Document:

Exhibit
4.01

EXECUTION COPY

KABEL DEUTSCHLAND GMBH

Issuer

KABEL DEUTSCHLAND
VERTRIEB UND SERVICE GMBH & CO. KG

KABEL ASSET GMBH & CO. KG

Note Guarantors

€250,000,000 10.750% Senior Notes due 2014

$610,000,000 10.625% Senior Notes due 2014

INDENTURE

Dated as of July 2, 2004

LAW DEBENTURE TRUST COMPANY OF NEW YORK

as Trustee

THE BANK OF NEW YORK (LUXEMBOURG) S.A.

as Paying Agent and Luxembourg Transfer Agent

THE BANK OF NEW YORK,

as Registrar, Transfer Agent and Paying Agent

DEUTSCHE BANK AG LONDON

as Security Trustee

 

CROSS-REFERENCE TABLE

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
  310(a)(1)

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (a)(3)

  	
   

  	
  N.A.

  
	
  (a)(4)

  	
   

  	
  N.A.

  
	
  (a)(5)

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
  7.08; 7.10

  
	
  (c)

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
  2.06

  
	
  (b)

  	
   

  	
  10.03

  
	
  (c)

  	
   

  	
  10.03

  
	
  313(a)

  	
   

  	
  7.06

  
	
  (b)

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
  7.06

  
	
  (d)

  	
   

  	
  7.06

  
	
  314(a)(1)

  	
   

  	
  4.11

  
	
  (a)(2)

  	
   

  	
  4.11

  
	
  (a)(3)

  	
   

  	
  4.11

  
	
  (a)(4)

  	
   

  	
  4.11; 4.17

  
	
  (b)

  	
   

  	
  N.A.

  
	
  (c)(1)

  	
   

  	
  10.04

  
	
  (c)(2)

  	
   

  	
  10.04

  
	
  (c)(3)

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
  10.05

  
	
  (f)

  	
   

  	
  4.03

  
	
  315(a)

  	
   

  	
  7.01

  
	
  (b)

  	
   

  	
  7.05

  
	
  (c)

  	
   

  	
  7.01

  
	
  (d)

  	
   

  	
  7.01

  
	
  (e)

  	
   

  	
  6.11

  
	
  316(a)(last sentence)

  	
   

  	
  13.06

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
  (a)(2)

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
  6.07

  
	
  317(a)(1)

  	
   

  	
  6.08

  
	
  (a)(2)

  	
   

  	
  6.09

  
	
  (b)

  	
   

  	
  2.05

  
	
  318(a)

  	
   

  	
  10.01

  

 

N.A. means Not Applicable.

Note:  This Cross-Reference
Table shall not, for any purpose, be deemed to be part of the Indenture.

 

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 1

  
	
   

  
	
  Definitions and
  Incorporation by Reference

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Other Definitions

  	
   

  	
  52

  
	
  SECTION 1.03.

  	
   

  	
  Incorporation by Reference of TIA

  	
   

  	
  54

  
	
  SECTION 1.04.

  	
   

  	
  Rules of Construction

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Securities

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Issuable in Series

  	
   

  	
  55

  
	
  SECTION 2.02.

  	
   

  	
  Form and Dating

  	
   

  	
  56

  
	
  SECTION 2.03.

  	
   

  	
  Execution and Authentication

  	
   

  	
  57

  
	
  SECTION 2.04.

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  57

  
	
  SECTION 2.05.

  	
   

  	
  Paying Agent to Hold Money in Trust

  	
   

  	
  58

  
	
  SECTION 2.06.

  	
   

  	
  Holder Lists

  	
   

  	
  59

  
	
  SECTION 2.07.

  	
   

  	
  Transfer and Exchange

  	
   

  	
  59

  
	
  SECTION 2.08.

  	
   

  	
  Replacement Securities

  	
   

  	
  60

  
	
  SECTION 2.09.

  	
   

  	
  Outstanding Securities

  	
   

  	
  60

  
	
  SECTION 2.10.

  	
   

  	
  Temporary Securities

  	
   

  	
  61

  
	
  SECTION 2.11.

  	
   

  	
  Cancellation

  	
   

  	
  61

  
	
  SECTION 2.12.

  	
   

  	
  Defaulted Interest

  	
   

  	
  61

  
	
  SECTION 2.13.

  	
   

  	
  Common Codes, CUSIP and ISIN
  Numbers

  	
   

  	
  61

  
	
  SECTION 2.14.

  	
   

  	
  Currency

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Redemption

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Notices to Trustee

  	
   

  	
  62

  
	
  SECTION 3.02.

  	
   

  	
  Selection of Securities To Be
  Redeemed or Repurchased

  	
   

  	
  63

  
	
  SECTION 3.03.

  	
   

  	
  Notice of Redemption

  	
   

  	
  63

  
	
  SECTION 3.04.

  	
   

  	
  Effect of Notice of Redemption

  	
   

  	
  64

  
	
  SECTION 3.05.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  65

  
	
  SECTION 3.06.

  	
   

  	
  Securities Redeemed in Part

  	
   

  	
  65

  
						

 

 

	
  ARTICLE 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Covenants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Payment of Securities

  	
   

  	
  65

  
	
  SECTION 4.02.

  	
   

  	
  Withholding Taxes

  	
   

  	
  65

  
	
  SECTION 4.03.

  	
   

  	
  Change of Control

  	
   

  	
  68

  
	
  SECTION 4.04.

  	
   

  	
  Special Tax Repurchase Right

  	
   

  	
  70

  
	
  SECTION 4.05.

  	
   

  	
  Limitation on Indebtedness

  	
   

  	
  72

  
	
  SECTION 4.06.

  	
   

  	
  Limitation on Restricted Payments

  	
   

  	
  79

  
	
  SECTION 4.07.

  	
   

  	
  Limitation on Liens

  	
   

  	
  86

  
	
  SECTION 4.08.

  	
   

  	
  Limitation on Restrictions on
  Distributions from Restricted Subsidiaries

  	
   

  	
  87

  
	
  SECTION 4.09.

  	
   

  	
  Limitation on Sales of Assets and
  Subsidiary Stock

  	
   

  	
  89

  
	
  SECTION 4.10.

  	
   

  	
  Limitation on
  Affiliate Transactions

  	
   

  	
  93

  
	
  SECTION 4.11.

  	
   

  	
  Reports

  	
   

  	
  96

  
	
  SECTION 4.12.

  	
   

  	
  Lines of Business

  	
   

  	
  98

  
	
  SECTION 4.13.

  	
   

  	
  Limitation on Layering

  	
   

  	
  98

  
	
  SECTION 4.14.

  	
   

  	
  Suspension of Covenants on
  Achievement of Investment Grade Status

  	
   

  	
  98

  
	
  SECTION 4.15.

  	
   

  	
  Impairment of Security Interest

  	
   

  	
  99

  
	
  SECTION 4.16.

  	
   

  	
  Additional Intercreditor Agreements

  	
   

  	
  99

  
	
  SECTION 4.17.

  	
   

  	
  Compliance Certificate

  	
   

  	
  101

  
	
  SECTION 4.18.

  	
   

  	
  Further Instruments and Acts

  	
   

  	
  101

  
	
  SECTION 4.19.

  	
   

  	
  Listing

  	
   

  	
  101

  
	
  SECTION 4.20.

  	
   

  	
  Acquisition Termination Repurchase
  Offer

  	
   

  	
  101

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Successor
  Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Merger and Consolidation

  	
   

  	
  102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Defaults and
  Remedies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Events of Default

  	
   

  	
  105

  
	
  SECTION 6.02.

  	
   

  	
  Acceleration

  	
   

  	
  107

  
	
  SECTION 6.03.

  	
   

  	
  Other Remedies

  	
   

  	
  108

  
	
  SECTION 6.04.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
  108

  
	
  SECTION 6.05.

  	
   

  	
  Control by Majority

  	
   

  	
  108

  
	
  SECTION 6.06.

  	
   

  	
  Limitation on Suits

  	
   

  	
  108

  
	
  SECTION 6.07.

  	
   

  	
  Rights of Holders to Receive
  Payment

  	
   

  	
  109

  
	
  SECTION 6.08.

  	
   

  	
  Collection Suit by Trustee

  	
   

  	
  109

  
	
  SECTION 6.09.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  109

  
							

 2
 

 

 

	
  SECTION 6.10.

  	
   

  	
  Priorities

  	
   

  	
  109

  
	
  SECTION 6.11.

  	
   

  	
  Undertaking for Costs

  	
   

  	
  110

  
	
  SECTION 6.12.

  	
   

  	
  Waiver of Stay or Extension Laws

  	
   

  	
  110

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Duties of Trustee

  	
   

  	
  110

  
	
  SECTION 7.02.

  	
   

  	
  Rights of Trustee

  	
   

  	
  112

  
	
  SECTION 7.03.

  	
   

  	
  Individual Rights of Trustee

  	
   

  	
  113

  
	
  SECTION 7.04.

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  113

  
	
  SECTION 7.05.

  	
   

  	
  Notice of Defaults

  	
   

  	
  114

  
	
  SECTION 7.06.

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  114

  
	
  SECTION 7.07.

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  114

  
	
  SECTION 7.08.

  	
   

  	
  Replacement of Trustee

  	
   

  	
  115

  
	
  SECTION 7.09.

  	
   

  	
  Successor Trustee by Merger

  	
   

  	
  116

  
	
  SECTION 7.10.

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  117

  
	
  SECTION 7.11.

  	
   

  	
  Preferential Collection of Claims
  Against Issuer

  	
   

  	
  117

  
	
  SECTION 7.12.

  	
   

  	
  Certain Provisions

  	
   

  	
  117

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discharge of
  Indenture; Defeasance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Discharge of Liability on
  Securities; Defeasance

  	
   

  	
  118

  
	
  SECTION 8.02.

  	
   

  	
  Conditions to Defeasance

  	
   

  	
  119

  
	
  SECTION 8.03.

  	
   

  	
  Application of Trust Money

  	
   

  	
  120

  
	
  SECTION 8.04.

  	
   

  	
  Repayment to Issuer

  	
   

  	
  120

  
	
  SECTION 8.05.

  	
   

  	
  Indemnity for Government
  Obligations

  	
   

  	
  121

  
	
  SECTION 8.06.

  	
   

  	
  Reinstatement

  	
   

  	
  121

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Amendments

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Without Consent of Holders

  	
   

  	
  121

  
	
  SECTION 9.02.

  	
   

  	
  With Consent of Holders

  	
   

  	
  123

  
	
  SECTION 9.03.

  	
   

  	
  Compliance with the TIA

  	
   

  	
  125

  
	
  SECTION 9.04.

  	
   

  	
  Revocation and Effect of Consents
  and Waivers

  	
   

  	
  125

  
	
  SECTION 9.05.

  	
   

  	
  Notation on or Exchange of
  Securities

  	
   

  	
  125

  
	
  SECTION 9.06.

  	
   

  	
  Trustee and Security Trustee to
  Sign Amendments

  	
   

  	
  125

  
	
  SECTION 9.07.

  	
   

  	
  Payment for Consent

  	
   

  	
  126

  
							

 3
 

 

 

	
  ARTICLE 10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Note Guarantees

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  Note Guarantees

  	
   

  	
  126

  
	
  SECTION 10.02.

  	
   

  	
  Limitation on Liability

  	
   

  	
  129

  
	
  SECTION 10.03.

  	
   

  	
  Successors and Assigns

  	
   

  	
  130

  
	
  SECTION 10.04.

  	
   

  	
  No Waiver

  	
   

  	
  130

  
	
  SECTION 10.05.

  	
   

  	
  Modification

  	
   

  	
  130

  
	
  SECTION 10.06.

  	
   

  	
  Limitation of Note Guarantee

  	
   

  	
  130

  
	
  SECTION 10.07.

  	
   

  	
  Execution of Supplemental Indenture
  for Future Note Guarantors

  	
   

  	
  131

  
	
  SECTION 10.08.

  	
   

  	
  Non-Impairment

  	
   

  	
  132

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subordination of
  the Note Guarantees

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  Agreement To Subordinate

  	
   

  	
  132

  
	
  SECTION 11.02.

  	
   

  	
  Rights of Trustee and Paying Agent

  	
   

  	
  134

  
	
  SECTION 11.03.

  	
   

  	
  Trustee To Effectuate Subordination

  	
   

  	
  134

  
	
  SECTION 11.04.

  	
   

  	
  Trustee Entitled To Rely

  	
   

  	
  135

  
	
  SECTION 11.05.

  	
   

  	
  Trustee Not Fiduciary

  	
   

  	
  135

  
	
  SECTION 11.06.

  	
   

  	
  Reliance by Holders of Note
  Guarantor Senior Indebtedness on Subordination Provisions

  	
   

  	
  135

  
	
  SECTION 11.07.

  	
   

  	
  Turnover and Application of
  Proceeds

  	
   

  	
  135

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Collateral
  Security Documents and the Security Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
   

  	
  Collateral and Security Documents

  	
   

  	
  136

  
	
  SECTION 12.02.

  	
   

  	
  Suits To Protect the Collateral

  	
   

  	
  137

  
	
  SECTION 12.03.

  	
   

  	
  Replacement of Security Trustee

  	
   

  	
  137

  
	
  SECTION 12.04.

  	
   

  	
  Amendments

  	
   

  	
  138

  
	
  SECTION 12.05.

  	
   

  	
  Release of Collateral

  	
   

  	
  138

  
	
  SECTION 12.06.

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  139

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  140

  
	
  SECTION 13.02.

  	
   

  	
  Notices

  	
   

  	
  140

  
							

 4
 

 

 

	
  SECTION 13.03.

  	
   

  	
  Communication by Holders with Other
  Holders

  	
   

  	
  141

  
	
  SECTION 13.04.

  	
   

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
   

  	
  142

  
	
  SECTION 13.05.

  	
   

  	
  Statements Required in Certificate
  or Opinion

  	
   

  	
  142

  
	
  SECTION 13.06.

  	
   

  	
  When Securities Disregarded

  	
   

  	
  142

  
	
  SECTION 13.07.

  	
   

  	
  Rules by Trustee, Paying Agent and
  Registrar

  	
   

  	
  142

  
	
  SECTION 13.08.

  	
   

  	
  Legal Holidays

  	
   

  	
  143

  
	
  SECTION 13.09.

  	
   

  	
  Governing Law

  	
   

  	
  143

  
	
  SECTION 13.10.

  	
   

  	
  Consent to Jurisdiction and Service

  	
   

  	
  143

  
	
  SECTION 13.11.

  	
   

  	
  No Recourse Against Others

  	
   

  	
  143

  
	
  SECTION 13.12.

  	
   

  	
  Successors

  	
   

  	
  143

  
	
  SECTION 13.13.

  	
   

  	
  Multiple Originals

  	
   

  	
  143

  
	
  SECTION 13.14.

  	
   

  	
  Table of Contents; Headings

  	
   

  	
  144

  
	
  Appendix A

  	
  -

  	
   

  	
  Provisions Relating to the Securities

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
   

  	
  Form of Reg. S/144A Security

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
   

  	
  Form of Exchange Global Security

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
   

  	
  Form of Definitive Security

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
   

  	
  Form of Supplemental Indenture

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
   

  	
  Form of Certificate of Transfer

  	
   

  	
   

  

 

 5

 

INDENTURE
dated as of July 2, 2004, among KABEL DEUTSCHLAND GMBH, a limited liability
company organized under the laws of Germany, (the “Issuer”
or “KDG”), KABEL DEUTSCHLAND VERTRIEB UND
SERVICE GMBH & CO. KG, a limited partnership organized under the laws of
Germany (“KDS”), KABEL ASSET GMBH & CO. KG, a
limited partnership organized under the laws of Germany (“NewKDS”
and, together with KDS, the “Note  Guarantors”), LAW DEBENTURE TRUST COMPANY OF NEW YORK, as
trustee (the “Trustee”), THE BANK OF NEW YORK (LUXEMBOURG)
S.A., as paying agent and Luxembourg transfer agent, THE BANK OF NEW YORK, a
New York banking corporation, as registrar, transfer agent and paying agent,
and DEUTSCHE BANK AG LONDON, as security trustee (the “Security
Trustee”).

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of (a) the Issuer’s euro-denominated 10.750%
Senior Notes due 2014 (the “Euro Securities”) and U.S. dollar-denominated
10.625% Senior Notes due 2014 (the “U.S. Dollar Securities”) issued on the date
hereof (collectively, the “Original Securities”),
(b) an unlimited principal amount of additional securities having identical
terms and conditions as any series of the Original Securities (the “Additional Securities”) that may be issued on any later
issue date (all such securities in clauses (a) and (b) being referred to
collectively as the “Initial Securities”),
(c) if and when issued as provided in a Registration Agreement (as defined in
Appendix A hereto), the Issuer’s euro-denominated 10.750% Senior Notes due 2014
and U.S. dollar-denominated 10.625% Senior Notes due 2014 issued in a
Registered Exchange Offer in exchange for any Initial Securities (the “Exchange Securities”) and (d) if and when issued as provided
in a Registration Agreement, the Private Exchange Securities (together with the
Initial Securities and any Exchange Securities issued hereunder, the “Securities”) issued in a Private Exchange.  Subject to the conditions and in compliance
with the covenants set forth herein, the Issuer may issue Additional
Securities.

ARTICLE 1

Definitions and Incorporation by Reference

SECTION
1.01.  Definitions.

“Acquired Indebtedness” means Indebtedness (1) of a Person or
any of its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary, or (2) assumed in connection with the acquisition of assets from
such Person, in each case whether or not Incurred by such Person in connection
with such Person becoming a Restricted Subsidiary of KDG or such acquisition or
(3) of a Person at the time such Person merges with or into or consolidates
with KDG or any Restricted Subsidiary. Acquired Indebtedness shall be deemed to
have been Incurred, with respect to clause (1) of the preceding sentence, on
the date such Person becomes a Restricted Subsidiary and, with respect to
clause (2) of the preceding sentence, on the date of consummation of such

 

acquisition of assets and, with respect to
clause (3) of the preceding sentence, on the date of the relevant merger or
consolidation.

“Acquisition” means any acquisition by KDG or any of its
Restricted Subsidiaries of a Target Group in accordance with the relevant
Acquisition Documents and when designated iesy, Ish or KBW means the
acquisition of the iesy Target, the Ish Target or the KBW Target (as the case
may be).

“Acquisition Documents” means:

(1) 
each Sale and Purchase Agreement; and

(2) 
each other document entered into by KDG or any of its Subsidiaries and a
vendor in connection with an Acquisition,

and all transfers and
other instruments made pursuant to any of them.

“Acquisition Termination Event” means any of (1) a Sale and
Purchase Agreement being rescinded or terminated, (2) the Issuer determines in
its reasonable judgment that at least one of the Acquisitions will not occur
and (3) the European Commission and/or German Federal Cartel Office or other
competent regulatory authority issuing a formal and final and non-appealable
written blocking decision relating to, or prohibiting, an Acquisition.

“Additional Assets”
means:

(1) 
any property or assets (other than Indebtedness and Capital Stock) used
or to be used by KDG or a Restricted Subsidiary, or otherwise useful in a
Similar Business (it being understood that capital expenditure on property or
assets already used in a Similar Business or to replace any property or assets
that are the subject of such Asset Disposition shall be deemed an investment in
Additional Assets);

(2) 
the Capital Stock of a Person that is engaged in a Similar Business and
becomes a Restricted Subsidiary as a result of the acquisition of such Capital
Stock by KDG or a Restricted Subsidiary of KDG; or

(3) 
Capital Stock constituting a minority interest in any Person that at
such time is a Restricted Subsidiary of KDG.

“Additional NewKDS Limited Partner” means a limited
partnership pursuant to a limited partnership agreement between KDS and a
German limited liability company in which KDS owns the sole share whereby the
Additional NewKDS Limited Partner will accede to the NewKDS partnership agreement
as an additional limited partner in NewKDS without equity interest.

“Additional NewKDS Share Pledge” means the share pledge
agreement pursuant to which the Additional NewKDS Limited Partner pledges (to
the extent

 2
 

 

pledged in favor of the lenders under the
Senior Credit Facilities) (A) its partnership interest in NewKDS.

“Additional Share Pledge” means the share pledge agreement
pursuant to which KDS pledges its limited partnership interest in the
Additional NewKDS Limited Partner together with its sole share in the general
partner of the Additional New KDS Limited Partner.

“Affiliate” of any specified Person means any other Person,
directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

“Apax Partners” means each of the various entities which
comprise the fund collectively known as Apax Europe V being at the date hereof
Apax Europe V — A, L.P., Apax Europe V — B, L.P., Apax Europe V — C, GmbH &
Co. KG L.P., Apax Europe V — D, L.P., Apax Europe V — E, L.P., Apax Europe V —
F C.V., L.P., Apax Europe V — G, C.V., Apax Europe V — 1, L.P., and Apax Europe
V — 2, L.P. and, where the context requires, the general partner or managing
limited partner of such partnerships being at the date hereof Apax Europe V GP,
L.P. or the investment manager of the partnerships being at the date hereof
Apax Partners Europe Managers Limited.

“Asset Disposition” means any direct or indirect sale, lease
(other than an operating lease entered into in the ordinary course of
business), transfer, issuance or other disposition, or a series of related
sales, leases (other than operating leases entered into in the ordinary course
of business), transfers, issuances or dispositions that are part of a common
plan, of shares of Capital Stock of a Subsidiary (other than directors’
qualifying shares), property or other assets (each referred to for the purposes
of this definition as a “disposition”) by KDG or any of its Restricted
Subsidiaries, including any disposition by means of a merger, consolidation or
similar transaction. Notwithstanding the preceding provisions of this
definition, the following items shall not be deemed to be Asset Dispositions:

(1)  a
disposition by a Restricted Subsidiary to KDG or by KDG or a Restricted
Subsidiary to a Restricted Subsidiary;

(2)  a
disposition of cash, Cash Equivalents, Temporary Cash Investments or Investment
Grade Securities;

(3)  a
disposition of inventory, trading stock, communications capacity or other
assets in the ordinary course of business;

(4)  a
disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of KDG and its Restricted Subsidiaries;

 3
 

 

(5)  transactions permitted under Section 4.12 or
a transaction that constitutes a Change of Control;

(6)  an
issuance of Capital Stock by a Restricted Subsidiary to KDG or to another
Restricted Subsidiary;

(7) 
dispositions of Capital Stock, properties or assets in a single
transaction or series of related transactions with an aggregate fair market
value in any calendar year of less than €20 million (with unused amounts in any
calendar year being carried over to the next succeeding calendar year subject
to a maximum of €10 million of carried over amounts for any calendar year);

(8) 
any Restricted Payment that is permitted to be made, and is made, under
Section 4.06 and the making of any Permitted Investment;

(9) 
dispositions in connection with Permitted Liens;

(10) 
dispositions of receivables in connection with the compromise,
settlement or collection thereof in the ordinary course of business or in
bankruptcy or similar proceedings and exclusive of factoring or similar arrangements;

(11) 
the licensing or sub licensing of intellectual property or other general
intangibles and licenses, sub licenses, leases or subleases of other property,
in each case, in the ordinary course of business;

(12) 
foreclosure, condemnation or similar action with respect to any property
or other assets;

(13) 
the sale or discount (with or without recourse, and on customary or
commercially reasonable terms) of accounts receivable or notes receivable
arising in the ordinary course of business, or the conversion or exchange of
accounts receivable for notes receivable;

(14) 
sales or dispositions of receivables in connection with any Qualified
Receivables Financing or any factoring transaction or in the ordinary course of
business;

(15) 
any financing transaction with respect to property built or acquired by
KDG or any Restricted Subsidiary after the Issue Date, including any
sale/leaseback transaction or asset securitization;

(16) 
any disposition of Capital Stock, Indebtedness or other securities of an
Unrestricted Subsidiary;

(17) 
any disposition of Capital Stock of a Restricted Subsidiary pursuant to
an agreement or other obligation with or to a Person (other than KDG or a
Restricted Subsidiary) from whom such Restricted Subsidiary was acquired, or
from whom such Restricted Subsidiary acquired its business and assets (having
been newly formed in connection with such acquisition), made as part of such
acquisition;

 4
 

 

(18)  any disposition made pursuant to, or in
connection with, the Transactions; provided that
each (a) such disposition is made for fair market value taking into account the
circumstances of such disposition (in each case, as determined by the Board of
Directors of KDG) and (b) the cash proceeds of each such disposition are
applied in accordance with Section 4.09;

(19) 
any surrender or waiver of contract rights or the settlement, release or
surrender of contract, tort or other claims of any kind; and

(20) 
any disposition of assets to a Person who is providing services related
to such assets, the provision of which have been or are to be outsourced by KDG
or any Restricted Subsidiary to such Person; provided,
however, that KDG shall provide an
Officer’s Certificate or the Board of Directors of KDG shall certify, in either
case, that in the opinion of the Officer or the Board of Directors, as
applicable, the outsourcing transaction will be economically beneficial to KDG
and its Restricted Subsidiaries (considered as a whole); provided,
further, that the fair market value of
the assets disposed of, when taken together with all other dispositions made
pursuant to this clause (20), do not exceed 5% of Total Assets.

“Bank Indebtedness” means any and all amounts, whether
outstanding on the Issue Date or Incurred after the Issue Date, payable under
or in respect of any Credit Facility and any related notes, collateral
documents, letters of credit and Guarantees and any Hedging Obligations entered
into in connection with any Credit Facility, including principal, premium, if
any, interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization at the rate specified therein
whether or not a claim for post filing interest is allowed in such
proceedings), fees, charges, expenses, reimbursement obligations, Guarantees
and all other amounts payable thereunder or in respect thereof.

“Board of Directors” means (1) with respect to KDG or any
other corporation, the members of the supervisory board (Aufsichtsrat) of the corporation or, in
the event a corporation has no supervisory board, such corporation’s board of
directors (Geschäftsführung or Vorstand);
(2) with respect to any limited partnerships (Kommanditgesellschaft),
its general partner, which is represented by such general partner’s board of
directors (Geschäftsführung or Vorstand)
where the general partner is a corporation; and (3) with respect to any other
Person, the board or committee of such Person serving a similar function.
Whenever any provision of this Indenture requires any action or determination
to be made by, or any approval of, a Board of Directors, such action,
determination or approval shall be deemed to have been taken or made if
approved by a majority of the shareholder representatives on any such Board of
Directors (whether or not such action or approval is taken as part of a formal
board meeting or as a formal board approval).

“Bridge Exchange Notes” means any notes issued in accordance
with the Bridge Facility Agreement to refinance Indebtedness Incurred under the
Bridge Facility.

 5
 

 

“Bridge Facility” means the credit facility provided under
the Bridge Facility Agreement.

“Bridge Facility Agreement” means the Amended and Restated
Bridge Credit Agreement dated on or about June 29, 2004 among, among others,
KDG, KDS and Deutsche Bank AG London, as facility agent and security agent, and
the lenders parties thereto from time to time and the related letter agreement
dated March 29, 2004 among the same parties providing for the re-allocation of
Loans and Bridge Exchange Notes into one or more tranches, in each case, as the
same may be amended, supplemented, waived or otherwise modified from time to
time or refinanced (whether in whole or in part, whether with the original
agent and lenders or otherwise, and whether provided under the original Bridge
Facility Agreement or otherwise).

“Bridge Facility Amount” means €1,575,000,000 (a) less
(without duplication) (1) the aggregate principal amount of the Securities
offered hereby and (2) the amount of any reduction in undrawn commitments under
the Bridge Facility Agreement (whether by reason of the termination of the Sale
and Purchase Agreement for an Acquisition or otherwise) and (3) the amount of
any mandatory prepayments of Indebtedness Incurred under the Bridge Facility
permanently reducing commitments thereunder (but not including mandatory
prepayments as a result of the issuance of Bridge Exchange Notes), (b) plus in
the event an Acquisition Termination Event occurs, an amount equal to the
Indebtedness Incurred under the Bridge Facility Agreement (1) in connection
with the payment of a distribution specified in Section 4.06(c)(16) and/or (2)
to repurchase Securities tendered in the Acquisition Termination Repurchase
Offer.

“Business Day” means each day that is not a Saturday, Sunday
or other day on which banking institutions in Luxembourg City, Luxembourg,
London, United Kingdom, Frankfurt, Germany or New York, New York are authorized
or required by law to close.

“Capital Stock” of any Person means any and all shares of,
rights to purchase, warrants or options for, or other equivalents of or
partnership or other interests in (however designated), equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into such equity.

“Capitalized Lease Obligations” means an obligation that is
required to be classified and accounted for as a capitalized lease for
financial reporting purposes on the basis of GAAP; provided that in no case shall the SLA Agreements constitute
Capitalized Lease Obligations or Indebtedness for any purpose under this
Indenture (other than for purposes of Section 4.07). The amount of
Indebtedness represented by such obligation will be the capitalized amount of
such obligation at the time any determination thereof is to be made as
determined on the basis of GAAP, and the Stated Maturity thereof will be the
date of the last payment of rent or any other amount due under such lease prior
to the first date such lease may be terminated without penalty.

 6
 

 

“Cash Equivalents” means:

(1)  securities issued or directly and fully
Guaranteed or insured by the United States or Canadian governments or a member
state of the European Union on January 1, 2004 or, in each case, any agency or
instrumentality of thereof (provided
that the full faith and credit of the United States, Canada or such member
state is pledged in support thereof), having maturities of not more than two
years from the date of acquisition;

(2)  certificates of deposit, time deposits,
eurodollar time deposits, overnight bank deposits or bankers’ acceptances
having maturities of not more than one year from the date of acquisition
thereof issued by any lender party to the Senior Facilities Agreement or by any
bank or trust company (a) the long-term debt of which is rated at the time of
acquisition thereof at least “A” or the equivalent thereof by S&P, or “A2”
or the equivalent thereof by Moody’s (or if at the time neither is issuing
comparable ratings, then a comparable rating of another Nationally Recognized
Statistical Rating Organization) or (b) having combined capital and surplus in
excess of €500 million;

(3)  repurchase obligations with a term of not
more than 30 days for underlying securities of the types described in clauses
(1) and (2) entered into with any bank meeting the qualifications specified in
clause (2) above;

(4)  commercial paper rated at the time of
acquisition thereof at least “A-2” or the equivalent thereof by S&P or “P-2”
or the equivalent thereof by Moody’s or carrying an equivalent rating by a
Nationally Recognized Statistical Rating Organization, if both of the two named
rating agencies cease publishing ratings of investments or, if no rating is
available in respect of the commercial paper, the issuer of which has an
equivalent rating in respect of its long-term debt, and in any case maturing
within one year after the date of acquisition thereof;

(5)  readily marketable direct obligations issued
by any state of the United States of America, any province of Canada, or any
member of the European Union or any political subdivision thereof, in each
case, having one of the two highest rating categories obtainable from either
Moody’s or S&P (or, if at the time, neither is issuing comparable ratings,
then a comparable rating of another Nationally Recognized Statistical Rating
Organization) with maturities of not more than two years from the date of
acquisition;

(6)  Indebtedness or preferred stock issued by
Persons with a rating of “A” or higher from S&P or “A2” or higher from
Moody’s (or, if at the time, neither is issuing comparable ratings, then a
comparable rating of another Nationally Recognized Statistical Rating
Organization) with maturities of 12 months or less from the date of
acquisition; and

(7)  interests in any investment company or money
market fund which invests 95% or more of its assets in instruments of the type
specified in clauses (1) through (6) above.

 7
 

 

“Change of Control” means:

(1)  KDG becomes aware of (by way of a report or
any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote,
written notice or otherwise) any “person” or “group” of related persons (as
such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other
than one or more Permitted Holders, becoming the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of
more than 50% of the total voting power of the Voting Stock of KDG (provided that for the purposes of this
clause, (x) no Change of Control shall be deemed to occur by reason of KDG
becoming a Subsidiary of a Successor Parent and (y) any Voting Stock of which
any Permitted Holder is the “beneficial owner” (as so defined) shall not in any
case be included in any Voting Stock of which any such person or group is the “beneficial
owner” (as so defined)); or

(2)  following the first Public Offering by the IPO
Entity, during any period of two consecutive years, individuals who at the
beginning of such period constituted the majority of the shareholder
representatives on the Board of Directors of the IPO Entity (together with any
new directors whose election by the majority of the shareholder representatives
on such Board of Directors of the IPO Entity, as applicable, or whose
nomination for election by shareholders of the IPO Entity, as applicable was
approved by a vote of the majority of the shareholder representatives on the
Board of Directors of the IPO Entity, as applicable, then still in office who
were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) ceased for any reason to
constitute the majority of the shareholder representatives on the Board of
Directors of the IPO Entity, as applicable, then in office; or

(3)  the sale, lease, transfer, conveyance or
other disposition (other than by way of merger, consolidation or other business
combination transaction), in one or a series of related transactions, of all or
substantially all of the assets of KDG and its Restricted Subsidiaries taken as
a whole to a Person, other than a Restricted Subsidiary or one or more
Permitted Holders.

“Clearstream” means Clearstream Banking, société anonyme as
currently in effect or any successor securities clearing agency.

“Code” means the United States Internal Revenue Code of 1986,
as amended.

“Commodity Hedging Agreements” means in respect of a Person
any commodity purchase contract, commodity futures or forward contract,
commodities option contract or other similar contract (including commodities
derivative agreements or arrangements), to which such Person is a party or a
beneficiary.

“Consolidated EBITDA” for any period means, without
duplication, the Consolidated Net Income for such period, plus the following to
the extent deducted in calculating such Consolidated Net Income:

 8
 

 

(1)          Consolidated Interest Expense and
Receivables Fees;

(2)          Consolidated Income Taxes;

(3)          consolidated depreciation expense;

(4)          consolidated amortization expense;

(5)          any expenses, charges or other costs
related to any Equity Offering, Investment, acquisition (including amounts paid
in connection with the acquisition or retention of one or more individuals
comprising part of a management team retained to manage the acquired business, provided that such payments are made at
the time of such acquisition and are consistent with the customary practice in
the industry at the time of such acquisition), disposition, recapitalization or
the Incurrence of any Indebtedness permitted by this Indenture (whether or not
successful) (including any such fees, expenses or charges related to the
Original Acquisition or any Acquisition (including any expenses in connection
with related due diligence activities)), in each case, as determined in good
faith by an Officer of KDG and without duplication of any amounts excluded
under clause (4) of the definition of “Consolidated Net Income”;

(6)          any minority interest expense
consisting of income attributable to minority equity interests of third parties
in such period or any prior period, except to the extent of dividends declared
or paid on, or other cash payments in respect of Capital Stock held by such third
parties; and

(7)          other non-cash charges reducing
Consolidated Net Income (excluding any such non-cash charge to the extent it
represents an accrual of or reserve for cash charges in any future period) less
other non-cash items of income increasing Consolidated Net Income (excluding
any such non-cash item of income to the extent it represents a receipt of cash
in any future period).

