Document:

Exhibit 4.23

 

SHARES PLEDGE

 

 

by

 

NTL GLASGOW

 

and

 

DEUTSCHE BANK AG, LONDON
BRANCH

as Security Trustee

 

	
   

  	
  19 January 2010

  	
   

  
	
   

  	
   

  	
  DUNDAS &
  WILSON CS LLP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Saltire Court

  
	
   

  	
   

  	
  20 Castle Terrace

  
	
   

  	
   

  	
  Edinburgh EH1 2EN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tel 0131 228 8000

  
	
   

  	
   

  	
  Fax 0131 228 8888

  
	
   

  	
   

  	
  Legal Post: LP2
  Edinburgh 6

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ref:
  DO/CLP/DEU002.0038

  

 

 

Table
of Contents

 

	
  1.

  	
  INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  OBLIGATION
  TO PAY

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.

  	
  SECURITY

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.

  	
  RULE
  3-16 LIMITATION

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.

  	
  UNDERTAKINGS

  	
  10

  
	
   

  	
   

  	
   

  
	
  6.

  	
  WARRANTIES

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.

  	
  VOTING
  RIGHTS, DIVIDENDS ETC.

  	
  12

  
	
   

  	
   

  	
   

  
	
  8.

  	
  LIABILITY
  TO PERFORM

  	
  13

  
	
   

  	
   

  	
   

  
	
  9.

  	
  ENFORCEMENT

  	
  13

  
	
   

  	
   

  	
   

  
	
  10.

  	
  APPLICATION
  OF ENFORCEMENT MONEYS

  	
  14

  
	
   

  	
   

  	
   

  
	
  11.

  	
  RECONVEYANCE

  	
  15

  
	
   

  	
   

  	
   

  
	
  12.

  	
  PROTECTION
  OF SECURITY

  	
  15

  
	
   

  	
   

  	
   

  
	
  13.

  	
  FURTHER
  ASSURANCE

  	
  17

  
	
   

  	
   

  	
   

  
	
  14.

  	
  MANDATE
  AND ATTORNEY

  	
  17

  
	
   

  	
   

  	
   

  
	
  15.

  	
  SECURITY
  TRUST AGREEMENT

  	
  17

  
	
   

  	
   

  	
   

  
	
  16.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
  18

  
	
   

  	
   

  	
   

  
	
  17.

  	
  CURRENCIES

  	
  19

  
	
   

  	
   

  	
   

  
	
  18.

  	
  MISCELLANEOUS

  	
  19

  
	
   

  	
   

  	
   

  
	
  19.

  	
  NOTICES

  	
  19

  
	
   

  	
   

  	
   

  
	
  20.

  	
  SET-OFF

  	
  20

  
	
   

  	
   

  	
   

  
	
  21.

  	
  GOVERNING
  LAW

  	
  20

  

 

SCHEDULE

Pledged Securities

 

 

SHARES PLEDGE

 

between

 

(A)                    NTL
GLASGOW
incorporated under the law of Scotland with registered number SC075177 and
having its registered office at Media House, 60 Maxwell Road, Glasgow G41 1PR
(hereinafter referred to as the  Company); and

 

(B)                      DEUTSCHE
BANK AG, LONDON BRANCH in its capacity as Security Trustee for the
Beneficiaries (hereinafter referred to as the Security Trustee).

 

CONSIDERING THAT:

 

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

 

(B)                                Virgin Media Secured Finance PLC has agreed to issue
and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

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

 

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

 

NOW IT IS HEREBY PROVIDED
AND DECLARED THAT:-

 

1.                            INTERPRETATION

 

	
  1.1                                 In this Instrument:

  
	
   

  
	
  Beneficiaries

  	
  means the First
  Beneficiary and the Second Beneficiaries;

  
	
   

  	
   

  
	
  Chargors

  	
  means each of the Original Charging Companies and
  each of the Original Charging Partnerships;

  

 

 

	
  Debenture

  	
  means the
  composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original
  Charging Companies (including the Company), the partnerships listed therein
  as the Original Charging Partnerships and Deutsche Bank AG, London Branch as
  Security Trustee for the Beneficiaries;

  
	
   

  	
   

  
	
  Default
  Rate

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

  
	
   

  	
   

  
	
  Designated
  Secured Obligations

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

  
	
   

  	
   

  
	
  Enforcement
  Date

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

  
	
   

  	
   

  
	
  Event
  of Default

  	
  means each of:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  a Senior Default;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  
	
   

  	
   

  
	
  Excluded
  Charged Assets

  	
  has the meaning
  given to such term in Clause 4.2 of this Instrument.

  
	
   

  	
   

  
	
  Existing
  Security Trustee

  	
  means Deutsche
  Bank AG, London Branch in its capacity as security trustee under the Existing
  Share Pledge.

  

 

 

	
  Existing
  Share Pledge

  	
  means the share
  pledge granted by the Company in favour of Deutsche Bank AG, London Branch in
  respect of the Pledged Securities and dated 3 March 2006.

  
	
   

  	
   

  
	
  Incapacity

  	
  means, in relation
  to any person, the insolvency, bankruptcy, liquidation, dissolution,
  winding-up, administration, receivership, amalgamation, reconstruction or
  other incapacity of that person whatsoever (and, in the case of a
  partnership, includes the termination or change in the composition of the
  partnership);

  
	
   

  	
   

  
	
  Instructing
  Party

  	
  has the meaning
  given to it in the Group Intercreditor Deed;

  
	
   

  	
   

  
	
  Indemnified
  Party

  	
  has the meaning
  set out in Clause 15.3;

  
	
   

  	
   

  
	
  Liability

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

  
	
   

  	
   

  
	
  Original
  Charging Companies

  	
  has the meaning
  given to it in the Debenture;

  
	
   

  	
   

  
	
  Original
  Charging Partnerships

  	
  has the meaning
  given to it in the Debenture;

  
	
   

  	
   

  
	
  Permitted Encumbrance

  	
  means any Encumbrance permitted under clause
  25.2 of the Senior Facilities Agreement or upon its repayment in full and
  cancellation of all undrawn commitments thereunder such equivalent provision
  in the Relevant Facilities Agreement;

  
	
   

  	
   

  
	
  Pledged Company

  	
  means CableTel Scotland Limited (registered
  number SC119938);

  
	
   

  	
   

  
	
  Pledged
  Securities

  	
  means the
  securities described in paragraph (A) of the Schedule hereto to be
  transferred, or which have been transferred pursuant to the Existing Share
  Pledge to the Security Trustee or its nominee and the securities, moneys,
  assets, rights and powers described in paragraphs (B) and (C) of
  the Schedule hereto and all other securities (if any) which are hereafter
  transferred or delivered to the Security Trustee to be held subject to the
  terms and conditions of this Instrument;

  
	
   

  	
   

  
	
  Receiver

  	
  means any receiver or administrative receiver
  appointed in respect of all or any of the Pledged Securities (whether
  pursuant to this Instrument, pursuant to any statute, by a Court or 

  

 

 

	
   

  	
  otherwise) and
  includes joint receivers;

  
	
   

  	
   

  
	
  Relevant
  Facilities Agreement

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

  
	
   

  	
   

  
	
  Rule 3-16

  	
  has the meaning
  given to such term in “Designated Secured
  Obligations”;

  
	
   

  	
   

  
	
  SEC

  	
  means the United States Securities and
  Exchange Commission;

  
	
   

  	
   

  
	
  Secured
  Obligations

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

  
	
   

  	
   

  
	
   

  	
  (a)

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  

 

 

	
   

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

  
	
   

  	
   

  
	
  Securities Act

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

  
	
   

  	
   

  
	
  Security
  Period

  	
  means the period
  beginning on the date of this Instrument and ending on the date on which all
  the Secured Obligations have been unconditionally and irrevocably paid and
  discharged in full;

  
	
   

  	
   

  
	
  Security
  Provider

  	
  means any person
  who has granted or may at any time hereafter grant any security interest on
  security for the Secured Obligations;

  
	
   

  	
   

  
	
  Security
  Trust Agreement

  	
  means the security
  trust agreement dated 3 March 2006 and amended and restated on or about
  the date of this Instrument between Deutsche Bank AG, London Branch as
  Security Trustee and as Facility Agent, Virgin Media Investment Holdings
  Limited (formerly known as NTL Investment Holdings Limited) and the companies
  named therein as Original Obligors;

  
	
   

  	
   

  
	
  Senior
  Facilities Agreement

  	
  means the senior
  facilities agreement dated 3 March 2006 (as amended and restated on 22
  May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15
  May 2008, 10 November 2008, 30 October 2009 and 8
  January 2010 and as amended, restated, supplemented or novated from time
  to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media
  Investment Holdings Limited (formerly known as NTL Investment Holdings
  Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly
  known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly
  known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P.
  Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as
  Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch
  as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch
  as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent,
  Deutsche Bank AG, London Branch as Original L/C Bank and the persons named
  therein as Lenders;

  
	
   

  	
   

  
	
  Senior
  Secured Notes

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

  

 

 

	
  Senior Secured Notes Documents

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

  
	
   

  	
   

  
	
  Senior Secured Notes Indenture

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

  

 

1.2                       Successors and assigns

 

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

 

1.3                       Agreement definitions

 

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

 

1.4                       Headings

 

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

 

1.5                      Construction
of certain terms

 

In this Instrument, 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 Instrument and references to this
Instrument include its schedules;

 

(b)                       references to (or to any
specified provision of) this Instrument or any other agreement or document shall
be construed as references to this Instrument, that provision, that agreement
or that document as in force for the time being and as from time to time
amended, supplemented, varied, extended, restated, replaced or novated in
accordance with the terms thereof, or, as the case may be, with the 

 

 

agreement of the relevant parties and (where such consent is, by the
terms of any Security Document or the relevant document, required to be
obtained as a condition to such amendment being permitted) the prior written
consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries,
an Instructing Party or all or any of the other Senior Finance Parties (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) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                           references to business in
relation to the Company means any business referred to in the definition of
Group Business in the Senior Facilities Agreement or upon its repayment in full
and cancellation of all undrawn commitments thereunder, the equivalent
provision in the Relevant Facilities Agreement, which the Company engages in,
and references to ordinary course of business shall be similarly
construed; and

 

(j)                           references in this
Instrument to a fixed security shall be construed a reference to a fixed
security as defined by Section 486 of the Act as in force at the date
hereof.

 

1.6                      Group
Intercreditor Deed

 

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

 

1.7                      Construction
of certain terms

 

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

 

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

 

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

 

 

2.                            OBLIGATION
TO PAY

 

2.1                       The Company hereby
covenants that it will on demand made on it by the Security Trustee pay to the
Security Trustee for the account of the relevant Beneficiaries any Secured
Obligation which is due and payable but unpaid.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

2.6                      Recoveries by the Company

 

If contrary to
Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or
receives or recovers any money or other property, such security, money or other
property shall be held on trust for the Security Trustee and shall be delivered
to the Security Trustee on demand.

