreement dated [            ] 2000

	1.	 	[We wish to cancel a portion of Total Facility A Commitments* and/or*/Total
Facility B Commitments* and/or* Total Facility C Commitments* in the following amounts:

	 	 	 	 	 
	 

	 	Cancellation:	 	 
	 
	 	 	 	 
	 

	 	Total Facility A Commitments:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Total Facility B Commitments:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Total Facility C1 Commitments:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Total Facility C2 Commitments:
	 	[      ]*

OR

[We wish to prepay the whole or part of the following Advances which are to be applied
against the Facilities in the following order:

	 	(a)	 	Facilities:

	 	 	 	 	 
	 

	 	Facility A Advance:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility B Advance:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility C1 Advance:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility C2 Advance:
	 	[      ]*

	 	(b)	 	Application of Advance[s]:

	 	 	 	 	 
	 

	 	Facility A:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility B:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility C1:
	 	[      ]*
	 
	 	 	 	 
	 

	 	Facility C2:
	 	[      ]*

	2.	 	Terms defined in the above Credit Agreement have the same meaning in this notice.

 

			
	*	 	 Delete as appropriate.

146

 

By:

[BORROWER]

Authorised Signatory

147

 

SCHEDULE 5

FORMS OF ACCESSION DOCUMENTS

PART 1

NOVATION CERTIFICATE

	 	 	 	 	 
	To:

	 	[          ] as Facility Agent and UPC Broadband Holding B.V.	 	 
	 
	 	 	 	 
	From:

	 	[THE EXISTING LENDER] and [THE NEW LENDER]
	 	Date: [           ]

UPC Broadband Holding B.V. — €3,500,000,000 and US$347,500,000 and €95,000,000 Term and

Revolving Credit Agreement dated [           ] 2000

We refer
to Clause 26.3 (Procedure for novations) of the
Credit Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed. Terms defined in
the Credit Agreement have the same meaning in this Novation Certificate.

	1.	 	We [           ] (the Existing Lender) and [           ] (the New Lender) agree to the
Existing Lender and the New Lender novating all the Existing Lender’s rights and obligations
referred to in the Schedule in accordance with Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers by the
Lenders) of the Security Deed.

	2.	 	In the case of a Facility under which a Dutch Borrower is a Borrower, on the [date of
execution of the Novation Certificate] and on the [effective transfer date], the New Lender
represents and warrants to the Existing Lender, the other Finance Parties and each Dutch
Borrower that it is exempted from the requirement to be a Professional Market Party because it
forms part of a closed circle (besloten kring) with [name of Dutch Borrower] [:

	 	(i)	 	it is a Professional Market Party;
	 
	 	(ii)	 	it acknowledges that as a consequence it has no benefit from the (creditor)
protection under the Dutch Banking Act for non-Professional Market Parties; and
	 
	 	(iii)	 	it has made its own credit appraisal of each Dutch Borrower.]1

	3.	 	The Facility Office and address for notices of the New Lender for the purposes of Clause
32.2 (Addresses for notices)are set out in the
Schedule.

	4.	 	This Novation Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Novation
Certificate.

	5.	 	This Novation Certificate is governed by English law.

 

			
	1	 	Include and delete as appropriate.

148

 

THE SCHEDULE

Rights and obligations to be novated

[Details of the rights and obligations of the Existing Lender to be novated.]

	 	 	 	 	 
	[New Lender]
	 	 	 	 
	[Facility Office	 	Address for notices for administrative purposes
	 	 	Address for notices for credit purposes]
	[Existing Lender]

	 	[New Lender]
	 	[                    ]
	By:

	 	By:
	 	By:
	Date:

	 	Date:
	 	Date:

149

 

PART 2

GUARANTOR ACCESSION AGREEMENT

	 	 	 	 	 
	To:

	 	[       ] as Facility Agent and [      ] as Security Agent	 	 
	 
	 	 	 	 
	From:

	 	[PROPOSED GUARANTOR]	 	 
	 

	 	 	 	Date: [           ]

UPC Broadband Holding B.V. — €3,500,000,000 and US$347,500,000 and €95,000,000 Term and

Revolving Credit Agreement dated [                      ] 2000

We refer to Clause 26.4 (Additional Gurantors). Terms
defined in the Credit Agreement have the same meaning in this Deed.

We, [name of company] of [Registered Office] (Registered no. [            ]) agree:

	(a)	 	to become an Additional Guarantor and to be bound by the terms of the Credit Agreement as an
Additional Guarantor in accordance with Clause 26.4 (Additional Guarantors);

	(b)	 	to become a party to the Security Deed as a Charging Entity and to observe, perform and be
bound by the terms and provisions of the Security Deed in the capacity of a Charging Entity in
accordance with clause 9.6 (Charging Entities) of the Security Deed; and

	(c)	 	to become a party to the Intercreditor Agreement as a Charging Entity and to observe, perform
and be bound by the terms and provisions of the Intercreditor Agreement in the capacity of a
Charging Entity in accordance with Clause 8.1 of the Intercreditor Agreement.

Our address for notices for the purposes of Clause 32.2 (Addresses for notices) is:

	 	 	 
	[
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	]

This Deed is governed by English law.

	 	 	 	 	 	 	 
	Executed as a deed by

	 	 	)	 	 	Director
	[PROPOSED GUARANTOR]

	 	 	)	 	 	 
	acting by

	 	 	)	 	 	Director/Secretary
	and

	 	 	)	 	 	 

150

 

SCHEDULE 6

FORM OF CONFIDENTIALITY UNDERTAKING

PART 1

FORM OF LMA CONFIDENTIALITY UNDERTAKING

LMA CONFIDENTIALITY LETTER (PURCHASER)

[Letterhead of Existing Lender]

To:

	 
	 

	 

	 

	 

 Re: The Facility

	 
	Borrowers:

	Amount:

	Agent:

	 

[insert name of New Lender]

Dear Sirs

We understand that you are considering participating in the Facility. In consideration of us
agreeing to make available to you certain information, by your signature of a copy of this letter
you agree as follows:

	1.	 	Confidentiality Undertaking
	 
	 	 	You undertake:

	 	(a)	 	to keep the Confidential Information confidential and not to disclose it to
anyone except as provided for by paragraph 2 below and to ensure that the Confidential
Information is protected with security measures and a degree of care that would apply
to your own confidential information;
	 
	 	(b)	 	to keep confidential and not disclose to anyone the fact that the Confidential
Information has been made available or that discussions or negotiations are taking
place or have taken place between us in connection with the Facility;
	 
	 	(c)	 	to use the Confidential Information only for the Permitted Purpose;
	 
	 	(d)	 	to use all reasonable endeavours to ensure that any person to whom we pass any
Confidential Information (unless disclosed under subparagraph 2(b) below) acknowledges
and complies with the provisions of this letter as if that person were also a party to
it; and

151

 

	 	(e)	 	not to make enquiries of any member of the Borrower Group or any of their
officers, directors, employees or professional advisers relating directly or indirectly
to the Facility.

	2.	 	Permitted Disclosure
	 
	(a)	 	We agree that you may disclose Confidential Information:

	 	(i)	 	to members of the Participant Group and their officers, directors, employees
and professional advisers to the extent necessary for the Permitted Purpose and to any
auditors of members of the Participant Group;
	 
	 	(ii)	 	(A) where requested or required by any court of competent jurisdiction or any
competent judicial, governmental, supervisory or regulatory body, (B) where required by
the rules of any stock exchange on which the shares or other securities of any member
of the Participant Group are listed or (C) where required by the laws or regulations of
any country with jurisdiction over the affairs of any member of the Participant Group;
	 
	 	(iii)	 	with the prior written consent of us and the Borrower.

	(b)	 	Notwithstanding any other provision of this letter, any party to this letter (and any of its
affiliates, officers, directors, employees, representatives, professional advisers, or other
agents) may and has since the commencement of discussions with respect to the Facility been
permitted to disclose to any and all persons, without limitation of any kind:

	 	(i)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the
Facility; and
	 
	 	(ii)	 	all material of any kind (including opinions and other tax analyses) that are
provided to such party relating to such U.S. tax treatment or U.S. tax structure,

	 	 	except to the extent reasonably necessary to comply with applicable federal or state
securities laws.
	 
	 	 	For the purposes of this subsection, the U.S. tax treatment of the Facility is the purported
or claimed U.S. federal, state and local income tax treatment of the Facility, and the U.S.
tax structure of the Facility is any fact that may be relevant to understanding the
purported or claimed U.S. federal, state and local income tax treatment of the Facility.
This authorisation is not intended to permit disclosure of any information (other than
information relating to U.S. tax treatment or U.S. tax structure of the Facility) including
(without limitation) (i) any portion of any materials to the extent not related to the U.S.
tax treatment or U.S. tax structure of the Facility, (ii) the identities of participants or
potential participants in the Facility (except to the extent such identities are related to
the tax treatment or the U.S. tax structure of the Facility), (iii) the existence or status
of any negotiations, (iv) any pricing or financial information (except to the extent such
pricing or financial information is related to the U.S. tax treatment or the U.S. tax
structure of the Facility), or (v) any other term or detail not relevant to the U.S. tax
treatment or the U.S. tax structure of the Facility.

	3.	 	Notification of Required or Unauthorised Disclosure
	 
	 	 	You agree (to the extent permitted by law) to inform us of the full circumstances of any
disclosure under subparagraph 2(b) or upon becoming aware that Confidential Information has
been disclosed in breach of this letter.

152

 

	4.	 	Return of Copies
	 
	 	 	If we so request in writing, you shall return all Confidential Information supplied to you
by us and destroy or permanently erase all copies of Confidential Information made by you
and use all reasonable endeavours to ensure that anyone to whom you have supplied any
Confidential Information destroys or permanently erases such Confidential Information and
any copies made by them, in each case save to the extent that you or the recipients are
required to retain any such Confidential Information by any applicable law, rule or
regulation or by any competent judicial, governmental, supervisory or regulatory body or in
accordance with internal policy, or where the Confidential Information has been disclosed
under subparagraph 2(b) above.

	5.	 	Continuing Obligations
	 
	 	 	The obligations in this letter are continuing and, in particular, shall survive the
termination of any discussions or negotiations between you and us. Notwithstanding the
previous sentence, the obligations in this letter shall cease (a) if you become a party to
or otherwise acquire (by assignment or sub-participation) an interest, direct or indirect,
in the Facility or (b) 12 months after we have returned all Confidential Information
supplied to you by us and destroyed or permanently erased all copies of Confidential
Information made by you (other than any such Confidential Information or copies which have
been disclosed under paragraph 2 above (other than subparagraph 2(a)) or which, pursuant to
paragraph 4 above, are not required to be returned or destroyed).

	6.	 	No Representation; Consequences of Breach, etc
	 
	 	 	You acknowledge and agree that:

	 	(a)	 	neither we nor any of our officers, employees or advisers (each a Relevant
Person) (i) make any representation or warranty, express or implied, as to, or assume
any responsibility for, the accuracy, reliability or completeness of any of the
Confidential Information or any other information supplied by us or any member of the
Borrower Group or the assumptions on which it is based or (ii) shall be under any
obligation to update or correct any inaccuracy in the Confidential Information or any
other information supplied by us or any member of the Borrower Group or be otherwise
liable to you or any other person in respect to the Confidential Information or any
such information; and
	 
	 	(b)	 	we or members of the Borrower Group may be irreparably harmed by the breach of
the terms of this letter and damages may not be an adequate remedy; each Relevant
Person or member of the Borrower Group may be granted an injunction or specific
performance for any threatened or actual breach of the provisions of this letter by
you.

	7.	 	No Waiver; Amendments, etc.
	 
	 	 	This letter sets out the full extent of our obligations of confidentiality owed to us in
relation to the information the subject of this letter. No failure or delay in exercising
any right, power or privilege under this letter will operate as a waiver thereof nor will
any single or partial exercise of any right, power or privilege preclude any further
exercise thereof or the exercise of any other right, power or privileges under this letter.
The terms of this letter and your obligations under this letter may only be amended or
modified by written agreement between us.

153

 

	8.	 	Inside Information
	 
	 	 	We acknowledge that some or all of the Confidential Information is or may be price-sensitive
information and that the use of such information may be regulated or prohibited by
applicable legislation relating to insider dealing and you undertake not to use any
Confidential Information for any unlawful purpose.

	9.	 	Nature of Undertakings
	 
	 	 	The undertakings given by you under this letter are given to us and (without implying any
fiduciary obligations on our part) are also given for the benefit of the Borrower and each
other member of the Borrower Group.

	10.	 	Third party rights
	 
	(a)	 	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied
upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act 1999
is excluded.
	 
	(b)	 	Notwithstanding any provisions of this letter, the parties to this letter do not require the
consent of any Relevant Person or any member of the Borrower Group to rescind or vary this
letter at any time.

	11.	 	Governing Law and Jurisdiction
	 
	 	 	This letter (including the agreement constituted by your acknowledgement of its terms) shall
be governed by and construed in accordance with the laws of England and the parties submit
to the non-exclusive jurisdiction of the English courts.

	12.	 	Definitions
	 
	 	 	In this letter (including the acknowledgement set out below):
	 
	 	 	Borrower Group means UPC Broadband and each of its holding companies and subsidiaries and
each subsidiary of each of its holding companies (as each such term is defined in the
Companies Act 1985);
	 
	 	 	Confidential Information means any information relating to a Borrower, the Borrower Group,
the Facility including, without limitation, the information memorandum provided to you by us
or any of our affiliates or advisers, in whatever form, and includes information given
orally and any document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information but excludes
information that (a) is or becomes public knowledge other than as a direct or indirect
result of any breach of this letter or (b) is known by you before the date the information
is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by
you thereafter, other than from a source which is connected with the Borrower Group and
which, in either case, as far as you are aware, has not been obtained in violation of, and
is not otherwise subject to, any obligation of confidentiality;
	 
	 	 	Participant Group means us, each of your holding companies and subsidiaries and each
subsidiary of each of your holding companies (as each such term is defined in the Companies
Act 1985); and
	 
	 	 	Permitted Purpose means considering and evaluating whether to enter into the Facility.

154

 

Please acknowledge your agreement to the above by signing and returning the enclosed copy.

Yours faithfully

....................................

For and on behalf of

[Arranger]

	 	 	 
	To:

	 	[Existing Lender]
	 
	 	 
	 

	 	The Borrower and each other member of the Borrower Group

We acknowledge and agree to the above:

....................................

For and on behalf of

[New Lender]

155

 

PART 2

FORM OF LSTA CONFIDENTIALITY UNDERTAKING

Master Confidentiality Agreement dated as of [           ] (this Agreement) between [Existing Lender]
(the Existing Lender) and [New Lender] (the New Lender).

This Agreement sets forth the terms and conditions that will apply, in each instance, to the
treatment of certain non-public information that the Existing Lender may supply to the New Lender
in connection with the consideration by the New Lender of its participating in any financing or
proposed financing (a Financing) for any borrower or group of borrowers (each a Borrower) specified
in a Schedule described below.

As used herein: (a) Evaluation Material refers to (i) the non-public information furnished to the
Existing Lender, including any Information Memorandum, in respect of a particular Financing of a
Borrower that the Existing Lender supplies to the New Lender on or after the date of the Schedule
in respect of such Financing, (ii) all memoranda, notes, and other documents and analyses
(collectively, analyses) internally developed by the Existing Lender that it supplies to the New
Lender and (iii) all analyses developed by the New Lender using any information specified under
clauses (i) and (ii) above; (b) Internal Evaluation Material refers to analyses specified under
clause (iii) of the definition of Evaluation Material; and (c) participation refers to a transfer
of a lender’s interest in a Financing (or a grant of derivative rights in respect thereof), whether
by assignment, participation or otherwise (and participate and participating shall have correlative
meanings thereto).

As a condition to the Existing Lender’s furnishing the New Lender with any Evaluation Material in
the Existing Lender’s possession in respect of a particular Financing, the New Lender shall execute
and return to the Existing Lender a schedule, in substantially the form of Exhibit A attached
hereto, that the Existing Lender may have completed, executed and delivered to it (a Schedule).
Each Schedule shall identify the Existing Lender and the New Lender in respect of such Financing
and the related Evaluation Material, the name of each Borrower that the New Lender has under
consideration and a description of the documentation (the Operative Documentation) in respect
thereof.

The New Lender in respect of a particular Financing agrees that it will use all Evaluation Material
in respect of such Financing solely for the purpose of evaluating its possible participation, or
obtaining the participation of another eligible person (an Additional Assignee), in such Financing
and that the New Lender will use reasonable precautions in accordance with its established
procedures to keep such information confidential; provided, however, that any such information may
be disclosed to the partners, directors, officers, employees, agents, counsel, auditors,
affiliates, advisors and representatives (collectively, Representatives) of the New Lender’s
institution who need to know such information for the purpose of evaluating its participation in
such Financing (it being understood that such Representatives shall be informed by the New Lender
of the confidential nature of such information and shall be directed by it to treat such
information in accordance with the terms of this Agreement) and to any Additional Assignee and its
Representatives (provided that such Additional Assignee shall have previously executed and
delivered to the New Lender an agreement in substantially the same substance as this Agreement in
respect of the Evaluation Material). The New Lender agrees to be responsible for any breach of this
Agreement that results from the actions or omissions of its Representatives. Notwithstanding the
foregoing, the New Lender will not use such information to obtain an Additional Assignee if
otherwise prohibited by agreements binding on the New Lender.