Notwithstanding the
foregoing, the provision for taxes and the depreciation, amortization and
non-cash items of a Restricted Subsidiary shall be added to Consolidated Net
Income to compute Consolidated EBITDA only to the extent (and in the same
proportion, including by reason of minority interests) that the net income of
such Restricted Subsidiary was included in calculating Consolidated Net Income
and only if a corresponding amount would be permitted at the date of
determination to be distributed to KDG by such Restricted Subsidiary without
prior approval (that has not been obtained), pursuant to the terms of its
charter and all agreements, instruments, judgments, decrees, orders, statutes,
governmental rules and regulations applicable to such Restricted Subsidiary or
its shareholders (other than any restriction specified in sub-clauses (a)
through (f) of clause (2) of the definition of “Consolidated Net Income”).

For the purposes
of calculating Consolidated Net Income, Consolidated EBITDA and the
Consolidated Leverage Ratio for the fiscal quarter in which any Acquisition
occurs and for each of the four full fiscal quarters ending after the closing
date of such Acquisition, the results of the relevant Target Group will be
included as follows: (a) if calculated during the quarter in which the relevant
Acquisition occurs, the results of such Target Group for the quarter ended immediately
prior to the quarter in which such Acquisition occurs multiplied by 4; (b) if
calculated during the first quarter after the quarter in which such Acquisition
occurs, the

 9
 

 

results of such
Target Group for the quarter in which such Acquisition occurs multiplied by 4;
(c) if calculated during the second quarter after the quarter in which such
Acquisition occurs, the results of such Target Group for the first quarter
after the quarter in which such Acquisition occurs multiplied by 4; (d) if
calculated during the third quarter after the quarter in which such Acquisition
occurs, the results of such Target Group for the first two quarters after the
quarter in which such Acquisition occurs multiplied by 2; and (e) if calculated
during the fourth quarter after the quarter in which such Acquisition occurs,
the results of such Target Group for the first three quarters after the quarter
in which such Acquisition occurs multiplied by 4/3.

“Consolidated Income Taxes” means taxes or other payments,
including deferred Taxes, based on income, profits or capital of any of KDG and
its Restricted Subsidiaries whether or not paid, estimated, accrued or required
to be remitted to any governmental authority.

“Consolidated Interest Expense” means, for any period, the
sum, without duplication, of the following (in each case, determined on the
basis of GAAP) the consolidated net interest income/expense of KDG and its
Restricted Subsidiaries, whether paid or accrued, including any such interest
and charges consisting of:

(1)  interest expense attributable to Capitalized
Lease Obligations;

(2)  amortization of debt discount and debt
issuance cost;

(3)  non-cash interest expense;

(4)  commissions, discounts and other fees and
charges owed with respect to financings not included in clause (2) above;

(5)  costs associated with Hedging Obligations;

(6)  dividends on other distributions in respect
of all Disqualified Stock of KDG and all Preferred Stock of any Restricted
Subsidiary, to the extent held by Persons other than KDG or a subsidiary of
KDG;

(7)  the consolidated interest expense that was
capitalized during such period; and

(8)  interest actually paid by KDG on any
Restricted Subsidiary, under any Guarantee of Indebtedness or other obligation
of any other Person.

“Consolidated Leverage” means the sum of the aggregate
outstanding Indebtedness of KDG and its Restricted Subsidiaries (excluding
Hedging Obligations except to the extent provided in Section 4.05(g)(3))
as of the relevant date of calculation on a consolidated basis on the basis of
GAAP.

 10
 

 

“Consolidated Leverage Ratio” means, as of any date of
determination, the ratio of (x) Consolidated Leverage at such date to (y) the
aggregate amount of Consolidated EBITDA for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which internal consolidated financial statements of KDG are available; provided, however,
that for the purposes of calculating Consolidated EBITDA for such period, if,
as of such date of determination:

(1)  since the beginning of such period KDG or any
Restricted Subsidiary has disposed of any company, any business, or any group
of assets constituting an operating unit of a business (any such disposition, a
“Sale”) or if the transaction giving rise to the need to calculate the
Consolidated Leverage Ratio is such a Sale, Consolidated EBITDA for such period
will be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the assets which are the subject of such Sale for such period or
increased by an amount equal to the Consolidated EBITDA (if negative)
attributable thereto for such period;

(2)  since the beginning of such period KDG or any
Restricted Subsidiary (by merger or otherwise) has made an Investment in any
Person that thereby becomes a Restricted Subsidiary, or otherwise has acquired
any company, any business, or any group of assets constituting an operating
unit of a business (any such Investment or acquisition, a “Purchase”),
including any such Purchase occurring in connection with a transaction causing
a calculation to be made hereunder, Consolidated EBITDA for such period will be
calculated after giving pro forma effect thereto as if such Purchase occurred
on the first day of such period; and

(3)  since the beginning of such period any Person
(that became a Restricted Subsidiary or was merged or otherwise combined with
or into KDG or any Restricted Subsidiary since the beginning of such period)
will have made any Sale or any Purchase that would have required an adjustment pursuant
to clause (1) or (2) above if made by KDG or a Restricted Subsidiary since the
beginning of such period, Consolidated EBITDA for such period will be
calculated after giving pro forma effect thereto as if such Sale or Purchase
occurred on the first day of such period.

For purposes of this
definition, (a) whenever pro forma effect is to be given to any transaction or
calculation under this definition, the pro forma calculations will be as
determined in good faith by a responsible financial or accounting officer of
KDG (including in respect of anticipated expense and cost reductions and
synergies) and (b) in determining the amount of Indebtedness outstanding on any
date of determination, pro forma effect shall be given to any Incurrence,
repayment, repurchase, defeasance or other acquisition, retirement or discharge
of Indebtedness on such date.

“Consolidated Net Income” means, for any period, net income
(loss) of KDG and its Restricted Subsidiaries determined on a consolidated
basis on the basis of GAAP; provided,
however, that there will not be
included in such Consolidated Net Income:

 11
 

 

(1)  subject to the limitations contained in
clause (3) below, any net income (loss) of any Person if such Person is not a
Restricted Subsidiary, except that KDG’s equity in the net income of any such
Person for such period will be included in such Consolidated Net Income up to
the aggregate amount of cash or Cash Equivalents actually distributed by such
Person during such period to KDG or a Restricted Subsidiary as a dividend or
other distribution or return on investment (subject, in the case of a dividend
or other distribution or return on investment to a Restricted Subsidiary, to
the limitations contained in clause (2) below);

(2)  any net income (loss) of any Restricted
Subsidiary if such Subsidiary is subject to restrictions, directly or
indirectly, on the payment of dividends or the making of distributions by such
Restricted Subsidiary, directly or indirectly, to KDG by operation of the terms
of such Restricted Subsidiary’s charter or any agreement, instrument, judgment,
decree, order, statute or governmental rule or regulation applicable to such
Restricted Subsidiary or its shareholders (other than (a) restrictions that
have been waived or otherwise released, (b) restrictions pursuant to the
Securities or this Indenture, (c) restrictions pursuant to the Bridge Facility
Agreement, Bridge Exchange Notes or Take-Out Securities, (d) restrictions in
effect on the Issue Date with respect to a Restricted Subsidiary (including pursuant
to the Senior Facilities Agreement and the Bridge Facility Agreement) and other
restrictions with respect to such Restricted Subsidiary that taken as a whole
are not materially less favorable to the Holders than such restrictions in
effect on the Issue Date, (e) restrictions specified in Section 4.08(b)(11) and
(f) with respect to any Target and its Subsidiaries, restrictions in effect on
the closing date of the applicable Acquisition that taken as a whole are not
materially less favorable to the Holders than the restrictions in effect on the
Issue Date with respect to the Restricted Subsidiaries of KDG; except that
KDG’s equity in the net income of any such Restricted Subsidiary for such
period will be included in such Consolidated Net Income up to the aggregate
amount of cash or Cash Equivalents actually distributed or that could have been
distributed by such Restricted Subsidiary during such period to KDG or another
Restricted Subsidiary as a dividend or other distribution (subject, in the case
of a dividend to another Restricted Subsidiary, to the limitation contained in
this clause);

(3)  any net gain (or loss) realized upon the sale
or other disposition of any asset or disposed operations of KDG or any
Restricted Subsidiaries (including pursuant to any sale/leaseback transaction)
which is not sold or otherwise disposed of in the ordinary course of business
(as determined in good faith by an Officer or the Board of Directors of KDG);

(4)  any extraordinary, exceptional, unusual or
non-recurring gain, loss or charge or any charges in respect of any
restructuring, redundancy or severance or any charges or payments to DTAG in
connection with employees made redundant or any expenses, charges or other
costs related to the Transactions;

(5)  the cumulative effect of a change in
accounting principles;

(6)  any non-cash compensation charge arising from
any grant of stock, stock options or other equity based awards;

 12
 

 

(7)  all deferred financing costs
written off and premiums paid in connection with any early extinguishment of
Indebtedness and any net gain (loss) from any write-off or forgiveness of
Indebtedness;

(8)  any unrealized gains or losses in respect of
Hedging Obligations or, in the event GAAP means U.S. GAAP or IFRS, any
ineffectiveness recognized in earnings related to qualifying hedge transactions
or the fair value or changes therein recognized in earnings for derivatives
that do not qualify as hedge transactions in each case, in respect of Hedging
Obligations;

(9)  any unrealized foreign currency transaction
gains or losses in respect of Indebtedness of any Person denominated in a
currency other than the functional currency of such Person;

(10)  any unrealized foreign currency translation
or transaction gains or losses in respect of Indebtedness or other obligations
of KDG or any Restricted Subsidiary owing to KDG or any Restricted Subsidiary;

(11)  any one-time non-cash charges or increases in
amortization or depreciation resulting from purchase accounting, in each case,
in relation to any acquisition of another Person or business, including the
Original Acquisition and any Acquisition;

(12)  any goodwill or other intangible asset
impairment charge; and

(13)  the impact of capitalized interest on
Subordinated Shareholder Funding.

“Contingent Additional Partner Claim Pledge” means the pledge
agreement pursuant to which the Additional NewKDS Limited Partner pledges any
potential compensation claim it may have for compensation against the
partnership pursuant to the partnership agreement in the event that it
discontinues to be a partner in NewKDS.

“Contingent Claim Pledge” means a pledge agreement pursuant
to which KDS (to which KDG will be the successor following the Step-Up) pledges
any potential compensation claims it may have for compensation under the
relevant partnership agreement in the event that it discontinues to be a
partner in NewKDS or in the Additional NewKDS Limited Partner.

“Contingent Obligations” means, with respect to any Person,
any obligation of such Person guaranteeing in any manner, whether directly or
indirectly, any operating lease, dividend or other obligation that does not
constitute Indebtedness (“primary obligations”) of any other Person (the “primary
obligor”), including any obligation of such Person, whether or not contingent:

(1)  to purchase any such primary obligation or
any property constituting direct or indirect security therefor;

 13

 

(2)  to advance or supply funds:

(A)  for the
purchase or payment of any such primary obligation; or

(B)  to maintain
the working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor; or

(3)  to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation against loss in respect thereof.

“Credit Facility” means, with respect to KDG, one or more
debt facilities or arrangements (including the Senior Facilities Agreement, the
Bridge Facility or commercial paper facilities) with banks or other
institutions providing for revolving credit loans, term loans, receivables
financing (including through the sale of receivables to such institutions or to
special purpose entities formed to borrow from such institutions against such
receivables), letters of credit or other Indebtedness, in each case, as
amended, restated, modified, renewed, refunded, replaced, restructured,
refinanced, repaid, increased or extended in whole or in part from time to time
(and whether in whole or in part and whether or not with the original
administrative agent and lenders or another administrative agent or agents or
other banks or institutions and whether provided under the original Senior
Facilities Agreement, the original Bridge Facility or one or more other credit
or other agreements, indentures, financing agreements or otherwise) and in each
case including all agreements, instruments and documents executed and delivered
pursuant to or in connection with the foregoing (including any notes and
letters of credit issued pursuant thereto and any Guarantee and collateral
agreement, patent and trademark security agreement, mortgages or letter of
credit applications and other Guarantees, pledges, agreements, security
agreements and collateral documents). Without limiting the generality of the
foregoing, the term “Credit Facility” shall include any agreement or instrument
(1) changing the maturity of any Indebtedness Incurred thereunder or
contemplated thereby, (2) adding Subsidiaries of KDG as additional borrowers or
guarantors thereunder, (3) increasing the amount of Indebtedness Incurred thereunder
or available to be borrowed thereunder or (4) otherwise altering the terms and
conditions thereof.

“Currency Agreement” means in respect of a Person any foreign
exchange contract, currency swap agreement, currency futures contract, currency
option contract, currency derivative or other similar agreement to which such
Person is a party or beneficiary.

“Default” means any event which is, or after notice or
passage of time or both would be, an Event of Default.

“Designated Amount” means €750,000,000 minus €275,000,000
minus:

(i)  if the iesy Acquisition is completed,
€137,000,000;

 

 14
 

 

(ii)  if the Ish
Acquisition is completed, €387,000,000; and

(iii)  if the
KBW Acquisition is completed, €226,000,000;

provided,
however, that, in the event that (a) some but not all of the
Acquisitions are completed and (b) the total aggregate purchase price paid is
less than €1,400 million, in the case of ish, €815.6 million, in the case of
KBW, or €494.3 million, in the case of iesy (each, an “Original Purchase Price”),
then the amount set forth in clause (i), (ii) or (iii) above, as applicable,
shall be reduced by the amount that the purchase price paid is less than the
applicable Original Purchase Price.

“Designated Non-Cash Consideration” means the fair market
value (as determined in good faith by KDG) of non-cash consideration received
by KDG or one of its Restricted Subsidiaries in connection with an Asset
Disposition that is so designated as Designated Non-Cash Consideration pursuant
to an Officer’s Certificate, setting forth the basis of such valuation, less
the amount of cash, Cash Equivalents or Temporary Cash Investments received in
connection with a subsequent payment, redemption, retirement, sale or other
disposition of such Designated Non-Cash Consideration. A particular item of
Designated Non-Cash Consideration will no longer be considered to be
outstanding when it has been paid, redeemed or otherwise retired or sold or
otherwise disposed of in compliance with Section 4.09.

“Designated Preference Shares” means, with respect to KDG or
any Parent, Preferred Stock (other than Disqualified Stock) (a) that is issued
for cash (other than to KDG or a Subsidiary of KDG or an employee stock
ownership plan or trust established by KDG or any such Subsidiary for the
benefit of their employees to the extent funded by KDG or such Subsidiary) and
(b) that is designated as “Designated Preference Shares” pursuant to an Officer’s
Certificate of KDG at or prior to the issuance thereof, the Net Cash Proceeds
of which are excluded from the calculation set forth in
Section 4.06(a)(4)(c)(ii).

“Designated Senior Indebtedness” means (1) any Note Guarantor
Senior Indebtedness that has, at the time of designation, an aggregate
principal amount outstanding of at least €25 million (including the amount of
all undrawn commitments and matured and contingent reimbursement obligations
pursuant to letters of credit thereunder) that is designated in a notice
delivered by a representative of the holders of such Note Guarantor Senior
Indebtedness to the Trustee and in an Officer’s Certificate delivered to the
Trustee as “Designated Senior Indebtedness” for purposes of this Indenture, and
(2) all Indebtedness arising under the Senior Facilities Agreement.

“Disinterested Director” means, with respect to any Affiliate
Transaction, a member of the Board of Directors of KDG having no material
direct or indirect financial interest in or with respect to such Affiliate
Transaction. A member of the Board of Directors of KDG shall not be deemed to
have such a financial interest by reason of such member’s holding Capital Stock
of KDG or any Parent or any options, warrants or other rights in respect of
such Capital Stock.

 15
 

 

“Disqualified Stock” means, with respect to any Person, any
Capital Stock of such Person which by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable) or upon
the happening of any event:

(1)  matures or is mandatorily redeemable for cash
or in exchange for Indebtedness pursuant to a sinking fund obligation or
otherwise;

(2)  is convertible or exchangeable for
Indebtedness or Disqualified Stock (excluding Capital Stock which is
convertible or exchangeable solely at the option of KDG or a Restricted
Subsidiary); or

(3)  is or may become (in accordance with its
terms) upon the occurrence of certain events or otherwise redeemable or
repurchasable for cash or in exchange for Indebtedness at the option of the
holder of the Capital Stock in whole or in part,

in each case on or
prior to the earlier of (a) the Stated Maturity of the Securities or (b) the
date on which there are no Securities outstanding; provided, however,
that (i) only the portion of Capital Stock which so matures or is mandatorily
redeemable, is so convertible or exchangeable or is so redeemable at the option
of the holder thereof prior to such date will be deemed to be Disqualified
Stock and (ii) any Capital Stock that would constitute Disqualified Stock
solely because the holders thereof have the right to require KDG to repurchase
such Capital Stock upon the occurrence of a change of control or asset sale
(howsoever defined or referred to) shall not constitute Disqualified Stock if
any such redemption or repurchase obligation is subject to compliance by the
relevant Person with Section 4.06.

“DTAG” means Deutsche Telekom AG and its Affiliates.

“DTC” means The Depository Trust Company or any successor
securities clearing agency.

“Enforcement Sale” means (1) any sale or disposition of the
Collateral pursuant to enforcement action taken by the Security Trustee in
accordance with the provisions of the Intercreditor Agreement, including on
behalf of the Senior Indebtedness Incurred under the Senior Facilities
Agreement, to the extent such sale or disposition is effected in compliance
with the provisions of the Intercreditor Agreement, or (2) any sale or
disposition of the Collateral pursuant to the enforcement of security in favor
of other Senior Indebtedness of KDG or its Restricted Subsidiaries which
complies with the terms of an Additional Intercreditor Agreement (or if there
is no such intercreditor agreement, would substantially comply with the
requirements of clause (1) hereof).

“Equity Offering” means a sale of Capital Stock (x) that is a
sale of Capital Stock of KDG (other than Disqualified Stock) other than
offerings registered on Form S-8 (or any successor form) under the Securities
Act or any similar offering in other jurisdictions, or (y) the proceeds of
which are contributed as Subordinated Shareholder Funding or to the equity
(other than through the issuance of Disqualified Stock or Designated Preference
Shares or through an Excluded Contribution) of KDG or any of its Restricted
Subsidiaries.

 16
 

 

“Escrowed Proceeds” means the proceeds from the offering of
any high yield debt securities paid into an escrow account with an independent
escrow agent on the date of the applicable offering pursuant to escrow
arrangements that permit the release of amounts on deposit in such escrow
account upon satisfaction of certain conditions or the occurrence of certain
events. The term “Escrowed Proceeds” shall include any interest earned on the
amounts held in escrow.

“Euroclear” means Euroclear Bank S.A./N.V., as operator of
the Euroclear Clearance System as currently in effect or any successor
securities clearing agency.

“Euro Equivalent” means, with respect to any monetary amount
in a currency other than euro, at any time of determination thereof by KDG or
the Trustee, the amount of euro obtained by converting such currency other than
euro involved in such computation into euro at the spot rate for the purchase
of euro with the applicable currency other than euro as published in The Financial Times in the “Currency Rates”
section (or, if The Financial Times is
no longer published, or if such information is no longer available in The Financial Times, such source as may be
selected in good faith by KDG) on the date of such determination.

“European Government Obligations” means any security that is
(1) a direct obligation of Ireland, Belgium, the Netherlands, France, Germany
or any other country that is a member of the European Monetary Union on the
date of this Indenture, for the payment of which the full faith and credit of
such country is pledged or (2) an obligation of a person controlled or
supervised by and acting as an agency or instrumentality of any such country
the payment of which is unconditionally Guaranteed as a full faith and credit
obligation by such country, which, in either case under the preceding clause
(1) or (2), is not callable or redeemable at the option of the issuer thereof.

“Exchange Act” means the U.S. Securities Exchange Act of
1934, as amended, and the rules and regulations of the SEC promulgated
thereunder.

“Exchange Notes” means Notes that have been registered under
the Securities Act issued in exchange for an aggregate principal amount of
outstanding Notes that have not been so registered.

“Excluded Contribution” means Net Cash Proceeds or property
or assets received by KDG as capital contributions to the equity (other than
through the issuance of Disqualified Stock or Designated Preference Shares) of
KDG after the Issue Date or from the issuance or sale (other than to a
Restricted Subsidiary or an employee stock ownership plan or trust established
by KDG or any Subsidiary of KDG for the benefit of its employees to the extent
funded by KDG or any Restricted Subsidiary) of Capital Stock (other than
Disqualified Stock or Designated Preference Shares) or Subordinated Shareholder
Funding of KDG, in each case, to the extent designated as an Excluded
Contribution pursuant to an Officer’s Certificate of KDG.

 17
 

 

“fair market value” unless otherwise specified, wherever such
term is used in this Indenture (except in relation to an Enforcement Sale and
except as otherwise specifically provided in this Indenture), may be
conclusively established by means of an Officer’s Certificate or a resolution
of the Board of Directors of KDG setting out such fair market value as
determined by such Officer or such Board of Directors in good faith.

“Finance Subsidiary” means a Restricted Subsidiary of KDG (1)
whose sole operations are comprised of incurring or issuing Indebtedness from
time to time to finance the operations of KDG and/or its Restricted
Subsidiaries (including future acquisitions) and (2) which conducts no business
and owns no material assets other than any intercompany Indebtedness.

“GAAP” means generally accepted accounting principles in the
Federal Republic of Germany as in effect (except as otherwise provided in this
Indenture) on the Issue Date. Except as otherwise expressly provided in this
Indenture, all ratios and calculations based on GAAP contained in this
Indenture shall be computed in conformity with GAAP. At any time after the
Issue Date, KDG may elect to apply International Financial Reporting Standards
(“IFRS”) or generally accepted accounting principles in the U.S. (“U.S. GAAP”)
in lieu of GAAP and, upon any such election, references herein to GAAP shall
thereafter be construed to mean IFRS or U.S. GAAP, as applicable, as in effect
(except as otherwise provided in this Indenture) on the date of such election; provided that any such election, once
made, shall be irrevocable and that upon first reporting its fiscal year
results under IFRS or U.S. GAAP, as applicable, it shall restate its financial
statements on the basis of IFRS or U.S. GAAP, as applicable, for the fiscal
year ending immediately prior to the first fiscal year for which financial
statements have been prepared on the basis of IFRS or U.S. GAAP, as applicable,
except for any fiscal year or period including all or any part of 2003 (and, in
such case, any audit report with respect to the fiscal year or nine months
ending December 31, 2004 may be qualified as to the absence of such prior year
financial statements). KDG shall give notice of any such election to the
Trustee and the Holders.

“Government Obligations” means European Government
Obligations and U.S. Government Obligations.

“Guarantee” means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Indebtedness of any other
Person, including any such obligation, direct or indirect, contingent or
otherwise, of such Person:

(1)  to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness of such other Person
(whether arising by virtue of partnership arrangements, or by agreements to
keep-well, to purchase assets, goods, securities or services, to take-or-pay or
to maintain financial statement conditions or otherwise); or

(2)  entered into primarily for purposes of
assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part);

 18
 

 

provided,
however, that the term “Guarantee” will not include
endorsements for collection or deposit in the ordinary course of business. The
term “Guarantee” used as a verb has a corresponding meaning.

“Hedging Obligations” of any Person means the obligations of
such Person pursuant to any Interest Rate Agreement, Currency Agreement or Commodity
Hedging Agreement.

“Holder” or “holder” means
each Person in whose name the Securities are registered on the Registrar’s
books, which shall initially be a nominee of Euroclear, Clearstream or DTC, as
applicable.

“iesy Group” means each iesy Target and its Subsidiaries.

“Incur” means issue, create, assume, enter into any Guarantee
of, incur, extend or otherwise become liable for; provided, however,
that any Indebtedness or Capital Stock of a Person existing at the time such
Person becomes a Restricted Subsidiary (whether by merger, consolidation,
acquisition or otherwise) will be deemed to be Incurred by such Restricted
Subsidiary at the time it becomes a Restricted Subsidiary and the terms “Incurred”
and “Incurrence” have meanings correlative to the foregoing.

“Indebtedness” means, with respect to any Person on any date
of determination (without duplication):

(1)  the principal of indebtedness of such Person
for borrowed money;

(2)  the principal of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

(3)  all reimbursement obligations of such Person
in respect of letters of credit, bankers’ acceptances or other similar
instruments (the amount of such obligations being equal at any time to the
aggregate then undrawn and unexpired amount of such letters of credit or other
instruments plus the aggregate amount of drawings thereunder that have been
reimbursed) (except to the extent such reimbursement obligations relate to
trade payables and such obligations are satisfied within 30 days of
Incurrence);

(4)  the principal component of all obligations of
such Person to pay the deferred and unpaid purchase price of property (except
trade payables), which purchase price is due more than one year after the date
of placing such property in service or taking final delivery and title thereto;

(5)  Capitalized Lease Obligations of such Person;

(6)  the principal component of all obligations,
or liquidation preference, of such Person with respect to any Disqualified
Stock or, with respect to any Restricted Subsidiary, any Preferred Stock (but
excluding, in each case, any accrued dividends);

 19
 

 

(7)  the principal component of all Indebtedness
of other Persons secured by a Lien on any asset of such Person, whether or not
such Indebtedness is assumed by such Person; provided,
however, that the amount of such
Indebtedness will be the lesser of (a) the fair market value of such asset at
such date of determination (as determined in good faith by KDG) and (b) the
amount of such Indebtedness of such other Persons;

(8)  Guarantees by such Person of the principal
component of Indebtedness of other Persons to the extent Guaranteed by such
Person; and

(9)  to the extent not otherwise included in this
definition, net obligations of such Person under Currency Agreements and
Interest Rate Agreements (the amount of any such obligations to be equal at any
time to the termination value of such agreement or arrangement giving rise to
such obligation that would be payable by such Person at such time).

The term “Indebtedness”
shall not include Subordinated Shareholder Funding.

The amount of
Indebtedness of any Person at any date shall be determined as set forth above
or otherwise provided in this Indenture, and (other than with respect to
letters of credit or Guarantees or Indebtedness specified in clause (7) above)
shall equal the amount thereof that would appear on a balance sheet of such
Person (excluding any notes thereto) prepared on the basis of GAAP.

Notwithstanding
the above provisions, in no event shall the following constitute Indebtedness:

(i)  Contingent
Obligations incurred in the ordinary course of business and obligations under
or in respect of Qualified Receivables Financings;

(ii)  in
connection with the purchase by KDG or any Restricted Subsidiary of any
business, any post-closing payment adjustments to which the seller may become
entitled to the extent such payment is determined by a final closing balance
sheet or such payment depends on the performance of such business after the
closing; provided, however,
that, at the time of closing, the amount of any such payment is not
determinable and, to the extent such payment thereafter becomes fixed and
determined, the amount is paid within 30 days thereafter; or

(iii)  for the
avoidance of doubt, any obligations in respect of workers’ compensation claims,
early retirement obligations, pension fund obligations or contributions or
social security or wage Taxes.

“Independent Financial Advisor” means an investment banking
or accounting firm of international standing or any third party appraiser of
international standing; provided, however,
that such firm or appraiser is not an Affiliate of KDG.

 20
 

 

“Initial Public Offering” means an Equity Offering of common
stock or equity of KDG or any Parent or any successor (the “IPO Entity”)
following which there is a Public Market and, as a result of which, the shares
of common stock or equity of the IPO Entity in such offering are listed on an
internationally recognized exchange or traded on an internationally recognized
market.

“Intercreditor Agreement” means the Amended and Restated
Priority Agreement dated on or around June 29, 2004 among KDG, KDS, the
lenders, facility agent and security agent under the Senior Facilities
Agreement, the lenders, facility agent and security agent under the Bridge
Facility, the Trustee and the Security Trustee as amended from time to time.

“Interest Rate Agreement” means with respect to any Person
any interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement to which such Person is party or a
beneficiary.

“Investment” means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the form
of any direct or indirect advance, loan or other extensions of credit (other
than advances or extensions of credit to customers, suppliers, directors, officers
or employees of any Person in the ordinary course of business, and excluding
any debt or extension of credit represented by a bank deposit other than a time
deposit) or capital contribution to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), or any purchase or acquisition of Capital Stock, Indebtedness
or other similar instruments issued by, such other Persons and all other items
that are or would be classified as investments on a balance sheet prepared on
the basis of GAAP; provided, however, that endorsements of negotiable
instruments and documents in the ordinary course of business will not be deemed
to be an Investment. If KDG or any Restricted Subsidiary issues, sells or
otherwise disposes of any Capital Stock of a Person that is a Restricted
Subsidiary such that, after giving effect thereto, such Person is no longer a
Restricted Subsidiary, any Investment by KDG or any Restricted Subsidiary in
such Person remaining after giving effect thereto will be deemed to be a new
Investment at such time.

For purposes of
Section 4.06:

(1)  “Investment” will include the portion
(proportionate to KDG’s equity interest in a Restricted Subsidiary to be
designated as an Unrestricted Subsidiary) of the fair market value of the net
assets of such Restricted Subsidiary of KDG at the time that such Restricted
Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, KDG will be deemed to continue to have a
permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive)
equal to (a) KDG’s “Investment” in such Subsidiary at the time of such
redesignation less (b) the portion (proportionate to KDG’s equity interest in
such Subsidiary) of the fair market value of the net assets (as conclusively
determined by the

 21
 

 

Board of
Directors of KDG in good faith) of such Subsidiary at the time that such
Subsidiary is so re-designated a Restricted Subsidiary; and

(2)  any property transferred to or from an
Unrestricted Subsidiary will be valued at its fair market value at the time of
such transfer, in each case as determined in good faith by the Board of
Directors of KDG.

Guarantees shall
not be deemed to be Investments. The amount of any Investment outstanding at
any time shall be the original cost of such Investment, reduced (at KDG’s
option) by any dividend, distribution, interest payment, return of capital,
repayment or other amount or value received in respect of such Investment.

“Investment Grade Securities” means:

(1)  securities issued or directly and fully
Guaranteed or insured by the United States or Canadian government or any agency
or instrumentality thereof (other than Cash Equivalents);

(2)  securities issued or directly and fully
guaranteed or insured by a member of the European Union as of January 1, 2004,
or any agency or instrumentality thereof (other than Cash Equivalents);

(3)  debt securities or debt instruments with a
rating of “A-” or higher from S&P or “A3” or higher by Moody’s or the
equivalent of such rating by such rating organization or, if no rating of Moody’s
or S&P then exists, the equivalent of such rating by any other Nationally
Recognized Statistical Ratings Organization, but excluding any debt securities
or instruments constituting loans or advances among KDG and its Subsidiaries;

(4)  investments in any fund that invests
exclusively in investments of the type described in clauses (1), (2) and (3)
above which fund may also hold cash and Cash Equivalents pending investment
and/or distribution; and

(5)  corresponding instruments in countries other
than those identified in clause (1) or (2) above customarily utilized for high
quality investments.

“Investment Grade Status” shall occur when the Securities
receive both of the following:

(1)  a rating of “BBB-” or higher from S&P;
and

(2)  a rating of “Baa3” or higher from Moody’s;

or the equivalent
of such rating by either such rating organization or, if no rating of Moody’s or
S&P then exists, the equivalent of such rating by any other Nationally
Recognized Statistical Ratings Organization.

 22
 

 

“IPO Market Capitalization” means an amount equal to (i) the
total number of issued and outstanding shares of common stock or common equity
interests of the IPO Entity at the time of closing of the Initial Public
Offering multiplied by (ii) the
price per share at which such shares of common stock or common equity interests
are sold in such Initial Public Offering.

“Ish Group” means each Ish Target and its Subsidiaries.

“Issue Date” means July 2, 2004.

 “Issuing Company”
means (i) any Parent and (ii) any special purpose financing subsidiary of KDG
or any Parent.

“KBW Group” means each KBW Target and its Subsidiaries.

“Lien” means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional sale or
other title retention agreement or lease in the nature thereof).

“Majority Lenders” means

(a)  in the case of
the Senior Facilities Agreements, at any time, lenders under the Senior
Facilities Agreement:

(1)  the aggregate of whose shares in the
outstanding loans, ancillary outstandings and undrawn commitments then
represents 66 2/3% or more of the aggregate of all the outstanding loans,
ancillary outstandings and undrawn commitments of all the lenders under the
Senior Facilities Agreement;

(2)  if there is no loan or ancillary outstandings
under the Senior Facilities Agreement then outstanding, whose undrawn
commitments then aggregate 66 2/3% or more of the total commitments under such
the Senior Facilities Agreement; or

(3)  if there is no loan or ancillary outstandings
then outstanding under the Senior Facilities Agreement and the commitments
under such the Senior Facilities Agreement have been reduced to zero, whose
commitments aggregated 66 2/3% or more of the commitments under the Senior
Facilities Agreement immediately before the reduction; and

(b)  in the case of
any Designated Senior Indebtedness, the majority lenders (which shall not, in
any event, exceed lenders that are holders of 66 2/3% of the outstanding loans
and undrawn commitments, if any, thereunder) as specified in the instrument or
agreement governing such Designated Senior Indebtedness.

“Majority Senior Creditors” means the Majority Lenders under
the Senior Facilities Agreement, as adjusted as provided in the Intercreditor
Agreement or, to the

 23
 

 

extent
applicable, any Additional Intercreditor Agreement to provide voting rights to
hedging banks.

“Management Advances” means loans or advances made to, or
Guarantees with respect to loans or advances made to, directors, officers,
employees or consultants of any Parent, KDG or any Restricted Subsidiary:

(1)  in respect of travel, entertainment or moving
related expenses incurred in the ordinary course of business;

(2)  in respect of moving related expenses
incurred in connection with any closing or consolidation of any facility or
office; or

(3)  (in the case of this clause (3)) not
exceeding €10 million in the aggregate outstanding at any time.

“Management Investors” means the officers, directors,
employees and other members of the management of or consultants to any Parent,
KDG or any of their respective Subsidiaries, or spouses, family members or
relatives thereof, or any trust, partnership or other entity for the benefit of
or the beneficial owner of which (directly or indirectly) is any of the
foregoing, or any of their heirs, executors, successors and legal
representatives, who at any date beneficially own or have the right to acquire,
directly or indirectly, Capital Stock of KDG or any Parent.

“Market Capitalization” means an amount equal to (i) the
total number of issued and outstanding shares of common stock or common equity
interests of the IPO Entity on the date of the declaration of the relevant
dividend multiplied by (ii) the
arithmetic mean of the closing prices per share of such common stock or common
equity interests for the 30 consecutive trading days immediately preceding the
date of declaration of such dividend.

“Material Group Subsidiary” means:

(1)  MSG Media Services GmbH, Munich registered in
the commercial register kept at the local court of Munich under HRB 122932;

(2)  TKS Telepost Kabel-Service Kaiserslautern
GmbH & Co. KG registered in the commercial register kept at the local court
of Kaiserslautern under HRA 2278;

(3)  the general partner of KDS and any limited
partner of KDS; and

(4)  any other Subsidiary of KDG whose gross
assets, pretax profits or turnover equal or exceed 3 per cent. of the gross
assets, Consolidated EBITDA (as defined, for this purpose only, in the
applicable Designated Senior Indebtedness) or turnover of KDG and its
Subsidiaries.