 

3.                            SECURITY

 

3.1                       In security of the Secured Obligations the Company
hereby:

 

(a)                        pledges and assigns to the Security Trustee its
whole right, title, interest and benefit in and to the Pledged Securities
(subject to the security created by the Existing Share Pledge and by clause 3.1(b) below);
and

 

(b)                       assigns to the Security
Trustee all its rights, title, benefits and interest in and to the right of
reconveyance of the Pledged Securities created and existing under and pursuant
to the Existing Shares Pledge including, without limitation, pursuant to Clause
10 (Reconveyance) of the Existing Share Pledge.

 

3.2                       The Security Trustee hereby acknowledges that,
notwithstanding any transfer or delivery to it or its nominee or nominees ex
facie absolutely of the Pledged Securities and any registration of the
Pledged Securities in the name of the Security Trustee or any nominee(s) holding
to the order of the Security Trustee, or the custody of the documents of title
relating thereto by the Security Trustee or any such nominee(s), the Pledged
Securities are and shall truly be held by it as security for the payment of the
Secured Obligations on the terms and conditions of this Instrument.

 

3.3                       The Company hereby
intimates to the Existing Security Trustee that the Company has hereby assigned
its rights, title, benefits and interest in and to the Pledged Securities
(subject to the security created by the Existing Share Pledge) and its right,
title, benefit and interest in and to the reconveyance of the Pledged
Securities pursuant to the Existing Share Pledge including, without limitation,
pursuant to Clause 11 (Reconveyance) of the Existing Share Pledge and the
Existing Security Trustee hereby acknowledges such intimations.

 

4.                            RULE 3-16  LIMITATION

 

4.1                      Clause 3 of
this Instrument notwithstanding, the Excluded Charged Assets are not charged
under this Instrument to secure the Designated Secured Obligations. For the
avoidance of doubt,

 

(a)                        all other
Pledged Securities remain charged or assigned (as the case may be) under this
Instrument to secure all Secured Obligations, including without limitation the
Designated Secured Obligations; and

 

(b)                       such Excluded
Charged Assets remain charged under Clause 3 of this Instrument to secure any
Secured Obligations that are not Designated Secured Obligations.

 

4.2                      “Excluded Charged Assets” in relation to any
Designated Secured Obligations means any Pledged Securities or other securities
of a Subsidiary of Virgin Media Inc. (excluding the Pledged Securities or other
securities issued by Virgin Media Investments Limited or any successor entity
upon any merger, reorganisation or other 

 

 

restructuring effecting it)
that are owned by the Company to the extent that pledging or assigning such
Pledged Securities or other securities under this Instrument to secure such
Designated Secured Obligations would result in Rule 3-16 requiring
separate financial statements of such Subsidiary to be filed with the SEC, but (i) only
to the extent necessary to not be subject to such requirement, (ii) only
for so long as such requirement is in existence and (iii) only if no
member of the Group files or is otherwise required to file separate financial
statements of such Subsidiary with the SEC under a separate rule or
regulation; provided that no
shares or securities will constitute Excluded Charged Assets if any member of
the Group takes any action in the form of a reorganisation, merger or other
restructuring, a principal purpose of which is to provide for the limitation of
the pledge and/or assignment of any Pledged Securities or other securities
pursuant to Clause 4.1.

 

4.3                      In the event
that Rule 3-16 is amended, modified or interpreted by the SEC to require
(or is replaced with another rule or regulation, or any other law, rule or
regulation is adopted, which would require) the filing with the SEC (or any other
United States federal or state governmental agency) of separate financial
statements of any such Subsidiary due to the fact that such Subsidiary’s
Pledged Securities or other securities secure any Designated Secured
Obligations, then such Pledged Securities or other securities (as applicable)
of such Subsidiary shall automatically be deemed to be Excluded Charged Assets
for such Designated Secured Obligations but (i) only to the extent
necessary to not be subject to any such financial statement requirement, (ii) only
for so long as such financial statement requirement would otherwise have been
applicable to such Subsidiary and (iii) only if no member of the Group
files or is otherwise required to file separate financial statements of such
Subsidiary with the SEC or such other governmental agency under a separate rule or
regulation. If the circumstances described in this paragraph (c) apply,
this Instrument may be amended or modified, without the consent of any Senior
Finance Party, to the extent necessary to release the charge (but only to the
extent securing such Designated Secured Obligations and without prejudice to
the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour
of the Security Trustee on the relevant Pledged Securities and/or other
securities that are so deemed to constitute Excluded Charged Assets.

 

4.4                      In the event
that Rule 3-16 is amended, modified or interpreted by the SEC to permit
(or is replaced with another rule or regulation, or any other law, rule or
regulation is adopted, which would permit) such Subsidiary’s Pledged Securities
and/or other securities to secure any Designated Secured Obligations in excess
of the amount then pledged without the filing with the SEC (or any other United
States federal or state governmental agency) of separate financial statements
of such Subsidiary, then the Pledged Securities or other securities (as
applicable) of such Subsidiary will automatically be deemed not to be Excluded
Charged Assets for such Designated Secured Obligations, but limited to the
extent necessary to not be subject to any such financial statement requirement.
If the circumstances described in this paragraph 4.4 apply, this Instrument may
be amended or modified, without the consent of any Senior Finance Party, to the
extent necessary to charge in favour of the Security Trustee such additional Pledged
Securities or other securities that were deemed to constitute Excluded Charged
Assets.

 

5.                            UNDERTAKINGS

 

5.1                      The Company undertakes forthwith on release of the
Existing Share Pledge and receipt by the Company of a stock transfer form
transferring the Pledged Securities back to the Company (provided such release
and stock transfer form is received on a date during the Security Period) to
transfer to the Security Trustee or its nominees 

 

 

such of the Pledged
Securities as at the date hereof have not been so transferred and to procure
the issue and delivery of certificates representing the Pledged Securities in
the name of the Security Trustee or such nominee as appropriate and to register
the Pledged Securities in the name of the Security Trustee or its nominee (as
the Security Trustee directs) in the relevant register of members. If, as at
the date of such release of the Existing Share Pledge, the Existing Security Trustee
and the Security Trustee are the same entity, this Clause 5.1 shall not apply
and the Pledged Securities shall remain registered in the name of such entity
or any nominee(s) holding to the order thereof, provided that in such
circumstances, the Existing Security Trustee, the Security Trustee, the Company
and the Pledged Company hereby acknowledge that immediately on release of the
Existing Share Pledge, the Pledged Securities will cease to be held under the
Existing Share Pledge and will be held pursuant to the terms of this
Instrument.

 

5.2                       The Company undertakes to
deliver to the Security Trustee, within 5 Business Days of the date of the
release of the Existing Share Pledge and receipt by the Company of a stock
transfer form transferring the Pledged Securities back to the Company (provided
such release and stock transfer form is received on a date during the Security
Period), a certified true copy of the register of members of each of the
Pledged Companies evidencing the Security Trustee or its nominee as the holder
of the Pledged Securities (the “Register of Members”).
If, as at the date of such release of the Existing Share Pledge, the Existing
Security Trustee and the Security Trustee are the same entity, this Clause 5.2
shall not apply and such certified true copy of the Register of Members
delivered to the Existing Security Trustee in connection with the Existing
Share Pledge shall remain in the possession of such entity or any nominee(s) holding
to the order thereof, provided that in such circumstances, the Existing
Security Trustee, the Security Trustee, the Company and the Pledged Company
hereby acknowledge that immediately on release of the Existing Share Pledge,
the Pledged Securities will cease to be held under the Existing Share Pledge
and will be held pursuant to the terms of this Instrument.

 

5.3                       The Company shall for so
long as the security created pursuant to this Instrument is in force pay duly
and promptly all calls which may from time to time be made in respect of any
unpaid moneys under any Pledged Securities and/or any other moneys which it may
lawfully be required to pay in respect of any Pledged Securities, and in case
of default the Security Trustee may, if it thinks fit, make such payments on
behalf of the Company; it being acknowledged by the Company that neither the
Security Trustee nor any of the Beneficiaries shall in any circumstances incur
any liability whatsoever in respect of any such calls, instalments or other
moneys.

 

5.4                       Any moneys expended by the
Security Trustee under this provision shall be deemed to be properly paid by
the Security Trustee, and the Company shall reimburse the Security Trustee
within 30 days of demand together with interest at the Default Rate from the
date being 30 days after the date of demand until such repayment, both before
and after judgment.  Such moneys shall
pending reimbursement constitute a part of the Secured Obligations.

 

5.5                       If the Company at any time
defaults in complying with any of its obligations contained in this Instrument,
the Security Trustee shall, without prejudice to any other rights of the
Security Trustee arising as a consequence of such default, be entitled (but not
bound) to make good any such default and the Company hereby irrevocably
authorises the Security Trustee and its employees and agents by way of security
to do all such things necessary or reasonably desirable in connection
therewith.  Any moneys so expended by the
Security Trustee shall be repayable by the Company to the Security Trustee
within 30 days of demand together with interest at the Default 

 

 

Rate from the date being 30 days after the date of demand until such
repayment, both before and after decree or judgment.

 

6.                            WARRANTIES

 

The Company
represents and warrants to the Security Trustee that subject to this
Instrument, the Existing Share Pledge and/or implementation of the obligations
contained in either of this Instrument, the Existing Share Pledge or both of
them: (i) the Company is, and will remain, the sole beneficial owner of
and has full right and title to the Pledged Securities (comprising eight point
seven per cent (8.7%) of the issued share capital of the Pledged Company) and
the same are fully paid up and validly allotted and are free from any
Encumbrance (other than the security created by or pursuant hereto, the
Existing Share Pledge and any Permitted Encumbrance) and are not subject to any
calls or any option (save to the extent permitted under or not restricted by
each Senior Finance Document) or other third party right and (ii) the
Pledged Securities represent and will continue to represent 100% of the share
capital of each of the companies mentioned in (i) above.

 

7.                            VOTING
RIGHTS, DIVIDENDS ETC

 

7.1                      Subject to the obligations
under the Existing Share Pledge, if the Pledged Securities shall entitle the
holder thereof to rights to subscribe for any other securities, then the
Company shall do all acts and things and execute such documents (including such
deed or deeds supplemental hereto) as the Security Trustee may require so as to
effect a fixed security in favour of the Security Trustee (as trustee
aforesaid) over such Pledged Securities when issued.