In addition, the New Lender in respect of a particular Financing agrees that prior to the
settlement of its participation in such Financing, it will not disclose to any person, other than
its Representatives, the identity of the Existing Lender with which discussions or negotiations are
taking place concerning

156

 

the New Lender’s possible participation in the related Financing or any of
the terms or conditions of such proposed participation. The term person as used in this Agreement shall be broadly
interpreted to include the media and any corporation, partnership, group, individual or other
entity and, if the New Lender’s participation in the Financing would constitute a secondary market
transaction, the Borrower.

The New Lender in respect of a particular Financing shall be permitted to disclose any related
Evaluation Material (and the fact that such Evaluation Material has been made available to it and
that discussions or negotiations are taking place concerning the transaction or any of the terms,
conditions or other facts with respect thereto) in the event that the New Lender is required by law
or regulation or requested by any governmental agency or other regulatory authority (including any
self-regulatory organization having or claiming to have jurisdiction) or in connection with any
legal proceedings. The New Lender agrees that it will notify the Existing Lender as soon as
practical in the event of any such disclosure (other than as a result of an examination by any
regulatory agency), unless such notification shall be prohibited by applicable law or legal
process.

The New Lender in respect of a particular Financing and its Representatives shall have no
obligation hereunder with respect to any information in any related Evaluation Material to the
extent that such information (i) is or becomes generally available to the public other than as a
result of a disclosure by the New Lender in violation of this Agreement, (ii) was within the New
Lender’s possession prior to its being furnished to it pursuant hereto, provided that the source of
such information was not known by the New Lender to be bound by a confidentiality agreement with or
other contractual, legal or fiduciary obligation of confidentiality to the Borrower or any other
party with respect to such information or (iii) is or becomes available to the New Lender on a
non-confidential basis from a source other than the Borrower or the Existing Lender, or their
respective Representatives, provided that such source is not known by the New Lender to be bound by
a confidentiality agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Existing Lender, the Borrower or any other party with respect to such
information.

Notwithstanding any other provision of this letter, any party to this letter (and any of its
affiliates, officers, directors, employees, representatives, professional advisers, or other
agents) may and has since the commencement of discussions with respect to the Facility been
permitted to disclose to any and all persons, without limitation of any kind:

	(a)	 	the U.S. tax treatment and U.S. tax structure (each as defined below) of the Facility; and

	(b)	 	all material of any kind (including opinions and other tax analyses) that are provided to
such party relating to such U.S. tax treatment or U.S. tax structure,

except to the extent reasonably necessary to comply with applicable federal or state securities
laws.

For the purposes of this subsection, the U.S. tax treatment of the Facility is the purported or
claimed U.S. federal, state and local income tax treatment of the Facility, and the U.S. tax
structure of the Facility is any fact that may be relevant to understanding the purported or
claimed U.S. federal, state and local income tax treatment of the Facility. This authorisation is
not intended to permit disclosure of any information (other than information relating to U.S. tax
treatment or U.S. tax structure of the Facility) including (without limitation) (i) any portion of
any materials to the extent not related to the U.S. tax treatment or U.S. tax structure of the
Facility, (ii) the identities of participants or potential participants in the Facility (except to
the extent such identities are related to the tax treatment or the U.S. tax structure of the
Facility), (iii) the existence or status of any negotiations, (iv) any pricing or financial
information (except to the extent such pricing or financial information is related to the U.S. tax
treatment or the U.S. tax structure of the Facility), or (v) any other term or detail not relevant
to the U.S. tax treatment or the U.S. tax structure of the Facility.

157

 

To the extent the Operative Documentation for a particular Financing contains provisions regarding
the use of non-public information which conflict with, are more restrictive than or are in addition
to the provisions of this Agreement, then (so long as such Operative Documentation shall be
effective as to the Existing Lender) solely with application to any Evaluation Material concerning
the Borrower that is the subject of such Financing (and without application hereunder to any other
Evaluation Material or otherwise), such provisions of the Operative Documentation shall be
incorporated herein by this reference and shall supersede and control the terms of this Agreement
to the extent that such provisions are in conflict with or more restrictive than the terms hereof
or are in addition to those contained herein. Upon the New Lender’s request, the Existing Lender
will furnish to the New Lender the provisions of the Operative Documentation for such Financing
regarding the use of non-public information. In addition, in the event that the New Lender
actually becomes a lender (bound as a party to the Operative Documentation) with respect to a
particular Financing, the application of this Agreement in respect of all Evaluation Material in
respect of such Financing shall terminate and the applicable confidentiality provisions, if any,
contained in the Operative Documentation shall govern and control.

If the New Lender in respect of a particular Financing chooses not to participate in such
Financing, the New Lender agrees on request of the Existing Lender to return to the Existing Lender
as soon as practical all related Evaluation Material (other than Internal Evaluation Material) or
destroy such Evaluation Material (other than Internal Evaluation Material) without retaining any
copies thereof unless prohibited from doing so by its internal policies and procedures.

The New Lender in respect of a particular Financing understands and agrees that the Existing Lender
will have received the related Evaluation Material from third party sources (including the
Borrower) and that the Existing Lender bears no responsibility (and shall not be liable) for the
accuracy or completeness (or lack thereof) of such Evaluation Material or any information contained
therein.

The New Lender hereby acknowledges that United States securities laws prohibit any person with
material, non-public information about an issuer from purchasing or selling securities of such
issuer or, subject to certain limited exceptions, from communicating such information to any other
person. The New Lender agrees to comply with its internal compliance policies and procedures with
respect to material confidential information.

The New Lender agrees that money damages would not be a sufficient remedy for breach of this
Agreement, and that in addition to all other remedies available at law or in equity, the Existing
Lender shall be entitled to seek equitable relief, including injunction and specific performance,
without proof of actual damages.

This Agreement (including each Schedule delivered pursuant hereto and the provisions of any
Operative Documentation incorporated herein by reference) embodies the entire understanding and
agreement between the parties with respect to all Evaluation Material for each Financing and
supersedes all prior understandings and agreements relating thereto. Unless otherwise agreed in
writing between the parties hereto, the application of this Agreement shall terminate with respect
to all Evaluation Material concerning each Financing on the date falling one year after the
Schedule in respect of such Financing.

This Agreement shall be governed by and construed in accordance with the law of the State of New
York, without regard to principles of conflicts of law (except Section 5-1401 of the New York
General Obligation Law to the extent that it mandates that the law of the State of New York
govern).

This Agreement may be signed in counterparts, each of which shall be an original and both of which
taken together shall constitute the same instrument.

158

 

It is understood by the parties that the custom in the loan syndications and loan trading markets
is to execute and deliver any confidentiality agreement, schedule, confirmation or other
transaction documents by telecopy or telefax. The parties agree that all telecopied or telefaxed
copies of this Agreement, the Schedules, confirmations and other transaction documents, and
signatures hereto and thereto, shall be duplicate originals.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered
by their respective authorized officers as of the date first written above.

[Existing Lender]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:

Title:	 	 
	 
	 	 	 	 
	[New Lender]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:

Title:	 	 

159

 

EXHIBIT A

     This Schedule, dated as of [      ], is one of the Schedules referred to in the Master
Confidentiality Agreement dated today between [Existing Lender] and [New Lender], Terms used
herein, unless defined herein, shall have the respective meanings given them in said Master
Confidentiality Agreement.

Name(s) of the Borrower(s): [               ]

Description of the Operative Documentation: [               ]

Existing Lender

[               ]

By:  [               ]

Name:

Title:

Received and accepted as of

the date first written above:

New Lender

[               ]

By:  [               ]

Name:

Title:

160

 

SCHEDULE 7

SECURITY DOCUMENTS

	1.	 	Each share pledge given in favour of the Security Agent by:

	 	(a)	 	UPC Holding in respect of its interest in the share capital of UPC Broadband
dated 31 October 2000;
	 
	 	(b)	 	UPC Holding in respect of its interest in the share capital of UPC Holding II
dated 31 October 2000;
	 
	 	(c)	 	UPC Broadband in respect of its interest in the share capital of UPC
Scandinavia Holding B.V. dated 31 October 2000;
	 
	 	(d)	 	UPC Broadband in respect of its interest in the share capital of UPC Austria
Holding B.V. (previously called Cable Networks Austria Holding B.V.) dated 31 October
2000;
	 
	 	(e)	 	UPC Broadband in respect of its interest in the share capital of UPC France
Holding B.V. dated 31 October 2000;
	 
	 	(f)	 	UPC Broadband in respect of its interest in the share capital of UPC Nederland
B.V. dated 31 October 2000;
	 
	 	(g)	 	UPC Broadband in respect of its interest in the share capital of UPC Central
Europe Holding B.V. (previously called Stipdon Investments B.V.) dated 31 October 2000;
	 
	 	(h)	 	UPC Scandinavia Holding B.V. in respect of its interest in the share capital of
UPC Norge AS dated 31 October 2000;
	 
	 	(i)	 	UPC Scandinavia Holding B.V. and Austria Holding B.V. (previously called Cable
Networks Austria Holding B.V.) in respect of their respective interests in the share
capital of UPC Belgium SA dated 31 October 2000;
	 
	 	(j)	 	UPC Scandinavia Holding B.V. in respect of its interest in the share capital of
NBS Nordic Broadband Services AB dated 31 October 2000;
	 
	 	(k)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Czech Holding B.V. dated 31 October
2000;
	 
	 	(l)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Slovakia Holding B.V. dated 31
October 2000;
	 
	 	(m)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interest in the share capital of UPC Romania Holding B.V. dated 31
October 2000;
	 
	 	(n)	 	UPC Central Europe Holding B.V. (previously called Stipdon Investments B.V.) in
respect of its interests in the share capital of Telekabel Hungary N.V. dated 31
October 2000;

161

 

	 	(o)	 	UPC Broadband in respect of its interest in the share capital of UPC Poland
Holding B.V. (previously called UPC Telecom B.V.).

	2.	 	Pledge by each of UPC Holding and UPC Holding II of its partnership interest in the US
Borrower.

	3.	 	(a)    Obligor Pledge of Shareholder Loans between UPC Broadband, UPC Scandinavia Holding B.V.,
UPC Central Europe Holdings B.V. (previously called Stipdon Investments B.V.), UPC Nederland
B.V. and UPC Financing Partnership and the Security Agent dated 31 October 2000;

	 	(b)	 	Pledge of Subordinated Shareholder Loans between UPC Holding and the Security
Agent dated 31 October 2000;
	 
	 	(c)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent dated 31 May 2002;
	 
	 	(d)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent dated 2 December 2002;
	 
	 	(e)	 	Obligor Pledge of Shareholder Loans between UPC Central Europe Holdings B.V.
(previously called Stipdon Investments B.V.) and the Security Agent dated 2 December
2002;
	 
	 	(f)	 	Obligor Pledge of Shareholder Loans between Scandinavia Holding B.V. and the
Security Agent dated 2 December 2002;
	 
	 	(g)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent dated 9 April 2003;
	 
	 	(h)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent in respect of UPC Poland Holding B.V. receivables;
	 
	 	(i)	 	Obligor Pledge of Shareholder Loans between UPC Poland Holding B.V. and the
Security Agent in respect of UPC Polska LLC receivables;
	 
	 	(j)	 	Obligor Pledge of Shareholder Loans between UPC France Holding B.V. and the
Security Agent in respect of MediaReseaux receivables; and
	 
	 	(k)	 	Obligor Pledge of Shareholder Loans between UPC Broadband and the Security
Agent in respect of UPC France Holding SNC receivables.

	4.	 	Deed of pledge of registered shares in favour of the Security Agent by UPC Broadband over its
interest in UGC Europe Holding Services B.V. dated 4 July 2002.

	5.	 	Bank account pledge between UPC Broadband, Fortis Bank (Nederland N.V.) and the Security
Agent dated 22 October 2001.

	6.	 	Securities account pledge between UPC Scandinavia Holding B.V., Fortis Bank (Nederland) N.V.
and the Security Agent in relation to the shares in the capital of NBS Nordic Broadband AB.

162

 

SCHEDULE 8

RELEVANT SECURITY INTERESTS

	(A)	 	Security granted in connection with the loan agreement between N.V. Telekabel as Borrower,
Bank of America International Limited, Citibank, N.A., Deutsche Bank AG London, Meespierson
N.V. and Paribas as Arrangers and others, dated 10 March 1999 (the N.V. Telekabel Facility).

	(B)	 	Security granted in connection with credit facility agreement between Cable Network Brabant
Holding B.V. as Borrower and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. as Agent and
Initial Lender, dated 20 February 1998, as amended.

	(C)	 	Security granted in connection with bridge facility agreement between A2000 Holding N.V.,
Kabeltelevisie Amsterdam B.V. and A2000 Hilversum B.V. as Borrowers and Coöperatieve Centrale
Raiffeisen-Boerenleenbank B.A. as Arranger and Agent, dated 15 December 1999 (the A2000
Facility).

	(D)	 	Security granted in connection with revolving loan facility agreement for NLG90,000,000
between GelreVision Holding B.V. as Borrower, MeesPierson N.V. as Arranger, Facility Agent and
Security Agent and others, dated 17 November 1999.

	(E)	 	Security granted in connection with facility agreement for €250,000,000 between UPC France
S.A. and Médiaréseaux S.A. as Borrowers, Paribas, Crédit Lyonnais S.A and ING Barings as Joint
Arrangers, Videopole S.A., Citéréseau S.A. and InterComm France Holding S.A. as Original
Guarantors and Paribas as Facility Agent and Security Agent, dated 7 April 2000 (the
Médiaréseaux Facility).

	(F)	 	Security granted in connection with revolving credit facility agreement for €500,000,000
between UPC Nederland B.V. as Borrower, Chase Manhattan plc and Toronto Dominion Bank Europe
Limited as Arrangers, The Chase Manhattan Bank and The Toronto-Dominion Bank as Original
Lenders and Toronto Dominion Bank Europe Limited as Agent, dated 9 June 2000.

	(G)	 	Security granted in connection with loan and note issuance agreement for up to €1,000,000,000
between UPC Facility BV, TeleKabel Wien GmbH and Janco Multicom A/S as Borrowers, the banks,
guarantors and arrangers named therein and The Toronto-Dominion Bank as Agent and Security
Agent, dated 27 July 1999 (the UPCF Facility).

	(H)	 	Security granted in connection with the Loan agreement and working capital facility for up to
KC 510,000,000 between, among others, Dottelkabel A.S. as Borrower, De Nationale Investerings
 — bank N.V. as Facility Agent and Lenders and Creditanstalt A.S. as Working Capital Bank and
Lender, dated 16 June 1998 and June 1998 respectively.

163

 

SCHEDULE 9

RELEVANT FINANCIAL INDEBTEDNESS

	1.	 	Loan agreement for up to NLG340,000,000 between N.V. Telekabel as Borrower, Bank of America
International Limited, Citibank, N.A., Deutsche Bank AG London, MeesPierson N.V. and Paribas,
as Arrangers and others, dated 10 March 1999;

	2.	 	Credit facility agreement between Cable Network Brabant Holding B.V. as Borrower and
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. as Agent and Initial Lender, dated 20
February 1998, as amended;

	3.	 	Bridge facility agreement between A2000 Holding N.V., Kabeltelevisie Amsterdam B.V. and A2000
Hilversum B.V. as Borrowers and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. as
Arranger and Agent, dated 15 December 1999;

	4.	 	Revolving loan facility agreement for NLG90,000,000 between Gelrevision Holding B.V. as
Borrower, MeesPierson N.V. as Arranger, Facility Agent and Security Agent and others, dated 17
November 1999;

	5.	 	Facility agreement for €250,000,000 between UPC France S.A. and Mediareseaux S.A. as
Borrowers, Paribas, Crédit Lyonnais S.A. and ING Barings as Joint Arrangers, Videopole S.A.,
Citéréseau S.A. and InterComm France Holding S.A. as Original Guarantors and Paribas as
Facility Agent and Security Agent, dated 7 April 2000;

	6.	 	Revolving credit facility agreement for €500,000,000 between UPC Nederland B.V. as Borrower,
Chase Manhattan plc and Toronto Dominion Bank Europe Limited as Arrangers, The Chase Manhattan
Bank and The Toronto-Dominion Bank as Original Lenders and Toronto Dominion Bank Europe
Limited as Agent, dated 9 June 2000;

	7.	 	Loan and note issuance agreement for up to €1,000,000,000 between UPC Facility B.V.,
TeleKabel Wien GmbH and Janco Multicom A/S as Borrowers, the banks, guarantors and arrangers
named therein and The Toronto-Dominion Bank as Agent and Security Agent, dated 27 July 1999;
and

	8.	 	Loan Agreement and working capital facility for up to KC510,000,000 between, among others
Dattelkabel A.S. as Borrower, De Nationale Investeringsbank N.V. as Facility Agent and Lender
and Creditanstalt A.S. as Working Capital Bank and Lender, dated 16 June 1998 and June 1998
respectively.

164

 

SCHEDULE 10

BORROWER GROUP STRUCTURE

	*	 	All the asterisked entities are not part of the Borrower Group at the Signing Date. These
entities figure on the chart for the sake of clarification.