 24
 

 

For this purpose:

(a)  the gross
assets, pre-tax profits and turnover of a Subsidiary of KDG will be determined
from its financial statements (consolidated if it has Subsidiaries) upon which
the financial statements of KDG and its Subsidiaries for the previous four
quarterly accounting periods have been based;

(b)  if a
Subsidiary of KDG becomes a Subsidiary of KDG after the date on which the
latest quarterly financial statements of KDG and its Subsidiaries have been
prepared, the gross assets, pre-tax profits and turnover of that Subsidiary
will be determined from its latest financial statements (consolidated if it has
Subsidiaries);

(c)  the gross
assets, Consolidated EBITDA (as defined, for this purpose only, in the
applicable Designated Senior Indebtedness) and turnover of KDG and its
Subsidiaries will be determined from its financial statements for the previous four quarterly
accounting periods adjusted (where appropriate) to reflect the gross assets,
pre-tax profits or turnover of any company or business subsequently acquired or
disposed of; and

(d)  the pre-tax
profits of a Subsidiary (or a company or business subsequently acquired or
disposed of) will be determined on the same basis as Consolidated EBITDA (as
defined, for this purpose only, in the applicable Designated Senior
Indebtedness), except that references to KDG will be construed as references to
that Subsidiary, company or business;

provided
that certification by the independent auditors of KDG that a Subsidiary is or
is not a Material Group Subsidiary will, in the absence of manifest error, be
conclusive.

“Moody’s” means Moody’s Investors Service, Inc. or any of its
successors or assigns that is a Nationally Recognized Statistical Rating
Organization.

“Nationally Recognized Statistical Rating Organization” means
a nationally recognized statistical rating organization within the meaning of
Rule 436 under the Securities Act.

“Net Available Cash” from an Asset Disposition means cash
payments received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise
and net proceeds from the sale or other disposition of any securities received
as consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring person of
Indebtedness or other obligations relating to the properties or assets that are
the subject of such Asset Disposition or received in any other non-cash form)
therefrom, in each case net of:

(1)  all legal, accounting, investment banking,
title and recording tax expenses, commissions and other fees and expenses
Incurred, and all Taxes paid or required to be paid or accrued as a liability
under GAAP (after taking into account any

 25
 

 

available tax
credits or deductions and any tax sharing agreements), as a consequence of such
Asset Disposition;

(2)  all payments made on any Indebtedness which
is secured by any assets subject to such Asset Disposition, in accordance with
the terms of any Lien upon such assets, or which must by its terms, or in order
to obtain a necessary consent to such Asset Disposition, or by applicable law,
be repaid out of the proceeds from such Asset Disposition;

(3)  all distributions and other payments required
to be made to minority interest holders in Subsidiaries or joint ventures as a
result of such Asset Disposition; and

(4)  the deduction of appropriate amounts required
to be provided by the seller as a reserve, on the basis of GAAP, against any
liabilities associated with the assets disposed of in such Asset Disposition
and retained by KDG or any Restricted Subsidiary after such Asset Disposition.

“Net Cash Proceeds,” with respect to any issuance or sale of
Capital Stock or Subordinated Shareholder Funding, means the cash proceeds of
such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’
or placement agents’ fees, listing fees, discounts or commissions and
brokerage, consultant and other fees and charges actually Incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result of such issuance or sale (after taking into account any available tax credit
or deductions and any tax sharing arrangements).

“NewKDS” means Kabel Asset GmbH & Co. KG.

“Note Guarantee” means (1) the KDS Guarantee, (2) the NewKDS
Guarantee and (3) any Additional Note Guarantee.

“Note Guarantor” means (1) KDS in its capacity as guarantor
of the Securities, (2) NewKDS in its capacity as guarantor of the Securities
and (3) each Additional Note Guarantor, in its capacity as an additional
guarantor of the Securities.

“Note Guarantor Senior Indebtedness” means, with respect to a
Note Guarantor, the following obligations, whether outstanding on the date of
this Indenture or thereafter issued, without duplication:

(1)  all liabilities Incurred by a Note Guarantor
under the Senior Facilities Agreement and the related finance documents and
certain hedging obligations specified in the Intercreditor Agreement;

(2)  the Bank Indebtedness of such Note Guarantor, any Guarantee of the
Bank Indebtedness by such Note Guarantor and all other Guarantees (other than any
Guarantee that is Note Guarantor Senior Subordinated Indebtedness or Note
Guarantor Subordinated Indebtedness) by such Note Guarantor of Senior
Indebtedness of KDG or other Note Guarantor Senior Indebtedness; and

 26

 

(3)  all obligations consisting of principal of
and premium, if any, accrued and unpaid interest on, and fees and other amounts
relating to, all other Indebtedness of such Note Guarantor (other than Note
Guarantor Senior Subordinated Indebtedness or Note Guarantor Subordinated
Indebtedness).

Note Guarantor Senior
Indebtedness includes interest accruing on or after the filing of any petition
in bankruptcy or for reorganization relating to such Note Guarantor regardless
of whether post filing interest is allowed in such proceedings.

Notwithstanding anything
to the contrary in the preceding paragraph, Note Guarantor Senior Indebtedness
will not include:

(1)  any Indebtedness Incurred in violation of
Section 4.05 (but no such violation shall be deemed to exist for the
purposes of this paragraph (1) if any holder of such Indebtedness or such
holder’s representative shall have received an Officer’s Certificate of KDG to
the effect that such Incurrence of such Indebtedness does not (or, in the case
of a revolving credit or similar facility, the Incurrence of the entire
committed amount at the date on which the initial borrowing thereunder is made
would not) violate such covenant);

(2)  any obligations of such Note Guarantor to
another Restricted Subsidiary or KDG;

(3)  any liability for national, local or other
taxes owed or owing by such Note Guarantor;

(4)  any accounts payable or other liability to
trade creditors arising in the ordinary course of business (including
Guarantees thereof or instruments evidencing such liabilities); or

(5)  any Capital Stock.

“Note Guarantor Senior Subordinated Indebtedness” means, with
respect to a Note Guarantor, the Note Guarantee issued by such Note Guarantor
and any other Indebtedness of such Note Guarantor (whether outstanding on the
Issue Date or thereafter Incurred) that specifically provides that such
Indebtedness is to rank equally with such Note Guarantee in right of payment
and is not subordinated by its terms in right of payment to any Indebtedness or
other obligation of such Note Guarantor which is not Note Guarantor Senior
Indebtedness.

“Note Guarantor Subordinated Indebtedness” means any
Indebtedness of a Note Guarantor (whether outstanding on the Issue Date or
thereafter Incurred) which is expressly subordinate in right of payment to the
obligations of such Note Guarantor under its Note Guarantee pursuant to a
written agreement.

“Offering
Memorandum” means the offering memorandum, dated June 24, 2004
prepared by the Issuer in connection with the offering and sale of the Original
Securities.

 27
 

 

“Officer”
means, with respect to any Person, (1) the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer, any Vice
President, the Treasurer or the Secretary (a) of such Person or (b) if such Person
is owned or managed by a single entity, of such entity or, or (2) any other
individual designated as an “Officer” for the purposes of this Indenture by the
Board of Directors of such Person.

“Officer’s Certificate” means, with respect to any Person, a
certificate signed by one Officer of such Person.

“Opinion of Counsel” means a written opinion from legal
counsel reasonably satisfactory to the Trustee. The counsel may be an employee
of or counsel to KDG.

“Original Acquisition” means the acquisition in March 2003 by
a consortium consisting of Affiliates of Apax Partners, The Goldman Sachs
Group, Inc., and Providence Equity Partners, Inc. of six of the former nine
regional cable television companies previously owned by Deutsche Telekom AG,
together with certain other investments and assets related to Deutsche Telekom
AG’s cable television business, including Deutsche Telekom AG’s digital playout
facility and cable television service companies.

“Parent” means Cable Holding S.àr.l. and any other Person of
which KDG at any time is or becomes a Subsidiary after the Issue Date.

“Parent Expenses” means:

(1)  costs (including all professional fees and
expenses) Incurred by any Parent in connection with reporting obligations under
or otherwise Incurred in connection with compliance with applicable laws, rules
or regulations of any governmental, regulatory or self-regulatory body or stock
exchange, this Indenture or any other agreement or instrument relating to
Indebtedness of KDG or any Restricted Subsidiary, including in respect of any
reports filed with respect to the Securities Act, Exchange Act or the
respective rules and regulations promulgated thereunder;

(2)  customary indemnification obligations of any
Parent owing to directors, officers, employees or other Persons under its
charter or by-laws or pursuant to written agreements with any such Person to
the extent relating to KDG and its Subsidiaries;

(3)  obligations of any Parent in respect of
director and officer insurance (including premiums therefor) to the extent
relating to KDG and its Subsidiaries;

(4)  fees and expenses payable by any Parent in
connection with the Transactions;

(5)  general corporate overhead expenses,
including professional fees and expenses and other operational expenses of any
Parent related to the ownership or operation of the business of KDG or any of
its Restricted Subsidiaries; and

 28
 

 

(6)  expenses incurred by any Parent in connection
with any public offering or other sale of Capital Stock or Indebtedness:

(x)  where
the net proceeds of such offering or sale are intended to be received by or
contributed to KDG or a Restricted Subsidiary,

(y)  in
a prorated amount of such expenses in proportion to the amount of such net
proceeds intended to be so received or contributed, or

(z)  otherwise
on an interim basis prior to completion of such offering so long as any Parent
shall cause the amount of such expenses to be repaid to KDG or the relevant
Restricted Subsidiary out of the proceeds of such offering promptly if
completed.

“Pari Passu Indebtedness” means (1) Senior Indebtedness of
KDG; (2) Indebtedness of any Finance Subsidiary which is Guaranteed by KDG, if
such Guarantee ranks pari passu in
right of payment to the Securities; and (3) Note Guarantor Senior Subordinated
Indebtedness.

“Paying Agent” means any Person authorized by KDG to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
KDG.

“Percentage Amount” means at any time:

(1)  if none of the Acquisitions have completed at
that time, 50%;

(2)  if one or two of the Acquisitions have
completed at that time, 75%; and

(3)  if all the Acquisitions have completed at
that time, 100%.

“Permitted Asset Swap” means the concurrent purchase and sale
or exchange of assets used or useful in a Similar Business or a combination of
such assets and cash, Cash Equivalents or Temporary Cash Investments between
KDG or any of its Restricted Subsidiaries and another Person; provided that any cash or Cash Equivalents
received in excess of the value of any cash or Cash Equivalents sold or
exchanged must be applied in accordance with Section 4.09.

“Permitted Collateral Liens” means (x) Liens on the
Collateral arising by operation of law that are described in one or more of
clauses (3), (4) and (9) of the definition of “Permitted Liens” and that, in
each case, would not materially interfere with the ability of the Security
Trustee to enforce the Security Interest in the Collateral and (y) Liens on the
Collateral to secure (1) any Additional Securities, (2) Indebtedness of KDG or
a Restricted Subsidiary that is permitted to be Incurred under Section 4.05(a) or
Sections 4.05(b)(1), 4.05(b)(2) (in the case of
Section 4.05(b)(2), to the extent such Guarantee is in respect of
Indebtedness otherwise permitted to be secured and specified in this definition
of Permitted Collateral Liens), 4.05(b)(6) (in the case of
Section 4.05(b)(6), to the extent such Indebtedness is Incurred under an
Interest Rate Agreement or Currency Agreement in respect of Indebtedness
Incurred under Section

 29
 

 

4.05(a) or
Sections 4.05(b)(1)), 4.05(b)(7) (other than with respect to
Capitalized Lease Obligations) or 4.05(b)(11), and (3) any Refinancing
Indebtedness in respect of Indebtedness referred to in the foregoing clause (1)
or (2); provided, however, that
such Lien ranks (a) equal to all other Liens on such Collateral securing Senior
Indebtedness of KDG or such Restricted Subsidiary, as applicable, if such
Indebtedness is Senior Indebtedness of KDG or such Restricted Subsidiary, as
applicable, (except that (i) a Lien in favor of Senior Indebtedness (“Refinancing
Senior Debt”) need not rank equally with Liens in favor of other Senior
Indebtedness, if such Refinancing Senior Debt was incurred to refinance
Indebtedness described in this clause (a) and (ii) lenders under any Credit
Facility may provide for an ordering of payments under the various tranches of
that Credit Facility), (b) equal to all other Liens on such Collateral securing
Note Guarantor Senior Subordinated Indebtedness, if such Indebtedness is Note
Guarantor Senior Subordinated Indebtedness or (c) junior to the Liens securing
the Securities or the Note Guarantees.

“Permitted Holders” means, collectively, (1) Providence
Equity Offshore Partners IV L.P., Providence Equity Operating Partners IV L.P.,
Apax Partners, The Goldman Sachs Group, Inc., Candover Investments plc and any
one or more Persons whose beneficial ownership constitutes or results in a
Change of Control in respect of which a Change of Control Offer is made in
accordance with the requirements of this Indenture, (2) any Management
Investor, (3) any Affiliate or Related Person of any Permitted Holder described
in the preceding clause (1) or any successor thereto or any Affiliate of such
Person or such successor, and any successor to any such Permitted Holder
Affiliate or Related Person and (4) any Person who is acting as an underwriter
in connection with a public or private offering of Capital Stock of any Parent
or KDG, acting in such capacity.

“Permitted Investment” means (in each case, by KDG or any of
its Restricted Subsidiaries):

(1)  Investments in a Restricted Subsidiary or KDG
or a Person that is engaged in any Similar Business and such Person will, upon
the making of such Investment, become a Restricted Subsidiary;

(2)  Investments in another Person if such Person
is engaged in any Similar Business and as a result of such Investment such
other Person is merged, consolidated or otherwise combined with or into, or
transfers or conveys all or substantially all its assets to, KDG or a
Restricted Subsidiary;

(3)  Investments in cash, Cash Equivalents,
Temporary Cash Investments or Investment Grade Securities;

(4)  Investments in receivables owing to KDG or
any Restricted Subsidiary created or acquired in the ordinary course of
business;

 30
 

 

(5)  Investments in payroll, travel and similar
advances to cover matters that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes and that are made
in the ordinary course of business;

(6)  Management Advances;

(7)  Investments in Capital Stock, obligations or
securities received in settlement of debts created in the ordinary course of
business and owing to KDG or any Restricted Subsidiary, or as a result of
foreclosure, perfection or enforcement of any Lien, or in satisfaction of
judgments or pursuant to any plan of reorganization or similar arrangement
including upon the bankruptcy or insolvency of a debtor;

(8)  Investments made as a result of the receipt
of non-cash consideration from a sale or other disposition of property or
assets, including an Asset Disposition, in each case, that was made in
compliance with Section 4.09;

(9)  Investments in existence on, or made pursuant
to legally binding commitments in existence on, the Issue Date or, with respect
to any Target, Investments in existence on, or made pursuant to legally binding
commitments in existence on, the Issue Date or made prior to the closing date
of the relevant Acquisition to the extent not prohibited by the provisions of
the applicable Sale and Purchase Agreement as in effect on the Issue Date (but
without giving effect to any provision thereof permitting the relevant Target
to suspend its obligations thereunder);

(10)  Currency Agreements, Interest Rate
Agreements, Commodity Hedging Agreements and related Hedging Obligations, which
transactions or obligations are Incurred in compliance with Section 4.05;

(11)  Investments, taken together with all other
Investments made pursuant to this clause (11) and at any time outstanding, in
an aggregate amount at the time of such Investment not to exceed (a) in the
event none of the Acquisitions are consummated, the greater of €100 million and
5% of Total Assets, (b) in the event all the Acquisitions are consummated, the
greater of €175 million and 3.5% of Total Assets and (c) in the event some but
not all the Acquisitions are consummated, the greater of €100 million plus (x) €35
million, in the event that the ish Acquisition is consummated, (y) €30 million,
in the event that the KBW Acquisition is consummated and (z) €10 million, in
the event that the iesy Acquisition is consummated; and a percentage of Total
Assets equal to the Relevant Percentage Asset Amount; provided that, if an Investment is made
pursuant to this clause in a Person that is not a Restricted Subsidiary and
such Person subsequently becomes a Restricted Subsidiary or is subsequently
designated a Restricted Subsidiary pursuant to Section 4.06, such
Investment shall thereafter be deemed to have been made pursuant to clause (1)
or (2) of the definition of “Permitted Investments” and not this clause;

(12)  pledges or deposits with respect to leases or
utilities provided to third parties in the ordinary course of business or Liens
otherwise described in the definition of “Permitted Liens” or made in
connection with Liens permitted by Section 4.07;

 31
 

 

(13)  Investments relating to (x) any Receivables
Subsidiary or any Investment by a Receivables Subsidiary in another Person
(other than an Affiliate of KDG which is not an Affiliate solely due to an
ownership interest of KDG or a Restricted Subsidiary in such Person), in each
case in connection with a Qualified Receivables Financing that, in the good
faith determination of the Issuing Company, are necessary or advisable to
effect or maintain such Qualified Receivables Financing or (y) any promissory
note issued by KDG or any Parent; provided that,
if any Parent receives cash from the relevant Receivables Subsidiary in
exchange for such note, an equal cash amount is contributed, directly or
indirectly, by any Parent to KDG;

(14)  Investments in the Securities, Bridge
Exchange Notes, Take-Out Securities or any other Indebtedness permitted by
Section 4.05(b)(1)(b);

(15)  any Investment to the extent made using
Capital Stock of KDG (other than Disqualified Stock), Subordinated Shareholder
Funding or Capital Stock of any Parent as consideration;

(16)  any transaction to the extent constituting an
Investment that is permitted and made in accordance with Section 4.10(b)
(except those described in Sections 4.10(b)(1), 4.10(b)(3), and 4.10(b)(12));
and

(17)  any Investment as part of the Transactions.

“Permitted Liens” means, with respect to any Person:

(1)  Liens securing Senior Indebtedness, Note
Guarantor Senior Indebtedness or Bank Indebtedness of any Restricted Subsidiary
which is not a Note Guarantor and Liens on assets or property of a Restricted
Subsidiary that is not a Note Guarantor securing Indebtedness of a Restricted
Subsidiary that is not a Note Guarantor;

(2)  pledges, deposits or Liens under workmen’s
compensation laws, unemployment insurance laws, social security laws or similar
legislation, or insurance related obligations (including pledges or deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements), or in connection with bids, tenders, completion guarantees,
contracts (other than for borrowed money) or leases, or to secure utilities,
licenses, public or statutory obligations, or to secure surety, judgment,
appeal or performance bonds (or other similar bonds, instruments or
obligations), or as security for contested taxes or import or customs duties or
for the payment of rent, or other obligations of like nature, in each case
incurred in the ordinary course of business;

(3)  Liens imposed by law, including carriers’,
warehousemen’s, mechanics’, landlords’, materialmen’s and repairmen’s or other
like Liens, in each case for sums not yet overdue for a period of more than 60
days or that are bonded or being contested in good faith by appropriate
proceedings;

(4)  Liens for taxes, assessments or other
governmental charges not yet delinquent or which are being contested in good
faith by appropriate proceedings;

 32
 

 

provided that
appropriate reserves required pursuant to GAAP have been made in respect
thereof;

(5)  Liens in favor of issuers of surety,
performance or other bonds or letters of credit or bankers’ acceptances (not
issued to support Indebtedness for borrowed money) issued pursuant to the
request of and for the account of KDG or any Restricted Subsidiary in the
ordinary course of its business;

(6)  encumbrances, ground leases, easements
(including reciprocal easement agreements), survey exceptions, or reservations
of, or rights of others for, licenses, rights of way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning, building
codes or other restrictions (including minor defects or irregularities in title
and similar encumbrances) as to the use of real properties or Liens incidental
to the conduct of the business of KDG and its Restricted Subsidiaries or to the
ownership of its properties which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the
operation of the business of KDG and its Restricted Subsidiaries;

(7)  Liens securing Hedging Obligations permitted
under this Indenture;

(8)  leases, licenses, subleases and sublicenses
of assets (including real property and intellectual property rights), in each
case entered into in the ordinary course of business;

(9)  Liens arising out of judgments, decrees,
orders or awards not giving rise to an Event of Default so long as any
appropriate legal proceedings which may have been duly initiated for the review
of such judgment, decree, order or award have not been finally terminated or
the period within which such proceedings may be initiated has not expired;

(10)  Liens for the purpose of securing Capitalized
Lease Obligations, Purchase Money Obligations or SLA Agreements, or securing
the payment of all or a part of the purchase price of, or securing other
Indebtedness Incurred to finance or refinance the acquisition, improvement or
construction of, assets or property acquired or constructed in the ordinary
course of business; provided that
(a) other than in the case of SLA Agreements, the aggregate principal amount of
Indebtedness secured by such Liens is otherwise permitted to be Incurred under
this Indenture and (b) any such Lien may not extend to any assets or property
of KDG or any Restricted Subsidiary other than assets or property acquired,
improved, constructed or leased with the proceeds of such Indebtedness or
subject to such SLA Agreement and any improvements or accessions to such assets
and property;

(11)  Liens arising by virtue of any statutory or
common law provisions relating to banker’s Liens, rights of set-off or similar
rights and remedies as to deposit accounts or other funds maintained with a
depositary or financial institution;

(12)  Liens arising from U.S. Uniform Commercial
Code financing statement filings (or similar filings in other applicable
jurisdictions) regarding operating

 33
 

 

leases entered into by KDG and its Restricted
Subsidiaries in the ordinary course of business;

(13)  Liens existing on, or provided for under
written agreements existing on, the Issue Date or, with respect to any Target,
existing on the Issue Date or Incurred prior to the closing date of the relevant
Acquisition to the extent not prohibited by the provisions of the applicable
Sale and Purchase Agreement as in effect on the Issue Date (but without giving
effect to any provision thereof permitting the relevant Target to suspend its
obligations thereunder);

(14)  Liens on property, other assets or shares of
stock of a Person at the time such Person becomes a Restricted Subsidiary (or
at the time KDG or a Restricted Subsidiary acquires such property, other assets
or shares of stock, including any acquisition by means of a merger,
consolidation or other business combination transaction with or into KDG or any
Restricted Subsidiary); provided, however,
that such Liens are not created, Incurred or assumed in anticipation of or in
connection with, such other Person becoming a Restricted Subsidiary (or such
acquisition of such property, other assets or stock); provided, further,
that such Liens are limited to all or part of the same property, other assets
or stock (plus improvements, accession, proceeds or dividends or distributions
in connection with the original property, other assets or stock) that secured
(or, under the written arrangements under which such Liens arose, could secure)
the obligations to which such Liens relate;

(15)  Liens securing Indebtedness or other
obligations of a Restricted Subsidiary owing to KDG or another Restricted
Subsidiary, or of KDG owing to a Restricted Subsidiary or Liens in favor of KDG
or any Note Guarantor;

(16)  Permitted Collateral Liens;

(17)  Liens securing Refinancing Indebtedness
Incurred to refinance Indebtedness that was previously so secured, and
permitted to be secured under this Indenture; provided
that any such Lien is limited to all or part of the same property or
assets (plus improvements, accessions, proceeds or dividends or distributions
in respect thereof) that secured (or, under the written arrangements under
which the original Lien arose, could secure) the Indebtedness being refinanced
or is in respect of property that is or could be the security for or subject to
a Permitted Lien hereunder;

(18)  any interest or title of a lessor under any
Capitalized Lease Obligation or operating lease;

(19)  (a) mortgages, liens, security interests,
restrictions, encumbrances or any other matters of record that have been placed
by any government, statutory or regulatory authority, developer, landlord or
other third party on property over which KDG or any Restricted Subsidiary of
KDG has easement rights or on any leased property and subordination or similar
arrangements relating thereto and (b) any condemnation or eminent domain
proceedings affecting any real property;

 34
 

 

(20)  any encumbrance or restriction (including put
and call arrangements) with respect to Capital Stock of any joint venture or
similar arrangement pursuant to any joint venture or similar agreement;

(21)  Liens on property or assets under
construction (and related rights) in favor of a contractor or developer or
arising from progress or partial payments by a third party relating to such
property or assets;

(22)  Liens on Receivables Assets incurred in
connection with a Qualified Receivables Financing;

(23)  Liens on cash set aside at the time of the
Incurrence of any Indebtedness or government securities purchased with such
cash, in either case to the extent such cash or government securities prefund
the payment of interest on such Indebtedness and are held in an escrow account
or similar arrangement to be applied for such purpose;

(24)  Liens securing or arising by reason of any
netting or set-off arrangement entered into in the ordinary course of banking
or other trading activities;

(25)  Liens arising out of conditional sale, title
retention, hire purchase, consignment or similar arrangements for the sale of
goods entered into in the ordinary course of business;

(26)  Liens securing Indebtedness or other
obligations of a Receivables Subsidiary;

(27)  Liens Incurred in the ordinary course of
business with respect to obligations (other than Indebtedness for borrowed
money) which do not exceed €20 million at any one time outstanding;

(28)  Liens securing Management Advances;

(29)  Liens on any Escrowed Proceeds; and

(30)  Liens on Capital Stock or other securities of
any Unrestricted Subsidiary that secure Indebtedness of such Unrestricted
Subsidiary.

Notwithstanding
anything to the contrary contained in this definition of “Permitted Liens” (i)
Liens securing Indebtedness under Section 4.05(e) shall not be permitted to be
Incurred in reliance on any clause of this definition of “Permitted Liens”; provided that Permitted Collateral Liens or Liens over the
Collateral securing such Indebtedness that are equal and ratable with, or
junior to, the Security Interest shall be permitted with respect to any such
Indebtedness and (ii) prior to effecting the Step-Up and in order to secure the
obligations of KDG under the Securities and the Indenture on a second ranking
basis, (A) KDG shall cause KDS to (1) pledge its limited partnership interest
in the Additional NewKDS Limited Partner together with its sole share in the
general partner of the Additional NewKDS Limited Partner pursuant to the
Additional

 35
 

 

Share Pledge and (2) cause the Additional
NewKDS Limited Partner to pledge any partnership interest in NewKDS pursuant to
the Additional NewKDS Share Pledge and any potential compensation claim it may
have pursuant to the Contingent Additional Partner Claim Pledge, and (B) in
connection with the Step-Up, KDG shall pledge any potential claim it may have
pursuant to the Contingent Claim Pledge, each on a second-priority basis and,
in each case, if and to the extent, and otherwise on the same basis as, any
such pledges are granted to secure Indebtedness under the existing Senior
Facilities Agreement.

“Person” means any individual, corporation, partnership,
joint venture, association, joint-stock company, trust, unincorporated
organization, limited liability company, government or any agency or political
subdivision thereof or any other entity.

“Preferred Stock,” as applied to the Capital Stock of any
Person, means Capital Stock of any class or classes (however designated) which
is preferred as to the payment of dividends or as to the distribution of assets
upon any voluntary or involuntary liquidation or dissolution of such Person,
over shares of Capital Stock of any other class of such Person.

“Public Debt” means any Indebtedness consisting of bonds,
debentures, notes or other similar debt securities issued in (1) a public
offering registered under the Securities Act or (2) a private placement to
institutional investors that is underwritten for resale in accordance with Rule
144A or Regulation S under the Securities Act, whether or not it includes
registration rights entitling the holders of such debt securities to
registration thereof with the SEC for public resale. The term “Public Debt” (a)
shall not include the Securities (or any Additional Securities) and (b) for the
avoidance of doubt, shall not be construed to include any Indebtedness issued
to institutional investors in a direct placement of such Indebtedness that is
not underwritten by an intermediary (it being understood that, without limiting
the foregoing, a financing that is distributed to not more than ten Persons (provided that multiple managed accounts
and affiliates of any such Persons shall be treated as one Person for the
purposes of this definition) shall be deemed not to be underwritten), or any
Indebtedness under the Senior Facilities Agreement or the Bridge Facility,
commercial bank or similar Indebtedness, Capitalized Lease Obligation or
recourse transfer of any financial asset or any other type of Indebtedness
incurred in a manner not customarily viewed as a “securities offering.”

“Public Market” means any time after:

(1)  an Equity Offering has been consummated; and

(2)  shares of common stock or equity of the IPO
Entity having a market value in excess of €100 million on the date of such
Equity Offering have been distributed pursuant to such Equity Offering.

“Public Offering” means any offering of shares of common
stock or common equity that are listed on an exchange or publicly offered
(which shall include an

 36
 

 

offering pursuant to Rule 144A and/or
Regulation S under the US Securities Act to professional market investors or
similar persons).

“Purchase Money Obligations” means any Indebtedness Incurred
to finance or refinance the acquisition, leasing, construction or improvement
of property (real or personal) or assets, and whether acquired through the
direct acquisition of such property or assets or the acquisition of the Capital
Stock of any Person owning such property or assets, or otherwise.

“Qualified Receivables Financing” means any Receivables
Financing of a Receivables Subsidiary that meets the following conditions: (1)
the Board of Directors of KDG shall have determined in good faith that such
Qualified Receivables Financing (including financing terms, covenants,
termination events and other provisions) is in the aggregate economically fair
and reasonable to KDG and the Receivables Subsidiary, (2) all sales of accounts
receivable and related assets to the Receivables Subsidiary are made at fair
market value (as determined in good faith by KDG), and (3) the financing terms,
covenants, termination events and other provisions thereof shall be on market
terms (as determined in good faith by KDG) and may include Standard
Securitization Undertakings.

The grant of a security
interest in any accounts receivable of KDG or any of its Restricted
Subsidiaries (other than a Receivables Subsidiary) to secure Indebtedness under
a Credit Facility shall not be deemed a Qualified Receivables Financing.

“Receivable” means a right to receive payment arising from a
sale or lease of goods or services by a Person pursuant to an arrangement with
another Person pursuant to which such other Person is obligated to pay for
goods or services under terms that permit the purchase of such goods and
services on credit, as determined on the basis of GAAP.

“Receivables Assets” means any assets that are or will be the
subject of a Qualified Receivables Financing.

“Receivables Fees” means distributions or payments made
directly or by means of discounts with respect to any participation interest
issued or sold in connection with, and other fees paid to a Person that is not
a Restricted Subsidiary in connection with, any Receivables Financing.

“Receivables Financing” means any transaction or series of
transactions that may be entered into by KDG or any of its Subsidiaries
pursuant to which KDG or any of its Subsidiaries may sell, convey or otherwise
transfer to (a) a Receivables Subsidiary (in the case of a transfer by KDG or
any of its Subsidiaries), or (b) any other Person (in the case of a transfer by
a Receivables Subsidiary), or may grant a security interest in, any accounts
receivable (whether now existing or arising in the future) of KDG or any of its
Subsidiaries, and any assets related thereto, including all collateral securing
such accounts receivable, all contracts and all guarantees or other obligations
in

 37
 

 

respect of such accounts receivable, proceeds
of such accounts receivable and other assets which are customarily transferred
or in respect of which security interests are customarily granted in connection
with asset securitization transactions involving accounts receivable and any
Hedging Obligations entered into by KDG or any such Subsidiary in connection
with such accounts receivable.

“Receivables Repurchase Obligation” means any obligation of a
seller of receivables in a Qualified Receivables Financing to repurchase
receivables arising as a result of a breach of a representation, warranty or
covenant or otherwise, including as a result of a receivable or portion thereof
becoming subject to any asserted defense, dispute, off-set or counterclaim of
any kind as a result of any action taken by, any failure to take action by or
any other event relating to the seller.

“Receivables Subsidiary” means a Wholly Owned Subsidiary of
KDG (or another Person formed for the purposes of engaging in a Qualified
Receivables Financing with KDG in which KDG or any Subsidiary of KDG makes an
Investment and to which KDG or any Subsidiary of the Issuing Company transfers
accounts receivable and related assets) which engages in no activities other
than in connection with the financing of accounts receivable of KDG and its
Subsidiaries, all proceeds thereof and all rights (contractual or other),
collateral and other assets relating thereto, and any business or activities
incidental or related to such business, and which is designated by the Board of
Directors of KDG (as provided below) as a Receivables Subsidiary and:

(1)  no portion of the Indebtedness or any other
obligations (contingent or otherwise) of which (i) is guaranteed by KDG or any
other Restricted Subsidiary of KDG (excluding guarantees of obligations (other
than the principal of, and interest on, Indebtedness) pursuant to Standard
Securitization Undertakings), (ii) is recourse to or obligates KDG or any other
Restricted Subsidiary of KDG in any way other than pursuant to Standard
Securitization Undertakings, or (iii) subjects any property or asset of KDG or
any other Restricted Subsidiary of KDG, directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings,

(2)  with which neither KDG nor any other
Restricted Subsidiary of KDG has any contract, agreement, arrangement or understanding
other than on terms which KDG reasonably believes to be no less favorable to
KDG or such Restricted Subsidiary than those that might be obtained at the time
from Persons that are not Affiliates of KDG, and

(3)  to which neither KDG nor any other Restricted
Subsidiary of KDG has any obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating
results.

Any such designation by
the Board of Directors of KDG shall be evidenced to the Trustee by filing with
the Trustee a copy of the resolution of the Board of Directors of KDG giving
effect to such designation and an Officer’s Certificate certifying that such
designation complied with the foregoing conditions.

 38
 

 

“refinance” means refinance, refund, replace, renew, repay,
modify, restate, defer, substitute, supplement, reissue, resell, extend or
increase (including pursuant to any defeasance or discharge mechanism) and the
terms “refinances,” “refinanced” and “refinancing” as used for any purpose in
this Indenture shall have a correlative meaning.

“Refinancing Indebtedness” means Indebtedness that is
Incurred to refund, refinance, replace, exchange, renew, repay or extend
(including pursuant to any defeasance or discharge mechanism) any Indebtedness
existing on the date of this Indenture or Incurred in compliance with this
Indenture (including Indebtedness of KDG that refinances Indebtedness of any
Restricted Subsidiary and Indebtedness of any Restricted Subsidiary that
refinances Indebtedness of KDG or another Restricted Subsidiary) including
Indebtedness that refinances Refinancing Indebtedness; provided, however, that:

(1)  if the Indebtedness being refinanced
constitutes Subordinated Indebtedness, the Refinancing Indebtedness has a final
Stated Maturity at the time such Refinancing Indebtedness is Incurred that is
the same as or later than the final Stated Maturity of the Indebtedness being
refinanced or, if shorter, the Securities;

(2)  such Refinancing Indebtedness is Incurred in
an aggregate principal amount (or if issued with original issue discount, an
aggregate issue price) that is equal to or less than the sum of the aggregate
principal amount (or if issued with original issue discount, the aggregate
accreted value) then outstanding of the Indebtedness being refinanced (plus,
without duplication, any additional Indebtedness Incurred to pay interest or
premiums required by the instruments governing such existing Indebtedness and
costs, expenses and fees Incurred in connection therewith); and

(3)  if the Indebtedness being refinanced is
expressly subordinated in right of payment to the Securities or any Note
Guarantee, such Refinancing Indebtedness is subordinated in right of payment to
the Securities or such Note Guarantee on terms at least as favorable to the
Holders as those contained in the documentation governing the Indebtedness
being refinanced;

provided,
however, that Refinancing Indebtedness shall not include:
(x)  Indebtedness of a Subsidiary that is not a Note Guarantor that
refinances Indebtedness of KDG or a Note Guarantor, or
(y)  Indebtedness of KDG or a Restricted Subsidiary that refinances
Indebtedness of an Unrestricted Subsidiary.