 

7.2                      Until the occurrence of an
Event of Default or following the occurrence of an Event of Default but
provided the same is not continuing, the Company shall be entitled to exercise
any and all voting rights pertaining to the Pledged Securities or any part
thereof and to receive and retain any and all cash dividends, distributions,
interest and other monies paid in respect of the Pledged Securities.  While the registered holder of the Pledged
Securities, the Security Trustee shall promptly supply, and shall procure that
its nominee(s) in whose name(s) the Pledged Securities are registered
shall promptly supply, to the Company copies of all notices, circulars,
accounts and statements sent to it/them in respect of the Pledged
Securities.  If the Security Trustee
receives due notice before the proposed exercise of any such voting rights by
the Company, and if the Company is entitled hereunder to exercise such rights,
the Security Trustee shall procure its nominee to execute and deliver such
documents as the Company may reasonably require in order to enable such rights
to be so exercised, provided the Security Trustee shall be under no obligation
to comply with any such notice where compliance would in the Security Trustee’s
reasonable opinion be prejudicial to the security created by this
Instrument.  In the absence of such
notice, the voting rights attaching to the Pledged Securities shall not be
exercised except where exercisable by the Security Trustee in the circumstances
set out in Clause 7.3.  Subject to the
terms of the Senior Finance Documents, and unless the Enforcement Date has
occurred, the Security Trustee will hold all cash dividends, interest and other
moneys paid on or received by it or its nominee(s) in respect of the
Pledged Securities for the account of the Company and will pay and account for
such dividends, interest and other moneys to the Company.

 

 

7.3                       Notwithstanding any other
provision of this Instrument, this Instrument shall take effect so that:

 

7.3.1                                                   prior to the Enforcement
Date all rights attached to the Pledged Securities shall be exercisable only in
the interests of the Company in accordance with the Company’s instructions in
writing to the Security Trustee provided that the Security Trustee shall be
under no obligation to comply with any such instructions where compliance
would, in the Security Trustee’s reasonable opinion, be prejudicial to the
security created by this Instrument; and

 

7.3.2                                                   upon any enforcement of the
security created pursuant to this Instrument all rights attached to the Pledged
Securities shall be exercisable by the Security Trustee (subject to the terms
of the Existing Share Pledge) for the purpose of enforcing such security and
otherwise in accordance with Clause 7.3.1, to the intent that nothing contained
herein shall give or is intended to have the effect of giving control of the
Pledged Companies to the Security Trustee or the Beneficiaries otherwise than
on enforcement of such security.

 

7.4                       The Security Trustee may
after notifying the Company of its intention to do so, but shall not be obliged
to, pay any calls or other sums that may be or become due in respect of any of
the securities for the time being the subject of this Instrument (including,
without limitation, the Pledged Securities).

 

8.                            LIABILITY
TO PERFORM

 

It is expressly
agreed that, notwithstanding anything to the contrary herein contained, the
Company shall remain liable to observe and perform all of the conditions and
obligations assumed by it in respect of the Pledged Securities and the Security
Trustee shall be under no obligation or liability by reason of or arising out
of this Instrument.  The Security Trustee
shall not be required in any manner to perform or fulfil any obligations of the
Company in respect of the Pledged Securities.

 

9.                            ENFORCEMENT

 

9.1                       If (and only if) the
Enforcement Date has occurred then this Instrument shall become enforceable.

 

9.2                       At any time on or after the
Enforcement Date or if requested by the Company, subject to the terms of the
Existing Share Pledge, then if and for so long as the Security Trustee is, or
is entitled to be, registered as the holder of the Pledged Securities in the
register of members of the Pledged Company the security created pursuant to
this Instrument may be enforced in the following manner:

 

9.2.1                                                   the Security Trustee shall
become entitled to sell, call in, collect or convert into money its interest in
any Pledged Securities with full power on giving notice to the Company to such
effect to sell any of the same either together or in parcels and whether by
private contract or otherwise and for such consideration (whether in cash,
securities or other assets and whether deferred or not) as the Security Trustee
may think fit and with full power to buy in or rescind or vary any contract of
sale of its interest in the Pledged Securities or any part thereof and to
resell the same without being responsible for any loss which may be occasioned
thereby and with full power to compromise and effect compositions and for the
purposes

 

 

aforesaid or any of them to execute and do all such assurances and
things as it shall think fit;

 

9.2.2                                                   the Security Trustee shall
become entitled to apply all or any moneys received or held by it in respect of
the Pledged Securities in respect of the exercise of any of its rights in
relation thereto in accordance with Clause 9; and

 

9.2.3                                                   the Company shall on demand
execute all such transfers and assurances and do all such things which the
Security Trustee may require for perfecting its title to any Pledged Securities
or for vesting the same in the Security Trustee or its nominees or any
purchaser.

 

9.3                      After the occurrence of an
Event of Default and so long as the same is continuing:

 

9.3.1                                                   all rights of the Company
to exercise the voting rights which it would otherwise be entitled to exercise
and to receive the dividends and other payments which it would otherwise be
authorised to receive and retain pursuant to Clause 7.2 shall cease and if and
so long as the Security Trustee is, or is entitled to be, registered as the
holder of the Pledged Securities in the register of members of the Pledged
Company all such rights shall (subject to the Existing Share Pledge) thereupon
become vested in the Security Trustee which shall have the sole right to
exercise such voting rights and to receive and hold as Pledged Securities such
dividends and other payments; and

 

9.3.2                                                   all dividends and other
payments which are received by the Company contrary to the provisions of Clause
9.3.1 shall, if and for so long as the Security Trustee is entitled to be
registered as the holder of the Pledged Securities in the Register of Members
of the Pledged Company be received in, and be declared by the Company to be
subject to a trust for the benefit of the Security Trustee, and shall be
segregated from other funds of the Company and forthwith be paid over to the
Security Trustee,

 

to the intent that
the Security Trustee shall be entitled to exercise such rights and receive such
payments only for the purpose of protecting or enforcing the security
constituted hereby.

 

9.4                       The Security Trustee shall
incur no liability to the Company in the event of an over realisation of Pledged
Securities or any of them or from any error or omission in the administration
thereof.

 

9.5                       To the extent the Pledged Securities constitute
financial collateral and this Instrument constitutes a security financial
collateral arrangement (as defined in the Financial Collateral Arrangements (No. 2)
Regulations 2003 (SI 2003 No. 3226) at any time after the Enforcement Date
the Security Trustee (subject to the terms of the Existing Share Pledge) may
appropriate all or any part of the Pledged Securities in or towards
satisfaction of the Secured Obligations, the value of the assets so
appropriated being such amount as the Security Trustee shall determine in a
commercially reasonable manner.

 

10.                      APPLICATION
OF ENFORCEMENT MONEYS

 

All moneys received
by the Security Trustee in the exercise of any powers conferred by this
Instrument shall be applied, after the discharge of all liabilities having
priority to 

 

 

the Secured
Obligations, in or towards satisfaction of the Secured Obligations in
accordance with the terms of the Group Intercreditor Deed and the Security
Trust Agreement except that the Security Trustee may credit the same to a
suspense account for so long and in such a manner as the Security Trustee may
from time to time determine.

 

11.                      RECONVEYANCE

 

Upon the
satisfaction in full of all of the Secured Obligations and there being no
obligation on any Beneficiary to make any of the Secured Obligations available
then:

 

11.1                If the Pledged Securities
have been transferred to or remained registered in the name of the Security
Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to
Clause 16 the Security Trustee shall transfer or procure the transfer to the
Company at the Company’s expense, and the Company shall accept the transfer of,
all Pledged Securities then held by or to the order of the Security Trustee and
the Security Trustee shall co-operate in procuring the registration of such
Pledged Securities in the name of the Company or as it shall direct and the
Security Trustee shall execute and do all such other deeds, acts and things as
may be necessary to release the Pledged Securities from the security
constituted hereby; and/or

 

11.2                If the Pledged Securities
have not been transferred to or remained registered in the name of the Security
Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to
Clause 16, the Security Trustee shall reassign the property and assets assigned
to the Security Trustee, and do all such other deeds, acts and things as may be
necessary to release the Pledged Securities from the security constituted
hereby.

 

12.                      PROTECTION
OF SECURITY

 

12.1                The security created by
this Instrument shall be a continuing security notwithstanding any settlement
of account or other matter or thing whatsoever, and in particular (but without
prejudice to the generality of the foregoing) shall not be considered satisfied
by an intermediate repayment or satisfaction of part only of the Secured
Obligations, and shall continue in full force and effect until total and irrevocable
satisfaction of all the Secured Obligations.

 

12.2                The security created by
this Instrument shall be in addition to and shall not in any way prejudice or
be prejudiced by any collateral or other security, right or remedy which the
Security Trustee may now or at any time hereafter hold for all or any part of
the Secured Obligations.

 

12.3                No failure on the part of
the Security Trustee or any Beneficiary to exercise and no delay on its part in
exercising any right, remedy, power or privilege under or pursuant to this
Instrument or any other document relating to or securing all or any part of the
Secured Obligations will operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude any other or further exercise thereof
or the exercise of any other right or remedy. 
The rights and remedies provided in this Instrument and any such other
document are cumulative and not exclusive of any right or remedies provided by
law.

 

12.4                Each of the provisions in
this Instrument shall be severable and distinct from one another and if at any
time any one or more of such provisions is or becomes or is declared null and
void, invalid, illegal or unenforceable in any respect under any law or 

 

 

otherwise howsoever the validity, legality and enforceability of the
remaining provisions hereof shall not in any way be affected or impaired
thereby.

 

12.5                If the Security Trustee or
any Beneficiary receives or is deemed to be affected by notice whether actual
or constructive of any subsequent security or other interest affecting any part
of the Pledged Securities and/or the proceeds of sale thereof, the Security
Trustee or such Beneficiary may open a new account or accounts for the
Company.  If the Security Trustee or such
Beneficiary does not open a new account it shall nevertheless be treated as if
it had done so at the time when it received or was deemed to have received
notice and as from that time all payments made to the Security Trustee or such
Beneficiary shall be credited or be treated as having been credited to the new
account and shall not operate to reduce the amount for which this Instrument is
security.

 

12.6                Neither the security
created by this Instrument nor the rights, powers, discretions and remedies
conferred upon the Security Trustee by this Instrument or by law shall be
discharged, impaired or otherwise affected by reason of:

 

12.6.1                                             any present or future
security, guarantee, indemnity or other right or remedy held by or available to
the Security Trustee or any Beneficiary being or becoming wholly or in part
void, voidable or unenforceable on any ground whatsoever or by the Security
Trustee or any Beneficiary from time to time exchanging, varying, realising,
releasing or failing to perfect or enforce any of the same; or

 

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

 

12.6.3                                             any act or omission which
would not have discharged or affected the liability of the Company had it been
a principal debtor instead of cautioner or by anything done or omitted which
but for this provision might operate to exonerate the Company from the Secured
Obligations; or

 

12.6.4                                             any legal limitation,
disability, Incapacity or other similar circumstance relating to the
Company.