	1.	 	One share in UPC Belgium S.A. is held by UPC Austria Holding B.V.

	*	 	All the asterisked entities are not part of the Borrower Group at the Effective Date. These
entities figure on the chart for the sake of clarification.

	1.	 	One share in UPC Belgium S.A. is held by Cable Network Austria Holding B.V.

165

 

SCHEDULE 11

SHAREHOLDERS’ AGREEMENTS

	1.	 	Austria
	 
	 	 	Syndikatsvereinbarung (shareholders agreement) dated 28 June 1995 among Osterreichische
Philips Industrie GmbH, Cable Networks Austria Holding B.V. and Kabel-TV-Wien GmbH. (In
English and German).

	2.	 	France
	 
	 	 	Stockholders Agreement dated 29 February 2000 between Belmarken Holding B.V., InterComm
France CVOHA, InterComm France II CVOHA and Reflex Participants.

	3.	 	The Netherlands
	 
	 	 	Shareholders’ Agreement, dated 6 July 1995, among The Municipality of Amsterdam, A2000
Holding N.V. and Kabeltelevisie Amsterdam B.V. (in English).

	4.	 	Romania
	 
	 	 	Partnership Agreement between Comtec 2000, Multicanal Holdings S.R.L. and Control SA.

166

 

SIGNATORIES

[This section is not restated]

167

 

SCHEDULE 3

RESTATED SECURITY DEED

DATED 26 OCTOBER 2000

AS AMENDED AND RESTATED PURSUANT TO AN AMENDMENT AND RESTATEMENT

AGREEMENT DATED 16 JANUARY 2004

AN AMENDMENT DEED DATED 24 JUNE 2004

AND A DEED OF AMENDMENT AND RESTATEMENT

DATED 10 May 2006

Allen & Overy LLP

 

 

CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Clause
	 	 	 	 
	 
	 	 	 	 
	1. Interpretation
	 	 	2	 
	2. Powers of the Security Agent
	 	 	10	 
	3. General Duties of the Security Agent
	 	 	12	 
	4. Supplementary Provisions
	 	 	13	 
	5. Enforcement of and Other Action under the Security Agent Security Documents
	 	 	16	 
	6.  Application of Proceeds
	 	 	17	 
	7. Restrictions and Limitations on and Exclusions of the Duties and
Responsibilities of the Security Agent
	 	 	19	 
	8. No Restriction on or Liability to Account for Other Transactions
	 	 	21	 
	9. Changes to Parties to this Deed
	 	 	21	 
	10. Effect of this Deed as regards the Charging Entities
	 	 	25	 
	11. Senior Hedging Agreements
	 	 	25	 
	12. High Yield Hedging Agreements
	 	 	27	 
	13. Miscellaneous
	 	 	28	 
	14. Notices
	 	 	29	 
	15. Governing Law and Jurisdiction
	 	 	31	 
	 
	 	 	 	 
	Schedule
	 	 	 	 
	 
	 	 	 	 
	1. The Original Guarantors
	 	 	32	 
	2. Lenders
	 	 	34	 
	3. Form of Facility Agent’s Deed of Accession
	 	 	35	 
	4. Form of Senior Hedging Bank’s Deed of Accession
	 	 	37	 
	5. Form of Security Provider’s Deed of Accession
	 	 	39	 
	6. Form of Security Agent’s Deed of Accession
	 	 	41	 
	7. Form of High Yield Hedging Bank’s Deed of Accession
	 	 	43	 
	 
	 	 	 	 
	Signatories
	 	 	45	 

 

 

THIS DEED is dated 26 October 2000 as amended and restated pursuant to an amendment and
restatement agreement dated 16 January 2004, an amendment deed dated 24 June 2004 and a deed of
amendment and restatement dated 10 May 2006 and made

BETWEEN:

	(1)	 	UPC BROADBAND HOLDING B.V. (previously called UPC Distribution Holding B.V.), (UPC Broadband)
and UPC FINANCING PARTNERSHIP (the US Borrower) as Borrowers;
	 
	(2)	 	UPC HOLDING B.V., a private limited company incorporated under the laws of The Netherlands
with its registered office as of the Signing Date at Beech Avenue 100, 1119 PW Schiphol Rijk,
Postbus 74763, 1070 BT Amsterdam, The Netherlands as Subordinated Creditor;
	 
	(3)	 	THE COMPANIES whose names and addresses are set out in Schedule 1 as Original Guarantors;
	 
	(4)	 	CHASE MANHATTAN plc, TD BANK EUROPE LIMITED, ABN AMRO BANK N.V., BANK OF AMERICA
INTERNATIONAL LIMITED, BNP PARIBAS, CIBC WORLD MARKETS plc, CRÉDIT LYONNAIS S.A., FORTIS BANK
(NEDERLAND) N.V., and THE ROYAL BANK OF SCOTLAND plc in their capacity as Lead Arrangers;
	 
	(5)	 	THE LENDERS AND FINANCIAL INSTITUTIONS whose names and addresses are set out in Schedule 2 in
their capacities as Lenders;
	 
	(6)	 	TORONTO DOMINION (TEXAS) LLC in its capacity as Facility Agent;
	 
	(7)	 	TD BANK EUROPE LIMITED in its capacity as Security Agent;
	 
	(8)	 	TORONTO DOMINION (TEXAS) LLC in its capacity as facility agent under the New Facility
Agreement (as defined below) (the 2004 Facility Agent);
	 
	(9)	 	The Senior Hedging Banks who are party to this Deed from time to time; and
	 
	(10)	 	The High Yield Hedging Banks who are a party to this Deed from time to time.

WHEREAS:

	(A)	 	By an agreement (as from time to time amended, varied, extended, restated, refinanced or
replaced, the Agreement) dated 26 October 2000 and made between the Borrowers (1), the
entities whose names and registered offices are set out in Schedule 1 thereto as Original
Guarantors (2), the Lead Arrangers (3), the banks and financial institutions whose names and
addresses are set out in Schedule 2 thereto (4), the Facility Agent (5) and the Security Agent
(6), the Lenders agreed to make available to the Borrowers credit facilities of up to
€3,500,000,000 pursuant to Facility A and Facility B and a total of €95,000,000 and
US$347,500,000 pursuant to Facility C.
	 
	(B)	 	The execution and delivery of this Deed, pursuant to which, inter alia, the Security Agent
agrees to hold the benefit of the Security Agent Security Documents (including the security
created thereby) on trust or as otherwise provided by this Deed is one of the conditions
precedent to the Lenders making their Commitments available under the Agreement.

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	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed (including its recitals), unless the context otherwise requires:

2004 Finance Parties means the Finance Parties under and as defined in the New Facility
Agreement;

2004 Lenders means the Lenders under and as defined in the New Facility Agreement;

2004 Majority Lenders means the Majority Lenders under and as defined in the New Facility
Agreement;

	 	 	Additional Currency has the meaning given to it in the New Facility Agreement;
	 
	 	 	Additional Facility means an additional term loan facility referred to in clause 2.2
(Additional Facilities) of the New Facility Agreement;
	 
	 	 	Additional Facility Accession Agreement means a deed in the form of part 3 of Schedule 5 of
the New Facility Agreement, with such amendments as the 2004 Facility Agent may approve or
reasonably require;
	 
	 	 	Additional Facility Commitment means in relation to:

	 	(a)	 	an Initial Additional Facility Lender, the amount in euros, US Dollars or an
Additional Currency set out as the Additional Facility Commitment of a 2004 Lender in
the relevant Additional Facility Accession Agreement and the amount of any other
Additional Facility Commitment transferred to it in accordance with the New Facility
Agreement; and
	 
	 	(b)	 	any other 2004 Lender, the amount in euros, US Dollars or an Additional
Currency (as applicable) transferred to it in accordance with the New Facility
Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it in accordance with the New
Facility Agreement;
	 
	 	 	Beneficiaries means the Second Beneficiaries and, where the context permits, the First
Beneficiary;
	 
	 	 	Changeover Date means the date on which:

	 	(a)	 	the Total Commitments have been irrevocably cancelled or reduced to nil and all
Senior Indebtedness has been irrevocably paid in full; and
	 
	 	(b)	 	the Total Commitments (as defined in the New Facility Agreement) have been
irrevocably cancelled or reduced to nil and all Senior Indebtedness (as defined in the
New Security Deed) has been irrevocably paid in full. Paragraph (b) of this definition
shall not apply for the purposes of Clause 7.8 (Indemnity Beneficiaries) only.

	 	 	Charging Entities means the Borrowers, the Original Guarantors, UPC Holding, any other
person who enters into a Guarantor Accession Agreement pursuant to Clause 4.1 (Documentary
Conditions precedent) or Clause 26.4 (Additional Guarantors) of the Agreement and any
Subordinated Creditor, Security Provider or Hedging Counterparty who has entered into a
Security Provider’s Deed of Accession;

2

 

	 	 	Deed of Accession means a Facility Agent’s Deed of Accession, a Security Agent’s Deed of
Accession, a Senior Hedging Bank’s Deed of Accession, a High Yield Hedging Bank’s Deed of
Accession, a Guarantor Accession Agreement, or a Security Provider’s Deed of Accession (as
the case may be);
	 
	 	 	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 (a) at any time before the Changeover Date, the date on which the
Facility Agent gives a notice under Clause 18.22 (Acceleration) of the Agreement or the 2004
Facility Agent gives a notice under clause 18.22 (Acceleration) of the New Facility
Agreement or (b) at any time on or after the Changeover Date, the date on which the Security
Agent notifies UPC Broadband that an event of default or termination event (however
described) has occurred and is continuing under the Senior Hedging Agreements or the High
Yield Hedging Agreements;
	 
	 	 	Facility A Refinancing Date means the date when all outstanding Facility A Advances are
repaid or prepaid and Facility A is cancelled in full.
	 
	 	 	Facility Agent’s Deed of Accession means a deed of accession substantially in the form set
out in Schedule 3 (Form of Facility Agent’s Deed of Accession);
	 
	 	 	First Beneficiary means the Security Agent, to the extent only of the amounts payable to the
Security Agent (for its own account) pursuant to the Agreement or any of the Security Agent
Security Documents (which includes without limitation all amounts payable to the Security
Agent in respect of third party costs and expenses but excluding amounts payable to the
Security Agent in respect of its rights under Clause 5.3 (Security Agent as joint and
several creditor) and the equivalent provisions of any other Finance Documents) and any
other person who may be appointed as Security Agent pursuant to the provisions of the
Agreement, to the extent only of the amounts payable to the Security Agent (for its own
account) pursuant to the Agreement or any of the Security Agent Security Documents, in
relation to the period from and including its appointment up to and including its retirement
as Security Agent pursuant to the provisions of this Deed;
	 
	 	 	Further Assurance Deed means any Security Agent Security Document executed or to be executed
pursuant to a further assurance covenant or obligation contained in another Security Agent
Security Document;
	 
	 	 	High Yield Hedging Agreements means any currency and/or interest rate hedging agreements,
each as amended, increased or novated from time to time entered into by a High Yield Hedging
Counterparty at any relevant time with a High Yield Hedging Bank in relation to any
Serviceable Subordinated Debt;
	 
	 	 	High Yield Hedging Bank’s Deed of Accession means a deed of accession substantially in the
form set out in Schedule 7 (Form of High Yield Hedging Bank’s Deed of Accession);
	 
	 	 	High Yield Hedging Counterparty means any person other than a member of the Borrower Group
who enters into a High Yield Hedging Agreement;
	 
	 	 	High Yield Hedging Discharge Date means the date on which each High Yield Hedging Bank has
notified the Security Agent that its High Yield Hedging Indebtedness has been fully and
finally satisfied and no further transactions can be entered into in respect of the High
Yield Hedging Agreements entered into by any High Yield Hedging Bank;

3

 

	 	 	High Yield Hedging Exposure means, with respect to a High Yield Hedging Bank, on a Valuation
Date, the sum of:

	 	(a)	 	in respect of its High Yield Hedging Agreements which have then been
terminated:

	 	(i)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
mandatory prepayment and cancellation of the Facilities under the Agreement or
New Facility D under the New Facility Agreement, the aggregate amount(s)
outstanding from any High Yield Hedging Counterparty to such High Yield Hedging
Bank in respect of any High Yield Hedging Agreements which relate to such
Serviceable Subordinated Debt; and
	 
	 	(ii)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
prepayment and cancellation of the Facilities under the Agreement or New
Facility D under the New Facility Agreement, other than in mandatory prepayment,
only the Relevant Proportion of the aggregate amount(s) outstanding from any
High Yield Hedging Counterparty to such High Yield Hedging Bank in respect of
any High Yield Hedging Agreements which relate to such Serviceable Subordinated
Debt; and

	 	(b)	 	in respect of its High Yield Hedging Agreements which have not then been
terminated:

	 	(i)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
mandatory prepayment and cancellation of the Facilities under the Agreement or
New Facility D under the New Facility Agreement, the aggregate of the amount(s)
(the Termination Amount(s)), if any, that would be payable to such High Yield
Hedging Bank by any High Yield Hedging Counterparty in respect of such High
Yield Hedging Agreements to which such High Yield Hedging Bank is a party
relating to such Serviceable Subordinated Debt (expressed as a positive number)
or by such High Yield Hedging Bank to any High Yield Hedging Counterparty in
respect of such High Yield Hedging Agreements (expressed as a negative number)
if such High Yield Hedging Agreements to which such High Yield Hedging Bank and
such High Yield Hedging Counterparty are a party were being terminated as of the
relevant Valuation Date and such amount shall be determined by the Security
Agent acting reasonably and in good faith as its estimate at mid-market of the
net replacement cost of such terminated High Yield Hedging Agreements, which
estimate shall, in the absence of manifest error, be binding on the parties to
such High Yield Hedging Agreements; and
	 
	 	(ii)	 	where all or part of the proceeds of the Subordinated Shareholder
Loans in respect of any Serviceable Subordinated Debt have been applied in
prepayment and cancellation of the Facilities under the Agreement or New
Facility D under the New Facility Agreement, other than in mandatory prepayment,
only the Relevant Proportion of the Termination Amount(s),

	 	 	provided that (x) if any amount payable by any High Yield Hedging Counterparty to a High
Yield Hedging Bank under or in respect of any High Yield Hedging Agreement described above
is netted (in whole or in part) against any amount payable by such High Yield Hedging Bank
under any other High Yield Hedging Agreement or under any other interest rate or currency
hedging arrangements, the High Yield Hedging Exposure of that High Yield Hedging Bank shall
be the netted amount payable to it under such High Yield Hedging Agreements and (y) if the
High Yield Hedging Exposure of any High Yield Hedging Bank is less than zero, it shall be
deemed to be zero;

4

 

	 	 	High Yield Hedging Indebtedness means:

	 	(a)	 	where all or part of the proceeds of the Subordinated Shareholder Loans in
respect of any Serviceable Subordinated Debt have been applied in mandatory prepayment
and cancellation of the Facilities under the Agreement or New Facility D under the New
Facility Agreement, all indebtedness covenanted to be paid or discharged by any High
Yield Hedging Counterparty to the High Yield Hedging Banks under any High Yield Hedging
Agreements which relate to such Serviceable Subordinated Debt; and
	 
	 	(b)	 	where all or part of the proceeds of the Subordinated Shareholder Loans in
respect of any Serviceable Subordinated Debt have been applied in prepayment and
cancellation of the Facilities under the Agreement or New Facility D under the New
Facility Agreement other than in mandatory prepayment, only the Relevant Proportion of
the indebtedness covenanted to be paid or discharged by any High Yield Hedging
Counterparty to the High Yield Hedging Banks under any High Yield Hedging Agreements
which relate to such Serviceable Subordinated Debt;

	 	 	Initial Additional Facility Lender means a person which becomes a lender under an Additional
Facility pursuant to Clause 2.2 (Additional Facilities) of the New Facility Agreement;
	 
	 	 	Instructing Party means:

	 	(a)	 	at any time prior to the Facility A Refinancing Date, the Lenders or the
Majority Lenders (as the case may be) in accordance with the terms of the Finance
Documents; or
	 
	 	(b)	 	at any time from (and including) the Facility A Refinancing Date but prior to
the Changeover Date, the 2004 Lenders or the 2004 Majority Lenders (as the case may be)
in accordance with the terms of the New Finance Documents; or
	 
	 	(c)	 	at any time from (and including) the Changeover Date, all of the Senior Hedging
Banks, all of the High Yield Hedging Banks (in relation to matters where consent of all
High Yield Hedging Banks or all Senior Hedging Banks is required in accordance with the
terms of the relevant documents) or the Majority Hedging Banks (as the case may be);

	 	 	Majority Hedging Banks means on any Valuation Date the High Yield Hedging Banks and the
Senior Hedging Banks the aggregate of whose High Yield Hedging Exposure and Senior Hedging
Exposure exceeds 66 2⁄3 per cent. of the Total High Yield Hedging Exposure and Total Senior
Hedging Exposure;

	 	 	New Facility Agreement means the €1,072,000,000 senior secured credit facility agreement
dated 16 January 2004 and made between, amongst others, UPC Broadband Holding B.V
(previously called UPC Distribution Holding B.V.), UPC Financing Partnership, Toronto
Dominion (Texas) LLC as facility agent and the banks and financial institutions party
thereto;
	 
	 	 	New Finance Documents means the Finance Documents as defined in the New Facility Agreement;
	 
	 	 	New Lender has the meaning given to it in clause 26.2 (Transfers by Lenders) of the New
Facility Agreement;
	 