Refinancing Indebtedness
in respect of any Credit Facility or any other Indebtedness may be Incurred
from time to time after the termination, discharge or repayment of any such
Credit Facility or other Indebtedness.

“Registrar” means a registrar appointed pursuant to this
Indenture.

“Related Person” with respect to any Permitted Holder means:

 39

 

(1)  any controlling equityholder or majority (or
more) owned Subsidiary of such Person; or

(2)  in the case of an individual, any spouse,
family member or relative of such individual, any trust or partnership for the
benefit of one or more of such individual and any such spouse, family member or
relative, or the estate, executor, administrator, committee or beneficiaries of
any thereof; or

(3)  any trust, corporation, partnership or other
Person for which one or more of the Permitted Holders and other Related Persons
of any thereof constitute the beneficiaries, stockholders, partners or owners
thereof, or Persons beneficially holding in the aggregate a majority (or more)
controlling interest therein; or

(4)  any partner (whether existing or new) in any
Permitted Holder or any Affiliate of such Person; or

(5)  in the case of Providence Equity Offshore
Partners IV L.P., Providence Equity Operating Partners IV L.P., Apax Partners,
The Goldman Sachs Group, Inc. or Candover Investments plc any investment fund
or vehicle managed, sponsored or advised by such Person or any successor
thereto, or by any Affiliate of such Person or any such successor; provided, however, that, with respect to a
Person, the term “Related Person” shall not include any investment fund or vehicle
that would otherwise be a “Related Person” solely because such fund or vehicle
is a financial advisory client of such Person.

“Related Taxes” means

(1)  any Taxes, including sales, use, transfer,
rental, ad valorem, value added, stamp, property, consumption, franchise,
license, capital, registration, business, customs, net worth, gross receipts,
excise, occupancy, intangibles or similar Taxes (other than (x) Taxes measured
by income and (y) withholding imposed on payments made by any Parent), required
to be paid by any Parent by virtue of its:

(a)  being
organized or having Capital Stock outstanding (but not by virtue of owning
stock or other equity interests of any corporation or other entity other than,
directly or indirectly, KDG or any of KDG’s Subsidiaries);

(b)  issuing
or holding Subordinated Shareholder Funding;

(c)  being a
holding company parent, directly or indirectly, KDG or any of KDG’s
Subsidiaries;

(d)  receiving
dividends from or other distributions in respect of, directly or indirectly,
KDG or any of KDG’s Subsidiaries;

(e)  having,
directly or indirectly, Guaranteed any obligations of KDG or any Subsidiary of
KDG; or

 40
 

 

(f)  having
made any payment in respect to any of the items for which KDG is permitted to
make payments to any Parent pursuant to Section 4.06; or

(2)  any Taxes measured by income
for which any Parent is liable up to an amount not to exceed with respect to
such Taxes the amount of any such Taxes that KDG and its Subsidiaries would
have been required to pay on a separate company basis or on a consolidated
basis if KDG and its Subsidiaries had paid tax on a consolidated, combined,
group, affiliated or unitary basis on behalf of an affiliated group consisting
only of KDG and its Subsidiaries and any Taxes imposed by way of withholding on
payments made by one Parent to another Parent on any financing that is
provided, directly or indirectly, in relation to KDG and its Subsidiaries
(reduced by any Taxes measured by income actually paid by KDG and its
Subsidiaries).

“Relevant Percentage Asset Amount” means, as of any date of
determination, if one or two of the Acquisitions has been completed on or prior
to such date, 4.25%.

“Representative” means any trustee, agent or representative
(if any) for an issue of Note Guarantor Senior Indebtedness or the provider of
Note Guarantor Senior Indebtedness (if provided on a bilateral basis), as the
case may be.

“Responsible Officer” means any officer within the corporate
trust and agency department of the Trustee or the relevant Paying Agent, as the
case may be, including any vice president, assistant vice president, assistant
treasurer, trust officer or any other officer of the Trustee or the relevant
Paying Agent, as the case may be, who customarily performs functions similar to
those performed by such officers, or to whom any corporate trust matter is
referred because of such individual’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

“Restricted Investment” means any Investment other than a
Permitted Investment.

“Restricted Subsidiary” means any Subsidiary of KDG other
than an Unrestricted Subsidiary.

“Sale and Purchase Agreement” means, in each case, as amended
from time to time:

(1)  when designated iesy, the sale and purchase
agreement dated April 3, 2004 entered into by KDS, KDG, AP Cable LLC, New York,
Golden Tree High Yield Value Master Fund, LP, Golden Tree High Yield Master
Fund, Ltd., Golden Tree High Yield Master Fund II, Ltd, Golden Tree High Yield
Opportunities II, LP, Pequot Endowment Fund, L.P., Westport, Pequot
Institutional Fund, Inc., Westport, Pequot International Fund, Inc., Westport,
Pequot Partners Fund, LP, Westport, Pequot Special Opportunities Fund, L.P.,
Westport, Goldman Sachs Profit Sharing Master Trust, Alpha US Sub Fund II, LLC,
Brown & Williamson Master Retirement Fund, DB Structure

 41
 

 

Products, Inc. and The University of Chicago
to acquire, directly or indirectly, each operating entity in the group
providing broadband cable services in Hessen (“iesy” or the “iesy Target”);

(2)  when designated Ish, means the sale and
purchase agreement dated April 3, 2004 between KDS and Kabelnetz NRW Limited,
Jersey to acquire, directly or indirectly, each operating entity in the group
providing broadband cable services in North-Rhine Westphalia (“Ish” or the “Ish
Target”); and

(3)  when designated KBW, means the sale and
purchase agreement dated April 3, 2004 among KDS, KDG, Callahan InvestCo
Germany 1 S.àr.l., Callahan InvestCo Germany 2 S.àr.l., Blackstone Kabel
Partners (Cayman) A L.P., Blackstone Kabel Co-invest (Cayman) Limited,
Blackstone Holdco Capital Partners (Cayman) III L.P., BOCP/BFIP/BFCP Holdco
Capital Partners (Cayman) III L.P., Blackstone Holdco Communications Partners
(Cayman) L.P., KBW Holdings LLC and CDP Capital Communications Belgique inc.,
to acquire, directly or indirectly, each operating entity in the group
providing broadband cable services in Baden Württemburg (“KBW” or the “KBW
Target”).

“S&P” means Standard & Poor’s Investors Ratings
Services or any of its successors or assigns that is a Nationally Recognized
Statistical Rating Organization.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the U.S. Securities Act of 1933, as
amended, and the rules and regulations of the SEC promulgated thereunder.

“Security Trustee” means Deutsche Bank AG London acting as
Security Trustee pursuant to the Intercreditor Agreement or such successor
Security Trustee as may be appointed thereunder.

“Senior Discharge Date” means (a) with respect to the Senior
Facilities Agreement, the date on which the facility agent under the Senior
Facilities Agreement is satisfied that all obligations under the Senior
Facilities Agreement and certain hedging obligations contemplated by the Senior
Facilities Agreement have been irrevocably paid and discharged and all
commitments of the lenders under the Senior Facilities Agreement have been
cancelled and all obligations of the hedging banks under the documents relating
to such hedging obligations have been terminated and (b) with respect to any
other Designated Senior Indebtedness, as indicated therein, the date of payment
in full of all obligations for principal, interest, premium, penalties, fees
and expenses with respect to such Designated Senior Indebtedness or the date on
which the applicable Representative or the holders of such Designated Senior
Indebtedness are satisfied that all obligations with respect to such Designated
Senior Indebtedness have been irrevocably paid and discharged and all
commitments thereunder have been cancelled.

“Senior Facilities Agreement” means the Amended and Restated
Senior Credit Agreement dated June on or around June 29, 2004 among KDG, KDS,
Deutsche Bank AG London, as facility agent and security agent, and the lenders
parties thereto, as

 42
 

 

the same may be amended, supplemented, waived
or otherwise modified from time to time or refinanced (whether in whole or in
part, whether with the original agent and lenders or otherwise, and whether
provided under the original Senior Facilities Agreement or otherwise).

“Senior Facilities Amount” means €2,600,000,000 as reduced by
the amount of any reduction in the commitments under the Senior Facilities
Agreement as in effect on the Issue Date as a result of the termination of the
Sale and Purchase Agreement for an Acquisition.

“Senior Indebtedness” means, whether outstanding on the Issue
Date or thereafter issued, created, Incurred or assumed, the Bank Indebtedness
and all amounts payable by KDG under or in respect of all other Indebtedness of
KDG, including premiums and accrued and unpaid interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to KDG at the rate specified in the documentation with
respect thereto whether or not a claim for post filing interest is allowed in
such proceeding) and fees relating thereto; provided, however, that Senior
Indebtedness will not include:

(1)  any Indebtedness Incurred in violation of
Section 4.05 (but no such violation shall be deemed to exist for the
purposes of this clause (1) if any holder of such Indebtedness or such holder’s
representative shall have received an Officer’s Certificate of KDG to the
effect that such Incurrence of such Indebtedness does not (or, in the case of a
revolving credit or similar facility, the Incurrence of the entire committed
amount at the date on which the initial borrowing thereunder is made would not)
violate such covenant):

(2)  any obligation of KDG to any Restricted
Subsidiary;

(3)  any liability for national, local or other
taxes owed or owing by KDG;

(4)  any accounts payable or other liability to
trade creditors arising in the ordinary course of business (including
Guarantees thereof or instruments evidencing such liabilities);

(5)  any Indebtedness of KDG that is expressly
subordinate in right of payment to any other Indebtedness of KDG, including any
Subordinated Indebtedness; or

(6)  any Capital Stock.

“Senior Payment Default” means (a) in relation to the Senior
Facilities Agreement, as in effect on the Issue Date, a default under clause
20.2 (Non-Payment) of the Senior Facilities Agreement and (b) in relation to
any other Designated Senior Indebtedness, any failure to pay on the due date
any amount payable under such Designated Senior Indebtedness in the manner
required under such Designated Senior Indebtedness.

 43
 

 

“Significant Subsidiary” means any Restricted Subsidiary that
meets any of the following conditions:

(1)  KDG’s and its Restricted Subsidiaries’
investments in and advances to the Restricted Subsidiary exceed 10% of the
total assets of KDG and its Restricted Subsidiaries on a consolidated basis as
of the end of the most recently completed fiscal year;

(2)  KDG’s and its Restricted Subsidiaries’
proportionate share of the total assets (after intercompany eliminations) of
the Restricted Subsidiary exceeds 10% of the total assets of KDG and its
Restricted Subsidiaries on a consolidated basis as of the end of the most
recently completed fiscal year; or

(3)  KDG’s and its Restricted Subsidiaries’ equity
in the income from continuing operations before income taxes, extraordinary
items and cumulative effect of a change in accounting principle of the
Restricted Subsidiary exceeds 10% of such income of KDG and its Restricted
Subsidiaries on a consolidated basis for the most recently completed fiscal
year.

“Similar Business” means (a) the cable television business,
including the distribution, sale and/or provision of analog cable television
services, digital cable television services, broadband internet services,
telephony services and other services in relation thereto, (b) the service and
maintenance of KDG’s cable network and related cable television activities, (c)
any businesses, services or activities engaged in by KDG or any of the Targets
and their respective Subsidiaries on the Issue Date or, with respect to any
Target, the closing date of the applicable Acquisition and (d) any businesses,
services and activities that are related, complementary, incidental, ancillary
or similar to any of the foregoing, or are extensions or developments of any
thereof.

“SLA Agreement” means the service level agreements with DTAG
in effect on the Issue Date or, with respect to the Targets, as in effect on
the applicable closing date of the relevant Acquisition (each, an “Existing
Service Level Agreement”), including agreements for the lease of cable duct and
tower space and other premises, the use of fiber optic transmission systems and
other infrastructure components and services and the supply of electrical power
as well as any additional service level agreements or any replacement,
amendment, supplement or waiver of any such service level agreement; provided, however, that (a) any additional
service level agreement shall be of a type similar to one or more Existing
Service Level Agreements and shall have terms that are substantially similar in
all material respects to such Existing Service Level Agreements or which are no
less favorable, taken as a whole, to Holders than the terms of such Existing
Service Level Agreements and (b) any such service level agreement as replaced,
amended, supplemented or waived shall have terms that are substantially similar
in all material respects to an Existing Service Level Agreement or which are no
less favorable, taken as a whole, to Holders than the terms of such Existing
Service Level Agreement.

“Standard Securitization Undertakings” means representations,
warranties, covenants, indemnities and guarantees of performance entered into
by KDG

 44
 

 

or any Subsidiary of KDG which KDG has
determined in good faith to be customary in a Receivables Financing, including
those relating to the servicing of the assets of a Receivables Subsidiary, it
being understood that any Receivables Repurchase Obligation shall be deemed to
be a Standard Securitization Undertaking.

“Stated Maturity” means, with respect to any security, the
date specified in such security as the fixed date on which the payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision, but shall not include any contingent
obligations to repay, redeem or repurchase any such principal prior to the date
originally scheduled for the payment thereof.

“Step-Up” means:

(1)  the contribution of the assets and/or
liabilities of KDS to NewKDS; and

(2)  the merger or other combination of KDS into
KDG,

in each case, as
contemplated by the Offering Memorandum.

“Subordinated Indebtedness” means any Indebtedness of KDG
(whether outstanding on the Issue Date or thereafter Incurred) which is
expressly subordinated in right of payment to the Securities pursuant to a written
agreement.

“Subordinated Shareholder Funding” means, collectively, any
funds provided to KDG by any Parent, any Affiliate of any Parent or any
Permitted Holder or any Affiliate thereof, in exchange for or pursuant to any
security, instrument or agreement other than Capital Stock, in each case issued
to and held by any of the foregoing Persons, together with any such security,
instrument or agreement and any other security or instrument other than Capital
Stock issued in payment of any obligation under any Subordinated Shareholder
Funding; provided, however, that such Subordinated
Shareholder Funding:

(1)  does not mature or require any amortization,
redemption or other repayment of principal or any sinking fund payment prior to
the first anniversary of the Stated Maturity of the Securities (other than
through conversion or exchange of such funding into Capital Stock (other than
Disqualified Stock) of KDG or any funding meeting the requirements of this
definition);

(2)  does not require, prior to the first
anniversary of the Stated Maturity of the Securities, payment of cash interest,
cash withholding amounts or other cash gross-ups, or any similar cash amounts;

(3)  contains no change of control or similar
provisions and does not accelerate and has no right to declare a default or
event of default or take any enforcement action or otherwise require any cash
payment, in each case, prior to the first anniversary of the Stated Maturity of
the Securities;

 45
 

 

(4)  does not provide for or require any security
interest or encumbrance over any asset of KDG or any of its Subsidiaries;

(5)  does not contain any covenants (financial or
otherwise) other than a covenant to pay such Subordinated Shareholder Funding;
and

(6)  is fully subordinated and junior in right of
payment to the Securities pursuant to subordination, payment blockage and
enforcement limitation terms which are customary in all material respects for
similar funding or are no less favorable in any material respect to Holders
than those contained in the Intercreditor Agreement as in effect on the Issue
Date with respect to “Investor Debt” (as defined therein).

“Subsidiary” means, with respect to any Person:

(1)  any corporation, association, or other
business entity (other than a partnership, joint venture, limited liability
company or similar entity) of which more than 50% of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
is at the time of determination owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of that Person or a
combination thereof; or

(2)  any partnership, joint venture, limited
liability company or similar entity of which:

(a)  more than 50% of the capital accounts,
distribution rights, total equity and voting interests or general or limited
partnership interests, as applicable, are owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person or a combination thereof whether in the form of membership, general,
special or limited partnership interests or otherwise; and

(b)  such Person or any Subsidiary of such Person
is a controlling general partner or otherwise controls such entity.

“Successor Parent” with respect to any Person means any other
Person with more than 50% of the total voting power of the Voting Stock of
which is, at the time the first Person becomes a Subsidiary of such other
Person, “beneficially owned” (as defined below) by one or more Persons that “beneficially
owned” (as defined below) more than 50% of the total voting power of the Voting
Stock of the first Person immediately prior to the first Person becoming a
Subsidiary of such other Person. For purposes hereof, “beneficially own” has
the meaning correlative to the term “beneficial owner,” as such term is defined
in Rules 13d-3 and 13d-5 under the Exchange Act.

“Take-Out Securities” means any debt securities issued in
accordance with the Bridge Facility Agreement to refinance Indebtedness
Incurred under the Bridge Facility or the Bridge Exchange Notes or to cancel
any commitments under the Bridge Facility Agreement.

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“Target” means each entity whose shares or other ownership
interest are or are to be acquired by KDS pursuant to the Sale and Purchase
Agreements relating to such entity and when designated iesy, Ish or KBW means
the Target to be acquired pursuant to the iesy, Ish or KBW Sale and Purchase
Agreement.

“Target Cash” means the amount of cash and Cash Equivalents
held by a Target Group (or deemed to be held by the Target Group for the
purposes of calculating the acquisition consideration under the relevant Sale
and Purchase Agreement and including the amount payable pursuant to clause 3.1(3)
of the Ish Sale and Purchase Agreement) on the closing date for the Acquisition
of the Target Group in excess of the aggregate amount of:

(1)  in respect of the Ish Acquisition only,
deferred revenues of or deemed to be held by that Target Group as at the
closing date of such Acquisition;

(2)  any provisions against restructuring costs
(in respect of the Ish Acquisition) or any amounts owed relating to
restructuring measures (in respect of iesy and KBW Acquisitions); and

(3)  any accruals made relating to copyright fees
or similar fees for the use of broadcasting signals of any member of a Target
Group,

in each case, that reduce
the purchase price payable for that Acquisition under the relevant Sale and
Purchase Agreement.

“Target Cash Investment” means any investment by any Parent
to KDG (whether by way of contribution to the equity of KDG or by Subordinated
Shareholder Funding) for the purpose of financing any increase in the purchase
price of any Acquisition as a result of any cash or cash equivalents held by
the relevant Target Group.

“Target Group” means the iesy Group, the Ish Group or the KBW
Group.

“Taxes” means all present and future taxes, levies, imposts,
deductions, charges, duties and withholdings and any charges of a similar
nature (including interest, penalties and other liabilities with respect
thereto) that are imposed by any government or other taxing authority.

“Tax Sharing Agreement” means any tax sharing agreement with
customary terms entered into with any Parent in connection with an Equity
Offering, as the same may be amended, supplemented, waived or otherwise
modified from time to time in accordance with the terms thereof and of this
Indenture.

“Temporary Cash Investments” means any of the following:

(1)  any investment in

(a)  direct obligations
of, or obligations Guaranteed by, (i) the United States of America or Canada,
(ii) any European Union member state on

 47
 

 

January 1, 2004, (iii)
any country in whose currency funds are being held specifically pending
application in the making of an investment or capital expenditure by KDG or a
Restricted Subsidiary in that country with such funds or (iv) any agency or
instrumentality of any such country or member state; or

(b)  direct
obligations of any country recognized by the United States of America rated at
least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of
such rating by such organization or, if no rating of S&P or Moody’s then
exists, the equivalent of such rating by any Nationally Recognized Statistical
Rating Organization);

(2)  overnight bank deposits, and investments in
time deposit accounts, certificates of deposit, bankers’ acceptances and money
market deposits (or, with respect to foreign banks, similar instruments)
maturing not more than one year after the date of acquisition thereof issued
by:

(a)  any
lender under the Senior Facilities Agreement;

(b)  any
institution authorized to operate as a bank in any of the countries or member
states referred to in subclause (1)(a) above; or

(c)  any bank
or trust company organized under the laws of any such country or member state
or any political subdivision thereof,

in each case, having
capital and surplus aggregating in excess of €250 million (or the foreign
currency equivalent thereof) and whose long-term debt is rated at least “A” by
S&P or “A-2” by Moody’s (or, in either case, the equivalent of such rating
by such organization or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any Nationally Recognized Statistical Rating
Organization) at the time such Investment is made;

(3)  repurchase obligations with a term of not
more than 30 days for underlying securities of the types described in clause
(1) or (2) above entered into with a Person meeting the qualifications
described in clause (2) above;

(4)  Investments in commercial paper, maturing not
more than 270 days after the date of acquisition, issued by a Person (other
than KDG or any of its Subsidiaries), with a rating at the time as of which any
Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2”
(or higher) according to S&P (or, in either case, the equivalent of such
rating by such organization or, if no rating of S&P or Moody’s then exists,
the equivalent of such rating by any Nationally Recognized Statistical Rating
Organization);

(5)  Investments in securities maturing not more
than one year after the date of acquisition issued or fully Guaranteed by any
state, commonwealth or territory of the United States of America, Canada or any
European Union member state on January 1, 2004 or by any political subdivision
or taxing authority of any such state, commonwealth, territory, country or
member state, and rated at least “A” by S&P or “A” by Moody’s (or,

 48
 

 

in either case, the equivalent of such rating
by such organization or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any Nationally Recognized Statistical Rating
Organization);

(6)  investment funds investing 95% of their
assets in securities of the type described in clauses (1) through (5) above
(which funds may also hold reasonable amounts of cash pending investment and/or
distribution);

(7)  any money market deposit accounts issued or
offered by a commercial bank organized under the laws of the Federal Republic
of Germany or organized and located in a country that is a member of the
Organization for Economic Co-operation and Development, in each case, having
capital and surplus in excess of €250 million (or the foreign currency
equivalent thereof) or whose long term debt is rated at least “A” by S&P or
“A2” by Moody’s (or, in either case, the equivalent of such rating by such
organization or, if no rating of S&P or Moody’s then exists, the equivalent
of such rating by any Nationally Recognized Statistical Rating Organization) at
the time such Investment is made; and

(8)  investments in money market funds complying
with the risk limiting conditions of Rule 2a-7 (or any successor rule) of the
SEC under the U.S. Investment Company Act of 1940, as amended.

“Thin Capitalization Event” means the delivery to the Trustee
of an Opinion of Counsel from an independent tax counsel of nationally
recognized standing in the Federal Republic of Germany to the effect that,
owing to the application of thin capitalization laws or the rules or
regulations or interpretations thereunder, KDG and/or its Restricted
Subsidiaries are not able or will not be able to deduct against income taxes
all or part of the interest payable in relation to the Securities.

“TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb)
as in effect on the Issue Date.

“Total Assets” means the consolidated total assets of KDG and
its Restricted Subsidiaries as shown on the most recent balance sheet
(excluding the footnotes thereto) of such Person.

“Transactions” means:

(1)  the contribution of all shares in MSG Media
Services GmbH and TKS Telepost Kabel-Service Kaiserslautern GmbH & Co. KG
held by KDG to the equity of KDS;

(2)  the contribution of assets by KDG to the
equity of MSG Media Services GmbH in exchange for shares in the capital stock
of MSG Media Services GmbH, and the subsequent contribution of such shares to
the equity of KDS;

 49
 

 

(3)  the contribution by Cable Holding S.àr.l. of
an outstanding shareholder loan between Cable Holding S.àr.l. and KDS to the
equity of KDG, and the subsequent contribution by KDG of such shareholder loan
to the equity of KDS;

(4)  the initial borrowing under the Senior
Facilities Agreement to repay existing Indebtedness;

(5)  the initial borrowing under the Bridge
Facility to finance a distribution from KDG to its shareholders, including by
way of a loan granted by KDG, which loan has been granted prior to the Issue
Date, and the subsequent setting off of such loan against the payment of a
dividend;

(6)  the offering of the Securities and the
application of the proceeds therefrom as described in the Offering Memorandum
and any refinancing of (or financing in lieu of) the Bridge Facility;

(7)  the Acquisitions and the transactions
pursuant to the Acquisition Documents;

(8)  the borrowing of additional funds under the
Senior Facilities Agreement and the Bridge Facility to finance any Acquisition;

(9)  the payment of one or more distributions to
the extent permitted under 
Section 4.06(c)(16);

(10)  any corporate reorganizations in connection
with the Acquisitions in accordance with the terms of the Senior Facilities
Agreement and permitted under this Indenture, in each case, as described in the
Offering Memorandum;

(11)  the completion of the Step-Up and any merger
or other business combination transaction between KDS and NewKDS; and

(12)  all other transactions related to the
foregoing (including the payment of any fees and expenses related to any of the
foregoing).

“Trustee Amounts” means all amounts payable to the Trustee
pursuant to this Indenture and any Note Guarantee in respect of its fees,
expenses and any amount payable to it personally by way of indemnity. Trustee
Amounts shall also include amounts payable to the Paying Agents, transfer
agents and the Registrars under this Indenture and to any agent, custodian or
other person employed by the Trustee to act under this Indenture and Guarantee
amounts payable thereunder in respect of the foregoing Persons’ fees, expenses
and any amounts payable to it personally by way of indemnity.

“Uniform Commercial Code” means the New York Uniform
Commercial Code as in effect from time to time.

 50
 

 

“Unrestricted Subsidiary” means:

(1)  any Subsidiary of KDG that at the time of
determination is an Unrestricted Subsidiary (as designated by the Board of
Directors of KDG in the manner provided below); and

(2)  any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors of
KDG may designate any Subsidiary of KDG (including any newly acquired or newly
formed Subsidiary or (other than any Target) a Person becoming a Subsidiary
through merger, consolidation or other business combination transaction, or
Investment therein) to be an Unrestricted Subsidiary only if:

(1)  such Subsidiary or any of its Subsidiaries
does not own any Capital Stock or Indebtedness of, or own or hold any Lien on
any property of, any other Subsidiary of KDG which is not a Subsidiary of the
Subsidiary to be so designated or otherwise an Unrestricted Subsidiary; and

(2)  such designation and the Investment of KDG in
such Subsidiary complies with Section 4.06.

Any such designation by
the Board of Directors of KDG shall be evidenced to the Trustee by filing with
the Trustee a resolution of the Board of Directors of KDG giving effect to such
designation and an Officer’s Certificate certifying that such designation
complies with the foregoing conditions.

The Board of Directors of
KDG may designate any Unrestricted Subsidiary to be a Restricted Subsidiary, provided that immediately after giving
effect to such designation either (1) KDG could Incur at least €1.00 of
additional Indebtedness under Section 4.05(a) or (2) the Consolidated Leverage
Ratio would not be greater than it was immediately prior to giving effect to
such designation, in each case, on a pro forma basis taking into account such
designation.

“U.S. Government Obligations” means securities that are (1)
direct obligations of the United States of America for the timely payment of
which its full faith and credit is pledged or (2) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the timely payment of which is unconditionally
Guaranteed as a full faith and credit obligation of the United States of
America, which, in either case, are not callable or redeemable at the option of
the issuer thereof, and shall also include a depositary receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of
principal of or interest on any such U.S. Government Obligations held by such
custodian for the account of the holder of such depositary receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the U.S. Government Obligations or the specific payment
of principal of or interest on the U.S. Government Obligations evidenced by
such depositary receipt.

 51
 

 

“Voting Stock” of a Person means all classes of Capital Stock
of such Person then outstanding and normally entitled to vote in the election
of directors.

“Wholly-Owned Subsidiary” means a Restricted Subsidiary of
KDG, all of the Capital Stock of which (other than directors’ qualifying shares
or shares required by any applicable law or regulation to be held by a Person
other than KDG or another Wholly-Owned Subsidiary) is owned by KDG or another
Wholly-Owned Subsidiary.

“Working Capital Intercompany Loan” means loans to or by KDG
or any of its Restricted Subsidiaries to or from KDG or any of its Restricted
Subsidiaries from time to time (i) for purposes of consolidated cash and tax
management and working capital management or (ii) for a duration of less than
one year.

SECTION 1.02. 
Other Definitions.

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Additional
  Amounts”

  	
   

  	
  4.02, Appendix A

  
	
  “Additional
  Intercreditor Agreement”

  	
   

  	
  4.16(a)

  
	
  “Additional
  Securities”

  	
   

  	
  Preamble

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.10(a)

  
	
  “Agent Members”

  	
   

  	
  Appendix A

  
	
  “Applicable Procedures”

  	
   

  	
  Appendix A

  
	
  “Asset
  Disposition Offer”

  	
   

  	
  4.09(b)

  
	
  “Asset
  Disposition Offer Amount”

  	
   

  	
  4.09(e)

  
	
  “Asset
  Disposition Offer Period”

  	
   

  	
  4.09(e)

  
	
  “Asset
  Disposition Purchase Date”

  	
   

  	
  4.09(e)

  
	
  “Auditors’
  Determination”

  	
   

  	
  10.06(d)

  
	
  “Authorized
  Agent”

  	
   

  	
  13.08

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01(a)(6)

  
	
  “Change of
  Control Offer”

  	
   

  	
  4.03(b)

  
	
  “Change of
  Control Payment”

  	
   

  	
  4.03(b)(1)

  
	
  “Change of
  Control Payment Date”

  	
   

  	
  4.03(b)(2)

  
	
  “Clearstream”

  	
   

  	
  Appendix A

  
	
  “Collateral”

  	
   

  	
  12.01(a)

  
	
  “covenant
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “cross acceleration
  provision”

  	
   

  	
  6.01(a)(5)(b)

  
	
  “Custodian”

  	
   

  	
  6.01(a)(6)

  
	
  “Definitive
  Security”

  	
   

  	
  Appendix A

  
	
  “Depositary”

  	
   

  	
  Appendix A

  
	
  “DTC”

  	
   

  	
  Appendix A

  
	
  “ECOFIN”

  	
   

  	
  2.04(a)

  
	
  “Euro
  Securities”

  	
   

  	
  Preamble

  
	
  “Euroclear”

  	
   

  	
  Appendix A

  

 

 52
 

 

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Event of
  Default”

  	
   

  	
  6.01(a)

  
	
  “Exchange
  Securities”

  	
   

  	
  Preamble

  
	
  “Fairness
  Opinion”

  	
   

  	
  4.10(a)(3)

  
	
  “German Taxing
  Jurisdiction”

  	
   

  	
  4.02(a)(2)

  
	
  “Global
  Security”

  	
   

  	
  Appendix A

  
	
  “Global
  Securities Legend”

  	
   

  	
  Appendix A

  
	
  “guarantee
  provisions”

  	
   

  	
  6.01(a)(8)

  
	
  “Guaranteed
  Obligations”

  	
   

  	
  10.01(a)

  
	
  “incorporated
  provision”

  	
   

  	
  13.01

  
	
  “Incur”

  	
   

  	
  1.04(g)

  
	
  “Initial
  Agreement”

  	
   

  	
  4.08(b)(3)

  
	
  “Initial Lien”

  	
   

  	
  4.07

  
	
  “Initial
  Purchasers”

  	
   

  	
  Appendix A

  
	
  “Initial
  Securities”

  	
   

  	
  Preamble

  
	
  “Issuer”

  	
   

  	
  Preamble

  
	
  “KDG”

  	
   

  	
  Preamble

  
	
  “KDS”

  	
   

  	
  Preamble

  
	
  “judgment
  default provision”

  	
   

  	
  6.01(a)(7)

  
	
  “legal
  defeasance option”

  	
   

  	
  8.01(b)

  
	
  “Luxembourg
  Transfer Agent”

  	
   

  	
  2.04(b)

  
	
  “Net Assets”

  	
   

  	
  10.06(a)

  
	
  “NewKDS”

  	
   

  	
  Preamble

  
	
  “NewKDS Share
  Pledge”

  	
   

  	
  12.01(a)

  
	
  “Note
  Guarantors”

  	
   

  	
  Preamble

  
	
  “Original
  Securities”

  	
   

  	
  Preamble

  
	
  “Paying Agent”

  	
   

  	
  2.04(a)

  
	
  “Payment
  Blockage Event”

  	
   

  	
  11.01(c)

  
	
  “Payment
  Blockage Period”

  	
   

  	
  11.01(c)

  
	
  “payment
  default”

  	
   

  	
  6.01(a)(5)(a)

  
	
  “pay the Note
  Guarantees”

  	
   

  	
  11.01(b)

  
	
  “Payor”

  	
   

  	
  4.02

  
	
  “Permitted
  Payments”

  	
   

  	
  4.06(b)

  
	
  “Private
  Exchange

  	
   

  	
  Appendix A

  
	
  “Private
  Exchange Securities”

  	
   

  	
  Appendix A

  
	
  “protected
  purchaser”

  	
   

  	
  2.08

  
	
  “Purchase
  Agreement”

  	
   

  	
  Appendix A

  
	
  “QIB”

  	
   

  	
  Appendix A

  
	
  “Qualified
  Institutional Buyer”

  	
   

  	
  Appendix A

  
	
  “Registered
  Agreement”

  	
   

  	
  Appendix A

  
	
  “Registered
  Exchange Offer”

  	
   

  	
  Appendix A

  
	
  “Regulation S”

  	
   

  	
  Appendix A

  
	
  “Regulation S
  Global Security”

  	
   

  	
  Appendix A

  
	
  “Regulation S
  Securities”

  	
   

  	
  Appendix A

  

 

 53
 

 

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Release”

  	
   

  	
  4.04(a)

  
	
  “Relevant
  Entity”

  	
   

  	
  10.06(a)

  
	
  “Relevant Tax
  Jurisdiction”

  	
   

  	
  4.02

  
	
  “Registrar”

  	
   

  	
  2.04(a)

  
	
  “Resale
  Restriction Termination Date”

  	
   

  	
  Appendix A

  
	
  “Restricted
  Period”

  	
   

  	
  Appendix A

  
	
  “Restricted
  Securities Legend”

  	
   

  	
  Appendix A

  
	
  “Rule 144A”

  	
   

  	
  Appendix A

  
	
  “Rule 144A
  Global Security”

  	
   

  	
  Appendix A

  
	
  “Rule 144A
  Securities”

  	
   

  	
  Appendix A

  
	
  “Securities”

  	
   

  	
  Preamble

  
	
  “Securities Act”

  	
   

  	
  Appendix A

  
	
  “Securities
  Custodian”

  	
   

  	
  Appendix A

  
	
  “Security
  Agreements”

  	
   

  	
  12.01(a)

  
	
  “security
  default provisions

  	
   

  	
  6.01(a)(9)

  
	
  “Security
  Trustee”

  	
   

  	
  Preamble

  
	
  “Securities Act”

  	
   

  	
  Appendix A

  
	
  “Share Capital”

  	
   

  	
  10.06(b)(2)(iv)

  
	
  “Share Pledge”

  	
   

  	
  12.01(a)

  
	
  “Shelf
  Registration Statement”

  	
   

  	
  Appendix A

  
	
  “Special
  Repurchase Offer”

  	
   

  	
  4.11(b)

  
	
  “Stop Notice”

  	
   

  	
  11.01(c)

  
	
  “Successor
  Company”

  	
   

  	
  5.01(a)(1)

  
	
  “Suspension
  Event”

  	
   

  	
  4.14

  
	
  “Transfer Agent”

  	
   

  	
  2.04(a)

  
	
  “Transfer
  Restricted Securities”

  	
   

  	
  Appendix A

  
	
  “Trustee”

  	
   

  	
  Preamble

  
	
  “U.S. Dollar
  Securities”

  	
   

  	
  Preamble

  

 

SECTION 1.03. 
Incorporation by Reference of TIA.  This Indenture is subject to the mandatory
provisions of the TIA, which are incorporated by reference in and made a part
of this Indenture.  The following TIA
terms have the following meanings:

“Commission” means the
SEC.