 

12.7                The Security Trustee shall
not be obliged, before exercising any of the rights, powers or remedies
conferred upon it by or pursuant to this Instrument or by law, to:

 

12.7.1                                             take any action or obtain
judgment or decree in any Court against the Company;

 

12.7.2                                             make or file any claim to
rank in a winding-up or liquidation of the Company; or

 

12.7.3                                             enforce or seek to enforce
any other security taken, or exercise any right or plea available to the
Security Trustee, in respect of any of the Company’s obligations under the
Security Documents other than this Instrument.

 

 

13.                      FURTHER
ASSURANCE

 

The Company shall
(provided it is permitted to do so by the Existing Security Trustee under the
Existing Share Pledge) execute and do all such assurances, acts and things as
the Security Trustee shall from time to time reasonably require for perfecting
or protecting the security created by or pursuant to this Instrument over the
Pledged Securities or, on or after the Enforcement Date, for facilitating the
realisation of such rights and the exercise of all powers, authorities and
discretions vested in the Security Trustee, and shall, in particular, on demand
forthwith sign, execute, deliver and complete all transfers, assignments,
assignations, renunciations, mandates, instructions, deeds and documents of
every kind and do or cause to be done, all acts and things of every kind which
the Security Trustee shall from time to time reasonably require by written
notice to the Company to protect or perfect the interest of the Security
Trustee under this Instrument or, subject to the terms of this Instrument (a) to
enable the Security Trustee or the nominees of the Security Trustee to exercise
any rights or powers attaching to the Pledged Securities or (b) to vest
the Pledged Securities in the Security Trustee or the nominees of the Security
Trustee or (c) to enable the Security Trustee to sell or dispose of the
Pledged Securities or otherwise to enforce or exercise any rights or powers
under or in connection with its security.

 

14.                      MANDATE
AND ATTORNEY

 

14.1                The Company by way of
security hereby irrevocably appoints the Security Trustee to be its attorney in
its name and on its behalf, subject to the terms of this Instrument;

 

14.1.1                                             to execute and complete on
or after the Enforcement Date any documents or instruments which the Security
Trustee may require for perfecting the title of the Security Trustee to the
Pledged Securities or for vesting the same in the Security Trustee, its
nominees or any purchaser;

 

14.1.2                                             to sign, execute, seal and
deliver and otherwise perfect any further security document or notice referred
to in Clause 13 in accordance with the terms thereof; and

 

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

 

14.2                The Company ratifies and
confirms and agrees to ratify and confirm all acts and things which any
attorney as is mentioned in Clause 14.1 shall properly do or purport to do in
the exercise of his powers under such Clause.

 

15.                      SECURITY
TRUST AGREEMENT

 

The Company and the
Security Trustee hereby acknowledge that the covenants of the Company contained
in this Instrument and the security and other rights, titles and interests
constituted by this Instrument and the Pledged Securities and all other moneys,
property and assets paid to the Security Trustee or held by the Security
Trustee or received or recovered by the Security Trustee pursuant to or in
connection 

 

 

with this Instrument
are held by the Security Trustee subject to and on the terms of the trusts
declared in the Security Trust Agreement.

 

16.                      INDEMNITIES;
COSTS AND EXPENSES

 

16.1                The Company binds and
obliges itself for the whole expenses of completing and enforcing the security
hereby granted and the expenses of any discharge hereof.

 

16.2                All costs, charges and
expenses incurred and all payments made by the Security Trustee hereunder in or
about the enforcement, preservation or attempted preservation of the security
created by or pursuant to this Instrument or any of the Pledged Securities
shall carry interest from the date falling 30 days after the date of demand for
payment of such expenses to the date of payment by the Company at the Default
Rate (both before and after judgment). 
The amount of all such costs, charges, expenses and payments and all
interest thereon and all remuneration payable hereunder shall be payable by the
Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and
payments shall be paid and charged as between the Security Trustee and the
Company on the basis of a full and unqualified indemnity.

 

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

 

16.3.1                                             anything done or omitted in
the exercise or purported exercise of the powers contained in this Instrument;
or

 

16.3.2                                             any breach by the Company
of any of its obligations under this Instrument; or

 

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

 

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

 

17.                       AVOIDANCE
OF PAYMENTS

 

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

 

 

payment, discharge
or satisfaction of all moneys, obligations and liabilities that are or may become
due, owing or incurred to the Security Trustee and the Beneficiaries from the
Company for such period as the Security Trustee may reasonably determine being
not longer than 13 months following the payment, discharge or satisfaction of
the Secured Obligations in full.

 

18.                      CURRENCIES

 

18.1                All moneys received or held
by the Security Trustee under this Instrument at any time on or after the
Enforcement Date in a currency other than a currency in which the Secured
Obligations are denominated may from time to time be sold for such one or more
of the currencies in which the Secured Obligations are denominated as the
Security Trustee considers necessary or desirable and the Company shall
indemnify the Security Trustee against the full Sterling cost (including all
costs, charges and expenses) properly incurred in relation to such sale.  The Security Trustee shall not have any
liability to the Company in respect of any loss resulting from any fluctuation
in exchange rates after any such sale.

 

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

 

19.                      MISCELLANEOUS

 

19.1                Subject to the provisions
of the Senior Finance Documents, the Company hereby authorises the Security
Trustee and the Beneficiaries to exchange between themselves any information
concerning the Pledged Securities unless such information is the subject of a
duty of confidentiality on the part of the Security Trustee or any Beneficiary
not to disclose such information.

 

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

 

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

 

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

 

20.                      NOTICES

 

All notices,
requests, demands and other communications to be given under this Instrument
shall be deemed to be duly given or made when delivered or despatched in
accordance with Clause 20 of the Group Intercreditor Deed.

 

 

21.                      SET-OFF

 

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

 

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

 

22.                      GOVERNING
LAW

 

This Instrument (and all non-contractual disputes arising out of it)
shall be construed and governed in all respects in accordance with the law of
Scotland. The Company hereby represents and warrants to the Security Trustee
that its choice of the law of Scotland to govern this instrument is valid and
binding.

 

23.                      CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, be
prima facie evidence of the amount of the Secured Obligations at any relevant
time and shall constitute a balance and charge against the Company, and no
suspension of a charge or of a threatened charge for payment of the balance so
constituted shall pass nor any sist of execution thereon be granted except on
consignation.  The Company consents to
the registration of this Instrument and of any such certificate for
preservation:  IN WITNESS
WHEREOF this Instrument consisting of this and the twenty two
preceding pages together with the schedule annexed hereto is executed as
follows:

 

Subscribed for and on behalf
of

NTL GLASGOW

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

Robert Mackenzie
duly authorised by

Virgin Media
Directors Limited to sign on its behalf as director

 

	
   

  	
  /s/ ROBERT
  MACKENZIE

  	
   

  

 

in the presence of:

 

	
   

  	
  /s/ SARAH COTTELL

  	
  Witness

  

 

 

	
   

  	
  Sarah Cottell

  	
  Print
  full name of Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Fried Frank

  	
  Address
  of Witness

  
	
   

  	
  99 City Road, EC1Y
  1AX

  	
   

  

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

	
   

  	
  /s/ ROBERT GALE

  	
   

  

 

in the presence of:

 

	
   

  	
  /s/ SARAH COTTELL

  	
  Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Sarah Cottell

  	
  Print
  full name of Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Fried Frank

  	
  Address
  of Witness

  
	
   

  	
  99 City Road, EC1Y
  1AX

  	
   

  

 

all together at

on

 

 

Subscribed for and
on behalf of

CABLETEL
SCOTLAND LIMITED

acting by its
directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

Robert Mackenzie
duly authorised by

Virgin Media
Directors Limited to sign on its behalf as director

 

	
   

  	
  /s/ ROBERT
  MACKENZIE

  	
   

  

 

in the presence of:

 

	
   

  	
  /s/ SARAH COTTELL

  	
  Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Sarah Cottell

  	
  Print
  full name of Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Fried Frank

  	
  Address
  of Witness

  
	
   

  	
  99 City Road, EC1Y
  1AX

  	
   

  

 

all together at

on

 

Robert Gale duly
authorised by

Virgin Media
Secretaries Limited to sign on its behalf as director

 

	
   

  	
  /s/ ROBERT GALE

  	
   

  

 

in the presence of:

 

	
   

  	
  /s/ SARAH COTTELL

  	
  Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Sarah Cottell

  	
  Print
  full name of Witness

  
	
   

  	
   

  	
   

  
	
   

  	
  Fried Frank

  	
  Address
  of Witness

  
	
   

  	
  99 City Road, EC1Y
  1AX

  	
   

  

 

all together at

on

 

 

Subscribed for and
on behalf of

DEUTSCHE
BANK AG, LONDON BRANCH as Security Trustee acting by

 

	
   

  	
  /s/ NICOLA ANNE DAWES

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Nicola Anne Dawes

  	
  Print
  full name of Authorised Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ VIKKI ANNE
  MAYELL

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Vikki Anne Mayell

  	
  Print
  full name of Authorised Signatory

  

 

all together at
London

 

on 19th January 2010

 

Subscribed for and
on behalf of

DEUTSCHE
BANK AG, LONDON BRANCH as Existing Security Trustee acting by

 

	
   

  	
  /s/ NICOLA ANNE
  DAWES

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Nicola Anne Dawes

  	
  Print
  full name of Authorised Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ VIKKI MAYELL

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Vikki Anne Mayell

  	
  Print
  full name of Authorised Signatory

  

 

all together at
LONDON

 

on 19th January 2010

 

 

This
is the Schedule referred to in the foregoing Shares Pledge by NTL Glasgow in
favour of Deutsche Bank AG, London Branch dated January 2010

 

Pledged
Securities

 

(A)                   7,977,812 fully paid
ordinary shares of £0.05 each in the capital of CableTel Scotland Limited (with
registered number SC119938);

 

(B)                     all other securities of
every kind which may at any time, whether directly or indirectly, be derived
from any kind of the said shares, whether by way of bonus, rights, exchange,
option, preference, capital re-organisation or otherwise howsoever; and

 

(C)                     where the context so
admits, all moneys (except cash dividends paid in accordance with the terms of
the Senior Finance Documents when no Event of Default has occurred and is
continuing) and assets whatsoever at any time accruing on, or payable or
receivable in respect of, any of the said shares or securities and all voting
and other rights and powers of any kind at any time attaching to, or
exercisable in respect of, any of the said shares or securities.Exhibit
4.24

 

SHARES PLEDGE

 

by

 

TELEWEST LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON
BRANCH

as Security Trustee

 

	
  19
  January 2010

  	
  DUNDAS &
  WILSON CS LLP

  
	
   

  	
   

  
	
   

  	
  Saltire Court

  
	
   

  	
  20 Castle Terrace

  
	
   

  	
  Edinburgh EH1 2EN

  
	
   

  	
   

  
	
   

  	
  Tel 0131 228 8000

  
	
   

  	
  Fax 0131 228 8888

  
	
   

  	
  Legal Post: LP2
  Edinburgh 6

  
	
   

  	
   

  
	
   

  	
  Ref:
  DO/CLP/DEU002.0038

  

 

 

Table
of Contents

 

	
  1.