	 	 	New Security Deed means the Security Deed (as defined in the New Facility Agreement);
	 
	 	 	Original Security Agent Security Documents means this Deed, the guarantee and indemnity
arrangements contained in Clause 14 of the Agreement and the Security Documents listed in
Schedule 7 of the Agreement;

5

 

	 	 	Relevant Lenders means:

	 	(a)	 	prior to the Facility A Refinancing Date, the Lenders; and
	 
	 	(b)	 	on or after the Facility A Refinancing Date, the 2004 Lenders;

	 	 	Relevant Majority Lenders means:

	 	(a)	 	prior to the Facility A Refinancing Date, the Majority Lenders; and
	 
	 	(b)	 	on or after the Facility A Refinancing Date, the 2004 Majority Lenders;

	 	 	Relevant Proportion means the proportion that the amount of any relevant Serviceable
Subordinated Debt that is on-lent to the Borrower Group by a Subordinated Creditor by means
of a Subordinated Shareholder Loan and applied in permanent prepayment and cancellation of
the Facilities under the Agreement or New Facility D under the New Facility Agreement bears
to the aggregate amount of such Serviceable Subordinated Debt;
	 
	 	 	Second Beneficiaries means the Senior Beneficiaries, the Senior Hedging Banks and the High
Yield Hedging Banks;
	 
	 	 	Secured Assets means the undertaking, goodwill, property, assets or rights of whatsoever
nature which are the subject of the security created pursuant to any of the Security Agent
Security Documents;
	 
	 	 	Secured Obligations means the Security Agent Indebtedness, the Senior Indebtedness, the
Senior Hedging Indebtedness and the High Yield Hedging Indebtedness;
	 
	 	 	Security Agent Indebtedness means the amounts referred to in the definition of First
Beneficiary;
	 
	 	 	Security Agent’s Deed of Accession means a deed of accession substantially in the form set
out in Schedule 6 (Form of Security Agent’s Deed of Accession);
	 
	 	 	Security Agent Security Documents means the Intercreditor Agreement, the Original Security
Agent Security Documents, any other Security Documents, each Deed of Accession and all other
mortgages, charges, guarantees, inter-creditor deeds and other instruments from time to time
entered into in favour of the Security Agent by way of guarantee or other assurance and/or
security for or (in the case of inter-creditor agreements or deeds) otherwise in relation to
the Secured Obligations, each as amended, increased or novated from time to time;
	 
	 	 	Security Provider means any person other than an Obligor, a Subordinated Creditor or a
Beneficiary who has entered into a Security Document;
	 
	 	 	Security Provider’s Deed of Accession means a deed of accession substantially in the form of
Schedule 5 (Form of Security Provider’s Deed of Accession);
	 
	 	 	Senior Beneficiaries means the Lead Arrangers, the Facility Agent, the Lenders, the Existing
Lenders (in respect of any ongoing right to receive interest payments under Clause 26.3
(Procedure for novations) of the New Facility Agreement) and the Security Agent (in respect
of its rights under Clause 5.3 (Security Agent as joint and several creditor) and the
equivalent provisions of any other Finance Documents);
	 
	 	 	Senior Hedge Discharge Date means the date on which each Senior Hedging Bank has notified
the Security Agent that its Senior Hedging Indebtedness has been fully and finally satisfied
and no

6

 

	 	 	further transactions can be entered into in respect of the Senior Hedging Agreements by any
Senior Hedging Bank;
	 
	 	 	Senior Hedging Agreements means any Cash Flow Hedging Agreement (as defined in the New
Facility Agreement) and all interest rate and/or currency swap and/or interest rate and/or
currency cap and/or other interest rate and/or currency hedging agreements entered into or
to be entered into by any member of the Borrower Group with any of the Senior Hedging Banks
from time to time in relation to the Borrower Group’s floating rate interest exposure and/or
currency exposure;
	 
	 	 	Senior Hedging Bank means a Lender or its Affiliate or a “Lender” or its “Affiliate” as
defined in the New Facility Agreement which is or becomes a party to this Deed as a senior
hedging bank;
	 
	 	 	Senior Hedging Bank’s Deed of Accession means the deed of accession substantially in the
form set out in Schedule 4 (Form of Senior Hedging Bank’s Deed of Accession);
	 
	 	 	Senior Hedging Counterparty means a member of the Borrower Group who enters into a Senior
Hedging Agreement;
	 
	 	 	Senior Hedging Exposure means, with respect to a Senior Hedging Bank, on a Valuation Date
the sum of:

	 	(a)	 	in respect of its Senior Hedging Agreements which have then been terminated,
the aggregate of the amount(s) outstanding from any Senior Hedging Counterparty to such
Senior Hedging Bank in respect of such Senior Hedging Agreements; and
	 
	 	(b)	 	in respect of its Senior Hedging Agreements which have not then been
terminated, the aggregate of the amount(s), if any, that would be payable to such
Senior Hedging Bank by any Senior Hedging Counterparty in respect of Senior Hedging
Agreements to which such Senior Hedging Bank is a party (expressed as a positive
number) or by such Senior Hedging Bank to any Senior Hedging Counterparty in respect of
such Senior Hedging Agreements (expressed as a negative number) if the Senior Hedging
Agreements to which such Senior Hedging Bank and such Senior Hedging Counterparty a
party were being terminated as of the relevant Valuation Date and such amount(s) shall
be determined by the Security Agent acting reasonably and in good faith as its estimate
at mid-market of the net replacement cost of such terminated Senior Hedging Agreements,
which estimate shall, in the absence of manifest error, be binding on the parties to
such Senior Hedging Agreements;

	 	 	provided that (x) if any amount payable by any Senior Hedging Counterparty to a Senior
Hedging Bank under or in respect of any Senior Hedging Agreement is netted (in whole or in
part) against any amount payable by such Senior Hedging Bank under any other Senior Hedging
Agreement, the Senior Hedging Exposure of that Senior Hedging Bank shall be the netted
amount payable to it under such Senior Hedging Agreements and (y) if the Senior Hedging
Exposure of any Senior Hedging Bank is less than zero, it shall be deemed to be zero;
	 
	 	 	Senior Hedging Indebtedness means all indebtedness covenanted to be paid or discharged by
all or any Senior Hedging Counterparty to the Senior Hedging Banks under the Senior Hedging
Agreements;
	 
	 	 	Senior Indebtedness means all indebtedness covenanted to be paid or discharged by all or any
of the Charging Entities to all or any of the Senior Beneficiaries under the Finance
Documents (for the avoidance of doubt the terms of this Deed shall not alter the nature of
any several obligation of a Charging Entity under any of the Finance Documents);

7

 

	 	 	Subordinated Creditors means any Restricted Person who has, at any relevant time, entered
into a Pledge of Subordinated Shareholder Loans and the Security Deed or a Security
Provider’s Deed of Accession;
	 
	 	 	Total Commitments means each of the Total Facility A Commitments, the Total Facility B
Commitments and the Total Facility C Commitments.
	 
	 	 	Total High Yield Hedging Exposures means the aggregate of the High Yield Hedging Exposures
of all the High Yield Hedging Banks;
	 
	 	 	Total Senior Hedging Exposures means the aggregate of the Senior Hedging Exposures of all
the Senior Hedging Banks;
	 
	 	 	Trust Property means collectively, (a) the security, powers, rights, titles, benefits and
interests (both present and future) constituted by and conferred on the Security Agent under
or pursuant to the Security Agent Security Documents (including, without limitation, the
benefit of all covenants given in the Security Agent Security Documents), (b) all moneys,
property and other assets paid or transferred to or vested in the Security Agent (or any
agent of the Security Agent) or received or recovered by the Security Agent (or any agent of
the Security Agent) pursuant to, or in connection with, any of the Security Agent Documents
whether from any Charging Entity or any other person and (c) all rights, benefits,
interests, money, investments, property and other assets at any time representing or
deriving from any of the foregoing, including all interest, income and other sums at any
time received or receivable by the Security Agent (or any agent of the Security Agent) in
respect of the same (or any part thereof);
	 
	 	 	Valuation Date means any date on which a Senior Hedging Exposure and/or a High Yield Hedging
Exposure falls to be determined.
	 
	1.2	 	Successors and assigns
	 
	 	 	In this Deed, unless the context otherwise requires, a reference to a person includes its
successors and permitted transferees and assigns.
	 
	1.3	 	Agreement definitions
	 
	 	 	Unless the context otherwise requires or unless otherwise defined in this Deed, words and
expressions defined in the Agreement (as amended and restated from time to time) shall have
the same meaning when used in this Deed.
	 
	1.4	 	Headings
	 
	 	 	Clause and schedule headings and the contents page are inserted for convenience of reference
only and shall be ignored in the interpretation of this Deed.
	 
	1.5	 	Construction of certain terms
	 
	 	 	In this Deed, unless the context otherwise requires:

	 	(a)	 	references to clauses and the schedules are to be construed as references to
the clauses of, and the schedules to, this Deed and references to this Deed include its
schedules;
	 
	 	(b)	 	reference to (or to any specified provision of) this Deed or any other document
shall be construed as references to this Deed, that provision or that document as in
force for the time being and as amended in accordance with the terms thereof or, as the
case may be, with the

8

 

	 	 	 	agreement of the relevant parties and (where such consent is, by the terms of this
Deed or the relevant document or otherwise, required to be obtained as a condition to
such amendment being permitted) the prior written consent of the Facility Agent, the
Security Agent, all of the Lenders, the Majority Lenders or all or any of the
Beneficiaries (as the case may be);
	 
	 	(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,
only if compliance therewith is in accordance with the general practice of the relevant
persons to whom it is intended to apply) 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 person includes any individual, firm, company, corporation,
unincorporated body of persons or any state or any of its agencies;
	 
	 	(f)	 	references to assets includes all or any part of any business, undertaking,
real property, personal property, uncalled capital and any rights (whether actual or
contingent, present or future) to receive, or require delivery of, any of the
foregoing;
	 
	 	(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 a provision of the law is a reference to that provision as
amended, re-enacted or extended;
	 
	 	(i)	 	references to indebtedness include any obligation for the payment or repayment
of money, whether as principal or as surety and whether present or future, actual or
contingent;
	 
	 	(j)	 	references to amendment includes a supplement, novation or re-enactment and
amended is to be construed accordingly.

	1.6	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	Except for the 2004 Finance Parties, a person who is not a party to this Deed may not
enforce any of its terms under the Contracts (Rights of Third Parties) Act. Except where
expressly provided for in this Deed, the consent of any person who is not a party to this
Deed is not required to amend, modify or otherwise vary, or waive breaches of, this Deed at
any time.
	 
	1.7	 	Effect as a deed
	 
	 	 	This Deed is intended to take effect as a deed notwithstanding that the Security Agent or
any other party hereto may have executed it under hand only.
	 
	1.8	 	Specific capacity of parties
	 
	 	 	References in this Deed to the Facility Agent, the 2004 Facility Agent, the Lead Arrangers,
the Lenders, the 2004 Lenders, the High Yield Hedging Banks, the Senior Hedging Banks, the
Borrowers, the Guarantors, the Security Providers, the Charging Entities, the Hedging
Counterparties, the Subordinated Creditors or the Security Agent and references to the
obligations or liabilities of such person shall be strictly construed as references to any
such person or (as the case may be) obligations or liabilities of any such person solely in
its capacity as such.

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	1.9	 	Relevant Majority Lenders and Majority Hedging Banks
	 
	(a)	 	Where this Deed provides for any matter to be determined by reference to the opinion of the
Relevant Majority Lenders or to be subject to the consent or request of the Relevant Majority
Lenders or for any action to be taken on the instructions of the Relevant Majority Lenders,
such opinion, consent, request or instructions shall (as between the Relevant Lenders) only be
regarded as having been validly given or issued by the Relevant Majority Lenders if all of the
Relevant Lenders shall have received appropriate prior notice of the matter on which such
opinion, consent, request or instructions are required to be obtained and the relevant
majority of Relevant Lenders shall have given or issued such opinion, consent, request or
instructions but each Charging Entity shall be entitled (and bound) to assume that such notice
shall have been duly received by each Relevant Lender and that the relevant majority shall
have been obtained to constitute Relevant Majority Lenders whether or not this is in fact the
case.
	 
	(b)	 	Where this Deed provides for any matter to be determined by reference to the opinion of the
Majority Hedging Banks or to be subject to the consent or request of the Majority Hedging
Banks or for any action to be taken on the instructions of the Majority Hedging Banks, such
opinion, consent, request or instructions shall (as between the High Yield Hedging Banks and
the Senior Hedging Banks) only be regarded as having been validly given or issued by the
Majority Hedging Banks if all of the High Yield Hedging Banks and the Senior Hedging Banks
shall have received appropriate prior notice of the matter on which such opinion, consent,
request or instructions are required to be obtained and the relevant majority of High Yield
Hedging Banks and the Senior Hedging Banks shall have given or issued such opinion, consent,
request or instructions but each Charging Entity shall be entitled (and bound) to assume that
such notice shall have been duly received by each High Yield Hedging Banks and the Senior
Hedging Banks and that the relevant majority shall have been obtained to constitute Majority
Hedging Banks whether or not this is in fact the case.

	1.10	 	Instructing Party
	 
	 	 	Where, at any relevant time, the Instructing Party is the Relevant Lenders or the
Relevant Majority Lenders, the instructions of the Relevant Lenders or the Relevant Majority
Lenders (as the case may be) shall be provided to the Security Agent by the Facility Agent
or the 2004 Facility Agent (as applicable) on their behalf. Where at any relevant time, the
Instructing Party are all the Senior Hedging Banks and all the High Yield Hedging Banks or
the Majority Hedging Banks, the instructions of all the Senior Hedging Banks and all the
High Yield Hedging Banks (as the case may be) or the Majority Hedging Banks shall be
provided to the Security Agent by each Senior Hedging Bank, each High Yield Hedging Bank and
the Majority Hedging Banks respectively.
	 
	1.11	 	Equality of Treatment
	 
	 	 	Any instruction given to the Security Agent on behalf of the 2004 Majority Lenders or
the 2004 Lenders (as the case may be) pursuant to the terms of this Deed will not be
effective unless an instruction on the same terms is also given to the Security Agent under
the New Security Deed.

	2.	 	POWERS OF THE SECURITY AGENT
	 
	2.1	 	Authorisation of Security Agent
	 
	 	 	Each of the Beneficiaries hereby authorises the Security Agent (whether or not by or
through employees or agents):

	 	(a)	 	to exercise such rights, remedies, powers and discretions as are specifically
delegated to or conferred upon the Security Agent by the Security Agent Security
Documents together with such powers and discretions as are reasonably incidental
thereto; and

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	 	(b)	 	to take such action on its behalf or in its own name as may from time to time
be authorised under or in accordance with the Security Agent Security Documents.

	2.2	 	Extent of Security Agent’s duties
	 
	 	 	The Security Agent shall have no duties, obligations or liabilities to any of the
Beneficiaries, the 2004 Facility Agent or the 2004 Lenders beyond those expressly stated in
the Security Agent Security Documents.

	2.3	 	Security Agent’s authority to execute Security Agent Security Documents
	 
	 	 	Each of the Beneficiaries hereby confirms its approval of the Security Agent Security
Documents and authorises, empowers and directs the Security Agent (by itself or by such
person(s) as it may nominate) to enter into and execute:

	 	(a)	 	each of the Original Security Agent Security Documents (and each Beneficiary
ratifies any Original Security Agent Security Document which the Security Agent shall
have entered into prior to the execution of this Deed);
	 
	 	(b)	 	any one or more further Security Agent Security Documents comprising a Further
Assurance Deed;
	 
	 	(c)	 	the Intercreditor Agreement; and
	 
	 	(d)	 	any and all such further Security Agent Security Documents as may be approved
by the Instructing Party in writing for entry into by the Security Agent,

	 	 	and, in each and every case, to (i) hold any and all guarantees and/or security thereby
created, as appropriate, for the Beneficiaries in the manner contemplated by this Deed; and
(ii) enforce the Security Agent Security Documents as trustee or as otherwise provided (and
whether or not expressly) in the names of the Beneficiaries on its behalf or for itself.

	2.4	 	Amendments to Security Agent Security Documents
	 
	 	 	Subject to Clause 2.5 (Matters requiring unanimous consent), the Security Agent may (a)
prior to the Facility A Refinancing Date, with the consent of the Majority Lenders, or (b)
on or after the Facility A Refinancing Date but prior to the Changeover Date, with the
consent of the 2004 Majority Lenders, or (c) on or after the Changeover Date, with the
consent of the Majority Hedging Banks, or (d) at any time if and to the extent expressly
authorised by any other provision of any relevant Security Agent Security Document, amend,
modify or otherwise vary or waive breaches of, or defaults under, or otherwise excuse
performance of, any provision of any Security Agent Security Document. Any such action so
authorised and effected by the Security Agent shall be promptly notified to the Facility
Agent (before the Facility A Refinancing Date), the 2004 Facility Agent (after the Facility
A Refinancing Date but before the Changeover Date) and the Senior Hedging Banks and the High
Yield Hedging Banks (on or after the Changeover Date) and shall be binding on all of the
Beneficiaries. For the avoidance of doubt the consent of any Beneficiary other than those
specifically referred to in (a), (b) and (c) above shall not be required in relation to any
of the matters referred to in this Clause 2.4.
	 