“indenture
securities” means the Securities and the Note Guarantees.

“indenture
security holder” means a Holder.

“indenture to be
qualified” means this Indenture.

“indenture
trustee” or “institutional trustee” means the Trustee.

 54

 

“obligor” on the indenture securities means the
Company, the Note Guarantors and any other obligor on the indenture securities.

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule have the meanings assigned to them by such definitions.

SECTION
1.04.  Rules of Construction.  Unless the context otherwise requires:

(a)  a term has the meaning
assigned to it;

(b)  an accounting term not
otherwise defined has the meaning assigned to it in accordance with GAAP;

(c)  “or” is not exclusive;

(d)  “including” means including
without limitation;

(e)  words in the singular
include the plural and words in the plural include the singular; and

(f)  unsecured Indebtedness shall
not be deemed to be subordinate or junior to secured Indebtedness merely by
virtue of its nature as unsecured Indebtedness.

ARTICLE
2

The Securities

SECTION
2.01.  Issuable in Series.  The Securities may be issued in one or more
series.  All Securities of any one series
shall be substantially identical except as to denomination.

With respect to any Additional Securities issued after
the Issue Date (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities pursuant to Sections 2.07, 2.08, 2.09, 2.10 or 3.06 or Appendix
A), there shall be (a) established in or pursuant to a resolution of the
Board of Directors of the Issuer and (b) (i) set forth or determined in
the manner provided in an Officer’s Certificate of the Issuer or
(ii) established in one or more indentures supplemental hereto, prior to
the issuance of such Additional Securities:

(1)  whether such Additional Securities shall be
issued as part of a new or existing series of Securities and the title of such
Additional Securities (which shall distinguish the Additional Securities of the
series from Securities of any other series);

(2)  the aggregate principal
amount of such Additional Securities which may be authenticated and delivered under
this Indenture (except for Securities

 55
 

 

authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the same
series pursuant to Sections 2.07, 2.08, 2.09, 2.10 or 3.06 or Appendix A
and except for Securities which, pursuant to Section 2.03, are deemed
never to have been authenticated and delivered hereunder);

(3)  the issue price and issuance
date of such Additional Securities, including the date from which interest on
such Additional Securities shall accrue; provided, however, that (to the extent such Additional Securities are
to be part of the same series as other Securities) such Additional Securities
will qualify to be treated as “part of the same issue” as the Original
Securities pursuant to Treasury Regulations Section 1.1275-1(f) or 1.1275-2(k);

(4)  if applicable, that such Additional
Securities shall be issuable in whole or in part in the form of one or more
Global Securities and, in such case, the respective depositaries for such
Global Securities, the form of any legend or legends which shall be borne by
such Global Securities in addition to or in lieu of those set forth in Exhibit
A hereto and any circumstances in addition to or in lieu of those set forth in
Section 2.3 of Appendix A in which any such Global Security may be exchanged in
whole or in part for Additional Securities registered, or any transfer of such
Global Security in whole or in part may be registered, in the name or names of
Persons other than the depositary for such Global Security or a nominee
thereof; and

(5)  if applicable, that such Additional
Securities shall not be issued in the form of Initial Securities as set forth
in Exhibit A, but shall be issued in the form of Exchange Securities as set
forth in Exhibit B.

If any of the terms of any Additional Securities are
established by action taken pursuant to a resolution of the Board of Directors,
a copy of an appropriate record of such action shall be certified by an Officer’s
Certificate and delivered to the Trustee at or prior to the delivery of the
Officer’s Certificate of the Issuer or the indenture supplemental hereto
setting forth the terms of the Additional Securities.

SECTION 2.02.  Form and Dating.  Provisions relating to the Securities are set
forth in Appendix A, which is hereby incorporated in and expressly made a part
of this Indenture.  The (a) Original
Securities and the Trustee’s or an authentication agent’s certificate of
authentication (as the case may be), (b) Private Exchange Securities and the
Trustee’s or an authentication agent’s certificate of authentication (as the
case may be) and (c) any Additional Securities (if issued as Transfer
Restricted Securities) and the Trustee’s or an authentication agent’s
certificate of authentication (as the case may be) shall each be substantially
in the form of Exhibit A, which is hereby incorporated in and expressly made a
part of this Indenture.  The Exchange
Securities and any Additional Securities issued other than as Transfer
Restricted Securities and the Trustee’s or an authentication agent’s
certificate of authentication (as the case may be) shall each be substantially
in the form of Exhibit B, which is hereby incorporated in and expressly made
part of this Indenture.  The Securities
may have notations, legends or endorsements required by law, stock exchange
rule, agreements to which the Issuer or any Note Guarantor is subject, if any,
or usage, provided that any such
notation, legend or

 56
 

 

endorsement is
in a form acceptable to the Issuer and the Trustee.  Each Security shall be dated the date of its
authentication.  The Securities shall be
issuable only in registered form without interest coupons and only in minimum
denominations of €50,000 or $75,000, as applicable, and whole multiples of €1,000
or $1,000, as applicable, in excess thereof.

SECTION 2.03.  Execution and
Authentication.  One Officer shall
sign the Securities for the Issuer by manual or facsimile signature.

If an Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security,
the Security shall be valid nevertheless.

A Security shall not be valid until an authorized
signatory of the Trustee or an authentication agent manually signs the
certificate of authentication on the Security. 
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

The Trustee or an authentication agent shall
authenticate and make available for delivery Securities as set forth in
Appendix A following receipt of an authentication order signed by an Officer of
the Issuer directing the Trustee or an authentication agent to authenticate
such Securities.

The Trustee may appoint an authentication agent
reasonably acceptable to the Issuer to authenticate the Securities.  Any such appointment shall be evidenced by an
instrument signed by a Trust Officer, a copy of which shall be furnished to the
Issuer.  Unless limited by the terms of
such appointment, an authentication agent may authenticate Securities whenever
the Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent.  An authentication agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

SECTION
2.04.  Registrar and Paying Agent.  (a) 
The Issuer shall maintain an office or agency in the City of London
where Securities may be presented for registration (the “Registrar”) and an office or agency in (i)
the City of London and (ii) the Borough of Manhattan, City of New York where
Securities may be presented for transfer or exchange (the “Transfer Agent”) or for payment (the “Paying Agent”).  The Registrar shall keep a register of the
Securities and of their transfer and exchange. 
The Issuer may have one or more co registrars and one or more additional
transfer and paying agents.  The terms
“Paying Agent”  and “Transfer Agent”
include any additional paying agent or transfer agent, as applicable, and the
term “Registrar” includes any co registrars. 
The Issuer initially appoints The Bank of New York, London Branch, in
the City of London and The Bank of New York, New York Branch, in the Borough of
Manhattan, City of New York, who each accept such appointment, as Paying Agents
and Transfer Agents. The Issuer initially appoints the Bank of New York, London
Branch, in the City of London, who accepts such appointment, as Registrar.  In addition, the Issuer undertakes that it
will ensure, to the extent practicable, that it maintains a Paying Agent in a
member state of the European Union that is not obliged to withhold or deduct
tax

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pursuant to
European Council Directive 2003/48/EC regarding the taxation of savings income
or any law implementing or complying with, or introduced in order to conform
to, such Directive.

(b)  So long as the Securities
are listed on the Luxembourg Stock Exchange and its rules so require, a paying
agent and transfer agent (the “Luxembourg
Transfer Agent”) will be maintained in Luxembourg at all times that
payments are required to be made in respect of the Securities.  The Issuer initially appoints The Bank of New
York (Luxembourg) S.A., who accepts such appointment, as Luxembourg Transfer
Agent.

(c)  The Issuer shall enter into
an appropriate agency agreement with any Registrar or Paying Agent not a party
to this Indenture, which shall incorporate the terms of the TIA.  Such agreement shall implement the provisions
of this Indenture that relate to such agent. 
The Issuer shall notify the Trustee of the name and address of any such
agent.  If the Issuer fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled
to appropriate compensation therefor pursuant to Section 7.07.  The Issuer or any Restricted Subsidiary may
act as Paying Agent or Registrar.

(d)  The Issuer may change any
Registrar or Paying Agent upon written notice to such Registrar or Paying Agent
and to the Trustee; provided, however,
that no such removal shall become effective until (i) acceptance of an
appointment by a successor as evidenced by an appropriate agreement entered
into by the Issuer and such successor Registrar or Paying Agent, as the case
may be, and delivered to the Trustee or (ii) notification to the Trustee that
the Trustee shall, to the extent that it determines that it is able, serve as Registrar
or Paying Agent until the appointment of a successor in accordance with clause
(i) above; provided, further,
that in no event may the Issuer appoint a Paying Agent in any member state of
the European Union where the Paying Agent would be obliged to withhold or
deduct tax in connection with any payment made by it in relation to the
Securities unless the Paying Agent would be so obliged if it were located in
all other member states.  The Registrar
or Paying Agent may resign by providing 30 day’s written notice to the Issuer
and the Trustee.

SECTION 2.05.  Paying Agent to
Hold Money in Trust.  No later than
10:00am London time in respect of payments to be made in London or 10:00am New
York time in respect of payments to be made in New York on each due date of the
principal of, interest and premium (if any) on any Security, the Issuer shall
deposit with the Paying Agent (or if the Issuer or a Restricted Subsidiary of
the Issuer is acting as Paying Agent, segregate and hold in trust for the
benefit of the Persons entitled thereto) a sum sufficient to pay such
principal, interest and premium (if any) when so becoming due and subject to
receipt of such monies, the Paying Agent shall make payment on the Securities
in accordance with this Indenture.  The
Issuer shall require each Paying Agent to agree in writing (and each Paying
Agent party to this Indenture agrees) that the Paying Agent shall hold in trust
for the benefit of Holders or the Trustee all money held by the Paying Agent
for the payment of principal of, interest and premium (if any) on the
Securities but such Paying Agent may use such monies as banker in the ordinary
course of business without accounting for profits (other than in the case of
Article 8), and shall

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notify the
Trustee of any default by the Issuer in making any such payment.  If the Issuer or a Restricted Subsidiary acts
as Paying Agent, it shall segregate the money held by it as Paying Agent and
hold it as a separate trust fund.  The
Issuer at any time may require a Paying Agent to pay all money held by it to
the Trustee and to account for any funds disbursed by the Paying Agent.  Upon complying with this Section, the Paying
Agent shall have no further liability for the money delivered to the Trustee.

SECTION 2.06.  Holder Lists.  The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders.  If the
Trustee is not the Registrar, the Issuer shall furnish, or cause the Registrar
to furnish, to the Trustee, in writing at least five Business Days before each
interest payment date and at such other times as the Trustee may request in
writing, a list in such form and as of such date as the Trustee may reasonably
require of the names and addresses of Holders.

SECTION 2.07.  Transfer and
Exchange.  The Securities shall be
issued in registered form and shall be transferable only upon the surrender of
a Security for registration of transfer and in compliance with Appendix A.  When a Security is presented to the Registrar
with a request to register a transfer, the Registrar shall register the
transfer as requested if its requirements therefor are met.  When Securities are presented to the
Registrar with a request to exchange them for an equal principal amount of Securities
of other denominations, the Registrar shall make the exchange as requested if
the same requirements are met.  To permit
registration of transfers and exchanges, the Issuer shall execute and the
Trustee or an authentication agent shall authenticate Securities at the
Registrar’s request.  The Issuer may
require payment of a sum sufficient to pay all taxes, assessments or other
governmental charges in connection with any transfer or exchange pursuant to
this Section.  The Issuer shall not be
required to make and the Registrar need not register transfers or exchanges of
Securities selected for redemption (except, in the case of Securities to be
redeemed in part, the portion thereof not to be redeemed) or any Securities for
a period of 15 days before a selection of Securities to be redeemed or before
an interest payment date.

Prior to the due presentation for registration of
transfer of any Security, the Issuer, the Note Guarantors, the Trustee, the
Paying Agent, and the Registrar may deem and treat the Person in whose name a
Security is registered as the absolute owner of such Security for the purpose
of receiving payment of principal of and (subject to Section 2 of the
Securities) interest, if any, on such Security and for all other purposes whatsoever,
whether or not such Security is overdue, and none of the Issuer, any Note
Guarantor, the Trustee, the Paying Agent, or the Registrar shall be affected by
notice to the contrary.

Any Holder of a Global Security shall, by acceptance
of such Global Security, agree that transfers of beneficial interest in such
Global Security may be effected only through a book-entry system maintained by
(a) the Holder of such Global Security (or its agent) or (b) any
Holder of a beneficial interest in such Global Security, and that ownership of
a beneficial interest in such Global Security shall be required to be reflected
in a book entry.

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All Securities issued upon any transfer or exchange
pursuant to the terms of this Indenture shall evidence the same debt and shall
be entitled to the same benefits under this Indenture as the Securities
surrendered upon such transfer or exchange.

SECTION 2.08.  Replacement
Securities.  If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Issuer shall issue
and the Trustee or an authentication agent shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial Code
are met, such that the Holder (a) notifies the Issuer or the Trustee within a
reasonable time after such Holder has notice of such loss, destruction or
wrongful taking and the Registrar does not register a transfer prior to
receiving such notification, (b) makes such request to the Issuer or the
Trustee prior to the Security being acquired by a protected purchaser as
defined in Section 8-303 of the Uniform Commercial Code (a “protected purchaser”) and (c) satisfies
any other reasonable requirements of the Trustee.  If required by the Trustee or the Issuer,
such Holder shall furnish an indemnity bond sufficient in the judgment of the
Trustee and the Issuer to protect the Issuer, the Trustee, the Paying Agent and
the Registrar from any loss that any of them may suffer if a Security is replaced.  The Issuer and the Trustee may charge the
Holder for their expenses in replacing a Security including reasonable fees and
expenses of counsel.  In the event any
such mutilated, lost, destroyed or wrongfully taken Security has become or is
about to become due and payable, the Issuer in its discretion may pay such
Security instead of issuing a new Security in replacement thereof.

Every replacement Security is an additional obligation
of the Issuer.

The provisions of this Section 2.08 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, lost, destroyed or
wrongfully taken Securities.

SECTION 2.09.  Outstanding
Securities.  Securities outstanding
at any time are all Securities authenticated by the Trustee or an
authentication agent except for those canceled by it, those delivered to it for
cancellation and those described in this Section as not outstanding.  Subject to Section 13.06, a Security does not
cease to be outstanding because the Issuer or an Affiliate of the Issuer holds
the Security.

If a Security is replaced pursuant to
Section 2.08, it ceases to be outstanding unless the Trustee and the
Issuer receive proof satisfactory to them that the replaced Security is held by
a protected purchaser.

If the Paying Agent receives (or if the Issuer or a
Restricted Subsidiary of the Issuer is acting as Paying Agent, such Paying
Agent segregates and holds in trust) in accordance with this Indenture, on a
redemption date or maturity date money sufficient to pay all principal and
interest and premium, if any, payable on that date with respect to the
Securities (or portions thereof) to be redeemed or maturing, as the case may
be, and the Paying Agent is not prohibited from paying such amount to the
Holders on that date pursuant to the terms of this Indenture or the
Intercreditor Agreement, then on and after

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that date such Securities
(or portions thereof) cease to be outstanding and interest on them ceases to
accrue.

SECTION 2.10.  Temporary
Securities.  In the event that
Definitive Securities are to be issued under the terms of this Indenture, until
such Definitive Securities are ready for delivery, the Issuer may prepare and
the Trustee or an authentication agent shall authenticate temporary
Securities.  Temporary Securities shall
be substantially in the form of Definitive Securities but may have variations
that the Issuer considers appropriate for temporary Securities.  Without unreasonable delay, the Issuer shall
prepare and the Trustee or an authentication agent shall authenticate
Definitive Securities and deliver them in exchange for temporary Securities
upon surrender of such temporary Securities at the office or agency of the
Issuer, without charge to the Holder.

SECTION 2.11.  Cancellation.  The Issuer at any time may deliver Securities
to the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or
cancellation and shall dispose of canceled Securities in accordance with its
customary procedures or deliver canceled Securities to the Issuer pursuant to
written direction by an Officer of the Issuer. 
Certification of the destruction of all canceled Securities shall be
delivered to the Issuer.  The Issuer may
not issue new Securities to replace Securities it has redeemed, paid or
delivered to the Trustee for cancellation. 
Neither the Trustee nor an authentication agent shall authenticate
Securities in place of canceled Securities other than pursuant to the terms of
this Indenture.

SECTION 2.12.  Defaulted
Interest.  If the Issuer defaults in a
payment of interest on the Securities, the Issuer shall pay the defaulted
interest (plus interest on such defaulted interest to the extent lawful) in any
lawful manner.  The Issuer may pay the
defaulted interest to the Persons who are Holders on a subsequent special
record date.  The Issuer shall fix or
cause to be fixed any such special record date and payment date, provided that no such special record date
shall be less than 10 days prior to the related payment date for such defaulted
interest.  The Issuer shall promptly mail
or cause to be mailed to each Holder and the Trustee a notice that states the
special record date, the payment date and the amount of defaulted interest to
be paid.

SECTION 2.13.  Common Codes,
CUSIP and ISIN Numbers.  The Issuer
in issuing the Securities may use Common Codes, CUSIP and ISIN numbers (if then
generally in use) and, if so, the Trustee shall use Common Codes, CUSIP and
ISIN numbers in notices of redemption as a convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.  The Issuer will promptly notify the Trustee
and the Paying Agent of any change in the Common Code, CUSIP or ISIN numbers.

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SECTION 2.14.  Currency.   In the case of (1) the Euro Securities, the
euro and (2) the U.S. Dollar Securities, the U.S. dollar, is the sole currency
of account and payment for all sums payable by the Issuer or any Note Guarantor
under or in connection with the Euro Securities and the U.S. Dollar Securities,
as the case may be, including damages. Any amount received or recovered in a
currency other than euro (in the case of the Euro Securities) or the U.S.
dollar (in the case the U.S. Dollar Securities), whether as a result of, or the
enforcement of, a judgment or order of a court of any jurisdiction, in the
winding-up or dissolution of the Issuer or any Note Guarantor or otherwise by
any Holder of a Euro Security or a U.S. Dollar Security, as the case may be, or
by the Trustee, in respect of any sum expressed to be due to it from the Issuer
or any Note Guarantor will only constitute a discharge to the Issuer or any
Note Guarantor to the extent of the euro amount or the U.S. U.S. dollar amount,
as the case may be, which the recipient is able to purchase with the amount so
received or recovered in that other currency on the date of that receipt or
recovery (or, if it is not practicable to make that purchase on that date, on
the first date on which it is practicable to do so).

If that euro amount is less than the euro amount
expressed to be due to the recipient or the relevant Trustee under any Euro
Security, or if that U.S. dollar amount is less than the U.S. dollar amount
expressed to be due to the recipient or the Trustee under any U.S. Dollar
Security, the Issuer and any Note Guarantor will indemnify them against any
loss sustained by such recipient as a result. In any event, the Issuer and any
Note Guarantor will indemnify the recipient against the cost of making any such
purchase. For the purposes of this currency indemnity provision, it will be
prima facie evidence of the matter stated therein for the Holder of a Security
or the Trustee to certify in a manner satisfactory to the Issuer (indicating
the sources of information used) the loss it Incurred in making any such
purchase. These indemnities constitute a separate and independent obligation
from the Issuer and any Note Guarantor’s other obligations, will give rise to a
separate and independent cause of action, will apply irrespective of any waiver
granted by any Holder of a Security or the Trustee (other than a waiver of the
indemnities set out herein) and will continue in full force and effect despite
any other judgment, order, claim or proof for a liquidated amount in respect of
any sum due under any Security or to the Trustee.

Except as otherwise specifically set forth herein, for
purposes of determining compliance with any euro-denominated restriction
herein, the Euro Equivalent amount for purposes hereof that is denominated in a
non-euro currency shall be calculated based on the relevant currency exchange
rate in effect on the date such non-euro amount is Incurred or made, as the
case may be.

ARTICLE
3

Redemption

SECTION 3.01.  Notices to
Trustee.  If the Issuer elects to
redeem Securities pursuant to Sections 5 or 6 of the Securities, it shall
notify the Trustee and the

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relevant
Paying Agent of the redemption date and the principal amount of Securities to
be redeemed and the section of the Security pursuant to which the redemption will
occur.

The Issuer shall give each notice to the Trustee and
the relevant Paying Agent provided for in this Article 3 at least 30 days,
but not more than 60 days, before the redemption date unless the Trustee or the
relevant Paying Agent (as the case may be) consents to a shorter period.  In the case of a redemption pursuant to
Section 5 of the Securities, such notice shall be accompanied by an Officer’s
Certificate from the Issuer to the effect that such redemption will comply with
the conditions herein.

In the case of a redemption provided for by Section 6
of the Security, prior to the publication or mailing of any notice of
redemption of any series of Securities pursuant to the foregoing, the Issuer
will deliver to the Trustee and the relevant Paying Agent (a) an Officer’s
Certificate stating that it is entitled to effect such redemption and setting
forth a statement of facts showing that the conditions precedent to its right
so to redeem have been satisfied and (b) an opinion of an independent tax counsel
of recognized standing to the effect that the circumstances referred to above
exist.  The Trustee will accept such
Officer’s Certificate and opinion as sufficient existence of the satisfaction
of the conditions precedent described above, in which event it will be
conclusive and binding on the Holders. 
Any such notice may be canceled at any time prior to notice of such
redemption being mailed to any Holder and shall thereby be void and of no
effect.

SECTION 3.02.  Selection of
Securities To Be Redeemed or Repurchased. 
If less than all of any series of Securities is to be redeemed at any
time, the Trustee will select Securities for redemption in compliance with the
requirements of the principal securities exchange, if any, on which that series
of Securities is listed, and/or in compliance with the requirements of
Euroclear, Clearstream or DTC, as applicable, or if that series of Securities
is not so listed or such exchange prescribes no method of selection and the
Securities are not held through Euroclear, Clearstream or DTC, as applicable,
or Euroclear, Clearstream or DTC, as applicable, prescribes no method of
selection, on a pro rata basis, by lot or by such other method as the Trustee
in its sole discretion deems fair and appropriate (and in such manner as
complies with applicable legal and exchange requirements); provided, however, that no Security of
€50,000 (in the case of Euro Securities) or $75,000 (in the case of U.S. Dollar
Securities) in aggregate principal amount or less shall be redeemed in
part.  Provisions of this Indenture that
apply to Securities called for redemption also apply to portions of Securities
called for redemption.  The Trustee shall
notify the Issuer promptly of the Securities or portions of Securities to be
redeemed.

SECTION 3.03.  Notice of
Redemption.  (a)   At least 30 days but not more than 60 days
before a date for redemption of Securities, the Issuer shall transmit a notice
of redemption in accordance with Section 13.02 and as provided below to each
Holder of Securities to be redeemed at such Holder’s registered address; provided, however, that any notice of a
redemption provided for by Section 6 of the Securities shall not be given
earlier than 90 days prior to the earliest date on which the Payor would be
obligated to make a payment of Additional Amounts were a payment in respect of
the

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Securities then
due and payable. In addition, for so long as the Securities are listed on the
Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so
require, the Issuer shall publish notice of redemption in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort).

The notice shall identify the Securities to be
redeemed and shall state:

(i)  the redemption date;

(ii)  the redemption price, and, if applicable, the
appropriate calculation of such redemption price and the amount of accrued
interest to the redemption date;

(iii)  the name and address of the Paying Agent;

(iv)  that Securities called for redemption must be
surrendered to the Paying Agent to collect the redemption price;

(v)  if fewer than all the outstanding Securities
are to be redeemed, the certificate numbers and principal amounts of the
particular Securities to be redeemed;

(vi)  that, unless the Issuer defaults in making
such redemption payment or the Paying Agent is prohibited from making such
payment pursuant to the terms of this Indenture, interest on Securities (or
portion thereof) called for redemption ceases to accrue on and after the
redemption date;

(vii)  the Common Codes, CUSIP or ISIN number, as
applicable, if any, printed on the Securities being redeemed; and

(viii)  that no representation is made as to the
correctness or accuracy of the Common Codes, CUSIP or ISIN number, as
applicable, if any, listed in such notice or printed on the Securities.

(b)  At the Issuer’s request, the
Trustee shall give the notice of redemption in the Issuer’s name and at the
Issuer’s expense.  In such event, the
Issuer shall provide the Trustee with the information required and within the
time periods specified by this Section.

SECTION 3.04.  Effect of
Notice of Redemption.  Once notice of
redemption is delivered, Securities called for redemption become due and
payable on the redemption date and at the redemption price stated in the
notice, provided, however, that any redemption notice given
in respect of the redemption referred to in the penultimate paragraph of
Section 5 of the Securities may be given prior to completion of the related
Equity Offering, and any such redemption or notice may, at the Issuer’s
discretion, be subject to the satisfaction of one or more conditions precedent,
including the completion

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of the related
Equity Offering. Upon surrender to the Paying Agent, the Securities shall be
paid at the redemption price stated in the notice, plus accrued interest, if
any, to the redemption date; provided,
however, that if the redemption date is after a regular record date
and on or prior to the interest payment date, the accrued interest shall be
payable to the Holder of the redeemed Securities registered on the relevant
record date.  Failure to give notice or
any defect in the notice to any Holder shall not affect the validity of the
notice to any other Holder.

SECTION 3.05.  Deposit of
Redemption Price.  No later than
10:00am London time in respect of payments to be made in London or 10:00am New
York time in respect of payments to be made in New York on the redemption date,
the Issuer shall deposit with the Paying Agent (or, if the Issuer or a
Restricted Subsidiary of the Issuer is the Paying Agent, shall segregate and
hold in trust) money sufficient to pay the redemption price of and accrued
interest on all Securities or portions thereof to be redeemed on that date
other than Securities or portions of Securities called for redemption that have
been delivered by the Issuer to the Trustee for cancellation.  On and after the redemption date, interest
shall cease to accrue on Securities or portions thereof called for redemption
so long as the Issuer has deposited with the Paying Agent funds sufficient to
pay the principal of, plus accrued and unpaid interest, if any, on, the
Securities to be redeemed, unless the Paying Agent is prohibited from making
such payment pursuant to the terms of this Indenture.

SECTION 3.06.  Securities
Redeemed in Part.  Subject to the
terms hereof, upon surrender of a Security that is redeemed in part, the Issuer
shall execute and the Trustee or an authentication agent shall authenticate for
the Holder (at the Issuer’s expense) a new Security equal in principal amount
to the unredeemed portion of the Security surrendered.

ARTICLE
4

Covenants

SECTION 4.01.  Payment of
Securities.  The Issuer shall
promptly pay the principal of and interest on the Securities on the dates and
in the manner provided in the Securities and in this Indenture.  Principal and interest shall be considered
paid on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to pay all principal and
interest then due and the Trustee or the Paying Agent, as the case may be, is
not prohibited from paying such money to the Holders on that date pursuant to
the terms of this Indenture.

The Issuer shall pay interest on overdue principal at the rate
specified therefor in the Securities.

SECTION 4.02.  Withholding
Taxes.  (a)  All payments made by KDG, any Note Guarantor
or a successor of any of the foregoing (each, a “Payor”) on the Securities or the Note Guarantees will be
made free and clear of and without withholding

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or deduction
for, or on account of, any Taxes unless the withholding or deduction of such
Taxes is then required by law. If any deduction or withholding for, or on
account of, any Taxes imposed or levied by or on behalf of: (1) Germany or
any political subdivision or governmental authority thereof or therein having
power to tax (2) any jurisdiction from or through which payment on the
Securities or any Note Guarantee is made, or any political subdivision or
governmental authority thereof or therein having the power to tax; or
(3) any other jurisdiction in which the Payor is organized or otherwise
considered to be a resident for tax purposes, or any political subdivision or
governmental authority thereof or therein having the power to tax (each of
clause (1), (2) and (3), a “Relevant Taxing
Jurisdiction”), will at any time be required from any payments made
with respect to the Securities, including payments of principal, redemption
price, interest or premium, if any, the Payor will pay (together with such
payments) such additional amounts (the “Additional
Amounts”) as may be necessary in order that the net amounts received
in respect of such payments by the Holders or the Trustee, as the case may be,
after such withholding or deduction (including any such deduction or
withholding from such Additional Amounts), will not be less than the amounts
which would have been received in respect of such payments on the Securities in
the absence of such withholding or deduction; provided,
however, that no such Additional Amounts will be payable for or on
account of:

(1)  any Taxes that would not have been so
imposed but for the existence of any present or former connection between the
relevant holder (or between a fiduciary, settlor, beneficiary, member or
shareholder of, or possessor of power over the relevant holder, if the relevant
holder is an estate, nominee, trust, partnership, limited liability company or
corporation) and the Relevant Taxing Jurisdiction (including being a citizen or
resident or national of, or carrying on a business or maintaining a permanent
establishment in, or being physically present in, the Relevant Taxing
Jurisdiction) but excluding, in each case, any connection arising solely from
the acquisition, ownership or holding of such Security or the receipt of any
payment in respect thereof;

(2)  any Taxes that would not have been so
imposed if (i) the holder of the Security had made a declaration of
non-residence or any other claim or filing for exemption to which it is
entitled (provided that (x) such
declaration of non-residence or other claim or filing for exemption is required
by the applicable law of the Relevant Taxing Jurisdiction as a precondition to
exemption from the requirement to deduct or withhold all or a part of any such
Taxes and (y) at least 30 days prior to the first payment date with respect to
which such declaration of non-residence or other claim or filing for exemption
is required under the applicable law of the Relevant Taxing Jurisdiction, the
relevant holder at that time has been notified in writing by the Payor or any
other person through whom payment may be made that a declaration of
non-residence or other claim or filing for exemption is required to be made);
or (ii) in the case of Taxes imposed by or on behalf of Germany or any
political subdivision or governmental authority thereof or therein having the
power to tax (each of the foregoing a “German Taxing Jurisdiction”),
the holder of the Security had provided such other evidence as is reasonably
necessary to enable the Payor or any other person through whom payment may be
made to determine the residence of the holder (provided
that (x) such determination of residence is necessary under the
applicable laws of the German Taxing Jurisdiction to determine the application

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of the exemption from the
requirement to deduct or withhold all or a part of any such Taxes and (y) at
least 30 days prior to the first payment date with respect to which such
determination is required under the applicable law of the German Taxing
Jurisdiction, the relevant holder at that time has been notified in writing by
the Payor or any other person through whom payment may be made that such
evidence must be provided);

(3)  any Taxes that are payable otherwise
than by withholding from a payment of the principal of, premium, if any or
interest, if any, on the Securities or under any Note Guarantee;

(4)  any estate, inheritance, gift, sales,
excise, transfer, personal property or similar tax, assessment or other
governmental charge;

(5)  any Taxes that are required to be
deducted or withheld on a payment to an individual pursuant to the Directive or
any law implementing, or introduced in order to conform to, such Directive;

(6)  except in the case of the liquidation,
dissolution or winding-up of the Payor, any Taxes imposed in connection with a
Security presented for payment by or on behalf of a Holder or beneficial owner
who would have been able to avoid such Tax by presenting the relevant Security
to, or otherwise accepting payment from, another paying agent in a member state
of the European Union; or

(7)  any combination of the above.

Such Additional Amounts will also not be payable (x)
if the payment could have been made without such deduction or withholding if
the beneficiary of the payment had presented the Security for payment (where
presentation is required) within 30 days after the relevant payment was first
made available for payment to the Holder or (y) where, had the beneficial owner
of the Security been the Holder of the Security, such beneficial owner would
not have been entitled to payment of Additional Amounts by reason of any of
clauses (1) to (7) inclusive above.

(b)  The Payor will (i) make any required
withholding or deduction and (ii) remit the full amount deducted or withheld to
the Relevant Taxing Jurisdiction in accordance with applicable law. The Payor
will use all reasonable efforts to obtain certified copies of tax receipts
evidencing the payment of any Taxes so deducted or withheld from each Relevant
Taxing Jurisdiction imposing such Taxes and will provide such certified copies
to the Trustee. Such copies shall be made available to the Holders upon request
and will be made available at the offices of the Luxembourg Paying Agent if the
Securities are then listed on the Luxembourg Stock Exchange. The Payor will
attach to each certified copy a certificate stating (x) that the amount of
withholding Taxes evidenced by the certified copy was paid in connection with payments
in respect of the principal amount of Securities then outstanding and (y) the
amount of such withholding Taxes paid per €1,000 principal amount of the Euro
Securities or per $1,000 principal amount of the U.S. Dollar Securities, as the
case may be.

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(c)  If any Payor will be obligated to pay
Additional Amounts under or with respect to any payment made on the Securities,
at least 30 days prior to the date of such payment, the Payor will deliver to
the Trustee and the relevant Paying Agent an Officer’s Certificate stating the
fact that Additional Amounts will be payable and the amount so payable and such
other information necessary to enable the Paying Agent to pay Additional
Amounts to Holders on the relevant payment date (unless such obligation to pay Additional
Amounts arises less than 45 days prior to the relevant payment date, in which
case the Payor may deliver such Officer’s Certificate as promptly as
practicable after the date that is 30 days prior to the payment date).

(d)  Wherever in this Indenture, the
Securities or any Note Guarantee, there are mentioned, in any context: (i) the
payment of principal, (ii) purchase prices in connection with a purchase of
Securities, (iii) interest, or (iv) any other amount payable on or with respect
to any of the Securities or any Note Guarantee, such reference shall be deemed
to include payment of Additional Amounts as described under this heading to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof.

(e)  The Payor will pay any present or future
stamp, court or documentary taxes, or any other excise, property or similar
taxes, charges or levies that arise in any jurisdiction from the execution,
delivery, registration or enforcement of any Securities, this Indenture, the
Share Pledge, the NewKDS Share Pledge or any other document or instrument in
relation thereto (other than a transfer of the Securities) excluding any such
taxes, charges or similar levies imposed by any jurisdiction that is not a
Relevant Taxing Jurisdiction, and the Payor agrees to indemnify the Holders for
any such taxes paid by such Holders. The foregoing obligations will survive any
termination, defeasance or discharge of this Indenture and will apply mutatis mutandis to any jurisdiction in which
any successor to a Payor or any Note Guarantor is organized or any political
subdivision or taxing authority or agency thereof or therein.

SECTION 4.03.  Change of Control.  (a)  If
a Change of Control occurs, subject to Section 4.03, each Holder will have the
right to require KDG to repurchase all of such Holder’s Securities at a
purchase price in cash equal to 101% of the principal amount of the Securities
plus accrued and unpaid interest to the date of purchase (subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date); provided, however,
that KDG shall not be obliged to repurchase Securities as described in this
Section 4.03 in the event and to the extent that it has unconditionally
exercised its right to redeem all of the Securities under Section 5 of the
Securities or all conditions to such redemption have been satisfied or waived.