  	
  INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  OBLIGATION
  TO PAY

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.

  	
  SECURITY

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.

  	
  UNDERTAKINGS

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.

  	
  WARRANTIES

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.

  	
  VOTING
  RIGHTS, DIVIDENDS ETC.

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.

  	
  LIABILITY
  TO PERFORM

  	
  13

  
	
   

  	
   

  	
   

  
	
  8.

  	
  ENFORCEMENT

  	
  13

  
	
   

  	
   

  	
   

  
	
  9.

  	
  APPLICATION
  OF ENFORCEMENT MONEYS

  	
  15

  
	
   

  	
   

  	
   

  
	
  10.

  	
  RECONVEYANCE

  	
  15

  
	
   

  	
   

  	
   

  
	
  11.

  	
  PROTECTION
  OF SECURITY

  	
  15

  
	
   

  	
   

  	
   

  
	
  12.

  	
  FURTHER
  ASSURANCE

  	
  17

  
	
   

  	
   

  	
   

  
	
  13.

  	
  MANDATE
  AND ATTORNEY

  	
  17

  
	
   

  	
   

  	
   

  
	
  14.

  	
  SECURITY
  TRUST AGREEMENT

  	
  17

  
	
   

  	
   

  	
   

  
	
  15.

  	
  INDEMNITIES;
  COSTS AND EXPENSES

  	
  18

  
	
   

  	
   

  	
   

  
	
  17.

  	
  CURRENCIES

  	
  19

  
	
   

  	
   

  	
   

  
	
  18.

  	
  MISCELLANEOUS

  	
  19

  
	
   

  	
   

  	
   

  
	
  19.

  	
  NOTICES

  	
  20

  
	
   

  	
   

  	
   

  
	
  20.

  	
  SET-OFF

  	
  20

  
	
   

  	
   

  	
   

  
	
  21.

  	
  GOVERNING
  LAW

  	
  20

  

 

SCHEDULE

Pledged Securities

 

 

SHARES PLEDGE

 

between

 

(A)      TELEWEST
LIMITED
incorporated under the laws of England and Wales with registered number 3291383
and having its registered office at 160 Great Portland Street, London W1W 5QA
(hereinafter referred to as the  Company); and

 

(B)       DEUTSCHE
BANK AG, LONDON BRANCH in its capacity as Security Trustee for the
Beneficiaries (hereinafter referred to as the Security Trustee).

 

CONSIDERING THAT:

 

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

 

(B)       Virgin Media Secured Finance PLC has agreed to issue
and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

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

 

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

 

NOW IT IS HEREBY PROVIDED
AND DECLARED THAT:-

 

1.         INTERPRETATION

 

1.1       In this Instrument:

 

	
  Beneficiaries

  	
   

  	
  means the First
  Beneficiary and the Second Beneficiaries;

  
	
   

  	
   

  	
   

  
	
  Chargors

  	
   

  	
  means each of the
  Original Charging Companies and each of the Original Charging Partnerships;

  

 

 

	
  Debenture

  	
   

  	
  means the
  composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original
  Charging Companies (including the Company), the partnerships listed therein
  as the Original Charging Partnerships and Deutsche Bank AG, London Branch as
  Security Trustee for the Beneficiaries;

  
	
   

  	
   

  	
   

  
	
  Default
  Rate

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Designated
  Secured Obligations

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Enforcement
  Date

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Event
  of Default

  	
   

  	
  means each of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  a Senior Default; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

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

  
	
   

  	
   

  	
   

  
	
  Excluded
  Charged Assets

  	
   

  	
  has the meaning
  given to such term in Clause 4.2 of this Instrument.

  
	
   

  	
   

  	
   

  
	
  Existing
  Security Trustee

  	
   

  	
  means Deutsche
  Bank AG, London Branch in its capacity as security trustee under the Existing
  Share Pledge.

  

 

 

	
  Existing
  Share Pledge

  	
   

  	
  means the share
  pledge granted by the Company in favour of Deutsche Bank AG, London Branch in
  respect of the Pledged Securities and dated 3 March 2006.

  
	
   

  	
   

  	
   

  
	
  Incapacity

  	
   

  	
  means, in relation
  to any person, the insolvency, bankruptcy, liquidation, dissolution,
  winding-up, administration, receivership, amalgamation, reconstruction or
  other incapacity of that person whatsoever (and, in the case of a
  partnership, includes the termination or change in the composition of the
  partnership);

  
	
   

  	
   

  	
   

  
	
  Instructing
  Party

  	
   

  	
  has the meaning
  given to it in the Group Intercreditor Deed;

  
	
   

  	
   

  	
   

  
	
  Indemnified
  Party

  	
   

  	
  has the meaning
  set out in Clause 15.3;

  
	
   

  	
   

  	
   

  
	
  Liability

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Original
  Charging Companies

  	
   

  	
  has the meaning
  given to it in the Debenture;

  
	
   

  	
   

  	
   

  
	
  Original
  Charging Partnerships

  	
   

  	
  has the meaning
  given to it in the Debenture;

  
	
   

  	
   

  	
   

  
	
  Permitted Encumbrance

  	
   

  	
  means any Encumbrance permitted under clause
  25.2 of the Senior Facilities Agreement or upon its repayment in full and
  cancellation of all undrawn commitments thereunder such equivalent provision
  in the Relevant Facilities Agreement;

  
	
   

  	
   

  	
   

  
	
  Pledged Company

  	
   

  	
  means Telewest Communications (Scotland
  Holdings) Limited (with registered number SC150058);

  
	
   

  	
   

  	
   

  
	
  Pledged
  Securities

  	
   

  	
  means the
  securities described in paragraph (A) of the Schedule hereto to be
  transferred, or which have been transferred pursuant to the Existing Share
  Pledge to the Security Trustee or its nominee and the securities, moneys,
  assets, rights and powers described in paragraphs (B) and (C) of
  the Schedule hereto and all other securities (if any) which are hereafter
  transferred or delivered to the Security Trustee to be held subject to the
  terms and conditions of this Instrument;

  
	
   

  	
   

  	
   

  
	
  Receiver

  	
   

  	
  means any receiver
  or administrative receiver appointed in respect of all or any of the Pledged
  Securities (whether pursuant to this Instrument, 

  

 

 

	
   

  	
   

  	
  pursuant to any
  statute, by a Court or otherwise) and includes joint receivers;

  
	
   

  	
   

  	
   

  
	
  Relevant
  Facilities Agreement

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Rule 3-16

  	
   

  	
  has the meaning
  given to such term in “Designated Secured
  Obligations”;

  
	
   

  	
   

  	
   

  
	
  SEC

  	
   

  	
  means the United States Securities and
  Exchange Commission;

  
	
   

  	
   

  	
   

  
	
  Secured
  Obligations

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  that the Security
  Trustee, acting reasonably, has not agreed to act as 

  

 

 

	
   

  	
   

  	
   

  	
  security trustee
  for,

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Securities Act

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Security
  Period

  	
   

  	
  means the period
  beginning on the date of this Instrument and ending on the date on which all
  the Secured Obligations have been unconditionally and irrevocably paid and
  discharged in full;

  
	
   

  	
   

  	
   

  
	
  Security
  Provider

  	
   

  	
  means any person
  who has granted or may at any time hereafter grant any security interest on security
  for the Secured Obligations;

  
	
   

  	
   

  	
   

  
	
  Security
  Trust Agreement

  	
   

  	
  means the security
  trust agreement dated 3 March 2006 and amended and restated on or about
  the date of this Instrument between Deutsche Bank AG, London Branch as
  Security Trustee and as Facility Agent, Virgin Media Investment Holdings
  Limited (formerly known as NTL Investment Holdings Limited) and the companies
  named therein as Original Obligors;

  
	
   

  	
   

  	
   

  
	
  Senior
  Facilities Agreement

  	
   

  	
  means the senior
  facilities agreement dated 3 March 2006 (as amended and restated on 22
  May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15
  May 2008, 10 November 2008, 30 October 2009 and 8
  January 2010 and as amended, restated, supplemented or novated from time
  to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media
  Investment Holdings Limited (formerly known as NTL Investment Holdings
  Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly
  known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly
  known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P.
  Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as
  Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch
  as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch
  as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent,
  Deutsche Bank AG, London Branch as Original L/C Bank and the persons named
  therein as Lenders;

  
	
   

  	
   

  	
   

  
	
  Senior Secured Notes

  	
   

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

  

 

 

	
  Senior Secured Notes Documents

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Senior Secured Notes Indenture

  	
   

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

  

 

1.2       Successors and assigns

 

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

 

1.3       Agreement definitions

 

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

 

1.4       Headings

 

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

 

1.5       Construction
of certain terms

 

In this Instrument, 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 Instrument and references to this
Instrument include its schedules;

 

(b)        references to (or to any
specified provision of) this Instrument or any other agreement or document
shall be construed as references to this Instrument, that provision, that
agreement or that document as in force for the time being and as from time to
time amended, supplemented, varied, extended, restated, replaced

 

 

or novated in accordance with the terms thereof, or, as the case may be,
with the agreement of the relevant parties and (where such consent is, by the
terms of any Security Document or the relevant document, required to be obtained
as a condition to such amendment being permitted) the prior written consent of
the Relevant Agent, the Security Trustee, all of the Beneficiaries, an
Instructing Party or all or any of the other Senior Finance Parties (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) of any agency, authority, central bank or government department or any
self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)         references to business in
relation to the Company means any business referred to in the definition of
Group Business in the Senior Facilities Agreement or upon its repayment in full
and cancellation of all undrawn commitments thereunder, the equivalent
provision in the Relevant Facilities Agreement, which the Company engages in,
and references to ordinary course of business shall be similarly
construed; and

 

(j)         references in this
Instrument to a fixed security shall be construed a reference to a fixed
security as defined by Section 486 of the Act as in force at the date
hereof.