	2.5	 	Matters requiring unanimous consent
	 
	 	 	Except (a) prior to the Facility A Refinancing Date, with the prior written consent of
all of the Lenders, or (b) on or after the Facility A Refinancing Date but prior to the
Changeover Date, with the prior written consent of all of the 2004 Lenders, or (c) on or
after the Changeover Date, with the

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	 	 	prior written consent of all of the Senior Hedging Banks and all of the High Yield Hedging
Banks, the Security Agent shall not have authority:

	 	(a)	 	to agree with any Charging Entity any amendment or waiver that has the effect
of changing or which relates to:

	 	(i)	 	(prior to the Changeover Date only) any of the items set out in
Clause 25.2(a) (Exceptions) of the Agreement; and
	 
	 	(ii)	 	(on or following the Changeover Date) (A) an extension to the
date of payment of any amount of principal or interest payable under any
Security Agent Security Document, (B) this Clause 2.5, (C) the definition of
Majority Hedging Banks or (D) a change to any provision of any Security Agent
Security Document which expressly requires the consent of all the Senior Hedging
Banks and the High Yield Hedging Banks; or

	 	(b)	 	to release any asset from a Security Agent Security Document, except

	 	(i)	 	as otherwise expressly permitted in the Agreement or in such
Security Agent Security Document or, following the Facility A Refinancing Date,
in the New Facility Agreement (in respect of the equivalent asset which is
secured under a Security Agent Security Document (as defined in the New Security
Deed)); and
	 
	 	(ii)	 	in furtherance of a disposal or any other transaction which is
permitted (or would have been permitted but for the Changeover Date having
occurred) by any Finance Document or Security Agent Security Document or by any
New Finance Document (in respect of the equivalent asset which is secured under
a Security Agent Security Document or by any New Finance Document (as defined in
the New Security Deed)); or

	 	(c)	 	to release any Guarantor from its obligations under any guarantee under Clause
14 (Guarantee) of the Agreement other than in accordance with Clause 26 (Changes to the
Parties) of the Agreement.

	 	 	For the avoidance of doubt the consent of any Beneficiary other than those specifically
referred to in subparagraphs (a)(i) and (ii) above shall not be required in relation to any
of the matters referred to in this Clause 2.5.

	3.	 	GENERAL DUTIES OF THE SECURITY AGENT
	 
	3.1	 	Duty to act on instructions from the Instructing Party
	 
	 	 	The Security Agent shall (subject always to Clauses 2.4 (Amendments to Security Agent
Security Documents), 2.5 (Matters requiring unanimous consent), 7.7 (Unlawful actions), and
7.8 (Indemnity by Beneficiaries) and clause 7.8 (Indemnity by Beneficiaries) under the New
Security Deed) act, in its capacity as trustee of and generally in relation to the Trust
Property or as joint and several creditor or agent (as the case may be) or (as the case may
be) refrain from acting, as directed in writing from time to time by the Instructing Party
in accordance with Clause 5.2 (Duty to act as directed). In taking (or, as the case may be,
in refraining from taking) any such action, the Security Agent may rely on the indemnities
set out in the Finance Documents (or, as the case may be, the New Security Deed) but, if the
Security Agent deems such indemnities not to be satisfactory, the Security Agent shall not
be bound to act (or, as the case may be, refrain from acting) on such directions unless and
until the Security Agent shall have been indemnified to its satisfaction against

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	 	 	all liabilities, damages, costs and claims liable to be incurred by the Security Agent in so
acting (or, as the case may be, refraining from acting).
	 
	3.2	 	Protection in acting on Facility Agent’s or 2004 Facility Agent’s instructions
	 
	 	 	The Security Agent and each Charging Entity shall be entitled (and bound) to assume
that any directions given by the Facility Agent or the 2004 Facility Agent under or pursuant
to this Deed are either the directions of the Relevant Majority Lenders or, as the case may
be, all the Relevant Lenders, being made through the Facility Agent or the 2004 Facility
Agent (as applicable), or the directions of the Facility Agent or the 2004 Facility Agent
itself, acting pursuant to the provisions of the Finance Documents or the New Finance
Documents to which the Facility Agent or the 2004 Facility Agent (as applicable) may from
time to time be party (as appropriate) or as otherwise duly authorised or empowered by or on
behalf of the Relevant Lenders.
	 
	3.3	 	Duty to notify
	 
	 	 	The Security Agent shall promptly notify the Facility Agent (prior to the Facility A
Refinancing Date), the 2004 Facility Agent (on or after the Facility A Refinancing Date but
before the Changeover Date) and the Senior Hedging Banks and the High Yield Hedging Banks
(on or after the Changeover Date) of the contents of each notice, certificate or other
document received by the Security Agent from any Charging Entity under or pursuant to any of
the Security Agent Security Documents.
	 
	4.	 	SUPPLEMENTARY PROVISIONS
	 
	4.1	 	Declaration of Trust
	 
	 	 	The Security Agent hereby declares itself trustee of the Trust Property with effect
from the date of this Deed to hold the same on trust for the Beneficiaries and to apply the
same in accordance with Clause 6 (Application of Proceeds).
	 
	4.2	 	Duration
	 
	 	 	This Deed shall remain in full force and effect until whichever is the earliest of:

	 	(a)	 	(if the trust is applicable) the expiration of a period of 80 years from the
date of this Deed;
	 
	 	(b)	 	the date on which the Security Agent receives unconditional confirmation in
writing from all the Beneficiaries that there is no longer outstanding any Security
Agent Indebtedness, Senior Indebtedness, Senior Hedging Indebtedness or High Yield
Hedging Indebtedness nor are any of the Beneficiaries under an obligation to permit
such indebtedness to be incurred, such confirmation to be promptly provided by the
Beneficiaries and, in any event, to be deemed to have given if not provided within 10
Business Days of written request from the Security Agent; and
	 
	 	(c)	 	the unconditional release of the Charging Entities from all their respective
obligations under the Security Agent Security Documents,

	 	 	and the parties to this Deed declare that the perpetuity period applicable to this Deed
shall for the purposes of the Perpetuities and Accumulations Act 1964 be the period of 80
years. The Security Agent shall notify UPC Broadband promptly on receipt by the Security
Agent of any written confirmation referred to in paragraph (b) above.

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	4.3	 	Powers of Security Agent
	 
	 	 	In its capacity as trustee in relation to the Security Agent Security Documents and in
relation to the Trust Property, the Security Agent shall, without prejudice to any of the
powers, discretions and immunities conferred upon trustees by law (and to the extent not
inconsistent with the provisions of this Deed or any of the other Security Agent Security
Documents), have all the same powers and discretions as a natural person acting as the
beneficial owner of such property and/or as are conferred upon the Security Agent by this
Deed and/or any other Security Agent Security Document Provided that the Security Agent may
only exercise such powers and discretions to the extent that the Security Agent is
authorised so to exercise the same in accordance with the provisions of this Deed, the
Agreement and the relevant Security Agent Security Document (including specifically, but
without limitation, Clause 5.2 (Duty to act as directed) of this Deed) and, in exercising
such powers and discretions, the Security Agent shall have regard to and comply with any
applicable constraints and/or restrictions imposed by this Deed.
	 
	4.4	 	Power to invest
	 
	 	 	It is expressly declared that, in its capacity as trustee in relation to the Security
Agent Security Documents, the Security Agent shall be entitled to invest moneys forming part
of the Trust Property and which, in the opinion of the Security Agent, may not be paid out
promptly following receipt in the name or under the control of the Security Agent in any of
the investments for the time being authorised by law for the investment by trustees of trust
moneys or in any other property or investments whether similar to the aforesaid or not or by
placing the same on deposit in the name or under the control of the Security Agent as the
Security Agent may think fit without being under any duty to diversify its investments and
the Security Agent may at any time vary or transpose any such property or investments for or
into any others of a like nature and shall not be responsible for any loss due to
depreciation in value or otherwise of such property or investments except in the case of
fraud, wilful misconduct or gross negligence on the part of the Security Agent. Any
investment of any part or all of the Trust Property may, at the discretion of the Security
Agent, be made or retained in the names of nominees.
	 
	4.5	 	Power to engage agents
	 
	 	 	The Security Agent may in the conduct of its obligations under and in respect of the
Security Agent Security Documents (otherwise than in relation to its right to make any
declaration, determination or decision), instead of acting personally, employ and pay any
agent to transact or concur in transacting any business and to do or concur in doing any
acts required to be done by the Security Agent (including the receipt and payment of money).
Any such agent engaged in any profession or business shall be entitled to be paid all usual
professional and other charges for business transacted and acts done by him or any partner
or employee of his in connection with such trusts. The Security Agent shall not be bound to
supervise, or be responsible for any loss incurred by reason of any act or omission of, any
such agent if the Security Agent shall have exercised reasonable care in the selection of
such agent.
	 
	4.6	 	Power to appoint new trustees
	 
	 	 	Without prejudice to Clause 10 (Effect of this Deed as regards the Charging Entities),
the statutory power to appoint new or additional trustees of the trusts constituted by this
Deed shall be vested in the Security Agent.

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	4.7	 	Power to appoint additional trustees
	 
	 	 	With the prior consent of the Instructing Party, the Security Agent shall have power,
by notice in writing given to the Facility Agent, to appoint any person either to act as
separate trustee or as co-trustee jointly with the Security Agent:

	 	(a)	 	if the Security Agent considers such appointment to be in the interests of the
Beneficiaries; or
	 
	 	(b)	 	for the purpose of conforming with any legal requirement, restriction or
condition in any jurisdiction in which any particular act is to be performed; or
	 
	 	(c)	 	for the purpose of obtaining a judgment in any jurisdiction or the enforcement
in any jurisdiction against any person of a judgment already obtained,

	 	 	and any person so appointed shall (subject to the provisions of this Deed) have such
rights (including as to reasonable remuneration) and such trusts, powers, authorities and
discretions (not exceeding those conferred on the Security Agent by this Deed) and such
duties and obligations as shall be conferred or imposed by the instrument of appointment.
The Security Agent shall have power to remove any person so appointed. At the request of
the Security Agent, the other parties to this Deed shall forthwith execute all such
documents and do all such things as may be required to perfect such appointment or removal
and each such party irrevocably authorises the Security Agent in its name and on its behalf
to do the same. The Security Agent shall not be bound to supervise, or be responsible for
any loss incurred by reason of any act or omission of, any such person if the Security Agent
shall have exercised reasonable care in the selection of such person.

	4.8	 	Co-trustees to act by majority decision
	 
	 	 	If there ever shall be more than two trustees having equal authority under this Deed
the majority of such trustees shall be competent to execute and exercise all the duties,
powers, trusts, authorities and discretions vested by this Deed in the Security Agent
generally.
	 
	4.9	 	Conflicts of law; consent of Beneficiaries to amendments to trusts
	 
	 	 	It is agreed between all parties to this Deed that:

	 	(a)	 	in relation to any jurisdiction the courts of which would not recognise or give
effect to the trusts expressed to be constituted by this Deed, the relationship of the
Security Agent to the other Beneficiaries shall be construed simply as one of agent and
principal or as otherwise provided in Clause 5.3 (Security Agent as joint and several
creditor) but, to the fullest extent permissible under the laws of each and every such
jurisdiction, this Deed shall have full force and effect as between the parties; and
	 
	 	(b)	 	any of the provisions of this Clause 4 or of Clause 6 (Application of
Proceeds), 7 (Restrictions and Limitations on and Exclusions of the Duties and
Responsibilities of the Security Agent) or 8 (No Restriction on or Liability to Account
for Other Transactions) may be amended by agreement between the Security Agent and the
other Beneficiaries without the consent of any other party to this Deed so long as such
amendments do not impose additional obligations on the Charging Entities and each such
other party irrevocably authorises the Security Agent in its name and on its behalf to
execute all documents necessary to effect any such amendment.

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	5.	 	ENFORCEMENT OF AND OTHER ACTION UNDER THE SECURITY AGENT SECURITY DOCUMENTS
	 
	5.1	 	All action through the Security Agent
	 
	 	 	None of the Beneficiaries shall have any independent power to enforce any of the
Security Agent Security Documents or to exercise any rights, discretions or powers or to
grant any consents or releases under or pursuant to any of the Security Agent Security
Documents or otherwise have direct recourse to the security and/or guarantees constituted by
any of the Security Agent Security Documents except through the Security Agent.
	 
	5.2	 	Duty to act as directed
	 
	 	 	Subject as provided in Clause 3.1 (Duty to act on instructions from the Instructing
Party), the Security Agent shall take such action (including, without limitation, the
exercise of all rights, discretions or powers and the granting of consents or releases) or,
as the case may be, refrain from taking such action under or pursuant to the Security Agent
Security Documents as the Instructing Party shall specifically direct the Security Agent in
writing from time to time. Unless and until the Security Agent shall have received such
directions, the Security Agent shall not take any action under the Security Agent Security
Documents provided that it may (but in the absence of such directions shall not be obliged
to) take such action permitted under the terms of the Security Agent Security Documents as
it reasonably believes necessary or appropriate to protect the interests of the
Beneficiaries under the Security Agent Security Documents but the Charging Entities shall
not be concerned with whether the Security Agent shall be acting in accordance with these
provisions and shall be conclusively entitled to assume that the Security Agent has all the
necessary right, title and authority.
	 
	5.3	 	Security Agent as joint and several creditor
	 
	 	 	Each Charging Entity and each of the Beneficiaries agrees that the Security Agent shall
be the joint and several creditor (“hoofdelijk crediteur”) of each and every obligation of
each Charging Entity towards each of the Beneficiaries under each Finance Document, the
Senior Hedging Agreements and the High Yield Hedging Agreements and that accordingly the
Security Agent will have its own independent claim as creditor and not as agent against each
Charging Entity to demand performance of those obligations, provided that it is expressly
acknowledged that any discharge of its payment obligations to either of the Security Agent
or the relevant Beneficiary shall to the same extent discharge the corresponding obligations
owing to the other.
	 
	5.4	 	Security Agent’s rights as joint and several creditor
	 
	 	 	Without limiting or affecting the Security Agent’s rights against the Charging Entities
(whether under this clause or under any other provision of the Finance Documents) the
Security Agent agrees with each Beneficiary that it will not exercise its rights as a joint
and several creditor with a Beneficiary under Clause 5.3 (Security Agent as joint and
several creditor) except with the prior written consent of the relevant Beneficiary.
However, for the avoidance of doubt, nothing in the previous sentence shall in any way limit
the Security Agent’s rights to act in the protection or preservation of rights under or to
enforce any Security Agent Security Document as contemplated by the Finance Documents. Any
amount recovered by the Security Agent as a result of the operation of this clause shall be
held for the benefit of the Beneficiaries to be applied in accordance with Clause 6.2 (Order
of application on enforcement).

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	5.5	 	Security Agent and Dutch Security
	 
	 	 	Subject to the provisions of this Clause, the Security Agent shall obtain any Security
provided under or pursuant to a Security Document governed by Dutch law (the Dutch Security)
in its own name. The Security Agent shall have full and unrestricted entitlement to and
authority in respect of the Dutch Security, provided that it shall be under an obligation to
exercise such rights (and obligations) in accordance with the contractual undertakings set
out in this Deed including but not limited to Clause 5.3 (Security Agent as joint and
several creditor).
	 
	6.	 	APPLICATION OF PROCEEDS
	 
	6.1	 	Co-operation to achieve agreed priorities of application
	 
	 	 	The Beneficiaries shall co-operate with each other and with the Security Agent in
realising the Secured Assets and in ensuring that the net proceeds realised under the
Security Agent Security Documents after deduction of the expenses of realisation are applied
in accordance with Clause 6.2 (Order of application on enforcement).
	 
	6.2	 	Order of application on enforcement
	 
	 	 	All moneys received by the Security Agent and/or any other moneys otherwise received by
it pursuant to any of the Security Agent Security Documents shall be applied, after the
discharge of the remuneration and expenses of all liabilities having priority to the Secured
Obligations, in the order set out below except that the Security Agent may credit the same
to a suspense account (bearing interest at a commercially competitive rate according to the
currency, amount and period of deposit of such moneys) for so long and in such manner as the
Security Agent may from time to time determine, save that if the amounts standing to the
credit of the suspense account are at least equal to the Secured Obligations such amounts
must be promptly applied in or towards satisfaction of the Secured Obligations. The monies
received by the Security Agent shall be applied as follows:

	 	(a)	 	FIRST, as to a sum equivalent to the aggregate of the Security Agent
Indebtedness for the First Beneficiary absolutely.
	 
	 	(b)	 	SECONDLY, as to a sum equivalent to the sum of the aggregate of (i) the Senior
Indebtedness, (ii) the Total Senior Hedging Exposures and (iii) the Total High Yield
Hedging Exposures to the Second Beneficiaries absolutely (and shall pay (A) to the
Senior Beneficiaries in the order set out in clause 9.7 (Partial payments) of the
Agreement a sum equivalent to the proportion that the Senior Indebtedness bears to the
aggregate of the Senior Indebtedness, the Total Senior Hedging Exposures and the Total
High Yield Hedging Exposures; (B) to each Senior Hedging Bank a sum equivalent to the
proportion that the Senior Hedging Exposure owing to such Senior Hedging Bank bears to
the aggregate of the Senior Indebtedness, the Total Senior Hedging Exposures and the
Total High Yield Hedging Exposures; and (C) to each High Yield Hedging Bank a sum
equivalent to the proportion that the High Yield Hedging Exposure owing to such High
Yield Hedging Bank bears to the aggregate of the Senior Indebtedness, the Total Senior
Hedging Exposures and the Total High Yield Hedging Exposures provided that applications
made by the Security Agent pursuant to paragraph (C) of this Clause 6.2(b) shall not
exceed €100,000,000 in aggregate and to the extent that any such applications would
cause such limit to be exceeded the amount payable to each High Yield Hedging Bank
shall be reduced proportionately).
	 