(b)  Unless KDG has unconditionally exercised its
right to redeem all the Securities under Section 5 of the Securities or all
conditions to such redemption have been satisfied or waived, no later than the
date that is 30 days after any Change of Control, KDG will mail a notice (the “Change of Control Offer”) to each Holder, with a copy to the
Trustee and the relevant Paying Agent,

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(1)  stating that a Change of Control has occurred
or may occur and that such Holder has the right to require KDG to purchase such
Holder’s Securities at a purchase price in cash equal to 101% of the principal
amount of such Securities plus accrued and unpaid interest to the date of
purchase (subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date) (the “Change of
Control Payment”);

(2) 
stating the repurchase date (which shall be no earlier than 30 days nor
later than 60 days from the date such notice is mailed) (the “Change of Control Payment Date”);

(3) 
describing the circumstances and relevant facts regarding the
transaction or transactions that constitute the Change of Control;

(4) 
describing the procedures determined by KDG, consistent with this
Indenture, that a Holder must follow in order to have its Securities
repurchased; and

(5)  if
such notice is mailed prior to the occurrence of a Change of Control, stating
that the Change of Control Offer is conditional on the occurrence of such
Change of Control.

(c)  On the Change of Control
Payment Date, if the Change of Control shall have occurred, KDG will, to the
extent lawful:

(1) 
accept for payment all Securities properly tendered pursuant to the
Change of Control Offer;

(2) 
deposit with the Paying Agent an amount equal to the Change of Control
Payment in respect of all Securities so tendered; and

(3) 
deliver or cause to be delivered to the Trustee and the relevant Paying
Agent an Officer’s Certificate stating the Securities or portions of Securities
being purchased by KDG in the Change of Control Offer;

(4) 
deliver, or cause to be delivered, to the principal Paying Agent the
Global Securities in order to reflect thereon the portion of such Securities or
portions thereof that have been tendered to and purchased by KDG; and

(5) 
deliver, or cause to be delivered, to the relevant Registrar for
cancellation all Definitive Securities accepted for purchase by KDG.

(d)  If any Definitive Securities
have been issued, the Paying Agent will promptly mail or deliver to each Holder
of Definitive Securities so tendered the Change of Control Payment for such
Securities following receipt of such monies in accordance with this Indenture,
and the Trustee or an authentication agent will promptly authenticate and mail
(or cause to be transferred by book entry) to each Holder of Definitive
Securities a new Security equal in principal amount to the unpurchased portion
of the Securities surrendered, if any; provided that
each such new Security will be in a principal

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amount that is
at least €50,000 or $75,000, as the case may be, and an integral multiple of €1,000
or $1,000, as the case may be.

(e)  For so long as the
Securities are listed on the Luxembourg Stock Exchange and the rules of such
exchange so require, KDG will publish a public announcement with respect to the
results of the Change of Control Offer in a newspaper with general circulation
in Luxembourg (which is expected to be the Luxemburger Wort).

(f)  This Section 4.03 will be
applicable whether or not any other provisions of this Indenture are
applicable.

(g)  KDG will not be required to
make a Change of Control Offer upon a Change of Control if a third party makes
the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Indenture applicable to a
Change of Control Offer made by KDG and purchases all Securities validly
tendered and not withdrawn under such Change of Control Offer.

(h)  KDG will comply, to the
extent applicable, with the requirements of Section 14(e) of the Exchange Act
and any other securities laws or regulations in connection with the repurchase
of Securities pursuant to this Section 4.03. To the extent that the provisions
of any securities laws or regulations conflict with provisions of this Indenture,
KDG will comply with the applicable securities laws and regulations and will
not be deemed to have breached its obligations under the Change of Control
provisions of this Indenture by virtue of the conflict.

SECTION 4.04.  Special Tax
Repurchase Right.  (a)  In the event of a Thin Capitalization Event,
KDG and its Restricted Subsidiaries may with notice to the Trustee, the
relevant Paying Agent and the Holders specifying the actions permitted under
this Section 4.04(a) that have or will occur, within 30 days of the occurrence
of such Thin Capitalization Event, elect to cause a release (a “Release”) of any Note Guarantee (but not, for the avoidance
of doubt, the Security Documents) to the extent (but only to the extent) that,
based upon an Opinion of Counsel from an independent tax counsel of nationally
recognized standing in the Federal Republic of Germany, it determines in good
faith that such Release is necessary to remedy the loss of deductibility that
triggered the Thin Capitalization Event. KDG shall provide the Trustee with an
Officer’s Certificate stating that it is relying upon such ground in releasing
such Note Guarantee.

(b)  KDG will commence an offer
(the “Special Repurchase Offer”) in accordance
with the procedures set forth in this Indenture within 10 Business Days of any
Release made to all Holders of Securities to repurchase all of such Securities
at a price in cash equal to 101% of the principal amount thereof, plus accrued
and unpaid interest (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date) to
the date fixed for such repurchase. Such notice will be made by KDG in
accordance with Section 13.02 and as provided below to each Holder of
Securities to be redeemed at such Holder’s registered address or,
alternatively, will be valid if published in a leading English language daily
newspaper

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with general
circulation in Europe and the United States as the Trustee may approve.  It is expected that such publication will
normally be made in the Financial Times. 
In addition, for so long as the Securities are listed on the Luxembourg
Stock Exchange and the rules of the Luxembourg Stock Exchange so require, KDG
shall publish notice of redemption in Luxembourg in a daily newspaper with
general circulation in Luxembourg (which is expected to be the Luxemburger Wort).  If
publication as provided above is not practicable, notice will be given in such
other manner, and shall be deemed to have been given on such date, as the Trustee
may approve.  KDG will purchase all
Securities properly tendered for purchase pursuant to a Special Repurchase
Offer. Unless a later date is required by applicable law, the date of purchase
shall be not earlier than 30 days nor later than 60 days from the date on which
notice of the Special Repurchase Offer is mailed.

(c)  KDG will comply, to the
extent applicable, with the requirements of Section 14(e) under the Exchange
Act and any other securities laws or regulations in connection with the
repurchase of the Securities pursuant to the Special Repurchase Offer. To the
extent that the provisions of any securities laws or regulations conflict with
the provisions of this Indenture, KDG will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the Special Repurchase Offer provisions of this Indenture by
virtue of the conflict. If so designated by KDG, any Restricted Subsidiary or
Affiliate of KDG may conduct the Special Repurchase Offer, including payment of
the appropriate consideration upon the tender to such Restricted Subsidiary or
Affiliate of Securities.

(d)  The notice to be delivered
hereunder shall contain the following information:

(1)  a Special Repurchase Offer is being
made pursuant to this Section 4.04 and that all Securities properly tendered
pursuant to such Special Repurchase Offer will be accepted for purchase;

(2)  the purchase price and the purchase
date, each determined in accordance with the provisions hereof;

(3)  any Security not properly tendered will
remain outstanding and continue to accrue interest;

(4)  unless the Issuer defaults in the
payment of the purchase price, all Securities accepted for payment pursuant to
the Special Repurchase Offer will cease to accrue interest on the date of
purchase thereof;

(5)  Holders electing to have any Securities
purchased pursuant to a Special Repurchase Offer will be required to surrender
the Securities to the Paying Agent at the address specified in the notice or to
the Paying Agent at its office in Luxembourg prior to the close of business on
the third Business Day preceding the date of purchase specified in the notice; provided, however, that in relation to
any Book Entry Interest, a holder of such Book Entry Interests may exercise its
option to have such Book Entry

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Interest purchased
through the facilities of DTC, Euroclear and/or Clearstream, as applicable, in
each case, subject to their rules and regulations;

(6)  Holders will be entitled to withdraw
their tendered Securities and their election to require the Issuer to purchase
such Securities if the Paying Agent receives, not later than the close of
business on the last Business Day preceding the date of purchase specified in
the notice, a telegram, telex, facsimile transmission or letter setting forth
the name of such Holder, the principal amount of Securities tendered for
purchase, and a statement that such Holder is withdrawing his tendered
Securities and his election to have such Securities purchased; and

(7)  if applicable, a Holder whose
Definitive Securities are being purchased in part will be issued new Definitive
Securities equal in principal amount to the unpurchased portion of the
Securities surrendered, which unpurchased portion must have a minimum principal
amount of €50,000 or $75,000, as applicable, and be an integral multiple of €1,000
or $1,000, as applicable.

SECTION 4.05.  Limitation on
Indebtedness.  (a)  KDG will not, and will not permit any of its
Restricted Subsidiaries to, Incur any Indebtedness (including Acquired
Indebtedness); provided, however, that KDG or any Note Guarantor or any Finance
Subsidiary may Incur Indebtedness and any Restricted Subsidiary may Incur
Indebtedness other than Public Debt (subject to Section 4.05(c), other than a
Guarantee of Public Debt of KDG, a Note Guarantor or a Finance Subsidiary) if
on the date of such Incurrence and after giving pro forma effect thereto
(including pro forma application of the proceeds thereof), the Consolidated
Leverage Ratio for KDG and its Restricted Subsidiaries is less than (x) 5.50 to
1.00 if the date of such Incurrence is prior to the 18-month anniversary of the
Issue Date, or (y) 5.00 to 1.00 if the date of such Incurrence is on or after
the 18-month anniversary of the Issue Date.

(b)  The limitations of Section 4.05(a)
will not prohibit the Incurrence of the following Indebtedness:

(1)  (a)  Indebtedness Incurred
pursuant to any Credit Facility (other than the Bridge Facility) (including in
respect of letters of credit or bankers’ acceptances issued or created
thereunder), and any Refinancing Indebtedness in respect thereof and, subject
to Section 4.05(c), Guarantees in respect of such Indebtedness in a maximum
aggregate principal amount at any time outstanding not exceeding (i) the Senior
Facilities Amount plus (ii) in the case of any refinancing of any Credit
Facility or any portion thereof, the aggregate amount of fees, underwriting
discounts, premiums and other costs and expenses Incurred in connection with
such refinancing, plus (iii)(A) in the event none of the Acquisitions are
consummated, €100 million, (B) in the event all the Acquisitions are
consummated, €150 million and (C) in the event some but not all the
Acquisitions are consummated, €100 million plus (x) €20 million, in the event
that the ish Acquisition is consummated, (y) €15 million, in the event that the
KBW Acquisition is consummated and (z) €15 million, in the event that the iesy
Acquisition is consummated less (iv) the aggregate amount of all scheduled

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principal repayments and
all mandatory prepayments of principal resulting from the receipt of proceeds
of an asset sale or excess cashflow, in each case, of Indebtedness Incurred
under the Senior Facilities Agreement under this clause (1)(a), in each case,
permanently reducing the commitments thereunder; and

(b)  Indebtedness Incurred (i) by KDG under
the Bridge Facility, (ii) by KDG or any Issuing Company under Bridge Exchange
Notes pursuant to the Bridge Facility Agreement, (iii) by KDG or any Issuing
Company under Take-Out Securities pursuant to the Bridge Facility Agreement,
(iv) by KDG or any Issuing Company under any other debt securities or other
Indebtedness Incurred to refinance Indebtedness Incurred by KDG under the
Bridge Facility in accordance with sub-clause (i) or issued in lieu of the
Incurrence of Indebtedness under the Bridge Facility (provided that such Indebtedness shall rank
pari passu with, or be expressly subordinated in right of payment to, the
Securities), (v) by KDS or NewKDS under Guarantees in respect of the obligations
of KDG under Indebtedness described in sub-clauses (i) to (iv), (vi) by KDG
under Guarantees in respect of the obligations of an Issuing Company under
Indebtedness described in sub-clause (ii), (iii), (iv) or (vii) and (vii) as
Refinancing Indebtedness in respect of Indebtedness described in sub-clauses
(i) to (iv) above, in an aggregate principal amount outstanding at any time
under this clause (1)(b) not in excess of the Bridge Facility Amount (provided that all Guarantees Incurred
under the sub-clause (v) or (vi) shall rank pari
passu with, or be expressly subordinated in right of payment to, the
Note Guarantee or the Securities, as applicable);

(2)  (a)  any Guarantees by KDG of
Indebtedness of any Restricted Subsidiary so long as the Incurrence of
Indebtedness by such Restricted Subsidiary is permitted under the terms of this
Indenture;

(b)  Guarantees by any Restricted Subsidiary
of Indebtedness of KDG or any other Restricted Subsidiary so long as the
Incurrence of such Indebtedness is permitted under the terms of this Indenture;
or

(c)  without limiting Section 4.07,
Indebtedness of KDG or any Restricted Subsidiary arising by reason of any Lien
granted by or applicable to such Person securing Indebtedness of KDG or any
Restricted Subsidiary so long as the Incurrence of such Indebtedness is
permitted under the terms of this Indenture;

(3)  Indebtedness of KDG owing to and held
by any Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owing
to and held by KDG or any Restricted Subsidiary; provided, however,
that:

(a)  any subsequent issuance or transfer of
Capital Stock or any other event which results in any such Indebtedness being
beneficially held by a Person other than KDG or a Restricted Subsidiary of KDG;
and

 73
 

 

(b)  any sale or other transfer of any such
Indebtedness to a Person other than KDG or a Restricted Subsidiary of KDG,

shall be deemed, in each
case, to constitute an Incurrence of such Indebtedness by KDG or such
Restricted Subsidiary, as the case may be; provided,
further, that, if a Restricted
Subsidiary that is not a Note Guarantor owns or holds such Indebtedness and KDG
or any Note Guarantor is the obligor on such Indebtedness, such Indebtedness is
expressly subordinated to the prior payment in full of all obligations with
respect to the Securities or such Note Guarantor’s Note Guarantee, as the case
may be, or is a Working Capital Intercompany Loan;

(4)  Indebtedness represented by:
(a) the Securities (other than any Additional Securities) and any Exchange
Securities and any “parallel debt” obligations created under the Intercreditor
Agreement, the Security Documents in respect thereof; (b) Note Guarantees
and any “parallel debt” obligations created under the Intercreditor Agreement,
the Security Documents in respect thereof; (c) the Security Documents;
(d) any Indebtedness (other than the Indebtedness described in
Section 4.05(b)(1) and 4.05(b)(3)) outstanding on the Issue Date;
(e) any Refinancing Indebtedness Incurred in respect of any Indebtedness
described in this Sections 4.05(b)(4) or Section 4.05(b)(5) (but, with respect
to Section 4.05(b)(5)(a), excluding any Indebtedness in excess of €50 million),
4.05(b)(7) or 4.05(b)(11) or Incurred pursuant to Section 4.05(a); and (f)
any Management Advances;

(5)  (a)  Indebtedness of any
Target and its Subsidiaries outstanding on the closing date of the applicable
Acquisition; provided that such
Indebtedness does not exceed, when taken together with the principal amount of
all other Indebtedness Incurred pursuant to this clause (5)(a) and then
outstanding, €50 million in the aggregate or such Indebtedness is discharged or
repaid or refinanced in accordance with this Section 4.05 within 120 days of
the closing date of the relevant Acquisition; and

(b)  Indebtedness of any Person Incurred and
outstanding on the date on which such Person becomes a Restricted Subsidiary of
KDG or another Restricted Subsidiary or is merged, consolidated, amalgamated or
otherwise combined with (including pursuant to any acquisition of assets and
assumption of related liabilities) KDG or any Restricted Subsidiary (other than
Indebtedness Incurred (i) to provide all or any portion of the funds utilized
to consummate the transaction or series of related transactions pursuant to
which such Person became a Restricted Subsidiary or was otherwise acquired by
KDG or a Restricted Subsidiary or (ii) otherwise in connection with or
contemplation of such acquisition); provided, however, with respect to this clause 5(b), that at the time
of such acquisition or other transaction (x) KDG would have been able to Incur €1.00
of additional Indebtedness pursuant to Section 4.05(a) after giving effect to
the Incurrence of such Indebtedness pursuant to this clause (5)(b) or (y) the
Consolidated Leverage Ratio would not be greater than it was immediately prior
to giving effect to such acquisition or other transaction;

 74
 

 

(6)  Indebtedness under Currency Agreements,
Interest Rate Agreements and Commodity Hedging Agreements entered into for bona fide hedging purposes of KDG or its
Restricted Subsidiaries and not for speculative purposes (as determined in good
faith by the Board of Directors or senior management of KDG);

(7)  Indebtedness represented by Capitalized
Lease Obligations or Purchase Money Obligations, and in each case any
Refinancing Indebtedness in respect thereof, in an aggregate outstanding
principal amount which, when taken together with the principal amount of all
other Indebtedness Incurred pursuant to this clause (7) and then outstanding,
will not exceed at any time outstanding (a) in the event none of the Acquisitions
are consummated, the greater of €100 million and 5% of Total Assets,
(b) in the event all the Acquisitions are consummated, the greater of €175
million and 3.5% of Total Assets and (c) in the event some but not all the
Acquisitions are consummated, the greater of €100 million plus (x) €35 million,
in the event that the ish Acquisition is consummated, (y) €30 million, in the
event that the KBW Acquisition is consummated and (z) €10 million, in the event
that the iesy Acquisition is consummated and a percentage of Total Assets equal
to the Relevant Percentage Asset Amount;

(8)  Indebtedness Incurred in respect of
(a) workers’ compensation claims, self-insurance obligations, performance,
surety, judgment, appeal, advance payment, customs, VAT or other tax guarantees
or other similar bonds, instruments or obligations and completion guarantees
and warranties provided by KDG or a Restricted Subsidiary or relating to
liabilities or obligations Incurred in the ordinary course of business,
(b) letters of credit, bankers’ acceptances or other similar instruments
or obligations issued or relating to liabilities or obligations Incurred in the
ordinary course of business and (c) the financing of insurance premiums in
the ordinary course of business;

(9)  Indebtedness arising from agreements of
KDG or a Restricted Subsidiary providing for customary guarantees,
indemnification, obligations in respect of earnouts or other adjustments of
purchase price or, in each case, similar obligations, in each case, Incurred or
assumed in connection with the acquisition or disposition of any business or
assets or Person or any Capital Stock of a Subsidiary (other than Guarantees of
Indebtedness Incurred by any Person acquiring or disposing of such business or
assets or such Subsidiary for the purpose of financing such acquisition or
disposition); provided that the
maximum liability of KDG and its Restricted Subsidiaries in respect of all such
Indebtedness shall at no time exceed the gross proceeds, including the fair
market value of non-cash proceeds (measured at the time received and without
giving effect to any subsequent changes in value), actually received by KDG and
its Restricted Subsidiaries in connection with such disposition;

(10)  Indebtedness arising from the honoring
by a bank or other financial institution of a check, draft or similar
instrument drawn against

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insufficient funds in the
ordinary course of business; provided,
however, that such Indebtedness
is extinguished within five Business Days of Incurrence;

(11)  Indebtedness of KDG and its Restricted
Subsidiaries in an aggregate outstanding principal amount which, when taken
together with any Refinancing Indebtedness in respect thereof and the principal
amount of all other Indebtedness Incurred pursuant to this clause (11) and then
outstanding, will not exceed (a) in the event none of the Acquisitions are
consummated, the greater of €125 million and 5% of Total Assets, (b) in the
event all the Acquisitions are consummated, the greater of €200 million and
3.5% of Total Assets and (c) in the event some but not all the Acquisitions are
consummated, the greater of €125 million plus (x) €35 million, in the event
that the ish Acquisition is consummated, (y) €30 million, in the event that the
KBW Acquisition is consummated and (z) €10 million, in the event that the iesy
Acquisition is consummated and a percentage of Total Assets equal to the Relevant
Percentage Asset Amount; and

(12)  Indebtedness Incurred by a Receivables
Subsidiary in a Qualified Receivables Financing.

(c)  Notwithstanding anything to the
contrary in this Section 4.05, no Restricted Subsidiary that is a Significant
Subsidiary shall Guarantee (or, in the case of any Target, shall Incur) any
Indebtedness under the Senior Facilities Agreement or any Indebtedness of KDG
or a Note Guarantor unless such Restricted Subsidiary is or becomes an
Additional Note Guarantor on the date on which such other Guarantee is Incurred
and, if applicable, executes and delivers to the Trustee a supplemental
indenture in the form attached to this Indenture pursuant to which such
Restricted Subsidiary will provide an Additional Note Guarantee; provided, however,
that such Restricted Subsidiary shall not be obligated to become an Additional
Note Guarantor to the extent and for so long as the Incurrence of such
Additional Note Guarantee could reasonably be expected to give rise to or
result in: (1) any violation of applicable law; (2) any liability for the
officers, directors or (except in the case of a Restricted Subsidiary that is a
partnership) shareholders of such Restricted Subsidiary (or, in the case of a
Restricted Subsidiary that is a partnership, directors or shareholders of the
partners of such partnership); or (3) any cost, expense, liability or
obligation (including with respect to any Taxes) other than reasonable out of
pocket expenses and other than reasonable expenses incurred in connection with
any governmental or regulatory filings required as a result of, or any measures
pursuant to clause (1) undertaken in connection with, such Guarantee, which in
any case under any of clauses (1), (2) and (3) cannot be avoided through
measures reasonably available to KDG or the Restricted Subsidiary; provided, further, that any Person that
becomes a Restricted Subsidiary after the Issue Date will not be required to
become an Additional Note Guarantor for so long as KDG is not, in the ordinary
course, able to prepare or obtain financial statements (and related auditors’
reports and consents) of such Person that are required by applicable law, rule
or regulation to be included in any required filing with a legal or regulatory
authority (provided that (a) such
Person shall not have Guaranteed any Public Debt of KDG or any of its
Restricted Subsidiaries and (b) KDG shall use its reasonable efforts to prepare
or obtain any such financial statements). Notwithstanding anything to the
contrary contained

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herein, the provisos to
the immediately preceding sentence shall not apply to the Targets or any
Subsidiary of a Target, which Subsidiary is a Significant Subsidiary.

To the extent a Restricted Subsidiary is required to
execute and deliver a supplemental indenture, the Issuer shall have delivered
to the Trustee an Officer’s Certificate and an Opinion of Counsel, each to the
effect that such supplemental indenture complies with the Indenture and an
Opinion of Counsel to the effect that such supplemental indenture has been duly
authorized, executed and delivered and is a legal, valid and binding agreement
enforceable against such Restricted Subsidiary, the Issuer and each Note
Guarantor under the supplemental indenture (in each case, in form and substance
reasonably satisfactory to the Trustee), provided that
in giving an Opinion of Counsel, counsel may rely on an Officer’s Certificate
as to any matters of fact.

(d) 
Notwithstanding anything to the contrary contained in this Section 4.05,
any Indebtedness Incurred under the Bridge Facility, any Bridge Exchange Notes,
any Take-Out Securities, any other debt securities or other Indebtedness
Incurred to refinance Indebtedness Incurred under the Bridge Facility or issued
in lieu of the Incurrence of Indebtedness under the Bridge Facility and any
Refinancing Indebtedness that is Public Debt Incurred in respect of any of the
foregoing, in each case, to finance any Acquisition, the Acquisition
Termination Repurchase Offer or a distribution specified in Section 4.06(c)
(16) shall be Indebtedness that is permitted to be Incurred under Section
4.05(b) (1)(b).

(e)  For purposes of determining compliance
with, and the outstanding principal amount of any particular Indebtedness
Incurred pursuant to and in compliance with, this Section 4.05:

(1)  in the event that Indebtedness meets
the criteria of more than one of the types of Indebtedness described in
Sections 4.05(a) and 4.05(b), KDG, in its sole discretion, will classify,
and may from time to time reclassify, such item of Indebtedness and only be
required to include the amount and type of such Indebtedness in one of such
clauses;

(2)  all Indebtedness outstanding on the
date of this Indenture under the Senior Facilities Agreement or the Bridge
Facility shall be deemed initially Incurred on the Issue Date under
Section 4.05(b)(1) and not Section 4.05(a) or
Section 4.05(b)(4)(d) and may not be reclassified pursuant to this
Section 4.05(d)(1);

(3)  Guarantees of, or obligations in
respect of letters of credit, bankers’ acceptances or other similar instruments
relating to, or Liens securing, Indebtedness that is otherwise included in the
determination of a particular amount of Indebtedness shall not be included;

(4)  if obligations in respect of letters of
credit, bankers’ acceptances or other similar instruments are Incurred pursuant
to any Credit Facility and are being treated as Incurred pursuant to
Section 4.05(a), Sections

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4.05(b)(1), 4.05(b)(7) or
4.05(b)(11) and the letters of credit, bankers’ acceptances or other similar
instruments relate to other Indebtedness, then such other Indebtedness shall
not be included;

(5)  the principal amount of any
Disqualified Stock of KDG or a Restricted Subsidiary, or Preferred Stock of a
Restricted Subsidiary, will be equal to the greater of the maximum mandatory
redemption or repurchase price (not including, in either case, any redemption
or repurchase premium) or the liquidation preference thereof;

(6)  Indebtedness permitted by this
Section 4.05 need not be permitted solely by reference to one provision
permitting such Indebtedness but may be permitted in part by one such provision
and in part by one or more other provisions of this Section 4.05
permitting such Indebtedness; and

(7)  the amount of Indebtedness issued at a
price that is less than the principal amount thereof will be equal to the
amount of the liability in respect thereof determined on the basis of GAAP.

(f)  Accrual of interest, accrual of
dividends, the accretion of accreted value, the accretion or amortization of
original issue discount, the payment of interest in the form of additional
Indebtedness and the payment of dividends in the form of additional shares of
Preferred Stock or Disqualified Stock will not be deemed to be an Incurrence of
Indebtedness for purposes of this Section 4.05. The amount of any
Indebtedness outstanding as of any date shall be (a) the accreted value thereof
in the case of any Indebtedness issued with original issue discount and (b) the
principal amount, or liquidation preference thereof, in the case of any other
Indebtedness.

(g)  If at any time an Unrestricted
Subsidiary becomes a Restricted Subsidiary, any Indebtedness of such Subsidiary
shall be deemed to be Incurred by a Restricted Subsidiary of KDG as of such
date (and, if such Indebtedness is not permitted to be Incurred as of such date
under this Section 4.05, KDG shall be in Default of this
Section 4.05).

(h)  For purposes of determining compliance
with any euro-denominated restriction on the Incurrence of Indebtedness, the
Euro Equivalent of the principal amount of Indebtedness denominated in another
currency shall be calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of Indebtedness Incurred under a
revolving credit facility; provided that
(1) if such Indebtedness is Incurred to refinance other Indebtedness
denominated in a currency other than euros, and such refinancing would cause
the applicable euro-denominated restriction to be exceeded if calculated at the
relevant currency exchange rate in effect on the date of such refinancing, such
euro-denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced; (2) the Euro Equivalent
of the principal amount of any such Indebtedness outstanding on the Issue Date
shall be calculated based

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on the relevant currency
exchange rate in effect on the Issue Date; and (3) if, and for so long as,  any such Indebtedness is subject to a
Currency Agreement with respect to the currency in which such Indebtedness is
denominated covering principal and interest on such Indebtedness, the amount of
such Indebtedness, if denominated in euros, will be the amount of the principal
payment required to be made under such Currency Agreement and, otherwise, the
Euro Equivalent of such amount, plus the Euro Equivalent of any premium which
is at such time due and payable but is not covered by such Currency Agreement.

(i)  Notwithstanding any other provision of
this Section 4.05, the maximum amount of Indebtedness that KDG may Incur
pursuant to this Section 4.05 shall not be deemed to be exceeded solely as
a result of fluctuations in the exchange rate of currencies. The principal
amount of any Indebtedness Incurred to refinance other Indebtedness, if
Incurred in a different currency from the Indebtedness being refinanced, shall
be calculated based on the currency exchange rate applicable to the currencies
in which such Refinancing Indebtedness is denominated that is in effect on the
date of such refinancing.

SECTION 4.06.  Limitation on
Restricted Payments.  (a)  KDG will not, and will not permit any of its
Restricted Subsidiaries, directly or indirectly, to:

(1)  declare or pay any dividend or make any
distribution on or in respect of its Capital Stock (including any payment in
connection with any merger or consolidation involving KDG or any of its
Restricted Subsidiaries) except: (a)  dividends or distributions
payable in Capital Stock of KDG (other than Disqualified Stock) or in options,
warrants or other rights to purchase such Capital Stock of KDG; and
(b)  dividends or distributions payable to KDG or a Restricted
Subsidiary (and, in the case of any such Restricted Subsidiary making such
dividend or distribution, to holders of its Capital Stock other than KDG or
another Restricted Subsidiary on no more than a pro rata basis, measured by value);

(2)  purchase, redeem, retire or otherwise
acquire for value any Capital Stock of KDG or any direct or indirect Parent of
KDG held by Persons other than KDG or a Restricted Subsidiary of KDG (other
than in exchange for Capital Stock of KDG (other than Disqualified Stock));

(3)  purchase, repurchase, redeem, defease
or otherwise acquire or retire for value, prior to scheduled maturity,
scheduled repayment or scheduled sinking fund payment, any Subordinated
Indebtedness or Note Guarantor Subordinated Indebtedness (other than (a) any
such purchase, repurchase, redemption, defeasance or other acquisition or
retirement in anticipation of satisfying a sinking fund obligation, principal
installment or final maturity, in each case, due within one year of the date of
purchase, repurchase, redemption, defeasance or other acquisition or retirement
and (b) any Indebtedness Incurred pursuant to Section 4.05(b)(3)) or any
Subordinated Shareholder Funding; or

(4)  make any Restricted Investment in any
Person;

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(any such dividend,
distribution, purchase, redemption, repurchase, defeasance, other acquisition,
retirement or Restricted Investment referred to in clauses (1) through (4) are
referred to herein as a “Restricted Payment”), if at the time KDG or such
Restricted Subsidiary makes such Restricted Payment:

(a)  a Default shall have occurred and be
continuing (or would result immediately thereafter therefrom); or

(b)  KDG is not able to Incur an additional €1.00
of Indebtedness pursuant to Section 4.05(a) after giving effect, on a pro
forma basis, to such Restricted Payment; or

(c)  the aggregate amount of such Restricted
Payment and all other Restricted Payments made subsequent to the Issue Date
(and not returned or rescinded) (including Permitted Payments permitted below
by Sections 4.06(c)(6), 4.06(c)(11), 4.06(c)(12) and 4.06(c)(18) but
excluding all other Restricted Payments permitted by of Section 4.06(c))
would exceed the sum of (without duplication):

(i)  50% of Consolidated Net
Income for the period (treated as one accounting period) from the first day of
the first fiscal quarter commencing after the Issue Date to the end of the most
recent fiscal quarter ending prior to the date of such Restricted Payment for
which internal consolidated financial statements of KDG are available (or, in
case such Consolidated Net Income is a deficit, minus 100% of such deficit);

(ii)  100% of the aggregate Net
Cash Proceeds, and fair market value (as determined in accordance with the next
succeeding paragraph) of property or assets, received by KDG from the issue or
sale of its Capital Stock (other than Disqualified Stock or Designated
Preference Shares) or Subordinated Shareholder Funding subsequent to the Issue
Date or otherwise contributed to the equity (other than through the issuance of
Disqualified Stock or Designated Preference Shares) of KDG subsequent to the
Issue Date (other than (w) Net Cash Proceeds or property or assets received
from an issuance or sale of such Capital Stock to a Restricted Subsidiary or an
employee stock ownership plan or trust established by KDG or any Subsidiary of
KDG for the benefit of its employees to the extent funded by KDG or any
Restricted Subsidiary, (x) Net Cash Proceeds or marketable securities to the
extent that any Restricted Payment has been made from such proceeds in reliance
on Section 4.06(c)(6), (y) Excluded Contributions and (z) amounts contributed
to the equity of KDG or as Subordinated Shareholder Funding to finance the Acquisitions);

(iii)  100% of the aggregate Net
Cash Proceeds, and the fair market value (as determined in accordance with the
next succeeding paragraph) of

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property or
assets, received by KDG or any Restricted Subsidiary from the issuance or sale
(other than to KDG or a Restricted Subsidiary of KDG or an employee stock
ownership plan or trust established by KDG or any Subsidiary of KDG for the
benefit of its employees to the extent funded by KDG or any Restricted
Subsidiary) by KDG or any Restricted Subsidiary subsequent to the Issue Date of
any Indebtedness that has been converted into or exchanged for Capital Stock of
KDG (other than Disqualified Stock or Designated Preference Shares) or
Subordinated Shareholder Funding (plus the amount of any cash, and the fair
market value (as determined in accordance with of Section 4.06(b)) of
property or assets, received by KDG or any Restricted Subsidiary upon such
conversion or exchange);

(iv)  the amount equal to the net
reduction in Restricted Investments made by KDG or any of its Restricted
Subsidiaries resulting from:

(A)  repurchases, redemptions or other
acquisitions or retirements of any such Restricted Investment, proceeds
realized upon the sale or other disposition to a Person other than KDG or a
Restricted Subsidiary of any such Restricted Investment, repayments of loans or
advances or other transfers of assets (including by way of dividend,
distribution, interest payments or returns of capital) to KDG or any Restricted
Subsidiary; or

(B)  the redesignation of Unrestricted
Subsidiaries as Restricted Subsidiaries (valued, in each case, as provided in
the definition of “Investment”)
not to exceed, in the case of any Unrestricted Subsidiary, the amount of
Investments previously made by KDG or any Restricted Subsidiary in such
Unrestricted Subsidiary,

which amount, in each
case under this clause (iv), was included in the calculation of the amount of
Restricted Payments; provided, however, that no amount will be included
in Consolidated Net Income for purposes of the preceding clause (i) to the
extent that it is (at KDG’s option) included under this clause (iv); and

(v)  the amount of the cash and
fair market value (as determined in accordance with the next succeeding
paragraph) of property or assets received by KDG or any of its Restricted
Subsidiaries in connection with:

(A)  the sale or other disposition (other
than to KDG or a Restricted Subsidiary or an employee stock ownership plan or
trust established by KDG or any Subsidiary of KDG for the benefit of its
employees to the extent funded by KDG or any Restricted

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Subsidiary) of Capital
Stock of an Unrestricted Subsidiary of KDG; and

(B)  any dividend or distribution made by an
Unrestricted Subsidiary to KDG or a Restricted Subsidiary;

provided, however,
that no amount will be included in Consolidated Net Income for purposes of the
preceding clause (i) to the extent that it is (at KDG’s option) included under
this clause (v); provided, further, however,
that such amount shall not exceed the amount included in the calculation of the
amount of Restricted Payments.

(b)  The fair market value of
property or assets other than cash covered by the preceding sentence shall be
the fair market value thereof as determined in good faith by KDG and:

(A)  for property or assets so determined to
have a fair market value in excess of €15 million, the fair market value shall
be set forth in an Officer’s Certificate; or

(B)  for property or assets so determined to
have a fair market value in excess of €30 million, the fair market value shall
be set forth in a resolution approved by at least a majority of the Board of
Directors of KDG attached to an Officer’s Certificate.