 

1.6       Group
Intercreditor Deed

 

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

 

1.7       Construction
of certain terms

 

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

 

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

 

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

 

 

2.         OBLIGATION
TO PAY

 

2.1       The Company hereby
covenants that it will on demand made on it by the Security Trustee pay to the
Security Trustee for the account of the relevant Beneficiaries any Secured
Obligation which is due and payable but unpaid.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)        claim any set-off or counter-claim in respect of any such obligations or
liabilities against any other Chargor or any Security Provider or claim or
prove in competition with the Security Trustee or any of the Beneficiaries in
the bankruptcy, liquidation or administration of any other Chargor or any
Security Provider or have the benefit of, or share in, any payment from or
composition with any other Chargor or any Security Provider or any other
Security Document now or hereafter held by the Security Trustee or any of the
Beneficiaries for any obligations or liabilities of any other Chargor or any
Security Provider but so that, if so directed by the Security Trustee, it will
prove for the whole or any part of its claim in the liquidation of any other
Chargor or any Security Provider on terms that the benefit of such proof and of
all money received by it in respect thereof shall be held on trust for the
Security Trustee and applied in or towards

 

 

discharge of the Secured Obligations in
accordance with the provisions of the Group Intercreditor Deed.

 

2.6       Recoveries
by the Company

 

If contrary to
Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or
receives or recovers any money or other property, such security, money or other
property shall be held on trust for the Security Trustee and shall be delivered
to the Security Trustee on demand.

 

3.         SECURITY

 

3.1       In security of the Secured
Obligations the Company hereby:

 

(a)        pledges and assigns to the Security Trustee its whole right, title,
interest and benefit in and to the Pledged Securities (subject to the security
created by the Existing Share Pledge and by clause 3.1(b) below); and

 

(b)        assigns to the Security Trustee all its rights, title, benefits and
interest in and to the right of reconveyance of the Pledged Securities created
and existing under and pursuant to the Existing Shares Pledge including,
without limitation, pursuant to Clause 10 (Reconveyance) of the Existing Share
Pledge.

 

3.2       The Security Trustee hereby
acknowledges that, notwithstanding any transfer or delivery to it or its
nominee or nominees ex facie absolutely of the Pledged Securities and
any registration of the Pledged Securities in the name of the Security Trustee
or any nominee(s) holding to the order of the Security Trustee, or the
custody of the documents of title relating thereto by the Security Trustee or
any such nominee(s), the Pledged Securities are and shall truly be held by it
as security for the payment of the Secured Obligations on the terms and
conditions of this Instrument.

 

3.3       The Company hereby
intimates to the Existing Security Trustee that the Company has hereby assigned
its rights, title, benefits and interest in and to the Pledged Securities
(subject to the security created by the Existing Share Pledge) and its right,
title, benefit and interest in and to the reconveyance of the Pledged
Securities pursuant to the Existing Share Pledge including, without limitation,
pursuant to Clause 11 (Reconveyance) of the Existing Share Pledge and the
Existing Security Trustee hereby acknowledges such intimations.

 

4.         RULE 3-16  LIMITATION

 

4.1       Clause 3 of this Instrument
notwithstanding, the Excluded Charged Assets are not charged under this
Instrument to secure the Designated Secured Obligations. For the avoidance of
doubt,

 

(a)       all other Pledged Securities
remain charged or assigned (as the case may be) under this Instrument to secure
all Secured Obligations, including without limitation the Designated Secured
Obligations; and

 

(b)       such Excluded Charged Assets
remain charged under Clause 3 of this Instrument to secure any Secured
Obligations that are not Designated Secured Obligations.

 

 

4.2       “Excluded Charged Assets” in relation to any
Designated Secured Obligations means any Pledged Securities or other securities
of a Subsidiary of Virgin Media Inc. (excluding the Pledged Securities or other
securities issued by Virgin Media Investments Limited or any successor entity
upon any merger, reorganisation or other restructuring effecting it) that are
owned by the Company to the extent that pledging or assigning such Pledged
Securities or other securities under this Instrument to secure such Designated
Secured Obligations would result in Rule 3-16 requiring separate financial
statements of such Subsidiary to be filed with the SEC, but (i) only to
the extent necessary to not be subject to such requirement, (ii) only for
so long as such requirement is in existence and (iii) only if no member of
the Group files or is otherwise required to file separate financial statements
of such Subsidiary with the SEC under a separate rule or regulation; provided that no shares or securities will
constitute Excluded Charged Assets if any member of the Group takes any action
in the form of a reorganisation, merger or other restructuring, a principal
purpose of which is to provide for the limitation of the pledge and/or assignment
of any Pledged Securities or other securities pursuant to Clause 4.1.

 

4.3         In the event that Rule 3-16
is amended, modified or interpreted by the SEC to require (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would require) the filing with the SEC (or any other United
States federal or state governmental agency) of separate financial statements
of any such Subsidiary due to the fact that such Subsidiary’s Pledged
Securities or other securities secure any Designated Secured Obligations, then
such Pledged Securities or other securities (as applicable) of such Subsidiary
shall automatically be deemed to be Excluded Charged Assets for such Designated
Secured Obligations but (i) only to the extent necessary to not be subject
to any such financial statement requirement, (ii) only for so long as such
financial statement requirement would otherwise have been applicable to such
Subsidiary and (iii) only if no member of the Group files or is otherwise
required to file separate financial statements of such Subsidiary with the SEC
or such other governmental agency under a separate rule or regulation. If
the circumstances described in this paragraph (c) apply, this Instrument
may be amended or modified, without the consent of any Senior Finance Party, to
the extent necessary to release the charge (but only to the extent securing
such Designated Secured Obligations and without prejudice to the charge
securing Secured Obligations referred to in Clause 4.1(b)) in favour of the
Security Trustee on the relevant Pledged Securities and/or other securities
that are so deemed to constitute Excluded Charged Assets.

 

4.4         In the event that Rule 3-16
is amended, modified or interpreted by the SEC to permit (or is replaced with
another rule or regulation, or any other law, rule or regulation is
adopted, which would permit) such Subsidiary’s Pledged Securities and/or other
securities to secure any Designated Secured Obligations in excess of the amount
then pledged without the filing with the SEC (or any other United States
federal or state governmental agency) of separate financial statements of such
Subsidiary, then the Pledged Securities or other securities (as applicable) of
such Subsidiary will automatically be deemed not to be Excluded Charged Assets
for such Designated Secured Obligations, but limited to the extent necessary to
not be subject to any such financial statement requirement. If the
circumstances described in this paragraph 4.4 apply, this Instrument may be
amended or modified, without the consent of any Senior Finance Party, to the
extent necessary to charge in favour of the Security Trustee such additional Pledged
Securities or other securities that were deemed to constitute Excluded Charged
Assets.

 

 

5.         UNDERTAKINGS

 

5.1        The Company undertakes forthwith on release of the Existing Share Pledge
and receipt by the Company of a stock transfer form transferring the Pledged
Securities back to the Company (provided such release and stock transfer form
is received on a date during the Security Period) to transfer to the Security
Trustee or its nominees such of the Pledged Securities as at the date hereof
have not been so transferred and to procure the issue and delivery of
certificates representing the Pledged Securities in the name of the Security
Trustee or such nominee as appropriate and to register the Pledged Securities
in the name of the Security Trustee or its nominee (as the Security Trustee
directs) in the relevant register of members. If, as at the date of such
release of the Existing Share Pledge, the Existing Security Trustee and the
Security Trustee are the same entity, this Clause 5.1 shall not apply and the
Pledged Securities shall remain registered in the name of such entity or any
nominee(s) holding to the order thereof, provided that in such
circumstances, the Existing Security Trustee, the Security Trustee, the Company
and the Pledged Company hereby acknowledge that immediately on release of the
Existing Share Pledge, the Pledged Securities will cease to be held under the
Existing Share Pledge and will be held pursuant to the terms of this
Instrument.

 

5.2        The Company undertakes to deliver to the
Security Trustee, within 5 Business Days of the date of the release of the
Existing Share Pledge and receipt by the Company of a stock transfer form
transferring the Pledged Securities back to the Company (provided such release
and stock transfer form is received on a date during the Security Period), a
certified true copy of the register of members of each of the Pledged Companies
evidencing the Security Trustee or its nominee as the holder of the Pledged
Securities (the “Register of Members”). If, as at
the date of such release of the Existing Share Pledge, the Existing Security
Trustee and the Security Trustee are the same entity, this Clause 5.2 shall not
apply and such certified true copy of the Register of Members delivered to the
Existing Security Trustee in connection with the Existing Share Pledge shall
remain in the possession of such entity or any nominee(s) holding to the
order thereof, provided that in such circumstances, the Existing Security
Trustee, the Security Trustee, the Company and the Pledged Company hereby
acknowledge that immediately on release of the Existing Share Pledge, the
Pledged Securities will cease to be held under the Existing Share Pledge and
will be held pursuant to the terms of this Instrument.

 

5.3        The Company shall for so
long as the security created pursuant to this Instrument is in force pay duly
and promptly all calls which may from time to time be made in respect of any
unpaid moneys under any Pledged Securities and/or any other moneys which it may
lawfully be required to pay in respect of any Pledged Securities, and in case
of default the Security Trustee may, if it thinks fit, make such payments on
behalf of the Company; it being acknowledged by the Company that neither the
Security Trustee nor any of the Beneficiaries shall in any circumstances incur
any liability whatsoever in respect of any such calls, instalments or other
moneys.

 

5.4        Any moneys expended by the
Security Trustee under this provision shall be deemed to be properly paid by
the Security Trustee, and the Company shall reimburse the Security Trustee
within 30 days of demand together with interest at the Default Rate from the
date being 30 days after the date of demand until such repayment, both before
and after judgment.  Such moneys shall
pending reimbursement constitute a part of the Secured Obligations.

 

5.5        If the Company at any time
defaults in complying with any of its obligations contained in this Instrument,
the Security Trustee shall, without prejudice to any other rights of

 

 

the Security Trustee arising as a consequence of such default, be
entitled (but not bound) to make good any such default and the Company hereby
irrevocably authorises the Security Trustee and its employees and agents by way
of security to do all such things necessary or reasonably desirable in
connection therewith.  Any moneys so
expended by the Security Trustee shall be repayable by the Company to the
Security Trustee within 30 days of demand together with interest at the Default
Rate from the date being 30 days after the date of demand until such repayment,
both before and after decree or judgment.

 

6.         WARRANTIES

 

The Company represents
and warrants to the Security Trustee that subject to this Instrument, the
Existing Share Pledge and/or implementation of the obligations contained in
either of this Instrument, the Existing Share Pledge or both of them: (i) the
Company is, and will remain, the sole beneficial owner of and has full right
and title to the Pledged Securities (comprising 100 per cent of the issued
share capital of the Pledged Company) and the same are fully paid up and
validly allotted and are free from any Encumbrance (other than the security
created by or pursuant hereto, the Existing Share Pledge and any Permitted
Encumbrance) and are not subject to any calls or any option (save to the extent
permitted under or not restricted by each Senior Finance Document) or other third
party right and (ii) the Pledged Securities represent and will continue to
represent 100% of the share capital of each of the companies mentioned in (i) above.