	 	 	 	If, following application by the Security Agent of amounts in accordance with
this paragraph (b), (x) any amounts received by the Security Agent have not been
applied to reduce Total High Yield Hedging Exposure owing to High Yield Hedging Banks
as a result of the proviso to subparagraph (C) above and (y) the Changeover Date or
the Senior Hedge

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	 	 	 	Discharge Date (or both) have not occurred, the Security Agent shall apply any such
excess amounts in accordance with subparagraphs (A) and (B) above (but disregarding
the Total High Yield Hedging Exposure for this purpose only).

	 	(c)	 	THIRDLY, subject to each of the Changeover Date and the Senior Hedge Discharge
Date having occurred, to each High Yield Hedging Bank a sum equivalent to the
proportion that the outstanding High Yield Hedging Exposure of such High Yield Hedging
Bank bears to the outstanding High Yield Hedging Exposure of all the High Yield Hedging
Banks.
	 
	 	(d)	 	FOURTHLY, subject to the High Yield Hedging Discharge Date having occurred, as
to the balance for the relevant Charging Entity or whoever else is entitled to such
balance absolutely.

	 	 	Distributions pursuant to this Clause 6.2 shall be made as soon as reasonably
practicable after receipt by the Security Agent of the sums being distributed.

	6.3	 	Security Agent to rely on Beneficiaries
	 
	 	 	In considering at any time (and from time to time) the persons entitled to the benefit
of any of the Secured Obligations, the Security Agent may (without prejudice to Clause 7.4
(Limit on Security Agent’s responsibility)), rely and act in reliance upon any information
from time to time furnished to the Security Agent by the Beneficiaries (whether pursuant to
Clause 7.4 (Limit on Security Agent’s responsibility) or otherwise) unless and until the
same is superseded by further such information, so that the Security Agent shall have no
liability or responsibility to any party as a consequence of placing reliance on and acting
in reliance upon any such information unless the Security Agent has actual knowledge that
such information is inaccurate or incorrect.
	 
	6.4	 	Information to be provided to the Security Agent
	 
	 	 	Without prejudice to Clause 6.3 (Security Agent to rely on Beneficiaries), each
Beneficiary (whether directly or through the Facility Agent) or, if applicable, the 2004
Facility Agent shall provide the Security Agent with all necessary directions in writing so
as to apply the proceeds of realisation of the security constituted by the Security Agent
Security Documents as contemplated by this Deed and such other information as it may
reasonably require for the purpose of carrying out its duties and obligations under the
Security Agent Security Documents provided that each Beneficiary or, if applicable, the 2004
Facility Agent is not obliged to disclose such other information where, in its reasonable
opinion, to do so would materially and adversely prejudice its affairs.
	 
	6.5	 	Waivers by the Charging Entities
	 
	 	 	Each Charging Entity hereby unconditionally waives any right it may have, whether at
law or otherwise, to require demands to be made under the Finance Documents or for the
security or any guarantee created by the Finance Documents to be enforced or realised in any
specific order or manner or to require the proceeds thereof to be appropriated in any
specific order or manner.
	 
	6.6	 	Security Agent’s duty of care
	 
	 	 	Nothing in this Deed shall in any case where the Security Agent has failed to show the
degree of care and diligence required of it as a trustee having regard to the provisions of
the Security Agent Security Documents exempt the Security Agent from or indemnify it against
any liability for breach of trust or any liability which by virtue of any rule of law would
otherwise attach to it in respect of any fraud, gross negligence, wilful default, gross
breach of duty or gross breach of trust of which it may be guilty in relation to its duties
under any of the Security Agent Security Documents.

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	7.	 	RESTRICTIONS AND LIMITATIONS ON AND EXCLUSIONS OF THE DUTIES AND RESPONSIBILITIES OF THE
SECURITY AGENT
	 
	7.1	 	No liability
	 
	 	 	The Security Agent shall not:

	 	(a)	 	be obliged to make any enquiry as to any default by any Charging Entity in the
performance or observance of any provision of any of the Security Agent Security
Documents or as to whether any event or circumstance has occurred as a result of which
the security constituted by any of the Security Agent Security Documents shall have or
may become enforceable; or
	 
	 	(b)	 	be liable to any of the Beneficiaries for any action taken or omitted under or
in connection with any of the Security Agent Security Documents unless caused by its
fraud, gross negligence or wilful misconduct.

	7.2	 	Limited duty to notify
	 
	 	 	The Security Agent shall not have any duty or responsibility, either initially or on a
continuing basis, to provide any of the Beneficiaries or the 2004 Facility Agent with any
information with respect to any Charging Entity whenever coming into its possession other
than as provided in Clauses 2.4 (Amendments to Security Agent Security Documents) and 3.3
(Duty to notify).
	 
	7.3	 	Indemnity from Security Agent Security Documents
	 
	 	 	The Security Agent and every agent or other person appointed by it in connection with
its appointment under this Deed shall be entitled to be indemnified out of the proceeds of
enforcement of the Security Agent Security Documents and/or the Trust Property in respect of
all liabilities, damages, costs, claims, charges or expenses whatsoever properly incurred or
suffered by it:

	 	(a)	 	in the execution or exercise or bona fide purported execution or exercise of
the trusts, rights, powers, authorities, discretions and duties created or conferred by
or pursuant to the Security Agent Security Documents; and/or
	 
	 	(b)	 	in respect of any matter or thing done or omitted or in any way relating to the
Trust Property or the provisions of any of the Security Agent Security Documents.

	 	 	The rights conferred by this Clause 7.3 are without prejudice to any right to indemnity
by law given to trustees generally and to any provision of the Security Agent Security
Documents entitling the Security Agent or any other person to indemnity in respect of,
and/or reimbursement of, any liabilities, damages, costs, claims, charges or expenses
incurred or suffered by it in connection with any of the Security Agent Security Documents
or the performance of any duties under any of the Security Agent Security Documents.
Nothing contained in this Clause 7.3 shall entitle the Security Agent or any other person to
be indemnified in respect of any liabilities, damages, costs, claims, charges or expenses to
the extent that the same arise from such person’s own fraud, gross negligence or wilful
misconduct.

	7.4	 	Limit on Security Agent’s responsibility
	 
	 	 	The Security Agent shall not have any responsibility to any Beneficiary (a) to
ascertain whether all deeds and documents which should have been deposited with it under or
pursuant to any Security Agent Security Document have been so deposited or (b) to
investigate or make any enquiry into the title of any Charging Entity to the Secured Assets
or any part thereof or (c) for the failure, omission or defect in perfecting or registering
any Security Agent Security Document in accordance with the

19

 

	 	 	requirements of any applicable law or regulation (other than as a result of gross negligence
on the part of the Security Agent) or (d) for the failure, omission or defect in perfecting
or registering any Security Agent Security Document in accordance with the provisions of the
documents of title of any Charging Entity to any of the Secured Assets (other than as a
result of gross negligence on the part of the Security Agent) or (e) for acting (or, as the
case may be, refraining from acting) in accordance with the directions of any of the
Beneficiaries, the 2004 Facility Agent or the 2004 Lenders (as the case may be) given
pursuant to this Deed.
	 
	7.5	 	Reliance on communications and professional advice
	 
	 	 	The Security Agent shall be entitled to rely on any communication, instrument or
document believed by it to be genuine and correct unless notified to the contrary and to
have been signed or sent by the proper person and shall be entitled to rely as to legal or
other professional matters on opinions and statements of any legal or other professional
advisers selected or approved by it.
	 
	7.6	 	Retention of deeds and documents; power to grant access
	 
	 	 	The Security Agent shall not (save where the Security Agent has a pledge of shares) be
under any obligation to hold any Security Agent Security Documents or any other document in
connection with the Security Agent Security Documents or the Secured Assets (including title
deeds) in its own possession or to take steps to protect or preserve the same. The Security
Agent shall be entitled (a) to permit any Beneficiary to retain any Security Agent Security
Documents or other documents in its possession; or (b) to place all deeds, certificates and
other documents relating to the Secured Assets deposited with it under or pursuant to the
Security Agent Security Documents or any of them in any safe deposit, safe or receptacle
selected by the Security Agent or with any solicitor or firm of solicitors and may make any
such arrangements as it thinks fit for allowing the Charging Entity concerned access to, or
its solicitors or auditors possession of, such documents when necessary or convenient and
the Security Agent shall not be responsible for any loss incurred in connection with any
such deposit, access or possession.
	 
	7.7	 	Unlawful actions
	 
	 	 	The Security Agent may refrain from doing anything which would, or might in its
opinion, be contrary to any law of any jurisdiction or any directive, regulation or
regulatory requirement of any State (or any agency thereof) or which would or might render
it liable to any person and may do anything which is, in its opinion, necessary to comply
with any such law, directive, regulation or regulatory requirement.
	 
	7.8	 	Indemnity by Beneficiaries
	 
	 	 	Prior to the Changeover Date each Lender shall reimburse the Security Agent (rateably
in accordance with such Lender’s Commitment) and on or after the Changeover Date, each
Senior Hedging Bank and each High Yield Hedging Bank shall reimburse the Security Agent
(rateably in accordance with the proportion that its Senior Hedging Exposure or, as the case
may be, High Yield Hedging Exposure, bears to the aggregate of the Total Senior Hedging
Exposure and the Total High Yield Hedging Exposure) in either case to the extent that the
Security Agent is not reimbursed by the Charging Entities in respect of all liabilities,
damages, costs, claims, charges or expenses referred to in Clause 7.3 (Indemnity from
Security Agent Security Documents).

20

 

	8.	 	NO RESTRICTION ON OR LIABILITY TO ACCOUNT FOR OTHER TRANSACTIONS
	 
	8.1	 	Rights as a Beneficiary
	 
	 	 	With respect to its own status as a Beneficiary the Security Agent shall have the same
rights and powers under the Security Agent Security Documents as any other Beneficiary and
may exercise the same as though it were not performing the duties and functions of the
Security Agent.
	 
	8.2	 	Other dealings
	 
	 	 	The Security Agent may, without any liability to account to any of the Beneficiaries,
accept deposits from, lend money to, and generally engage in any kind of trust or banking
business (other than in relation to the Trust Property) with any Charging Entity, or any of
their respective Subsidiaries or Associated Companies as if it were not the Security Agent.
	 
	8.3	 	Separate capacities
	 
	 	 	Notwithstanding that the Facility Agent, the 2004 Facility Agent and the Security Agent
may from time to time be the same entity, the Facility Agent, the 2004 Facility Agent and
Security Agent have entered into this Deed in their separate capacities. Provided that
where this Deed provides for the Facility Agent or the 2004 Facility Agent to communicate
with or provide instructions to the Security Agent, while the Facility Agent, the 2004
Facility Agent and the Security Agent are the same entity, it will not be necessary for
there to be any such formal communication or instructions notwithstanding that this Deed
provides in certain cases for the same to be in writing.
	 
	9.	 	CHANGES TO PARTIES TO THIS DEED
	 
	9.1	 	Retirement of Security Agent
	 
	(a)	 	The Security Agent may, at any time upon 30 days’ notice to UPC Broadband and the Relevant
Lenders and conditional upon the successor security agent executing a Security Agent’s Deed of
Accession to give effect to the provisions of subclause (c) below, retire from its appointment
as Security Agent under this Deed. No such retirement shall take effect unless there has been
appointed by the Relevant Lenders as a successor security agent:

	 	(i)	 	a Relevant Lender nominated by the Relevant Majority Lenders with the consent
of UPC Broadband (not to be unreasonably withheld or delayed); or, failing such a
nomination
	 
	 	(ii)	 	any other reputable and experienced bank or financial institution with offices
in London nominated by the Security Agent with the consent of UPC Broadband (not to be
unreasonably withheld or delayed).

	(b)	 	On the Changeover Date the provisions of Clause 9.1(a) shall cease to apply and the Security
Agent may, upon 30 days’ notice to UPC Broadband, the Senior Hedging Banks and the High Yield
Hedging Banks and conditional upon the successor security agent executing a Security Agent’s
Deed of Accession to give effect to the provisions of subclause (c) below, retire from its
appointment as Security Agent under this Deed. No such retirement shall take effect unless
there has been appointed as a successor security agent any reputable and experienced bank or
financial institution with offices in London nominated by the Security Agent with the consent
of UPC Broadband (not to be unreasonably withheld or delayed). The Senior Hedging Banks and
the High Yield Hedging Banks undertake to the Security Agent that following receipt of a
notice from the Security Agent pursuant to this Clause 9.1(b) they will ensure that a
successor security agent is appointed in accordance with this Clause 9.1(b) as soon as
practicable.

21

 

	(c)	 	Upon any such successor as aforesaid being appointed, and subject to appropriate arrangements
having been made:

	 	(i)	 	in relation to the rights, titles and interests constituted by this Deed; and
	 
	 	(ii)	 	for the purpose of ensuring the preservation of all Security Interests in the
name of the successor as may be required by the laws applicable to the relevant
Security Documents,

	 	 	to the satisfaction of the Beneficiaries, the retiring Security Agent shall be
discharged from any further obligations under this Deed but shall remain entitled to the
benefit of the provisions of this Deed in relation to the period from and including its
appointment up to and including its retirement as Security Agent and its successor and the
other parties to this Deed shall have the same rights and obligations among themselves as
they would have had if such successor had been a party to this Deed in place of the retiring
Security Agent.

	(d)	 	Any corporation into which the Security Agent may be merged or converted or any corporation
with which the Security Agent may be consolidated or any corporation resulting from any
merger, conversion, amalgamation, consolidation or other reorganisation to which the Security
Agent shall be a party shall, to the extent permitted by applicable law and subject to the
preservation of any Security Interest under the laws applicable thereto, be the successor
Security Agent under the Security Agent Security Documents without the execution or filing of
any document or any further act on the part of any of the parties to this Deed or any Security
Agent Security Document, save that notice of any such merger, conversion, amalgamation,
consolidation or other reorganisation shall forthwith be given to UPC Broadband, the
Beneficiaries and the 2004 Facility Agent.
	 
	9.2	 	Effective Date
	 
	 	 	The retirement of the Security Agent and the appointment of the successor agent shall
take effect (subject to compliance with the provisions of Clause 9.1 (Retirement of Security
Agent)) upon the signing by the Security Agent and the successor agent of all deeds and
other documents and the performing of all other acts necessary for the transfer of all the
Security Agent’s title to and interest in the Secured Assets (other than any interest
accruing to the Security Agent by virtue of the Security Agent being a Second Beneficiary)
to the successor agent, such title and interest to be held by the successor trustee on the
same trusts and on the same terms as if the successor agent had been a party to this Deed in
place of the retiring Security Agent.
	 
	9.3	 	Transfer by the Lenders
	 
	 	 	Each party to this Deed agrees and acknowledges that (a) the Lenders may transfer their
respective rights, liabilities and obligations under this Deed in accordance with the
provisions of Clause 26 (Changes to the Parties) of the Agreement and (b) if a Lender
transfers all of its commitment, rights and obligations under the Agreement it shall cease
to be a Beneficiary in its capacity as a Lender but if at such time it is also a Senior
Hedging Bank and/or a High Yield Hedging Bank it shall continue to be a Beneficiary in such
capacity.
	 
	9.4	 	References to Lenders following a transfer
	 
	 	 	If any Lender transfers all or any of its rights and obligations as provided in Clause
9.3 (Transfer by the Lenders) all relevant references in the Security Agent Security
Documents to such Lender shall thereafter be construed as a reference to such Lender and/or
a New Lender (as such term is defined in Clause 26.2 of the Agreement) to the extent of
their respective rights and/or obligations and, in the case of a transfer of all or part of
such Lender’s rights or obligations, the other parties to the Security Agent Security
Documents shall thereafter look only to the New Lender in respect of that proportion

22

 

	 	 	of that Lender’s rights or obligations under the relevant Security Agent Security Documents
as corresponds to the rights or obligations assumed by such New Lender.
	 
	9.5	 	Authorisation of Facility Agent
	 
	 	 	Each party to this Deed irrevocably authorises the Facility Agent to countersign each
Transfer Certificate on its behalf without any further consent of, or consultation with, any
such party provided that all relevant conditions under the Agreement have been satisfied.
	 
	9.6	 	Charging Entities
	 
	 	 	None of the Charging Entities may assign or transfer any of their respective rights or
obligations under this Deed other than pursuant to Clause 26.1 (Transfers by Obligors) of
the Agreement. Each party to this Deed agrees and acknowledges that (a) upon the execution
and delivery of a Guarantor’s Accession Agreement in accordance with Clause 26.4 (Additional
Guarantors) of the Agreement, the relevant Additional Guarantor shall become a party to this
Deed and to the Intercreditor Agreement as a Charging Entity and (b) upon the execution and
delivery of a Security Provider’s Deed of Accession in accordance with the Agreement, the
relevant Subordinated Creditor, Security Provider or Hedging Counterparty will become a
party to this Deed and to the Intercreditor Agreement as a Charging Entity.
	 