(c)  The provisions of Section
4.06 will not prohibit any of the following (collectively, “Permitted Payments”):

(1)  any purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Capital Stock, Disqualified
Stock, Designated Preference Shares, Subordinated Shareholder Funding,
Subordinated Indebtedness or Note Guarantor Subordinated Indebtedness made by
exchange (including any such exchange pursuant to the exercise of a conversion
right or privilege in connection with which cash is paid in lieu of the
issuance of fractional shares) for, or out of the proceeds of the substantially
concurrent sale of, Capital Stock of KDG (other than Disqualified Stock or
Designated Preference Shares), Subordinated Shareholder Funding or a
substantially concurrent contribution to the equity (other than through the
issuance of Disqualified Stock or Designated Preference Shares or through an
Excluded Contribution) of KDG; provided,
however, that to the extent so
applied, the Net Cash Proceeds, or fair market value (as determined in
accordance with the preceding sentence) of property or assets, from such sale
of Capital Stock or Subordinated Shareholder Funding or such contribution will
be excluded from clause (c)(ii) of Section 4.06(a);

(2)  any purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Subordinated Indebtedness or
Note Guarantor Subordinated Indebtedness made by exchange for, or out of the
proceeds of the substantially concurrent sale of, Refinancing Indebtedness
permitted to be Incurred pursuant to Section 4.05 above;

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(3)  any purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Preferred Stock of KDG or a
Restricted Subsidiary made by exchange for or out of the proceeds of the
substantially concurrent sale of Preferred Stock of KDG or a Restricted
Subsidiary, as the case may be, that, in each case, is permitted to be Incurred
pursuant to Section 4.05 above, and that in each case, constitutes
Refinancing Indebtedness;

(4)  any purchase, repurchase, redemption,
defeasance or other acquisition or retirement of Subordinated Indebtedness or
Note Guarantor Subordinated Indebtedness:

(a)  from Net
Available Cash to the extent permitted under Section 4.09 below;

(b)  to the
extent required by the agreement governing such Subordinated Indebtedness or
Note Guarantor Subordinated Indebtedness, following the occurrence of a Change
of Control (or other similar event described therein as a “change of control”), but only if KDG shall
have first complied with the terms described under “Change of Control” and
purchased all Securities tendered pursuant to the offer to repurchase all the
Securities required thereby, prior to purchasing, repurchasing, redeeming,
defeasing or otherwise acquiring or retiring such Subordinated Indebtedness or
Note Guarantor Subordinated Indebtedness; or

(c)  consisting
of Acquired Indebtedness;

(5)  any dividends paid within 60 days after
the date of declaration if at such date of declaration such dividend would have
complied with this provision;

(6)  so long as no Default or Event of
Default has occurred and is continuing (or would result from), the purchase,
repurchase, redemption, defeasance or other acquisition, cancellation or
retirement for value of Capital Stock of KDG, any Restricted Subsidiary or any
Parent (including any options, warrants or other rights in respect thereof) and
loans, advances, dividends or distributions by KDG to any Parent to permit any
Parent to purchase, repurchase, redeem, defease or otherwise acquire, cancel or
retire for value Capital Stock of KDG, any Restricted Subsidiary or any Parent
(including any options, warrants or other rights in respect thereof), or
payments to purchase, repurchase, redeem, defease or otherwise acquire, cancel
or retire for value Capital Stock of KDG, any Restricted Subsidiary or any
Parent (including any options, warrants or other rights in respect thereof), in
each case from Management Investors; provided
that such payments, loans, advances, dividends or distributions do
not exceed an amount (net of repayments of any such loans or advances) equal to
(1) €15 million, plus (2) €7.5 million multiplied by the number of calendar
years that have commenced since the Issue Date, plus (3) the Net Cash Proceeds
received by KDG since the Issue Date (including through receipt of proceeds from
the issuance or sale of its Capital Stock to a Parent) from, or as a
contribution to the equity (in each case under this Section 4.06(c)(6)(3),
other than through the issuance of Disqualified Stock or Designated

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Preference Shares) of KDG
from, the issuance or sale to Management Investors of Capital Stock (including
any options, warrants or other rights in respect thereof), to the extent such
Net Cash Proceeds are not included in any calculation under
Section 4.06(a)(4)(c)(ii);

(7)  the declaration and payment of
dividends to holders of any class or series of Disqualified Stock, or of any
Preferred Stock of a Restricted Subsidiary, Incurred in accordance with
Section 4.05 above;

(8)  purchases, repurchases, redemptions,
defeasance or other acquisitions or retirements of Capital Stock deemed to
occur upon the exercise of stock options, warrants or other rights in respect
thereof if such Capital Stock represents a portion of the exercise price
thereof;

(9)  dividends, loans, advances or
distributions to any Parent or other payments by KDG or any Restricted
Subsidiary in amounts equal to:

(a)  the amounts required for any Parent to
pay any Parent Expenses or any Related Taxes;

(b)  the amounts which constitute, or are
payment in respect of, a surrender of group relief actually utilized by KDG or
any Restricted Subsidiary;

(c)  the amounts payable pursuant to any Tax
Sharing Agreement; and

(d)  amounts constituting payments (i) of
fees and expenses Incurred in connection with the Transactions or this offering
or disclosed in the Offering Memorandum or (ii) owed to Affiliates, in each
case to the extent permitted by Section 4.10;

(10)  so long as no Default or Event of
Default has occurred and is continuing (or would result from), the declaration
and payment by KDG of, or loans, advances, dividends or distributions to any
Parent to pay, dividends on the common stock or common equity interests of KDG
or any Parent following a Public Offering of such common stock or common equity
interests, in an amount not to exceed in any fiscal year the greater of (a) 6%
of the Net Cash Proceeds received by KDG from such Public Offering or
contributed to the equity (other than through the issuance of Disqualified
Stock or Designated Preference Shares or through an Excluded Contribution) of
KDG and (b) following the Initial Public Offering, an amount equal to the
greater of (i) the greater of (A) 7% of the Market Capitalization and (B) 7% of
the IPO Market Capitalization; provided that
after giving pro forma effect to such loans, advances, dividends or
distributions, the Consolidated Leverage Ratio shall be equal to or less than
4.00 to 1.00 and (ii) the greater of (A) 5% of the Market Capitalization and
(B) 5% of the IPO Market Capitalization; provided
that after giving pro forma effect to such loans, advances,
dividends or distributions, the Consolidated Leverage Ratio shall be equal to
or less than 4.50 to 1.00;

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(11)  so long as no Default or Event of
Default has occurred and is continuing (or would result from), Restricted Payments
(including loans or advances) in an aggregate amount outstanding at any time
not to exceed (a) in the event none of the Acquisitions are consummated, €60
million, (b) in the event all the Acquisitions are consummated, €100 million
and (c) in the event some but not all the Acquisitions are consummated, €60
million plus (x) €20 million, in the event that the ish Acquisition is
consummated, (y) €10 million, in the event that the KBW Acquisition is
consummated and (z) €10 million, in the event that the iesy Acquisition is
consummated;

(12)  payments by KDG, or loans, advances,
dividends or distributions to any Parent to make payments, to holders of
Capital Stock of KDG or any Parent in lieu of the issuance of fractional shares
of such Capital Stock, not to exceed €500,000 in the aggregate;

(13)  dividends or other distributions of
Capital Stock, Indebtedness or other securities of Unrestricted Subsidiaries;

(14)  Investments in an aggregate amount
outstanding at any time not to exceed the aggregate cash amount of Excluded
Contributions, or consisting of non-cash Excluded Contributions, or Investments
in exchange for or using as consideration Investments previously made under
this clause (14);

(15)  payments contemplated by clauses (5)
and (7) of the definition of “Transactions;”

(16)  the declaration and payment of any
dividend or other distribution, the making of any loan or the repayment or
prepayment of any amount outstanding under any shareholder loan from Parent to
KDG, in each case, where such payments are made in cash, by KDG to Parent (a)
in the event that none of the Acquisitions are completed, in an amount not in
excess of €475 million, (b) in the event that some but not all the Acquisitions
are completed and the Designated Amount is positive, in an amount such that the
amount of all such payments minus the amount contributed to the equity of KDG
or as Subordinated Shareholder Funding as required under the Senior Facilities
Agreement to fund the purchase price for the Acquisitions that have completed
is less than or equal to the Designated Amount and (c) in the event that all
the Acquisitions are completed, in an amount equal to zero; provided that any such payments may only
be made after the date on which the Sale and Purchase Agreement is terminated
or the closing date occurs in respect of each Acquisition;

(17)  payment of any Receivables Fees and
purchases of Receivables Assets pursuant to a Receivables Repurchase Obligation
in connection with a Qualified Receivables Financing;

(18)  (a)  the declaration and
payment of dividends to holders of any class or series of Designated Preference
Shares of KDG issued after the Issue Date; and (b)  the declaration
and payment of dividends to any Parent or any Affiliate thereof, the proceeds
of which will be used to fund the payment of dividends to holders of any class
or series of

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Designated Preference
Shares of such Parent issued after the Issue Date; provided, however,
that the amount of all dividends declared or paid pursuant to this clause (18)
shall not exceed the Net Cash Proceeds received by KDG or the aggregate amount
contributed in cash to the equity (other than through the issuance of
Disqualified Stock or an Excluded Contribution or, in the case of Designated
Preference Shares by Parent or an Affiliate, the issuance of Designated
Preference Shares) of KDG, as applicable, from the issuance or sale of such
Designated Preference Shares; and

(19)  to the extent Parent has made a Target
Cash Investment, Restricted Payments to Parent in an aggregate amount outstanding
at any time not to exceed the aggregate amount of such Target Cash Investments
not to exceed the amount of Target Cash acquired on the closing date of the
Acquisition of the relevant Target Group.

(d) 
Notwithstanding anything to the contrary herein, neither the Issuer nor
any Restricted Subsidiary prior to the date of a Public Offering that is an
Initial Public Offering (x) shall be permitted to make any Restricted Payment
that is not a Permitted Payment to the extent that the ability to make such Restricted
Payment depends on the amount specified in Section 4.06(c)(i) exceeding zero or
(y) shall be permitted to make any Restricted Payment which will be, or the
funds from which Restricted Payment will be, paid, distributed or loaned,
directly or indirectly, in reliance on Section 4.06(c)(11) to any Permitted
Holder, any Related Person of any Permitted Holder or any Affiliate of any
Permitted Holder, the Issuer or any Subsidiary of the Issuer, unless, in the
case of each of clauses (x) and (y), after giving pro forma effect to such
Restricted Payment the Consolidated Leverage Ratio shall be less than 4.25 to
1.00.

(e)  The amount of all Restricted
Payments (other than cash) shall be the fair market value on the date of such
Restricted Payment of the asset(s) or securities proposed to be paid,
transferred or issued by KDG or such Restricted Subsidiary, as the case may be,
pursuant to such Restricted Payment. The fair market value of any cash
Restricted Payment shall be its face amount, and the fair market value of any
non-cash Restricted Payment shall be determined conclusively by the Board of
Directors of KDG acting in good faith.

SECTION 4.07.  Limitation on
Liens.  KDG will not, and will not
permit any Note Guarantor to, directly or indirectly, create, Incur or suffer
to exist any Lien (other than Permitted Liens) upon any of its property or
assets (including Capital Stock of a Restricted Subsidiary of KDG), whether
owned on the date of this Indenture or acquired after that date, or any
interest therein or any income or profits therefrom, which Lien is securing any
Indebtedness (such Lien, the “Initial Lien”),
unless contemporaneously with the Incurrence of such Initial Lien effective
provision is made to secure the Indebtedness due under this Indenture and the
Securities or, in respect of Liens on any Note Guarantor’s property or assets,
such Note Guarantor’s Note Guarantee, equally and ratably with (or (a) on a
second-priority basis if such Indebtedness is Senior Indebtedness or Note
Guarantor Senior Indebtedness or (b) prior to, in the case of Liens with
respect to Subordinated Indebtedness or Note Guarantor Subordinated
Indebtedness, as the case may be) the Indebtedness secured by such Initial Lien
for so long as such Indebtedness is so secured. Any such Lien thereby created
in favor of the Securities will

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be
automatically and unconditionally released and discharged upon (i) the release
and discharge of the Initial Lien to which it relates, (ii) any sale, exchange
or transfer to any Person other than KDG or any Note Guarantor of the property
or assets secured by such Initial Lien or (iii) upon the defeasance or
discharge of the Securities in accordance with Article 8.

SECTION 4.08.  Limitation on
Restrictions on Distributions from Restricted Subsidiaries.  (a) 
KDG will not, and will not permit any Restricted Subsidiary to, create
or otherwise cause or permit to exist or become effective any consensual
encumbrance or consensual restriction on the ability of any Restricted
Subsidiary to:

(1)  pay dividends or make any other
distributions in cash or otherwise on its Capital Stock or pay any Indebtedness
or other obligations owed to KDG or any Restricted Subsidiary;

(2)  make any loans or advances to KDG or
any Restricted Subsidiary; or

(3)  sell, lease or transfer any of its
property or assets to KDG or any Restricted Subsidiary;

provided that (x)
the priority of any Preferred Stock in receiving dividends or liquidating
distributions prior to dividends or liquidating distributions being paid on
common stock and (y) the subordination of (including the application of any
standstill requirements to) loans or advances made to KDG or any Restricted
Subsidiary to other Indebtedness Incurred by KDG or any Restricted Subsidiary,
shall not be deemed to constitute such an encumbrance or restriction.

(b)  The provisions of Section 4.08(a) will
not prohibit:

(1)  any encumbrance or restriction pursuant
to any Credit Facility, the Intercreditor Agreement, the Security Documents,
this Indenture, any Securities, any Bridge Exchange Notes, any Take-Out
Securities or any other agreement or instrument, in each case, in effect at or
entered into on the Issue Date or, with respect to any Target and its
Subsidiaries, as in effect on the Issue Date or entered into prior to the
closing date of the relevant Acquisition to the extent not prohibited by the
applicable Sale and Purchase Agreement as in effect on the Issue Date (but
without giving effect to any provision thereof permitting the relevant Target
to suspend its obligations thereunder);

(2)  any encumbrance or restriction pursuant
to an agreement or instrument of a Person or relating to any Capital Stock or
Indebtedness of a Person, entered into on or before the date on which such
Person was acquired by or merged, consolidated or otherwise combined with or
into KDG or any Restricted Subsidiary, or on which such agreement or instrument
is assumed by KDG or any Restricted Subsidiary in connection with an
acquisition of assets (other than Capital Stock or Indebtedness Incurred as
consideration in, or to provide all or any portion of the funds utilized to
consummate, the transaction or series of related transactions pursuant to which
such Person became a Restricted Subsidiary or was acquired by KDG or was
merged, consolidated or otherwise combined with or into KDG or any Restricted
Subsidiary

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entered into or in
connection with such transaction) and outstanding on such date; provided that, for the purposes of this
clause (2), if another Person is the Successor Company (as defined below), any
Subsidiary thereof or agreement or instrument of such Person or any such
Subsidiary shall be deemed acquired or assumed by KDG or any Restricted
Subsidiary when such Person becomes the Successor Company;

(3)  any encumbrance or restriction pursuant
to an agreement or instrument effecting a refinancing of Indebtedness Incurred
pursuant to, or that otherwise refinances, an agreement or instrument referred
to in Sections 4.08(b)(1) or 4.08(b)(2) or this clause (3) (an “Initial Agreement”) or contained in any amendment,
supplement or other modification to an agreement referred to in
Sections 4.08(b)(1) or 4.08(b)(2)) or this clause (3); provided, however,
that the encumbrances and restrictions with respect to such Restricted
Subsidiary contained in any such agreement or instrument are no less favorable
in any material respect to the Holders taken as a whole than the encumbrances
and restrictions contained in the Initial Agreement or Initial Agreements to
which such refinancing or amendment, supplement or other modification relates
(as determined in good faith by KDG);

(4)  any encumbrance or restriction:

(a)  that restricts in a customary manner
the subletting, assignment or transfer of any property or asset that is subject
to a lease, license or similar contract, or the assignment or transfer of any
lease, license or other contract;

(b)  (i)  by virtue of any
transfer of, or agreement to transfer, option or right with respect to, or Lien
(permitted under this Indenture) on, any property or assets of KDG or any Restricted
Subsidiary (but only to the extent of the assets subject to such transfer,
agreement to transfer, option or Lien) or (ii) contained in mortgages, pledges
or other security agreements permitted under this Indenture or securing
Indebtedness of KDG or a Restricted Subsidiary permitted under this Indenture
to the extent such encumbrances or restrictions restrict the transfer of the
property or assets subject to such mortgages, pledges or other security
agreements; or

(c)  pursuant to customary provisions
restricting dispositions of real property interests set forth in any reciprocal
easement agreements of KDG or any Restricted Subsidiary;

(5)  any encumbrance or restriction pursuant
to Purchase Money Obligations, Capitalized Lease Obligations and SLA Agreements
permitted under this Indenture, in each case, that impose encumbrances or
restrictions on the property so acquired;

(6)  any encumbrance or restriction with
respect to a Restricted Subsidiary (or any of its property or assets) imposed
pursuant to an agreement entered into for the direct or indirect sale or
disposition to a Person of all or substantially all the Capital Stock

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or assets of such
Restricted Subsidiary (or the property or assets that are subject to such
restriction) pending the closing of such sale or disposition;

(7)  customary provisions in leases, joint
venture agreements and other agreements and instruments entered into in the
ordinary course of business;

(8)  encumbrances or restrictions arising or
existing by reason of applicable law or any applicable rule, regulation or
order, or required by any regulatory authority;

(9)  any encumbrance or restriction on cash
or other deposits or net worth imposed by customers under agreements entered
into in the ordinary course of business;

(10)  any encumbrance or restriction
pursuant to Currency Agreements, Interest Rate Agreements or Commodity Hedging
Agreements;

(11)  any encumbrance or restriction arising
pursuant to an agreement or instrument (a) relating to any Indebtedness
permitted to be Incurred subsequent to the Issue Date pursuant to
Section 4.05 if the encumbrances and restrictions contained in any such
agreement or instrument taken as a whole are not materially less favorable to
the Holders of the Securities than the encumbrances and restrictions contained
in the Senior Facilities Agreement and the Intercreditor Agreement, in each
case, as in effect on the Issue Date (as determined in good faith by KDG), or
(b) constituting an Additional Intercreditor Agreement entered into in compliance
with Section 4.16 below; or

(12)  restrictions effected in connection
with a Qualified Receivables Financing that, in the good faith determination of
the Board of Directors of KDG, are necessary or advisable to effect such
Qualified Receivables Financing.

SECTION 4.09.  Limitation on
Sales of Assets and Subsidiary Stock. 
(a)  KDG will not, and will not
permit any of its Restricted Subsidiaries to, make any Asset Disposition
unless:

(1)  KDG or such Restricted
Subsidiary, as the case may be, receives consideration (including by way of
relief from, or by any other Person assuming responsibility for, any
liabilities, contingent or otherwise) at least equal to the fair market value
(such fair market value to be determined on the date of contractually agreeing
to such Asset Disposition), as determined in good faith by the Board of
Directors of KDG whose determination shall be conclusive (including as to the
value of non-cash consideration), of the shares and assets subject to such
Asset Disposition (including, for the avoidance of doubt, if such Asset
Disposition is a Permitted Asset Swap);

(2)  in any such Asset Disposition, or series of
related Asset Dispositions, (except to the extent the Asset Disposition is a
Permitted Asset Swap) at least 75% of the consideration from such Asset
Disposition (excluding any consideration by way of relief from, or by any other
Person assuming responsibility for, any liabilities, contingent or otherwise,
other than Indebtedness) received by KDG or such Restricted

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Subsidiary, as the case may be, is in the
form of cash, Cash Equivalents or Temporary Cash Investments; and

(3)  an amount equal to 100% of the Net Available
Cash from such Asset Disposition is applied by KDG or such Restricted
Subsidiary, as the case may be:

(a)  to the
extent KDG or any Restricted Subsidiary, as the case may be, elects (or is
required by the terms of any Senior Indebtedness or Indebtedness of a
Restricted Subsidiary), (i) to prepay, repay or purchase Senior Indebtedness,
Note Guarantor Senior Indebtedness or Indebtedness of a Restricted Subsidiary
that is not a Note Guarantor (in each case, other than Indebtedness owed to KDG
or any Restricted Subsidiary), within 365 days from the later of (A) the date
of such Asset Disposition and (B) the receipt of such Net Available Cash; provided, however, that, in connection
with any prepayment, repayment or purchase of Indebtedness pursuant to this
clause (a), KDG or such Restricted Subsidiary will retire such Indebtedness and
will cause the related commitment (if any) to be permanently reduced in an
amount equal to the principal amount so prepaid, repaid or purchased; or (ii)
to prepay, repay or purchase Pari Passu Indebtedness at a price of no more than
100% of the principal amount of such Pari Passu Indebtedness plus accrued and
unpaid interest to the date of such prepayment, repayment or purchase; provided that KDG shall redeem, repay or
repurchase Pari Passu Indebtedness only if KDG makes (at such time or
subsequently in compliance with this Section 4.09) an offer to the Holders of
Securities to purchase their Securities in accordance with the provisions set
forth below for an Asset Disposition Offer for an aggregate principal amount of
Securities at least equal to the proportion that (x) the total aggregate principal
amount of Securities outstanding bears to (y) the sum of the total aggregate
principal amount of Securities outstanding plus the total aggregate principal
amount outstanding of such Pari Passu Indebtedness; or

(b)  to the
extent KDG or such Restricted Subsidiary elects, to invest in or commit to
invest in Additional Assets (including by means of an investment in Additional
Assets by a Restricted Subsidiary with Net Available Cash received by KDG or
another Restricted Subsidiary) within 365 days from the later of (i) the date
of such Asset Disposition and (ii) the receipt of such Net Available Cash; provided, however, that any such
reinvestment in Additional Assets made pursuant to a definitive binding
agreement or a commitment approved by the Board of Directors of KDG that is
executed or approved within such time will satisfy this requirement, so long as
such investment is consummated within 180 days of such 365th day;

provided that,
pending the final application of any such Net Available Cash in accordance with
Sections 4.09(a)(3)(a) or 4.09(a)(3)(b) above, KDG and its Restricted
Subsidiaries may temporarily reduce Indebtedness or otherwise invest such Net
Available Cash in any manner not prohibited by this Indenture.

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(b)  Any Net Available Cash from
Asset Dispositions that is not applied or invested or committed to be applied
or invested as provided in Section 4.09(a) will be deemed to constitute “Excess
Proceeds.”  On the 366th day after an
Asset Disposition, if the aggregate amount of Excess Proceeds exceeds €25
million, KDG will be required to make an offer (“Asset
Disposition Offer”) to all holders of Securities and, to the extent
KDG elects, to all holders of other outstanding Pari Passu Indebtedness, to
purchase the maximum principal amount of Securities and any such Pari Passu
Indebtedness to which the Asset Disposition Offer applies that may be purchased
out of the Excess Proceeds, at an offer price in respect of the Securities in
an amount equal to (and, in the case of any Pari Passu Indebtedness, an offer
price of no more than) 100% of the principal amount of the Securities and Pari
Passu Indebtedness plus accrued and unpaid interest, if any, to the date of
purchase, in accordance with the procedures set forth in this Indenture or the
agreements governing the Pari Passu Indebtedness, as applicable, in each case
in minimum denominations of €50,000 and in integral multiples of €1,000 (in the
case of Euro Securities) or in minimum denominations of $75,000 and in integral
multiples of $1,000 (in the case of U.S. Dollar Securities), as the case may
be.

(c)  To the extent that the
aggregate amount of Securities and Pari Passu Indebtedness so validly tendered
and not properly withdrawn pursuant to an Asset Disposition Offer is less than
the Excess Proceeds, KDG may use any remaining Excess Proceeds for general
corporate purposes, subject to other covenants contained in this Indenture. If
the aggregate principal amount of the Securities surrendered in any Asset
Disposition Offer by holders thereof and other Pari Passu Indebtedness
surrendered by holders or lenders, collectively, exceeds the amount of Excess
Proceeds, the Excess Proceeds shall be allocated among the Securities and Pari
Passu Indebtedness to be purchased on a pro rata basis
on the basis of the aggregate principal amount of tendered Securities and Pari
Passu Indebtedness, by lot or by such other method as the Trustee in its sole
discretion deems fair and appropriate (and in such manner as complies with
applicable legal and exchange requirements). For the purposes of calculating
the principal amount of any such Indebtedness not denominated in euro, such
Indebtedness shall be calculated by converting any such principal amounts into
their Euro Equivalent determined as of a date selected by KDG that is within
the Asset Disposition Offer Period (as defined below). Upon completion of any
Asset Disposition Offer, the amount of Excess Proceeds shall be reset at zero.

(d)  Any Net Available Cash
payable in respect of the Securities pursuant to this Section 4.09 will be
apportioned between the Euro Securities and the U.S. Dollar Securities in
proportion to the respective aggregate principal amounts of Euro Securities and
U.S. Dollar Securities validly tendered and not withdrawn, based upon the Euro
Equivalent of such principal amount of U.S. Dollar Securities determined as of
a date selected by KDG that is within the Asset Disposition Offer Period. To
the extent that any portion of Net Available Cash payable in respect of the
Securities is denominated in a currency other than the currency in which the
relevant Securities are denominated, the amount thereof payable in respect of
such Securities shall not exceed the net amount of funds in the currency in
which such Securities are denominated that is actually received by KDG upon
converting such portion into such currency.

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(e)  The Asset Disposition Offer,
in so far as it relates to the Securities, will remain open for a period of not
less than 20 Business Days following its commencement (the “Asset Disposition Offer Period”). No later than five
Business Days after the termination of the Asset Disposition Offer Period (the
“Asset Disposition Purchase Date”), KDG
will purchase the principal amount of Securities and, to the extent it elects,
Pari Passu Indebtedness required to be purchased by it pursuant to this Section
4.09 (the “Asset Disposition Offer Amount”) or, if
less than the Asset Disposition Offer Amount has been so validly tendered, all
Securities and Pari Passu Indebtedness validly tendered in response to the
Asset Disposition Offer.

(f)  On or before the Asset
Disposition Purchase Date, KDG will, to the extent lawful, accept for payment,
on a pro rata basis to the extent necessary,
the Asset Disposition Offer Amount of Securities and Pari Passu Indebtedness or
portions of Securities and Pari Passu Indebtedness so validly tendered and not
properly withdrawn pursuant to the Asset Disposition Offer, or if less than the
Asset Disposition Offer Amount has been validly tendered and not properly
withdrawn, all Securities and Pari Passu Indebtedness so validly tendered and
not properly withdrawn, in each case in minimum denominations of €50,000 (in
the case of Euro Securities) or $75,000 (in the case of U.S. Dollar
Securities), as the case may be, and in integral multiples of €1,000 (in the
case of Euro Securities) or $1,000 (in the case of U.S. Dollar Securities), as
the case may be. KDG will deliver to the Trustee an Officer’s Certificate
stating that such Securities or portions thereof were accepted for payment by
KDG in accordance with the terms of this Section 4.09.  KDG or the Paying Agent, as the case may be,
will promptly (but in any case not later than five Business Days after
termination of the Asset Disposition Offer Period) mail or deliver to each tendering
holder of Securities an amount equal to the purchase price of the Securities so
validly tendered and not properly withdrawn by such holder or lender, as the
case may be, and accepted by KDG for purchase, and KDG will promptly issue a
new Security (or amend the applicable Global Security), and the Trustee or an
authentication agent, upon delivery of an Officer’s Certificate from KDG, will
authenticate and mail or deliver (or cause to be transferred by book entry)
such new Security to such holder, in a principal amount equal to any
unpurchased portion of the Security surrendered; provided
that each such new Security will be in a principal amount that is in minimum
denominations of €50,000 (in the case of Euro Securities) or $75,000 (in the
case of U.S. Dollar Securities), as the case may be, and in integral multiples
of €1,000 (in the case of Euro Securities) or $1,000 (in the case of U.S.
Dollar Securities) as the case may be. Any Security not so accepted will be
promptly mailed or delivered (or transferred by book entry) by KDG to the
holder thereof.

(g)  For the purposes of Section
4.09(a)(2), the following will be deemed to be cash:

(1)  the assumption by the
transferee of Indebtedness of KDG (other than Subordinated Indebtedness of KDG)
or Indebtedness of a Restricted Subsidiary (other than Note Guarantor
Subordinated Indebtedness) and the release of KDG or such Restricted Subsidiary
from all liability on such Indebtedness in connection with such Asset
Disposition;

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(2)  securities, notes or other
obligations received by KDG or any Restricted Subsidiary of KDG from the
transferee that are converted by KDG or such Restricted Subsidiary into cash or
Cash Equivalents within 180 days following the closing of such Asset
Disposition;

(3)  Indebtedness of any
Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of
such Asset Disposition, to the extent that KDG and each other Restricted
Subsidiary are released from any Guarantee of payment of such Indebtedness in
connection with such Asset Disposition;

(4)  consideration consisting of
Indebtedness of KDG (other than Subordinated Indebtedness) or any Restricted
Subsidiary (other than Note Guarantor Subordinated Indebtedness); and

(5)  any Designated Non-Cash
Consideration received by KDG or any Restricted Subsidiary in such Asset
Dispositions having an aggregate fair market value, taken together with all
other Designated Non-Cash Consideration received pursuant to this Section 4.09
that is at that time outstanding, not to exceed 10% of Total Assets at the time
of the receipt of such Designated Non-Cash Consideration (with the fair market
value of each item of Designated Non-Cash Consideration being measured at the
time received and without giving effect to subsequent changes in value).

(h)  KDG will comply, to the
extent applicable, with the requirements of Section 14(e) of the Exchange Act
and any other securities laws or regulations in connection with the repurchase
of Securities pursuant to this Indenture. 
To the extent that the provisions of any securities laws or regulations
conflict with provisions of this Section 4.09, KDG will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Indenture by virtue of any conflict.

SECTION 4.10.  Limitation on
Affiliate Transactions.  (a)  KDG will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into or conduct any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of KDG (an “Affiliate Transaction”) unless:

(1)  the terms of such Affiliate Transaction
taken as a whole are not materially less favorable to KDG or such Restricted
Subsidiary, as the case may be, than those that could be obtained in a
comparable transaction at the time of such transaction in arm’s-length dealings
with a Person who is not such an Affiliate;

(2)  in the event such Affiliate Transaction
involves an aggregate consideration in excess of €10 million, the terms of such
transaction have been approved by a majority of the members of the Board of
Directors; and

(3)  in the event such Affiliate Transaction
involves an aggregate consideration in excess of €50 million, KDG has received
a written opinion (a “Fairness Opinion”)
from an Independent Financial Advisor (as determined by KDG in good faith)

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that such Affiliate
Transaction is fair, from a financial standpoint, to KDG and its Restricted
Subsidiaries or is not materially less favorable than those that could
reasonably have been obtained in a comparable transaction at such time on an
arm’s-length basis from a Person that is not an Affiliate.

Any Affiliate Transaction shall be deemed to have
satisfied the requirements set forth Section 4.10(a)(2) if such Affiliate
Transaction is approved by a majority of the Disinterested Directors.

(b)  The provisions of Section 4.10(a) will
not apply to:

(1)  any Restricted Payment permitted to be
made pursuant Section 4.06 any Permitted Payments (other Section
4.06(c)(9)(d)), any Permitted Investment or any transaction specifically
excluded from the definition of the term “Restricted Payment;”

(2)  any issuance or sale of Capital Stock,
options, other equity-related interests or other securities, or other payments,
awards or grants in cash, securities or otherwise pursuant to, or the funding
of, or entering into, or maintenance of, any employment, consulting, collective
bargaining or benefit plan, program, agreement or arrangement, related trust or
other similar agreement and other compensation arrangements, options, warrants
or other rights to purchase Capital Stock of KDG or any Parent, restricted
stock plans, long-term incentive plans, stock appreciation rights plans,
participation plans or similar employee benefits or consultants’ plans
(including valuation, health, insurance, deferred compensation, severance,
retirement, savings or similar plans, programs or arrangements) and/or
indemnities provided on behalf of officers, employees, directors or consultants
approved by the Board of Directors of KDG, in each case in the ordinary course
of business;

(3)  any Management Advances;

(4)  any transaction between or among KDG
and/or any Restricted Subsidiary (or entity that becomes a Restricted
Subsidiary as a result of such transaction), or between or among Restricted
Subsidiaries or any Receivables Subsidiary;

(5)  the payment of reasonable fees and
reimbursement of expenses to, and customary indemnities and employee benefit
and pension expenses provided on behalf of, directors, officers, consultants or
employees of KDG, any Restricted Subsidiary of KDG or any Parent (whether
directly or indirectly and including through any Person owned or controlled by
any of such directors, officers or employees);

(6)  the entry into and performance of
obligations of KDG or any of its Restricted Subsidiaries under the terms of,
any transaction arising out of and any payments pursuant to, any agreement or
instrument in effect as of or on the Issue Date, or with respect to any Target
and its Subsidiaries, agreements or instruments entered into in the ordinary
course of business in effect as of the Issue Date or entered into prior to the
closing date of the relevant Acquisition to the extent permitted by the
provisions of the applicable Sale and Purchase Agreement as in effect on the
Issue Date (but without giving effect to any provision thereof permitting the
relevant Target to suspend its

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obligations thereunder),
as these agreements and instruments may be amended, modified, supplemented,
extended, renewed or refinanced from time to time in accordance with the other
terms of this Section 4.10 or to the extent not disadvantageous to the Holders
in any material respect;

(7)  execution, delivery and performance of
any Tax Sharing Agreement;

(8)  transactions with customers, clients,
suppliers or purchasers or sellers of goods or services, in each case in the
ordinary course of business and otherwise in compliance with the terms of this
Indenture, which are fair to KDG or the relevant Restricted Subsidiary in the
reasonable determination of the Board of Directors of KDG or the senior
management of KDG or the relevant Restricted Subsidiary, as applicable, or are
on terms no less favorable than those that could reasonably have been obtained
at such time from an unaffiliated party;

(9)  any transaction in the ordinary course
of business between or among KDG or any Restricted Subsidiary and any Affiliate
of KDG controlled by KDG that is an Unrestricted Subsidiary or a joint venture
or similar entity that would constitute an Affiliate Transaction solely because
KDG or a Restricted Subsidiary owns an equity interest in or otherwise controls
such Unrestricted Subsidiary, joint venture or similar entity;

(10)  any surrender of group relief or
payment in respect thereof;

(11)  issuances or sales of Capital Stock
(other than Disqualified Stock or Designated Preference Shares) of KDG or
options, warrants or other rights to acquire such Capital Stock or Subordinated
Shareholder Funding; provided that
the interest rate and other financial terms of such Subordinated Shareholder
Funding are approved by a majority of the members of the Board of Directors in
their reasonable determination;

(12)  (a)  payments by KDG or any
Restricted Subsidiary to any Permitted Holder (whether directly or indirectly,
including through any Parent) of annual management, consulting, monitoring or
advisory fees and related expenses in an aggregate amount not to exceed €5
million per year and (b)  customary payments by KDG or any Restricted
Subsidiary to any Permitted Holder (whether directly or indirectly, including
through any Parent) for financial advisory, financing, underwriting or
placement services or in respect of other investment banking activities,
including in connection with acquisitions or divestitures, which payments in
respect of this clause (b) are approved by a majority of the Board of
Directors in good faith or (c) payments which are otherwise disclosed in the
following section of the Offering Memorandum: “Certain Relationships and
Related Party Transactions.”