 

7.         VOTING
RIGHTS, DIVIDENDS ETC

 

7.1        Subject to the obligations
under the Existing Share Pledge, if the Pledged Securities shall entitle the
holder thereof to rights to subscribe for any other securities, then the
Company shall do all acts and things and execute such documents (including such
deed or deeds supplemental hereto) as the Security Trustee may require so as to
effect a fixed security in favour of the Security Trustee (as trustee
aforesaid) over such Pledged Securities when issued.

 

7.2        Until the occurrence of an
Event of Default or following the occurrence of an Event of Default but provided
the same is not continuing, the Company shall be entitled to exercise any and
all voting rights pertaining to the Pledged Securities or any part thereof and
to receive and retain any and all cash dividends, distributions, interest and
other monies paid in respect of the Pledged Securities.  While the registered holder of the Pledged
Securities, the Security Trustee shall promptly supply, and shall procure that
its nominee(s) in whose name(s) the Pledged Securities are registered
shall promptly supply, to the Company copies of all notices, circulars,
accounts and statements sent to it/them in respect of the Pledged
Securities.  If the Security Trustee
receives due notice before the proposed exercise of any such voting rights by
the Company, and if the Company is entitled hereunder to exercise such rights,
the Security Trustee shall procure its nominee to execute and deliver such
documents as the Company may reasonably require in order to enable such rights
to be so exercised, provided the Security Trustee shall be under no obligation
to comply with any such notice where compliance would in the Security Trustee’s
reasonable opinion be prejudicial to the security created by this
Instrument.  In the absence of such
notice, the voting rights attaching to the Pledged Securities shall not be
exercised except where exercisable by the Security Trustee in the circumstances
set out in Clause 7.3.  Subject to the
terms of the Senior Finance Documents, and unless the Enforcement Date has
occurred, the Security Trustee will hold all cash dividends, interest and other
moneys paid on or received by it or its nominee(s) in respect of the
Pledged Securities

 

 

for the account of the Company and will pay and account for such
dividends, interest and other moneys to the Company.

 

7.3       Notwithstanding any other
provision of this Instrument, this Instrument shall take effect so that:

 

7.3.1                 prior to the Enforcement Date
all rights attached to the Pledged Securities shall be exercisable only in the
interests of the Company in accordance with the Company’s instructions in
writing to the Security Trustee provided that the Security Trustee shall be
under no obligation to comply with any such instructions where compliance
would, in the Security Trustee’s reasonable opinion, be prejudicial to the
security created by this Instrument; and

 

7.3.2                 upon any enforcement of the
security created pursuant to this Instrument all rights attached to the Pledged
Securities shall be exercisable by the Security Trustee (subject to the terms
of the Existing Share Pledge) for the purpose of enforcing such security and
otherwise in accordance with Clause 7.3.1, to the intent that nothing contained
herein shall give or is intended to have the effect of giving control of the
Pledged Companies to the Security Trustee or the Beneficiaries otherwise than
on enforcement of such security.

 

7.4       The Security Trustee may
after notifying the Company of its intention to do so, but shall not be obliged
to, pay any calls or other sums that may be or become due in respect of any of
the securities for the time being the subject of this Instrument (including,
without limitation, the Pledged Securities).

 

8.         LIABILITY
TO PERFORM

 

It is expressly
agreed that, notwithstanding anything to the contrary herein contained, the
Company shall remain liable to observe and perform all of the conditions and
obligations assumed by it in respect of the Pledged Securities and the Security
Trustee shall be under no obligation or liability by reason of or arising out
of this Instrument.  The Security Trustee
shall not be required in any manner to perform or fulfil any obligations of the
Company in respect of the Pledged Securities.

 

9.         ENFORCEMENT

 

9.1       If (and only if) the
Enforcement Date has occurred then this Instrument shall become enforceable.

 

9.2       At any time on or after the
Enforcement Date or if requested by the Company, subject to the terms of the
Existing Share Pledge, then if and for so long as the Security Trustee is, or
is entitled to be, registered as the holder of the Pledged Securities in the
register of members of the Pledged Company the security created pursuant to
this Instrument may be enforced in the following manner:

 

9.2.1                 the Security Trustee shall
become entitled to sell, call in, collect or convert into money its interest in
any Pledged Securities with full power on giving notice to the Company to such
effect to sell any of the same either together or in parcels and whether by
private contract or otherwise and for such consideration (whether in cash,
securities or other assets and whether deferred or not) as the Security Trustee
may think fit and with full power to buy in or rescind or vary any contract of
sale of its interest in the Pledged 

 

 

Securities or any part thereof and to resell the same without being
responsible for any loss which may be occasioned thereby and with full power to
compromise and effect compositions and for the purposes aforesaid or any of
them to execute and do all such assurances and things as it shall think fit;

 

9.2.2                 the Security Trustee shall
become entitled to apply all or any moneys received or held by it in respect of
the Pledged Securities in respect of the exercise of any of its rights in
relation thereto in accordance with Clause 9; and

 

9.2.3                 the Company shall on demand
execute all such transfers and assurances and do all such things which the
Security Trustee may require for perfecting its title to any Pledged Securities
or for vesting the same in the Security Trustee or its nominees or any
purchaser.

 

9.3       After the occurrence of an
Event of Default and so long as the same is continuing:

 

9.3.1                 all rights of the Company
to exercise the voting rights which it would otherwise be entitled to exercise
and to receive the dividends and other payments which it would otherwise be
authorised to receive and retain pursuant to Clause 7.2 shall cease and if and
so long as the Security Trustee is, or is entitled to be, registered as the holder
of the Pledged Securities in the register of members of the Pledged Company all
such rights shall (subject to the Existing Share Pledge) thereupon become
vested in the Security Trustee which shall have the sole right to exercise such
voting rights and to receive and hold as Pledged Securities such dividends and
other payments; and

 

9.3.2                 all dividends and other
payments which are received by the Company contrary to the provisions of Clause
9.3.1 shall, if and for so long as the Security Trustee is entitled to be
registered as the holder of the Pledged Securities in the Register of Members
of the Pledged Company be received in, and be declared by the Company to be
subject to a trust for the benefit of the Security Trustee, and shall be
segregated from other funds of the Company and forthwith be paid over to the
Security Trustee,

 

to the intent that
the Security Trustee shall be entitled to exercise such rights and receive such
payments only for the purpose of protecting or enforcing the security constituted
hereby.

 

9.4       The Security Trustee shall
incur no liability to the Company in the event of an over realisation of
Pledged Securities or any of them or from any error or omission in the
administration thereof.

 

9.5       To the extent the
Pledged Securities constitute financial collateral and this Instrument
constitutes a security financial collateral arrangement (as defined in the
Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226)
at any time after the Enforcement Date the Security Trustee (subject to the
terms of the Existing Share Pledge) may appropriate all or any part of the
Pledged Securities in or towards satisfaction of the Secured Obligations, the
value of the assets so appropriated being such amount as the Security Trustee shall
determine in a commercially reasonable manner.

 

 

10.       APPLICATION
OF ENFORCEMENT MONEYS

 

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

 

11.       RECONVEYANCE

 

Upon the
satisfaction in full of all of the Secured Obligations and there being no
obligation on any Beneficiary to make any of the Secured Obligations available
then:

 

11.1     If the Pledged Securities
have been transferred to or remained registered in the name of the Security
Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to
Clause 16 the Security Trustee shall transfer or procure the transfer to the
Company at the Company’s expense, and the Company shall accept the transfer of,
all Pledged Securities then held by or to the order of the Security Trustee and
the Security Trustee shall co-operate in procuring the registration of such
Pledged Securities in the name of the Company or as it shall direct and the
Security Trustee shall execute and do all such other deeds, acts and things as
may be necessary to release the Pledged Securities from the security
constituted hereby; and/or

 

11.2     If the Pledged Securities
have not been transferred to or remained registered in the name of the Security
Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to
Clause 16, the Security Trustee shall reassign the property and assets assigned
to the Security Trustee, and do all such other deeds, acts and things as may be
necessary to release the Pledged Securities from the security constituted
hereby.

 

12.       PROTECTION
OF SECURITY

 

12.1     The security created by
this Instrument shall be a continuing security notwithstanding any settlement
of account or other matter or thing whatsoever, and in particular (but without
prejudice to the generality of the foregoing) shall not be considered satisfied
by an intermediate repayment or satisfaction of part only of the Secured
Obligations, and shall continue in full force and effect until total and
irrevocable satisfaction of all the Secured Obligations.

 

12.2     The security created by
this Instrument shall be in addition to and shall not in any way prejudice or
be prejudiced by any collateral or other security, right or remedy which the
Security Trustee may now or at any time hereafter hold for all or any part of
the Secured Obligations.

 

12.3     No failure on the part of
the Security Trustee or any Beneficiary to exercise and no delay on its part in
exercising any right, remedy, power or privilege under or pursuant to this
Instrument or any other document relating to or securing all or any part of the
Secured Obligations will operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude any other or further exercise
thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument
and any such other document are cumulative and not exclusive of any right or
remedies provided by law.

 

 

12.4     Each of the provisions in
this Instrument shall be severable and distinct from one another and if at any
time any one or more of such provisions is or becomes or is declared null and
void, invalid, illegal or unenforceable in any respect under any law or
otherwise howsoever the validity, legality and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired thereby.

 

12.5     If the Security Trustee or
any Beneficiary receives or is deemed to be affected by notice whether actual
or constructive of any subsequent security or other interest affecting any part
of the Pledged Securities and/or the proceeds of sale thereof, the Security
Trustee or such Beneficiary may open a new account or accounts for the
Company.  If the Security Trustee or such
Beneficiary does not open a new account it shall nevertheless be treated as if
it had done so at the time when it received or was deemed to have received
notice and as from that time all payments made to the Security Trustee or such
Beneficiary shall be credited or be treated as having been credited to the new
account and shall not operate to reduce the amount for which this Instrument is
security.

 

12.6     Neither the security
created by this Instrument nor the rights, powers, discretions and remedies
conferred upon the Security Trustee by this Instrument or by law shall be
discharged, impaired or otherwise affected by reason of:

 

12.6.1               any present or future security,
guarantee, indemnity or other right or remedy held by or available to the
Security Trustee or any Beneficiary being or becoming wholly or in part void,
voidable or unenforceable on any ground whatsoever or by the Security Trustee
or any Beneficiary from time to time exchanging, varying, realising, releasing
or failing to perfect or enforce any of the same; or

 

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

 

12.6.3               any act or omission which
would not have discharged or affected the liability of the Company had it been
a principal debtor instead of cautioner or by anything done or omitted which
but for this provision might operate to exonerate the Company from the Secured
Obligations; or

 

12.6.4               any legal limitation,
disability, Incapacity or other similar circumstance relating to the
Company.