	9.7	 	Assignment and/or transfer by Senior Hedging Banks
	 
	 	 	Each party to this Deed agrees and acknowledges that upon the execution and delivery of
a Senior Hedging Bank’s Deed of Accession the relevant Senior Hedging Bank will become a
party to this Deed as such provided that, in the case of a Senior Hedging Bank which
executes and delivers a Senior Hedging Bank’s Deed of Accession after the 2006 Amendment
Effective Date (as defined in the New Facility Agreement), the relevant Senior Hedging
Bank’s accession to this Deed as a Senior Hedging Bank will not take effect unless it has
also executed and delivered a Senior Hedging Bank’s Deed of Accession under the New Security
Deed. Each party to this Deed agrees and acknowledges that a Senior Hedging Bank may assign
or transfer all or any of its rights, liabilities or obligations under this Deed, provided
that:

	 	(a)	 	such assignment or transfer is contemporaneous with and to the same person as
an assignment or transfer by the relevant Senior Hedging Bank of its corresponding
rights and/or obligations in respect of the relevant Senior Hedging Agreements (as the
case may be); and
	 
	 	(b)	 	such assignment or transfer shall be conditional upon the relevant assignee or
transferee having executed a Senior Hedging Bank’s Deed of Accession by which such
assignee or transferee agrees to be bound by and comply with the obligations incumbent
upon the relevant Senior Hedging Bank under this Deed and the Security Agent Security
Documents as if it had been a party to this Deed in place of the Senior Hedging Bank;
and
	 
	 	(c)	 	such assignment or transfer is contemporaneous with an assignment or transfer
by the relevant Senior Hedging Bank of its corresponding rights and obligations under
the New Security Deed.

	 	 	The Security Agent may deem and treat such assignee or transferee as a Senior Hedging
Bank (as the case may be) for all purposes of this Deed and the Security Agent Security
Documents after the conditions set out in this Clause 9.7 have been satisfied.

23

 

	9.8	 	Assignment and/or transfer by High Yield Hedging Banks
	 
	 	 	Each party to this Deed agrees and acknowledges that upon the execution and delivery of
a High Yield Hedging Bank’s Deed of Accession the relevant High Yield Hedging Bank will
become a party to this Deed as such. Each party to this Deed agrees and acknowledges that a
High Yield Hedging Bank may assign or transfer all or any of its rights, liabilities or
obligations under this Deed, provided that:

	 	(a)	 	such assignment or transfer is contemporaneous with and to the same person as
an assignment or transfer by the relevant High Yield Hedging Bank of its corresponding
rights and/or obligations in respect of the relevant High Yield Hedging Agreements (as
the case may be); and
	 
	 	(b)	 	any such assignment or transfer shall be conditional upon the relevant assignee
or transferee having executed a High Yield Hedging Bank’s Deed of Accession by which
such assignee or transferee agrees to be bound by and comply with the obligations
incumbent upon the relevant High Yield Hedging Bank under this Deed and the Security
Agent Security Documents as if it had been a party to this Deed in place of the High
Yield Hedging Bank; and
	 
	 	(c)	 	such assignment or transfer is contemporaneous with an assignment or transfer
by the relevant High Yield Hedging Bank of its corresponding rights and obligations
under the New Security Deed.

	 	 	The Security Agent may deem and treat such assignee or transferee as a High Yield
Hedging Bank (as the case may be) for all purposes of this Deed and the Security Agent
Security Documents after the conditions set out in this Clause 9.8 have been satisfied.

	9.9	 	Discharge of retiring Facility Agent
	 
	 	 	Upon any successor to the Facility Agent being appointed pursuant to Clause 19.15
(Resignation of Agents) of the Agreement and conditional upon the successor agent (the New
Facility Agent) executing and delivering a Facility Agent’s Deed of Accession, the retiring
Facility Agent shall be discharged from any further obligations under this Deed and the New
Facility Agent and each of the other parties to this Deed shall have the same rights and
obligations among themselves as they would have had if the New Facility Agent had been a
party to this Deed in place of the retiring Facility Agent.
	 
	9.10	 	Deeds of Accession
	 
	(a)	 	Each party to this Deed shall be fully entitled to rely on any Deed of Accession and any
related documents that may be required under Clause 9.2 (Effective Date) delivered to the
Security Agent in connection with this Deed which is complete and regular on its face as
regards its contents and purportedly signed on behalf of the new Facility Agent, Security
Agent, Senior Hedging Bank, High Yield Hedging Bank or new Charging Entity, as appropriate.
	 
	(b)	 	No party to this Deed shall have any liability or responsibility to any other party to this
Deed as consequence of placing reliance on and acting in accordance with such Deed of
Accession if it proves to be the case that it was not authentic or duly authorised.
	 
	(c)	 	Each of the parties to this Deed hereby irrevocably authorises the Security Agent to execute
any duly completed Deed of Accession as appropriate, on behalf of that party.

24

 

	(d)	 	The Security Agent shall provide a copy of each duly completed Deed of Accession to UPC
Broadband upon request.
	 
	10.	 	EFFECT OF THIS DEED AS REGARDS THE CHARGING ENTITIES
	 
	10.1	 	Consent and agreement to arrangements
	 
	 	 	Each of the Charging Entities joins in this Deed for the purpose of acknowledging the
provisions of this Deed and undertakes with the Security Agent and each of the Beneficiaries
to observe the provisions of this Deed at all times and not in any way to prejudice or
affect the enforcement of such provisions or do anything which would be in breach of the
terms of this Deed.
	 
	10.2	 	No prejudice to other rights and remedies
	 
	 	 	Nothing contained in this Deed shall as between any Charging Entity and the Security
Agent and/or the Beneficiaries or any of them affect or prejudice any rights or remedies of
any such person against any Charging Entity in respect of any of the Secured Obligations.
	 
	11.	 	SENIOR HEDGING AGREEMENTS
	 
	11.1	 	Senior Hedging Agreements
	 
	 	 	Each of the Senior Hedging Banks agrees that any Senior Hedging Agreements to which it
is a party governing the terms of a hedging transaction will provide for “two way payments”
in the event of a termination of that hedging transaction entered into under such Senior
Hedging Agreements howsoever caused, meaning that the defaulting party under those Senior
Hedging Agreements will be entitled to receive payment under the relevant termination
provisions if the net replacement value of all terminated transactions effected under the
Senior Hedging Agreements is in its favour, but that netting will not be permitted between
any Senior Hedging Agreements and any other interest rate or currency hedging arrangements.
For the avoidance of doubt, the parties agree that close out netting within and among any
Senior Hedging Agreements is not prohibited.
	 
	11.2	 	Termination of Senior Hedging Agreements
	 
	 	 	Each of the Senior Hedging Banks agrees with the Security Agent, the 2004 Facility
Agent and the other Beneficiaries that prior to the Changeover Date it will not terminate
any of the Senior Hedging Agreements (other than Cash Flow Hedging Agreements) to which it
is a party except:

	 	(a)	 	as a result of non-payment of any indebtedness under such Senior Hedging
Agreements which non-payment continues for seven days after notice of such non-payment
has been given by such Senior Hedging Bank to the Security Agent (provided that if such
Senior Hedging Bank and the Security Agent are the same entity it will not be necessary
for there to be any formal notice of such non-payment to be given by such Senior
Hedging Bank to the Security Agent); or
	 
	 	(b)	 	a Senior Hedging Bank may terminate a Senior Hedging Agreement upon the
earliest of:

	 	(i)	 	the last day on which a payment of principal is due to be made
under the New Facility Agreement in respect of any Additional Facility in
relation to which that Senior Hedging Agreement provides interest rate or
currency hedging protection from time to time;

25

 

	 	(ii)	 	an acceleration of the principal amount outstanding under the New
Facility Agreement, following consultation with (but without being required to
obtain the consent of) the security agent under the New Facility Agreement; or
	 
	 	(iii)	 	the date on which the 2004 Lenders have been repaid in full in
respect of any Additional Facility in relation to which that Senior Hedging
Agreement provides interest rate or currency hedging protection from time to
time and the Additional Facility Commitment in respect of such Additional
Facility has been reduced to zero; or

	 	(c)	 	following the repudiation of any such Senior Hedging Agreements by the relevant
Senior Hedging Counterparty; or
	 
	 	(d)	 	upon:

	 	(i)	 	it becoming contrary to any law or regulation for the relevant
Senior Hedging Counterparty or such Senior Hedging Bank to perform the payment
obligations expressed to be assumed by it in respect of such Senior Hedging
Agreements or such obligations becoming invalid or unenforceable against the
relevant Senior Hedging Counterparty; or
	 
	 	(ii)	 	any provision of such Senior Hedging Agreements relating to the
termination thereof (including, without limitation, the calculation of or
obligation to pay amounts upon such termination) becoming invalid or
unenforceable against the relevant Senior Hedging Counterparty; or

	 	(e)	 	an order being made either for the administration or winding-up of the relevant
Senior Hedging Counterparty or there occurs in relation to the relevant Senior Hedging
Counterparty in any country or territory in which it carries on business any event
which corresponds with either event or has similar or equivalent effects to either
event; or
	 
	 	(f)	 	with the prior written consent of:

	 	(i)	 	the Security Agent (acting on the instructions of the Majority
Lenders); and
	 
	 	(ii)	 	the security agent (under the New Facility Agreement) acting on
the instructions of the 2004 Majority Lenders.

	 	 	 	Sub-paragraph (i) above shall only apply prior to the Facility A Refinancing Date.
Sub-paragraph (ii) shall apply before and after the Facility A Refinancing Date.

	11.3	 	Proceeds of termination of Senior Hedging Agreements
	 
	 	 	Each Senior Hedging Bank and each Charging Entity which is a party to any Senior
Hedging Agreement agrees that:

	 	(a)	 	if upon the termination of any Senior Hedging Agreement and following the
application of any netting pursuant to the terms thereof an amount falls due from the
Senior Hedging Bank to a Senior Hedging Counterparty that amount shall be paid by the
Senior Hedging Bank, to the extent that it is lawfully possible, to the Security Agent
and shall be treated to the extent that the Security Agent is entitled to do and
subject, without limitation, to Clause 7.7 (Unlawful actions), as the proceeds of
enforcement of the Security Agent Security Documents and shall be applied in accordance
with Clause 6.2 (Order of application on enforcement);

26

 

	 	(b)	 	promptly after the Facility Agent takes any action as is referred to in Clause
18.22 (Acceleration) of the Agreement or the 2004 Facility Agent takes any action as
referred to in clause 18.22 (Acceleration) of the New Facility Agreement or the
non-payment of any amount due under the Agreement or the New Facility Agreement on the
last day on which a payment of principal is due to be made under the Agreement or the
New Facility Agreement (as applicable), each Senior Hedging Bank:

	 	(i)	 	shall exercise any and all rights it may have to terminate and
close out all Senior Hedging Agreements to which it is a party, unless the
Facility Agent (acting on the instructions of the Majority Lenders) and the 2004
Facility Agent (acting on the instructions of the 2004 Majority Lenders)
otherwise agrees; and
	 
	 	(ii)	 	shall not enter into any new Senior Hedging Agreements without
the consent of the Facility Agent (acting on the instructions of the Majority
Lenders) and the 2004 Facility Agent (acting on the instructions of the 2004
Majority Lenders); and

	 	(c)	 	promptly following the giving thereof, it will provide the Security Agent with
a copy of any notice of the termination of any Senior Hedging Agreements.

	11.4	 	Copies of Senior Hedging Agreements
	 
	 	 	Each Senior Hedging Bank undertakes to provide the Security Agent with a copy of each
document constituting the Senior Hedging Agreements to which it is a party and each
amendment, supplement or variation to it upon it becoming a party to this Deed or upon the
execution of the same, if later.
	 
	12.	 	HIGH YIELD HEDGING AGREEMENTS
	 
	12.1	 	High Yield Hedging Agreements
	 
	 	 	Each of the High Yield Hedging Banks agrees that any High Yield Hedging Agreements to
which it is a party governing the terms of a hedging transaction will provide for “two way
payments” in the event of a termination of that hedging transaction entered into under such
High Yield Hedging Agreements howsoever caused, meaning that the defaulting party under
those High Yield Hedging Agreements will be entitled to receive payment under the relevant
termination provisions if the net replacement value of all terminated transactions effected
under the High Yield Hedging Agreements is in its favour. The parties hereto agree that
close out netting within and among any High Yield Hedging Agreements and/or within and among
any High Yield Hedging Agreements and any other interest rate or currency hedging
arrangements is not prohibited.
	 
	12.2	 	Copies of High Yield Hedging Agreements
	 
	 	 	Each High Yield Hedging Bank undertakes to provide the Security Agent with a copy of
each document constituting the High Yield Hedging Agreements to which it is a party and each
amendment, supplement or variation to it upon it becoming a party to this Deed or upon the
execution of the same, if later and promptly following the giving thereof a copy of any
notice of the termination of any High Yield Hedging Agreements.
	 
	12.3	 	Release of Security Agent Security Documents
	 
	 	 	Each High Yield Hedging Bank and each Senior Hedging Bank undertakes to the Charging
Entities that if the Beneficiaries request the release of the security created by the
Security Agent Security Documents either after the Changeover Date or in connection with a
refinancing of the Agreement, they will negotiate in good faith with a view to agreeing
replacement arrangements providing them with equivalent security (taking into account the
reduced amount of the Secured Obligations) to that

27

 

	 	 	which was available to them under the Security Agent Security Documents prior to the
Changeover Date or such refinancing (as the case may be) and will instruct the Security
Agent to release the Security Agent Security Documents on such replacement arrangement
coming into effect.
	 
	13.	 	MISCELLANEOUS
	 
	13.1	 	Rights under other arrangements
	 
	 	 	Nothing contained in this Deed shall prejudice or affect the rights of the Security
Agent or the Beneficiaries or any of them under any guarantee, lien, bill, note, charge or
other security (other than pursuant to the Security Agent Security Documents) now or
hereafter held by it in respect of any moneys, obligations or liabilities thereby secured
and so that (without limitation) each and any such person may apply any moneys recovered
under any such guarantee, lien, bill, note, charge or other security in or towards payment
of any money, obligation or liability, actual or contingent, now or hereafter due, owing or
incurred to it by any Charging Entity or may hold such moneys on a suspense account for such
period as it may in its absolute discretion think fit.
	 
	13.2	 	Several obligations
	 
	 	 	The obligations of all parties under this Deed are several; the failure of all parties
to perform such obligations shall not relieve any other Beneficiary or any of the Charging
Entities of any of their respective obligations or liabilities under the Finance Documents
nor shall any Beneficiary be responsible for the obligations of any other Beneficiary under
this Deed.
	 
	13.3	 	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.
	 
	13.4	 	No partnership
	 
	 	 	This Deed shall not and shall not be construed so as to constitute a partnership
between the parties or any of them.
	 
	13.5	 	No implied waivers, remedies cumulative
	 
	 	 	No failure or delay on the part of the Security Agent, any other Beneficiary, the 2004
Facility Agent or the 2004 Lenders (as the case may be) to exercise any power, right or
remedy under this Deed or any other Security Agent Security Document shall operate as a
waiver thereof, nor shall any single or partial exercise by the Security Agent, any other
Beneficiary, the 2004 Facility Agent or the 2004 Lenders (as the case may be) of any power,
right or remedy preclude any other or further exercise thereof or the exercise of any other
power, right or remedy. The remedies provided in this Deed and the other Security Agent
Security Documents are cumulative and are not exclusive of any remedies provided by law.
	 
	13.6	 	Counterparts
	 
	 	 	This Deed 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.

28

 

	13.7	 	Release of assets
	 
	 	 	Where UPC Broadband requests that the Security Agent releases a Secured Asset from the
charges created by a Security Agent Security Document and (in the case of a request made
prior to the Facility A Refinancing Date) the Facility Agent has certified that such release
is permitted under the terms of the Finance Documents or (in the case of release which is
requested on or after the Facility A Refinancing Date but before the Changeover Date), the
2004 Facility Agent has certified that the release of the equivalent asset from the charges
created by a Security Agent Security Document (as defined in the New Security Deed) is
permitted under the terms of the New Finance Documents, the Security Agent is authorised and
shall at the cost of UPC Broadband execute such deeds and do all such acts and things as may
be reasonably necessary to release the Secured Asset from the charges created by the
relevant Security Agent Security Document. Prior to the Changeover Date the consent of none
of the Senior Hedging Banks or the High Yield Hedging Banks shall be required for such
release.
	 
	14.	 	NOTICES
	 
	14.1	 	Mechanics
	 
	 	 	All notices or other communications under or in connection with this Deed shall be
given in writing and, unless stated, may be made by letter, telex or facsimile or (to the
extent that (a) the relevant Party has specified such an address pursuant to Clause 32.2 of
the Agreement (Address for Notices) or pursuant to this Deed and (b) such notice or
communication is not required to be signed by an Authorised Signatory, other officer or
board of the relevant entity and the form of such notice or communication does not provide
for signature by an Authorised Signatory, other officer or board of the relevant entity) by
e-mail. Any such notice will be deemed to be given as follows:

	 	(a)	 	if by letter, when delivered personally or on actual receipt; and
	 
	 	(b)	 	if by facsimile or e-mail, when received in legible form.

	 	 	However, a notice given in accordance with the above but received on a non-working day
or after business hours in the place of receipt will only be deemed to be given on the next
working day in that place.
	 
	 	 	The address and facsimile number and (of so specified) e-mail address of each Party for
all notices under or in connection with this Deed are:

	 	(c)	 	that notified by that Party for this purpose to the Facility Agent on or before
it becomes a Party; or
	 
	 	(d)	 	any other notified by that Party for this purpose to the Facility Agent by not
less than five Business Days’ notice.

	 	 	Every notice, request, demand, or other communication under this Deed shall be
sent:

	 	(i)	 	to each Charging Entity at:
	 
	 	 	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

	 
	 	 	 	Facsimile:          + 3120 778 9453

29

 

	 	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Dennis Okhuijsen
	 

	 	 	 	Email:
	 	dokhuijsen@lgi.com
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	UGC Europe Inc	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Facsimile:
	 	+ 3120 778 9453
	 

	 	 	 	Attention:
	 	Dennis Okhuijsen
	 

	 	 	 	Email:
	 	dokhuijsen@lgi.com
	 
	 	 	 	 	 	 
	 	 	 	 	or its address or facsimile number specified in any relevant Deed of Accession;
	 
	 	 	 	 	 	 
	 	 	(ii)	 	to the Facility Agent, the 2004 Facility Agent and the Security Agent at:
	 
	 	 	 	 	 	 
	 	 	 	 	Toronto Dominion (Texas) LLC / TD Bank Europe Limited
	 
	 	 	 	 	 	 
	 

	 	 	 	Triton Court	 	 
	 	 	 	 	14/18 Finsbury Square
	 

	 	 	 	London EC2A 1DB	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Contact:
	 	Rory McCarthy
	 

	 	 	 	Facsimile:
	 	+44 207 638 0006
	 

	 	 	 	E-mail:
	 	rory.mccarthy@tdsecurities.com
	 
	 	 	 	 	 	 
	 	 	 	 	and in each case with a copy to:
	 	 	 	 	TD Bank Europe Limited
	 

	 	 	 	Royal Trust Tower	 	 
	 	 	 	 	77 King Street West
	 	 	 	 	18th Floor
	 

	 	 	 	Toronto	 	 
	 

	 	 	 	Ontario

Canada M5K 1A2	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Contact:
	 	Jim Bridwell / Elhamy Khalil
	 

	 	 	 	Facsimile;
	 	+1 416 307 3826
	 
	 	 	 	 	 	 
	 	 	(iii)	 	to the Lead Arrangers and the Lenders at the address or facsimile number:

	 	(A)	 	notified by each such Lead Arranger or Lender to
the Security Agent for this purpose on or before it becomes a party
hereto; or
	 
	 	(B)	 	any other notified by each such Lead Arranger or
Lender to the Security Agent for this purpose by not less than five
Business Days’ notice.

	 	(iv)	 	to each Senior Hedging Bank at its address or facsimile number
specified in the relevant Senior Hedging Banks’ Deed of Accession;
	 
	 	(v)	 	to each High Yield Hedging Bank at its address or facsimile
number specified in the relevant High Yield Hedging Bank’s Deed of Accession,

	 	 	 	or to such other address, or facsimile number as is notified by the relevant
party to the other parties to this Deed save that a change of address of a Charging
Entity, the Lead Arrangers, a Senior Hedging Bank, a High Yield Hedging Bank, a
Lender or a 2004 Lender need only be

30

 

	 	 	 	notified to the Facility Agent (or, as applicable, the 2004 Facility Agent) and the
Security Agent.

	14.2	 	Notices through the Security Agent

	 	 	Every notice, request, demand or other communication under this Deed to be given by any
Charging Entity to any other party shall be given to the Security Agent for onward
transmission as appropriate and to be given to any Charging Entity shall (except as
otherwise provided in this Deed) be given by the Security Agent.

	15.	 	GOVERNING LAW AND JURISDICTION
	 
	15.1	 	Law

	 	 	This Deed is governed by and shall be construed in accordance with English law.

	15.2	 	Submission to jurisdiction

	 	 	The parties to this Agreement agree for the benefit of the Beneficiaries, the 2004
Facility Agent and the 2004 Lenders that:

	 	(a)	 	if any party has any claim against any other arising out of or in connection
with this Agreement such claim shall (subject to Clause 15.2(c)) be referred to the
High Court of Justice in England, to the jurisdiction of which each of the parties
irrevocably submits;
	 
	 	(b)	 	the jurisdiction of the High Court of Justice in England over any such claim
against any Beneficiary shall be an exclusive jurisdiction and no courts outside
England shall have jurisdiction to hear or determine any such claim; and
	 
	 	(c)	 	nothing in this Clause 15.2 shall limit the right of any Beneficiary, the 2004
Facility Agent or a 2004 Lender to refer any such claim against any Charging Entity to
any other court of competent jurisdiction outside England, to the jurisdiction of which
each Charging Entity hereby irrevocably agrees to submit, nor shall the taking of
proceedings by any Beneficiary, the 2004 Facility Agent or a 2004 Lender before the
courts in one or more jurisdictions preclude the taking of proceedings in any other
jurisdiction whether concurrently or not.

	15.3	 	Agent for service of process

	 	 	Each Charging Entity which is not incorporated in England and Wales irrevocably
designates, appoints and empowers HRO Registrars Limited of Heathcoat House, 20 Saville Row,
London W1X 1AE to receive for it and on its behalf service of process issued out of the High
Court of Justice in England in relation to any claim arising out of or in connection with
this Deed.

	15.4	 	Inconvenient forum

	 	 	Each Charging Entity irrevocably waives any objection they may have now or hereafter to
the laying of venue of any action or proceeding in any court or jurisdiction referred to in
Clause 15.2 (Submission to jurisdiction) and any claim they 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 the parties to this Deed have caused this Deed to be duly executed on the
date first above written.

31

 

SCHEDULE 1

THE ORIGINAL GUARANTORS

	 	 	 
	Name	 	Address
	 
	 	 
	UPC Financing Partnership

	 	4643 South Ulster Street
	 

	 	Suite 1300
	 

	 	Denver, Co 80237
	 

	 	United States
	 
	 	 
	UPC Broadband Holding B.V.
(previously called UPC Distribution
Holding B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Holding II B.V.

	 	Boeing Avenue 53
	 

	 	1119 PE Schiphol Rijk
	 

	 	Amsterdam
	 

	 	The Netherlands
	 
	 	 
	UPC Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC France Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Scandinavia Holding B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Austria Holding B.V.
(previously called Cable
Network Austria Holding
B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Central Europe Holding
B.V. (previously called
Stipdon Investments B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

32

 

	 	 	 
	Name	 	Address
	 
	 	 
	UPC Nederland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Poland Holding B.V.
(previously called UPC
Telecom B.V.)

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband N.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands
	 
	 	 
	UPC Broadband Ireland B.V.

	 	Boeing Avenue 53

1119 PE Schiphol Rijk

Amsterdam

The Netherlands

33

 

SCHEDULE 2

LENDERS

Name

The Chase Manhattan Bank

The Toronto-Dominion Bank

Toronto Dominion (Texas), Inc.

ABN AMRO Bank N.V.

BNP Paribas, Belgian Branch

CIBC World Markets plc

Crédit Lyonnais S.A.

Fortis Bank (Nederland) N.V.

NB International Finance B.V.

The Royal Bank of Scotland plc

Abbey National Treasury Services plc

Banca Commerciale Italiana S.p.A.

Bear Stearns Corporate Lending Inc

Citibank, N.A.

Credit Suisse First Boston

Daimler Chrysler Capital Services (Debis) Belgium S.A.

DLJ Capital Funding, Inc

Dresdner Bank AG London Branch

Harbourmaster Loan Corporation B.V.

Goldman Sachs Credit Partners L.P.

The Governor and Company of the Bank of Scotland

IBM Nederland Financieringen B.V.

ING Bank N.V.

Eurocredit CDO I B.V. and Eurocredit CDO II B.V.

KBC Bank NV

Merrill Lynch Capital Corporation

Debt Strategies Fund III, Inc.

Debt Strategies Fund II, Inc.

Debt Strategies Fund, Inc.

Senior High Income Portfolio, Inc.

Morgan Stanley Senior Funding Inc

Oppenheimer Senior Floating Rate Fund

Scotiabank Europe plc

UBS AG, London Branch

Van Kampen Prime Rate Income Trust

Van Kampen Senior Income Trust

34

 

SCHEDULE 3

FORM OF FACILITY AGENT’S DEED OF ACCESSION

THIS FACILITY AGENT’S DEED OF ACCESSION is dated l and made

BETWEEN:

	(1)	 	[NEW FACILITY AGENT] (the New Facility Agent) and
	 
	(2)	 	[     ] as Security Agent,

and relates to a Security Deed dated l 2000 between the Borrowers (1), UPC Holding B.V.
(2), the Original Guarantors (3), the Lead Arrangers (4), the Lenders (5), the Facility Agent (6),
the Security Agent (7), the 2004 Facility Agent (8), the Senior Hedging Banks (9) and the High
Yield Hedging Banks (10) as amended, varied, extended, restated, refinanced or replaced from time
to time (the Security Deed).

WHEREAS:

The New Facility Agent is to become the Facility Agent for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Facility Agent hereby agree that:

	 	(a)	 	the New Facility Agent shall become a party to the Security Deed in its
capacity as the Facility Agent; and
	 
	 	(b)	 	the New Facility Agent shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of the Facility Agent.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request, demand or other communication under
the Security Deed shall be sent to the New Facility Agent at:
	 
	 	 	[Address]
	 
	 	 	[Telefax]
	 
	 	 	[Attention]

35

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New Facility Agent

	 	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [Facility Agent]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[      ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed)

	 	 	)	 	 	 

36

 

SCHEDULE 4

FORM OF SENIOR HEDGING BANK’S DEED OF ACCESSION

THIS SENIOR HEDGING BANK’S DEED OF ACCESSION is dated l and made

BETWEEN:

	(1)	 	[NEW SENIOR HEDGING BANK] (the New Senior Hedging Bank); and
	 
	(2)	 	[      ]as Security Agent,

and relates to a Security Deed dated l 2000 between the Borrowers (1), UPC Holding B.V.
(2), the Original Guarantors (3), the Lead Arrangers (4), the Lenders (5), the Facility Agent (6),
the Security Agent (7), the 2004 Facility Agent (8), the Senior Hedging Banks (9) and the High
Yield Hedging Banks (10) as amended, varied, extended, restated, refinanced or replaced from time
to time (the Security Deed).

WHEREAS:

The New Senior Hedging Bank is to become a Senior Hedging Bank for the purposes of the
Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Senior Hedging Bank hereby agree
that:

	 	(a)	 	the New Senior Hedging Bank shall become a party to the Security Deed in its
capacity as a Senior Hedging Bank; and
	 
	 	(b)	 	the New Senior Hedging Bank shall observe, perform and be bound by the terms
and provisions of and be entitled to exercise all the rights set out in the Security
Deed in the capacity of a Senior Hedging Bank.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request, demand or other communication under
the Security Deed shall be sent to the New Senior Hedging Bank at:
	 
	 	 	[Address]
	 
	 	 	[Telefax]
	 
	 	 	[Attention]

37

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New Senior Hedging Bank

	 	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [Senior

	 	 	)	 	 	 
	Hedging Bank]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[       ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed

	 	 	)	 	 	 

38

 

SCHEDULE 5

FORM OF SECURITY PROVIDER’S DEED OF ACCESSION

THIS CHARGING ENTITY’S DEED OF ACCESSION is dated l and made

BETWEEN:

	(1)	 	[NEW CHARGING ENTITY] (the New Charging Entity); and
	 
	(2)	 	[      ] as Security Agent,

and relates to a Security Deed dated l 2000 between the Borrowers (1), UPC Holding B.V.
(2), the Original Guarantors (3), the Lead Arrangers (4), the Lenders (5), the Facility Agent (6),
the Security Agent (7), the 2004 Facility Agent (8), the Senior Hedging Banks (9) and the High
Yield Hedging Banks (10) as amended, varied, extended, restated, refinanced or replaced from time
to time (the Security Deed).

WHEREAS:

The New Charging Entity is to become a Charging Entity for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security
Deed shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Charging Entity hereby agree that:

	 	(a)	 	the New Charging Entity shall become a party to the Security Deed in its
capacity as a Charging Entity; and
	 
	 	(b)	 	the New Charging Entity shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of a Charging Entity.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security
Agent Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request, demand or other communication under
the Security Deed shall be sent to the New Charging Entity at:
	 
	 	 	[Address]
	 
	 	 	[Telefax]
	 
	 	 	[Attention]

39

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed
as a Deed on the date first written above.

New Facility Agent

	 	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [Charging Entity]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[       ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed)

	 	 	)	 	 	 

40

 

SCHEDULE 6

FORM OF SECURITY AGENT’S DEED OF ACCESSION

THIS SECURITY AGENT’S DEED OF ACCESSION is dated l and made

BETWEEN:

	(1)	 	[NEW SECURITY AGENT GUARANTOR] (the New Security Agent); and
	 
	(2)	 	[  ] as Security Agent,

and relates to a Security Trust Deed dated l 2000 between the Borrowers (1), UPC Holding B.V.
(2), the Original Guarantors (3), the Lead Arrangers (4), the Lenders (5), the Facility Agent (6),
the Security Agent (7), the 2004 Facility Agent (8), the Senior Hedging Banks (9) and the High
Yield Hedging Banks (10) as amended, varied, extended, restated, refinanced or replaced from time
to time (the Security Trust Deed).

WHEREAS:

The New Security Agent is to become the Security Agent for the purposes of the Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security Deed
shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New Security Agent hereby agree that:

	 	(a)	 	the New Security Agent shall become a party to the Security Trust Deed in its
capacity as a Security Agent; and
	 
	 	(b)	 	the New Security Agent shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the Security Deed
in the capacity of the Security Agent.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security Agent
Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Trust Deed shall be sent to the New
Security Agent at:

[Address]

[Telefax]

[Attention]

41

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed as a
Deed on the date first written above.

New Facility Agent

	 	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [Security Agent]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[  ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed)

	 	 	)	 	 	 

42

 

SCHEDULE 7

FORM OF HIGH YIELD HEDGING BANK’S DEED OF ACCESSION

THIS HIGH YIELD HEDGING BANK’S DEED OF ACCESSION is dated l and made

BETWEEN:

	(1)	 	[NEW HIGH YIELD HEDGING BANK] (the New High Yield Hedging Bank); and
	 
	(2)	 	[  ] as Security Agent,

and relates to a Security Deed dated l 2000 between the Borrowers (1), UPC Holding B.V. (2),
the Original Guarantors (3), the Lead Arrangers (4), the Lenders (5), the Facility Agent (6), the
Security Agent (7), the 2004 Facility Agent (8), the Senior Hedging Banks (9) and the High Yield
Hedging Banks (10) as amended, varied, extended, restated, refinanced or replaced from time to time
(the Security Deed).

WHEREAS:

The New High Yield Hedging Bank is to become a High Yield Hedging Bank for the purposes of the
Security Deed.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Definitions under the Security Deed
	 
	 	 	Unless the context otherwise requires, words and expressions defined in the Security Deed
shall have the same meaning in this Deed of Accession.
	 
	2.	 	Succession and Adherence
	 
	 	 	Each of the parties to the Security Deed and the New High Yield Hedging Bank hereby agree
that:

	 	(a)	 	the New High Yield Hedging Bank shall become a party to the Security Deed in
its capacity as a High Yield Hedging Bank; and
	 
	 	(b)	 	the New High Yield Hedging Bank shall observe, perform and be bound by the
terms and provisions of and be entitled to exercise all the rights set out in the
Security Deed in the capacity of a High Yield Hedging Bank.

	3.	 	Accession
	 
	 	 	This Deed of Accession is supplemental to the Security Deed and the other Security Agent
Security Documents and shall be read and construed as one instrument together with the
Security Deed.
	 
	4.	 	Notices
	 
	 	 	For the purposes of Clause 14.1 (Mechanics) of the Security Deed every notice, request,
demand or other communication under the Security Deed shall be sent to the New High Yield
Hedging Bank at:

[Address]

[Telefax]

[Attention]

43

 

	5.	 	Effect as a Deed
	 
	 	 	This Deed of Accession is intended to take effect as a Deed notwithstanding that either
party or both parties may have executed it under hand only.
	 
	6.	 	Law
	 
	 	 	This Deed of Accession is governed by English law.

IN WITNESS whereof the parties hereto have caused this Deed of Accession to be duly executed as a
Deed on the date first written above.

New Facility Agent

	 	 	 	 	 	 	 
	EXECUTED and DELIVERED

	 	 	)	 	 	 
	as a DEED by [High Yield Hedging

	 	 	)	 	 	 
	Beneficiary]

	 	 	)	 	 	Director
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	Director/Secretary
	 
	 	 	 	 	 	 
	Security Agent
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 
	[  ]

	 	 	)	 	 	 
	(as Security Agent and

	 	 	)	 	 	 
	on behalf of each

	 	 	)	 	 	 
	of the other parties to the Security Deed)

	 	 	)	 	 	 

44

 

SIGNATORIES

[This section is not restated]

45

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