 

12.7     The Security Trustee shall
not be obliged, before exercising any of the rights, powers or remedies
conferred upon it by or pursuant to this Instrument or by law, to:

 

12.7.1               take any action or obtain
judgment or decree in any Court against the Company;

 

12.7.2               make or file any claim to
rank in a winding-up or liquidation of the Company; or

 

 

12.7.3               enforce or seek to enforce
any other security taken, or exercise any right or plea available to the
Security Trustee, in respect of any of the Company’s obligations under the
Security Documents other than this Instrument.

 

13.       FURTHER
ASSURANCE

 

The Company shall
(provided it is permitted to do so by the Existing Security Trustee under the
Existing Share Pledge) execute and do all such assurances, acts and things as
the Security Trustee shall from time to time reasonably require for perfecting
or protecting the security created by or pursuant to this Instrument over the
Pledged Securities or, on or after the Enforcement Date, for facilitating the
realisation of such rights and the exercise of all powers, authorities and
discretions vested in the Security Trustee, and shall, in particular, on demand
forthwith sign, execute, deliver and complete all transfers, assignments,
assignations, renunciations, mandates, instructions, deeds and documents of
every kind and do or cause to be done, all acts and things of every kind which
the Security Trustee shall from time to time reasonably require by written
notice to the Company to protect or perfect the interest of the Security
Trustee under this Instrument or, subject to the terms of this Instrument (a) to
enable the Security Trustee or the nominees of the Security Trustee to exercise
any rights or powers attaching to the Pledged Securities or (b) to vest
the Pledged Securities in the Security Trustee or the nominees of the Security
Trustee or (c) to enable the Security Trustee to sell or dispose of the
Pledged Securities or otherwise to enforce or exercise any rights or powers
under or in connection with its security.

 

14.       MANDATE
AND ATTORNEY

 

14.1     The Company by way of
security hereby irrevocably appoints the Security Trustee to be its attorney in
its name and on its behalf, subject to the terms of this Instrument;

 

14.1.1               to execute and complete on or after the
Enforcement Date any documents or instruments which the Security Trustee may
require for perfecting the title of the Security Trustee to the Pledged
Securities or for vesting the same in the Security Trustee, its nominees or any
purchaser;

 

14.1.2               to sign, execute, seal and deliver and
otherwise perfect any further security document or notice referred to in Clause
13 in accordance with the terms thereof; and

 

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

 

14.2     The Company ratifies and
confirms and agrees to ratify and confirm all acts and things which any
attorney as is mentioned in Clause 14.1 shall properly do or purport to do in
the exercise of his powers under such Clause.

 

15.       SECURITY
TRUST AGREEMENT

 

The Company and the
Security Trustee hereby acknowledge that the covenants of the Company contained
in this Instrument and the security and other rights, titles and 

 

 

interests
constituted by this Instrument and the Pledged Securities and all other moneys,
property and assets paid to the Security Trustee or held by the Security
Trustee or received or recovered by the Security Trustee pursuant to or in
connection with this Instrument are held by the Security Trustee subject to and
on the terms of the trusts declared in the Security Trust Agreement.

 

16.       INDEMNITIES;
COSTS AND EXPENSES

 

16.1     The Company binds and
obliges itself for the whole expenses of completing and enforcing the security
hereby granted and the expenses of any discharge hereof.

 

16.2     All costs, charges and
expenses incurred and all payments made by the Security Trustee hereunder in or
about the enforcement, preservation or attempted preservation of the security
created by or pursuant to this Instrument or any of the Pledged Securities
shall carry interest from the date falling 30 days after the date of demand for
payment of such expenses to the date of payment by the Company at the Default
Rate (both before and after judgment). 
The amount of all such costs, charges, expenses and payments and all
interest thereon and all remuneration payable hereunder shall be payable by the
Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and
payments shall be paid and charged as between the Security Trustee and the
Company on the basis of a full and unqualified indemnity.

 

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

 

16.3.1               anything done or omitted in the exercise or
purported exercise of the powers contained in this Instrument; or

 

16.3.2               any breach by the Company of any of its
obligations under this Instrument; or

 

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

 

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

 

17.       AVOIDANCE
OF PAYMENTS

 

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

 

 

Instrument
subsequently as if such release, discharge or settlement had not occurred and
any such payment had not been made.  The
Security Trustee shall be entitled to retain the security created pursuant to
this Instrument after as well as before the payment, discharge or satisfaction
of all moneys, obligations and liabilities that are or may become due, owing or
incurred to the Security Trustee and the Beneficiaries from the Company for
such period as the Security Trustee may reasonably determine being not longer
than 13 months following the payment, discharge or satisfaction of the Secured
Obligations in full.

 

18.       CURRENCIES

 

18.1     All moneys received or held
by the Security Trustee under this Instrument at any time on or after the Enforcement
Date in a currency other than a currency in which the Secured Obligations are
denominated may from time to time be sold for such one or more of the
currencies in which the Secured Obligations are denominated as the Security
Trustee considers necessary or desirable and the Company shall indemnify the
Security Trustee against the full Sterling cost (including all costs, charges
and expenses) properly incurred in relation to such sale.  The Security Trustee shall not have any
liability to the Company in respect of any loss resulting from any fluctuation
in exchange rates after any such sale.

 

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

 

19.       MISCELLANEOUS

 

19.1     Subject to the provisions
of the Senior Finance Documents, the Company hereby authorises the Security
Trustee and the Beneficiaries to exchange between themselves any information
concerning the Pledged Securities unless such information is the subject of a
duty of confidentiality on the part of the Security Trustee or any Beneficiary
not to disclose such information.

 

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

 

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

 

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

 

 

20.       NOTICES

 

All notices,
requests, demands and other communications to be given under this Instrument
shall be deemed to be duly given or made when delivered or despatched in
accordance with Clause 20 of the Group Intercreditor Deed.

 

21.       SET-OFF

 

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

 

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

 

22.       GOVERNING
LAW

 

This Instrument (and
all non-contractual disputes arising out of it) shall be construed and governed
in all respects in accordance with the law of Scotland. The Company hereby
represents and warrants to the Security Trustee that its choice of the law of
Scotland to govern this instrument is valid and binding.

 

23.       CONSENT
TO REGISTRATION

 

A Certificate signed
by an officer of the Security Trustee shall, be prima facie evidence of the
amount of the Secured Obligations at any relevant time and shall constitute a
balance and charge against the Company, and no suspension of a charge or of a
threatened charge for payment of the balance so constituted shall pass nor any
sist of execution thereon be granted except on consignation.  The Company consents to the registration of
this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF
this Instrument consisting of this and the twenty two preceding pages together
with the schedule annexed hereto is executed as follows:

 

Subscribed for and on behalf of

TELEWEST
LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS
LIMITED and VIRGIN MEDIA SECRETARIES
LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

	
   

  	
  /s/ ROBERT
  MACKENZIE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in the presence
  of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ MANOJ BHUNDIA

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Manoj Bhundia

  	
   

  	
  Print full name of
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  99 City Road,

  	
   

  	
  Address of Witness

  
	
   

  	
  London, EC1Y 1AX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at

  	
   

  	
   

  
	
   

  	
  on

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Robert Gale duly
  authorised by

  
	
   

  	
  Virgin Media
  Secretaries Limited to sign on its behalf as director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ ROBERT GALE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in the presence
  of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ MANOJ BHUNDIA

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Manoj Bhundia

  	
   

  	
  Print full name of
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  99 City Road

  	
   

  	
  Address of Witness

  
	
   

  	
  London, EC1Y 1AX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at

  	
   

  	
   

  
	
   

  	
  on

  	
   

  	
   

  

 

 

	
   

  	
  Subscribed for and
  on behalf of

  
	
   

  	
  TELEWEST
  COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

  
	
   

  	
  acting by its
  directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

  
	
   

  	
   

  
	
   

  	
  Robert Mackenzie
  duly authorised by

  
	
   

  	
  Virgin Media Directors Limited to sign on its
  behalf as director

  
	
   

  	
   

  
	
   

  	
  /s/ ROBERT
  MACKENZIE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in the presence
  of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ MANOJ BHUNDIA

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Manoj Bhundia

  	
   

  	
  Print full name of
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  99 City Road,

  	
   

  	
  Address of Witness

  
	
   

  	
  London, EC1Y 1AX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at

  	
   

  	
   

  
	
   

  	
  on

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Robert Gale duly
  authorised by

  
	
   

  	
  Virgin Media
  Secretaries Limited to sign on its behalf as director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ ROBERT GALE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in the presence
  of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ MANOJ BHUNDIA

  	
   

  	
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Manoj Bhundia

  	
   

  	
  Print full name of
  Witness

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  99 City Road,

  	
   

  	
  Address of Witness

  
	
   

  	
  London, EC1Y 1AX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at

  	
   

  	
   

  
	
   

  	
  on

  	
   

  	
   

  

 

 

	
   

  	
  Subscribed for and
  on behalf of

  
	
   

  	
  DEUTSCHE
  BANK AG, LONDON BRANCH as Security Trustee acting by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ NICOLA DAWES

  	
   

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nicola Anne Dawes

  	
   

  	
  Print full name of
  Authorised Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ VIKKI MAYELL

  	
   

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Vikki Anne Mayell

  	
   

  	
  Print full name of
  Authorised Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at
  London

  	
   

  	
   

  
	
   

  	
  on 19th January 2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subscribed for and
  on behalf of

  
	
   

  	
  DEUTSCHE
  BANK AG, LONDON BRANCH as Existing Security Trustee acting by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ NICOLA DAWES

  	
   

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nicola Anne Dawes

  	
   

  	
  Print full name of
  Authorised Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ VIKKI MAYELL

  	
   

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Vikki Anne Mayell

  	
   

  	
  Print full name of
  Authorised Signatory

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  all together at
  London

  	
   

  	
   

  
	
   

  	
  on 19th January 2010

  	
   

  	
   

  

 

 

This is the Schedule
referred to in the foregoing Shares Pledge by Telewest Limited in favour of
Deutsche Bank AG, London Branch dated January 2010

 

Pledged
Securities

 

(A)      48,236,221 fully paid
ordinary shares of £1 each in the capital of Telewest Communications (Scotland
Holdings) Limited (with registered number SC150058);

 

(B)       all other securities of
every kind which may at any time, whether directly or indirectly, be derived
from any kind of the said shares, whether by way of bonus, rights, exchange,
option, preference, capital re-organisation or otherwise howsoever; and

 

(C)       where the context so
admits, all moneys (except cash dividends paid in accordance with the terms of
the Senior Finance Documents when no Event of Default has occurred and is
continuing) and assets whatsoever at any time accruing on, or payable or
receivable in respect of, any of the said shares or securities and all voting
and other rights and powers of any kind at any time attaching to, or
exercisable in respect of, any of the said shares or securities.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]