(13)  payment to any Permitted Holder of all
reasonable out of pocket expenses incurred by such Permitted Holder in
connection with its direct or indirect investment in KDG and its Subsidiaries;

(14)  any transaction effected as part of a
Qualified Receivables Financing; and

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(15)  any transaction with an officer or
director in the ordinary course of business not involving more than €100,000 in
any one instance.

SECTION 4.11.  Reports.  (a) 
Notwithstanding that KDG may not be subject to the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act, for so long as
any Securities are outstanding, KDG will provide to the Trustee:

(1)  within 120 days (or, in case of the
fiscal year ending December 31, 2004 if at least one Acquisition has occurred
prior to December 31, 2004, 150 days) after the end of KDG’s fiscal year
(commencing with the fiscal year ending December 31, 2004), information
substantially equivalent to that which would be required to be included in an
Annual Report of Foreign Private Issuer on Form 20-F (as in effect on the Issue
Date) by a foreign private issuer subject to the Exchange Act, including all
annual financial information that would be required by Form 20-F if KDG were
required to prepare and file such form, including an “Operating and Financial
Review and Prospects” section, a presentation of EBITDA and, in relation to the
annual financial statements therein only, which will be prepared on the basis
of GAAP as in effect on the date of such report or financial statements (or
otherwise on the basis of GAAP), a report on the financial statements included
in such report by KDG’s independent auditors; provided
that KDG shall not be required to include: (A) the disclosures
required by Items 11 (Quantitative and Qualitative Disclosures about Market Risk)
and 3.D (Risk Factors) of such form; (B) comparative period financial
statements for 2002 or 2003 to the extent that such financial statements or
financial disclosure included therein in respect of 2002 or 2003 are equivalent
to the financial statements for 2002 or 2003 included in the Offering
Memorandum; or (C) any disclosure with respect to KDG’s results of operations
or any other financial or statistical disclosure not of a type included in the
Offering Memorandum; and provided, further, that
the financial statements for the fiscal year ending December 31, 2004 may be
prepared on an unaudited pro forma
basis based on audited financial statements for the year ended March 31, 2004
and audited financial statements for the nine months ended December 31, 2004 if
such nine-month financial statements (and the related audit opinion) are
included in the report for such year;

(2)  within 60 days (or, in the case of the
fiscal quarter ending June 30, 2004 or if one or more of the Acquisitions has
occurred in any fiscal quarter in the case of such quarter, 75 days) after the
end of each of the first three fiscal quarters in each fiscal year of KDG,
beginning with the fiscal quarter ended June 30, 2004, all interim financial
statements of KDG (but on the basis of GAAP as in effect on the date of such
report or financial statements (or otherwise on the basis of GAAP)) that would
be required to be included in a Form 10-Q (as in effect on the Issue Date) if
KDG were required to prepare and file such form as well as a discussion of (A)
the financial condition and results of operations of KDG and material changes
between the interim periods included in such report and the relevant interim
periods of the prior year (on an actual rather than a pro forma basis), (B) material
developments in the business of KDG, (C) material financial developments and
trends in the business in which KDG is engaged, (D) a presentation of EBITDA
and (E) subject to the proviso below, a reconciliation of the interim financial
statements included therein to U.S. GAAP; and

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(3)  in each case, to be provided promptly
following the event giving rise to the requirement to provide any such
information, the following information that would be required to be filed with
the SEC in Current Reports on Form 8-K (as in effect on the Issue Date) if KDG
were required to file such reports: all the information set forth in Items (1),
(2), (3) and (4) of Form 8-K;

provided, however,
that the reports set forth in clauses (1), (2) and (3) above shall not be
required to: (a) contain any certification required by any such form or the
U.S. Sarbanes-Oxley Act, (b) include any exhibit, (c) include separate
financial statements for any Subsidiary or Affiliate of KDG or any acquired
business, including the Targets, (d) comply with Regulation G under the
Exchange Act or Item 10(e) of Regulation S-K, (e) contain any segment data
other than as contained in the Offering Memorandum or (f) prior to the report
for the year ended December 31, 2005, contain reconciliations to U.S. GAAP.

(b)  If KDG has designated any of its
Subsidiaries as Unrestricted Subsidiaries and any such Unrestricted Subsidiary,
or group of Unrestricted Subsidiaries, if taken together as one Subsidiary,
constitutes a Significant Subsidiary of KDG, then the annual and quarterly
information required by the first two clauses of this Section 4.11 shall
include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, of the financial condition and results
of operations of KDG and its Restricted Subsidiaries separate from the
financial conditions and results of operations of such Unrestricted
Subsidiaries of KDG.

(c)  Substantially concurrently with the
issuance to the Trustee of the reports specified in Sections 4.11(a)(1),
4.11(a)(2), 4.11(a)(3), KDG shall also (1) use its commercially reasonable
efforts (i) to post copies of such reports (excluding any audit opinion with
respect to any period in 2003) on such website as may be then maintained by KDG
and its subsidiaries or (ii) otherwise to provide substantially comparable
public availability of such reports (as determined by KDG in good faith) or (2)
to the extent KDG determines in good faith that it cannot make such reports
available in the manner described in the preceding clause (1) after the use of
its commercially reasonable efforts, furnish such reports to the Holders and,
upon their request, prospective purchasers of the Securities.

(d)  In the event that KDG becomes subject
to the reporting requirements of Sections 13(a) or 15(d) of the Exchange Act,
or elects to comply with such provisions, KDG will, for so long as it continues
to file the reports required by Section 13(a) with the SEC, make available to
the Trustee the annual reports, information, documents and other reports that
KDG is, or would be, required to file with the SEC pursuant to such Sections
13(a) or 15(d).  Upon complying with the
foregoing requirement, KDG will be deemed to have complied with the provisions
contained in Sections 4.11(a), (b) and (c).

(e)  In addition, so long as the Securities
remain outstanding and during any period during which KDG is not subject to
Sections 13 or 15(d) of the Exchange Act nor exempt therefrom pursuant to Rule
12g3-2(b), KDG shall furnish to the Holders and,

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upon their request,
prospective purchasers of the Securities, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

(f)  For so long as the Securities are
listed on the Luxembourg Stock Exchange and to the extent that the rules of the
Luxembourg Stock Exchange require, the above information will also be made
available in Luxembourg through the offices of the Paying Agent in Luxembourg.

SECTION 4.12.  Lines of
Business.  KDG will not, and will not
permit any Restricted Subsidiary to, engage in any business other than a
Similar Business, except to such extent as would not be material to KDG and its
Restricted Subsidiaries, taken as a whole.

SECTION 4.13.  Limitation on
Layering.  No Note Guarantor will
Incur any Indebtedness if such Indebtedness is expressly subordinate in right
of payment to such Note Guarantor’s Note Guarantor Senior Indebtedness unless
such Indebtedness is pari passu
in right of payment with or is subordinate in right of payment to the Note
Guarantee of such Note Guarantor. Unsecured Indebtedness is not deemed to be
subordinate or junior to secured Indebtedness merely because it is unsecured,
and Indebtedness that is not Guaranteed by a particular Person is not deemed to
be subordinate or junior to Indebtedness that is so Guaranteed merely because
it is not so Guaranteed. A Note Guarantor may not Incur any secured
Indebtedness that is not Note Guarantor Senior Indebtedness of such Note
Guarantor (except to the extent such Indebtedness is secured only by a Lien
arising solely by operation of applicable law) unless contemporaneously
therewith effective provision is made to secure the Note Guarantee of such Note
Guarantor equally and ratably with (or on a senior basis to, in the case of
Indebtedness subordinated in right of payment to such Note Guarantee) such
secured Indebtedness for as long as such secured Indebtedness is secured by a
Lien. In addition, no Note Guarantor shall Guarantee, directly or indirectly
any Indebtedness of KDG that is subordinate or junior in right of payment to
any Senior Indebtedness of KDG unless such Guarantee is expressly subordinate
in right of payment to, or ranks pari passu
with, the Note Guarantee of such Note Guarantor.

SECTION 4.14.  Suspension of
Covenants on Achievement of Investment Grade Status.  If on any date following the Issue Date, the
Securities have achieved Investment Grade Status and no Default or Event of
Default has occurred and is continuing (a “Suspension
Event”), then, beginning on that day and continuing until such time,
if any, at which the Securities cease to have Investment Grade Status, Sections
4.03, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.12 and 5.01(a)(3) of this Indenture
and any related default provisions of this Indenture will cease to be effective
and will not be applicable to KDG and its Restricted Subsidiaries. Such
covenants and any related default provisions will again apply according to
their terms from the first day on which a Suspension Event ceases to be in
effect. Such covenants will not, however, be of any effect with regard to
actions of KDG properly taken during the continuance of the Suspension Event,
and Section 4.06 will be interpreted as if it had been in effect since the date
of this Indenture except that no default will be deemed to have occurred solely
by reason of a Restricted Payment made while Section 4.06 was suspended.

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SECTION 4.15.  Impairment of
Security Interest.  KDG shall not,
and shall not permit any Restricted Subsidiary to, take or omit to take any
action that would have the result of materially impairing the Security Interest
with respect to the Collateral (it being understood, subject to the proviso
below, that the Incurrence of Permitted Collateral Liens shall under no
circumstances be deemed to materially impair the Security Interest with respect
to the Collateral) for the benefit of the Trustee and the Holders, and KDG
shall not, and shall not permit any Restricted Subsidiary to, grant to any
Person other than the Security Trustee, for the benefit of the Trustee and the
Holders (other than any Additional Securities) and the other beneficiaries
described in the Security Documents, any interest whatsoever in any of the
Collateral, except that KDG may Incur Permitted Collateral Liens and the
Collateral may be discharged and released in accordance with this Indenture or
the Intercreditor Agreement; provided,
however, that, except with respect to any discharge or release in
accordance with this Indenture or the Intercreditor Agreement or the Incurrence
of Permitted Collateral Liens for the benefit of the Trustee and holders of any
Bridge Exchange Securities, Take-Out Securities or other Indebtedness Incurred
in accordance with Section 4.05 (b)(1)(b) none of the Security Documents may be
amended, extended, renewed, restated, supplemented or otherwise modified or
replaced, unless contemporaneously with any such action, KDG delivers to the
Trustee, either (1) a solvency opinion, in form and substance reasonably
satisfactory to the Trustee from an Independent Financial Advisor confirming
the solvency of KDG and its Subsidiaries, taken as a whole, after giving effect
to any transactions related to such amendment, extension, renewal, restatement,
supplement, modification or replacement, or (2) an Opinion of Counsel, in form
and substance reasonably satisfactory to the Trustee, confirming that, after
giving effect to any transactions related to such amendment, extension,
renewal, restatement, supplement, modification or replacement, the Lien or
Liens created under the relevant Security Documents, as applicable, so amended,
extended, renewed, restated, supplemented, modified or replaced are valid Liens
not otherwise subject to any limitation, imperfection or new hardening period,
in equity or at law, that such Lien or Liens were not otherwise subject to
immediately prior to such amendment, extension, renewal, restatement,
supplement, modification or replacement. In the event that KDG complies with
the requirements of this Section 4.15, the Trustee shall (subject to customary
protections and indemnifications) consent to such amendments without the need
for instructions from the Holders.

SECTION 4.16.  Additional
Intercreditor Agreements.  (a)  At the request of KDG, in connection with the
Incurrence by KDG or any Note Guarantor of any (1) Indebtedness permitted
pursuant to Section 4.05(a) or Sections 4.05(b)(1), 4.05(b)(5), 4.05(b)(6) (in
the case of Section 4.05(b)(6), to the extent such Indebtedness is Incurred
under an Interest Rate Agreement or Currency Agreement in respect of Indebtedness
Incurred under Sections 4.05(b) (1) or 4.05(b)(4)(a), 4.05(b)(7) (other than
with respect to Capitalized Lease Obligations) or 4.05(b)(11) (to the extent
such Indebtedness is permitted Public Debt or Bank Indebtedness) and (2) any
Refinancing Indebtedness in respect of Indebtedness referred to in the
foregoing clause (1) (and, in each case, such Indebtedness shall be (x) Senior
Indebtedness or Designated Senior Indebtedness, (y) Note Guarantor Senior
Subordinated Indebtedness or (z) Subordinated Indebtedness or Note Guarantor
Subordinated Indebtedness), KDG, the relevant Note Guarantors and the

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Trustee shall
enter into with the holders of such Indebtedness (or their duly authorized
Representatives) an intercreditor agreement (an “Additional Intercreditor Agreement”) on substantially the
same terms as the Intercreditor Agreement (or terms more favorable to the
Holders) including containing substantially the same terms with respect to the
subordination, payment blockage, limitation on enforcement and release of
Guarantees, priority and release of the Security Interest; provided that only one Stop Notice can be
given in any 365-day period or in respect of the same event or circumstances
regardless of the number of Credit Facilities or other instruments constituting
“Designated Senior Indebtedness,” “Senior Indebtedness” or “Notes Guarantor
Senior Indebtedness” or the number of intercreditor deeds (except that, if any
Stop Notice is given within any such 365-day period by or on behalf of any
holders of Designated Senior Indebtedness other than Indebtedness under the
Senior Facilities Agreement, the facility agent under the Senior Facilities
Agreement may give another Stop Notice within such period; provided that in no event may the total
number of days for which a Stop Notice is in effect exceed 179 days in the
aggregate during any consecutive 365-day period); provided, further, that such Additional Intercreditor
Agreement will not impose any personal obligations on the Trustee or adversely
affect the rights, duties, liabilities or immunities of the Trustee under this
Indenture or the Intercreditor Agreement. Pursuant to any such Additional
Intercreditor Agreement, such other Indebtedness may constitute Senior
Indebtedness, Note Guarantor Senior Indebtedness, Note Guarantor Senior
Subordinated Indebtedness or Subordinated Indebtedness.

(b)  At the direction of KDG and
without the consent of Holders, the Trustee shall from time to time enter into
one or more amendments to any Intercreditor Agreement or Additional
Intercreditor Agreement to: (1) cure any ambiguity, omission, defect or
inconsistency of the Intercreditor Agreement or any Additional Intercreditor
Agreements, (2) increase the amount of Indebtedness of the types covered by the
Intercreditor Agreement or any Additional Intercreditor Agreement that may be
Incurred by KDG or a Note Guarantor that is subject to the Intercreditor
Agreement or any Additional Intercreditor Agreement (including the addition of
provisions relating to new Indebtedness ranking junior in right of payment to
the Securities or the Note Guarantees, as applicable), (3) add Note Guarantors
to the Intercreditor Agreement or an Additional Intercreditor Agreement, (4)
further secure the Securities (including Additional Securities), (5) make
provision for equal and ratable pledges of the Collateral to secure Additional
Securities, Exchange Securities, Bridge Exchange Notes, Take-Out Securities or
any other Indebtedness Incurred in accordance with Section 4.05 (b)(1)(b) to
rank pari passu with the Security Documents
or to implement any Permitted Collateral Liens or (6) make any other such
change to the Intercreditor Agreement or an Additional Intercreditor Agreement
that does not adversely affect the Holders in any material respect. KDG shall
not otherwise direct the Trustee to enter into any amendment to the
Intercreditor Agreement or an Additional Intercreditor Agreement without the
consent of the Holders of the majority in aggregate principal amount of the
Securities then outstanding, except as otherwise permitted below under Article
9 and KDG may only direct the Trustee to enter into any amendment to the extent
such amendment does not impose any personal obligations on the Trustee or
adversely affect the rights, duties, liabilities or immunities of the Trustee
under this Indenture or the Intercreditor Agreement or an Additional
Intercreditor Agreement.

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(c)  In relation to the
Intercreditor Agreement or an Additional Intercreditor Agreement, the Trustee
shall consent on behalf of the Holders to the payment, repayment, purchase,
repurchase, defeasance, acquisition, retirement or redemption of any
obligations subordinated to the Securities thereby; provided, however, that such transaction would comply with
Section 4.06.

(d)  Each Holder, by accepting a
Security, shall be deemed to have agreed to and accepted the terms and
conditions of the Intercreditor Agreement or an Additional Intercreditor
Agreement (whether then entered into or entered into in the future pursuant to
the provisions described herein). A copy of the Intercreditor Agreement or an
Additional Intercreditor Agreement shall be made available for inspection
during normal business hours on any Business Day upon prior written request at
the offices of the Trustee and, for so long as any Securities are listed on the
Luxembourg Stock Exchange, at the offices of the Paying Agent in Luxembourg.

SECTION 4.17.  Compliance
Certificate.  The Issuer shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Issuer an Officer’s Certificate stating that (a) in the course of the
performance by the signers of their duties as Officers of the Issuer they would
normally have knowledge of any Default and whether or not the signers know of
any Default that occurred during such period and (b)(i) such action has been
taken with respect to the recording, filing, re-recording and re-filing of this
Indenture and the Security Agreements (including financing statements or other
instruments) as is necessary to maintain the security interest intended to be
created thereby for the benefit of the Holders, and reciting the details of
such action, or (ii) no such action is necessary to maintain such Lien.  If they do, the certificate shall describe
the Default, its status and what action the Issuer is taking or proposes to
take with respect thereto. The Issuer also shall comply with Section 314(a)(4)
of the TIA.

SECTION 4.18.  Further
Instruments and Acts.  Upon request
of the Trustee, the Issuer and the Note Guarantors shall execute and deliver
such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this
Indenture.

SECTION 4.19.  Listing.  The Issuer will use its reasonable best
efforts to cause the Securities to be listed on the Luxembourg Stock Exchange
(or, failing the approval of the listing of the Securities on the Luxembourg
Stock Exchange, it will use its reasonable best efforts to cause the Securities
to be listed on another stock exchange reasonably satisfactory to the Issuer
and the Initial Purchasers) as soon as practicable and in any event prior to
the date of the first interest payment and cause that such listing continues
for so long as any of the Securities are outstanding.

SECTION
4.20.  Acquisition Termination
Repurchase Offer.  No later than the
10th Business Day following the earlier of (a) the
date on which the first Acquisition Termination Event occurs and (b) December
31, 2004 if not all Acquisitions have closed by such date, the Issuer will
commence an offer (the “Acquisition Termination Repurchase Offer”), in
accordance with the procedures set forth in this Indenture, made to all Holders
to purchase all Securities of such Holders at a price in

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cash equal to
100% of the principal amount thereof, plus accrued and unpaid interest (subject
to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date) to the date fixed for such
purchase, by mailing the notice required pursuant to the terms of this
Indenture.  The Issuer will purchase all
Securities properly tendered for purchase pursuant to the Acquisition
Termination Repurchase Offer.  The date
of purchase shall be 30 days from the date on which notice of the Acquisition
Termination Repurchase Offer is mailed. 
The Issuer will comply, to the extent applicable, with the requirements
of Section 14(e) of the Exchange Act and any other securities laws or
regulations in connection with any purchase of Securities pursuant to the
Acquisition Termination Repurchase Offer. 
To the extent that the provisions of any securities laws or regulations
applicable to the Acquisition Termination Repurchase Offer conflict with the
provisions of this Indenture, the Issuer will comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Indenture to make the Acquisition Termination Repurchase
Offer by virtue thereof.

ARTICLE
5

Successor Company

SECTION
5.01.  Merger and Consolidation.  (a) 
KDG will not consolidate with or merge with or into, or convey, transfer
or lease all or substantially all its assets to, any Person, unless:

(1)  the resulting, surviving or transferee Person
(the “Successor Company”) will be a Person
organized and existing under the laws of the Federal Republic of Germany or any
other member state of the European Union on January 1, 2004, or the United
States of America, any State of the United States or the District of Columbia
or, in the event no withholding tax or similar tax would be imposed on any
payments made pursuant to this Indenture or the Securities under or pursuant to
then applicable law, Canada or any province of Canada and the Successor Company
(if not KDG) will expressly assume, (a) by supplemental indenture, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, all
the obligations of KDG under the Securities and this Indenture and (b) all
obligations of KDG under the Intercreditor Agreement and the Security
Documents;

(2)  immediately after giving effect to such
transaction (and treating any Indebtedness that becomes an obligation of the
Successor Company or any Subsidiary of the Successor Company as a result of
such transaction as having been Incurred by the Successor Company or such
Subsidiary at the time of such transaction), no Default or Event of Default
shall have occurred and be continuing;

(3)  immediately after giving effect to such
transaction, either (a) the Successor Company would be able to Incur at least
an additional €1.00 of Indebtedness pursuant to Section 4.05(a) or (b) the
Consolidated Leverage Ratio would not be greater than it was immediately prior
to giving effect to such transaction;

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(4)  KDS and NewKDS (unless it is
the other party to the transactions above, in which case Section 5.01(a)(1)
shall apply) shall have by supplemental indenture confirmed that the KDS
Guarantee and the NewKDS Guarantee, respectively, shall apply to KDG’s
obligations in respect of this Indenture and the Securities unless such
Guarantee shall be released in connection with the transaction and otherwise in
compliance with this Indenture; and

(5)  KDG shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each to the
effect that such consolidation, merger or transfer and such supplemental
indenture (if any) comply with this Indenture and an Opinion of Counsel to the
effect that such supplemental indenture (if any) has been duly authorized,
executed and delivered and is a legal, valid and binding agreement enforceable
against the Successor Company and each Note Guarantor under the supplemental
indenture (in each case, in form and substance reasonably satisfactory to the
Trustee), provided that in giving an Opinion of
Counsel, counsel may rely on an Officer’s Certificate as to any matters of
fact.

(b)  Any Indebtedness that
becomes an obligation of KDG or any Restricted Subsidiary (or that is deemed to
be Incurred by any Restricted Subsidiary that becomes a Restricted Subsidiary)
as a result of any such transaction undertaken in compliance with Section
5.01(a), and any Refinancing Indebtedness with respect thereto, shall be deemed
to have been Incurred in compliance with Section 4.05

(c)  For purposes of this Section
5.01, the sale, lease, conveyance, assignment, transfer, or other disposition
of all or substantially all of the properties and assets of one or more
Subsidiaries of KDG, which properties and assets, if held by KDG instead of
such Subsidiaries, would constitute all or substantially all of the properties
and assets of KDG on a consolidated basis, shall be deemed to be the transfer
of all or substantially all of the properties and assets of KDG.

(d)  The Successor Company will
succeed to, and be substituted for, and may exercise every right and power of,
KDG under this Indenture, but, in the case of a lease of all or substantially
all its assets, the predecessor company will not be released from its
obligations under this Indenture or the Securities.

(e)  Notwithstanding Sections
5.01(a)(2) and 5.01(a)(3) (which do not apply to transactions referred to in
this Section 5.01(e)), (a) any Restricted Subsidiary of KDG may consolidate or
otherwise combine with, merge into or transfer all or part of its properties
and assets to KDG or any Note Guarantor, (b) any Restricted Subsidiary which is
not a Note Guarantor may consolidate or otherwise combine with, merge into or
transfer all or part of its properties and assets to any other Restricted
Subsidiary, (c) KDG and KDS may consolidate or otherwise combine with or merge
into KDS or KDG, as the case may be, and (d) KDG or any of its Subsidiaries may
undertake the Transactions; provided that,
in the case of the Transactions, KDG also will not be required to comply with
Section 5.01(a)(5). Notwithstanding Section 5.01(a)(3) (which does not apply to
the transactions referred to in this sentence), KDG may consolidate or
otherwise combine with or merge into an Affiliate incorporated or organized for
the purpose of changing the

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legal domicile
of KDG, reincorporating KDG in another jurisdiction, or changing the legal form
of KDG.

(f)  In addition, KDG will not
permit any Note Guarantor to consolidate with or merge with or into any Person
(other than KDG or any Note Guarantor) unless (1) the resulting, surviving or
transferee Person is organized and existing under the laws of the Federal
Republic of Germany or any other member state of the European Union on January
1, 2004, or the United States of America, any State of the United States or the
District of Columbia or in the event no withholding tax or similar tax would be
imposed on any payments made pursuant to this Indenture or the Securities under
or pursuant to then applicable law, Canada or any province of Canada and such
Person will expressly assume, (a) by supplemental indenture, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, all
the obligations of such Note Guarantor under the applicable Note Guarantee and
this Indenture and (b) all obligations of such Note Guarantor under the
Intercreditor Agreement and the Security Documents; (2) immediately after
giving effect to such transaction (and treating any Indebtedness that becomes
an obligation of the resulting, surviving or transferee Person or any
Restricted Subsidiary as a result of any such transaction as having been
Incurred by such Person or such Restricted Subsidiary at the time of such
transaction), no Default or Event of Default shall have occurred and be
continuing; and (3) KDG will have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each to the effect that such
consolidation, merger and transfer and such supplemental indenture (if any)
comply with this Indenture and an Opinion of Counsel to the effect that such
supplemental indenture (if any) has been duly authorized, executed and
delivered and is a legal, valid and binding agreement enforceable against the
resulting, surviving or transferee Person and any Note Guarantor under the
supplemental indenture (in each case, in form and substance reasonably
satisfactory to the Trustee), provided that
in giving an Opinion of Counsel, counsel may rely on an Officer’s Certificate
as to compliance with the preceding clause (2) and as to any matters of fact.
Notwithstanding the preceding clause (2) (which does not apply to transactions
referred to in this sentence), in each case if a Note Guarantor is a Restricted
Subsidiary immediately prior to such transaction, such Note Guarantor or any
Restricted Subsidiary of KDG may consolidate or otherwise combine with, merge
into or transfer all or part of its properties and assets to another Restricted
Subsidiary or such Note Guarantor, as applicable; provided
that, in the case of a Restricted Subsidiary that merges into such Note
Guarantor, such Note Guarantor will not be required to comply with the
preceding clause (3).

(g)  The provisions of this
Section 5.01 (other than the requirements of Section 5.01(a)(2)) shall not
apply to any transactions which constitute an Asset Disposition if KDG has
complied with Section 4.09.

(h)  Notwithstanding anything to
the contrary above, prior to the transfer of assets from KDS to NewKDS in
connection with the Step-Up, NewKDS shall be required to expressly assume, (a)
by supplemental indenture, executed and delivered to the Trustee, in form
reasonably satisfactory to the Trustee, all the obligations of KDS under the
KDS Guarantee and this Indenture and (b) all obligations of KDS under the
Intercreditor Agreement.  The Issuer shall
cause to be delivered to the Trustee an

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Officer’s
Certificate and an Opinion of Counsel, each to the effect that such
supplemental indenture complies with the Indenture and an Opinion of Counsel to
the effect that such supplemental indenture has been duly authorized, executed
and delivered and is a legal, valid and binding agreement enforceable against
NewKDS, the Issuer and each Note Guarantor under the supplemental indenture (in
each case, in form and substance reasonably satisfactory to the Trustee), provided that in giving an Opinion of Counsel, counsel may
rely on an Officer’s Certificate as to any matters of fact.

ARTICLE
6

Defaults and
Remedies

SECTION 6.01.  Events of
Default.  (a)  An “Event
of Default” occurs if or upon:

(1)  default in any payment of interest on any
Security issued under this Indenture when due and payable, continued for 30
days;

(2)  default in the payment of principal of or
premium, if any, on any Security issued under this Indenture when due at its
Stated Maturity, upon optional redemption, upon required repurchase, upon
declaration or otherwise;

(3)  failure to comply for 30 days after notice by
the Trustee or the holders of 25% in principal amount of the outstanding
Securities with any of its obligations under Article 4 and 5 above (in each
case, other than a failure to purchase Securities which will constitute an
Event of Default under clause (2) above);

(4)  failure to comply for 60 days after notice by
the Trustee or the holders of 25% in principal amount of the outstanding
Securities with its other agreements contained in this Indenture;

(5)  default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by KDG or any of its Restricted
Subsidiaries (or the payment of which is Guaranteed by KDG or any of its
Restricted Subsidiaries) other than Indebtedness owed to KDG or a Restricted
Subsidiary whether such Indebtedness or Guarantee now exists, or is created
after the Issue Date, which default:

(a)  is caused by a failure to pay principal of,
or interest or premium, if any, on such Indebtedness prior to the expiration of
the grace period provided in such Indebtedness (“payment
default”); or

(b)  results in the acceleration of such
Indebtedness prior to its maturity (the “cross acceleration
provision”);

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and, in each
case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
payment default or the maturity of which has been so accelerated, aggregates €35
million or more;

(6)  (a) the Issuer or any Significant Subsidiary
pursuant to or within the meaning of any Bankruptcy Law: (i) commences a
voluntary case; (ii) consents to the entry of an order for relief against it in
an involuntary case; (iii) consents to the appointment of a Custodian of it or
for any substantial part of its property; (iv) makes a general assignment for
the benefit of its creditors, or (v) takes any comparable action under any
foreign laws relating to insolvency; or (b) a court of competent jurisdiction
enters an order or decree under any Bankruptcy Law that: (i) is for relief
against the Issuer or any Significant Subsidiary in an involuntary case; (ii)
appoints a Custodian of the Issuer or any Significant Subsidiary or for any substantial
part of its property; (iii) orders the winding up or liquidation of the Issuer
or any Significant Subsidiary, or (iv) any similar relief is granted under any
foreign laws, and any such order or decree remains unstayed and in effect for
60 days.

The term “Bankruptcy Law” means the German Insolvency
Code (Insolvenzordnung) or any other German
law dealing with the incapability of a debtor to pay its debt, the debtor’s
over indebtedness or a lack of assets to cover a debtor’s outstanding debt,
Title 11, United States Code, or any similar U.S. Federal or state law for the
relief of debtors or the laws of any other jurisdiction relating to bankruptcy,
insolvency, winding up, liquidation, reorganization or the relief of debtors.  The term “Custodian” means any receiver,
trustee, assignee, liquidator, custodian or similar official under any
Bankruptcy Law.

(7)  failure by KDG or any Significant Subsidiary
or group of Restricted Subsidiaries that, taken together (as of the latest
audited consolidated financial statements for KDG and its Restricted
Subsidiaries), would constitute a Significant Subsidiary to pay final judgments
aggregating in excess of €35 million (exclusive of any amounts that a solvent
insurance company has acknowledged liability for), which judgments are not
paid, discharged or stayed for a period of 60 days after the judgment becomes
final (the “judgment default provision”);

(8)  any Note Guarantee of a Significant
Subsidiary ceases to be in full force and effect (other than in accordance with
the terms of such Note Guarantee or this Indenture) or is declared invalid or
unenforceable in a judicial proceeding or any Note Guarantor denies or
disaffirms in writing its obligations under its Note Guarantee and any such
Default continues for 10 days (the “guarantee provisions”);
and

(9)  any security interest under the Security
Documents shall, at any time, cease to be in full force and effect (other than
in accordance with the terms of the relevant Security Documents, as applicable,
the Intercreditor Agreement and this Indenture) for any reason other than the
satisfaction in full of all obligations under this Indenture or the release of
any such security interest in accordance with the terms of this Indenture, the
Intercreditor Agreement or the Security Documents or any such security interest
created thereunder shall be declared invalid or unenforceable or KDG shall

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assert in writing that any such security
interest is invalid or unenforceable and any such Default continues for 10 days
(the “security default provisions”).

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

(b)  However, a default under
Sections 6.01(a)(3) or 6.01(a)(4) will not constitute an Event of Default until
the Trustee or the holders of 25% in principal amount of the outstanding
Securities under this Indenture notify KDG of the default and KDG does not cure
such default within the time specified in Sections 6.01(a) (3) or 6.01(a)(4),
as applicable, after receipt of such notice.

(c)  Section 6.01(a)(6) shall not
in any case apply to any bankruptcy, insolvency or court protection relating to
Callahan Kabel NRW GmbH & Co. KG arising out of or related to its ownership
of ish until 90 days after such time that a court of competent jurisdiction has
finally and judicially determined or KDG or any of its Subsidiaries has agreed
in writing that Callahan Kabel NRW GmbH & Co. KG holds the legal title to
the partnership interests in ish GmbH & Co. KG.

SECTION 6.02.  Acceleration.  (a)  If
an Event of Default (other than an Event of Default described in Section
6.01(a) (6) above) occurs and is continuing, the Trustee by notice to KDG or
the holders of at least 25% in principal amount of the outstanding Securities
under this Indenture by notice to KDG and the Trustee, may, and the Trustee at the
request of such holders shall, declare the principal of, premium, if any, and
accrued and unpaid interest on all the Securities under this Indenture to be
due and payable. Upon such a declaration, such principal, premium and accrued
and unpaid interest will be due and payable immediately.  In the event of a declaration of acceleration
of the Securities because an Event of Default described in Section 6.01 (a) (5)
has occurred and is continuing, the declaration of acceleration of the
Securities shall be automatically annulled if the event of default or payment
default triggering such Event of Default pursuant to Section 6.01(a)(5) shall
be remedied or cured, or waived by the holders of the Indebtedness, or the
Indebtedness that gave rise to such Event of Default shall have been discharged
in full, within 30 days after the declaration of acceleration with respect
thereto and if (1) the annulment of the acceleration of the Securities would
not conflict with any judgment or decree of a court of competent jurisdiction
and (2) all existing Events of Default, except nonpayment of principal, premium
or interest on the Securities that became due solely because of the
acceleration of the Securities, have been cured or waived.

(b)  If an Event of Default
described in Section 6.01(a) (6) above occurs and is continuing, the principal
of, premium, if any, and accrued and unpaid interest on all the Securities will
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holders.

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SECTION 6.03.  Other Remedies.  Subject to Articles 11 and 12 and to the
duties of the Trustee as provided for in Article 7, if an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of or interest on the Securities or to enforce
the performance of any provision of the Securities or this Indenture.

The Trustee may maintain a proceeding even if it does
not possess any of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default.  No remedy is
exclusive of any other remedy.  All
available remedies are cumulative to the extent permitted by law.

To the extent permitted by the Intercreditor
Agreement, the Trustee may direct the Security Trustee to take enforcement
action with respect to the Collateral if any amount is declared or becomes due
and payable pursuant to Section 6.02 (but not otherwise).

SECTION 6.04.  Waiver of Past
Defaults.  Holders of a majority in
aggregate principal amount of the Securities then outstanding by notice to the
Trustee may, on behalf of the Holders of all the Securities, waive all past or
existing Defaults or Events of Default and its consequences except (x) a
continuing Default in the payment of the principal of, premium or interest on a
Security, (y) a Default arising from the failure to redeem or purchase any
Security when required pursuant to the terms of this Indenture or (z) a Default
in respect of a provision that under Section 9.02 cannot be amended without the
consent of each Holder affected.  When a
Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.

SECTION 6.05.  Control by
Majority.  The Holders of a majority
in principal amount of the Securities then outstanding may direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture or, subject to Section
7.01, that the Trustee determines is unduly prejudicial to the rights of other
Holders or would involve the Trustee in personal liability; provided, however, that the Trustee may
take any other action deemed proper by the Trustee that is not inconsistent
with such direction.  Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification or other
security satisfactory to it in its sole discretion against all losses, liabilities
and expenses caused by taking or not taking such action.

SECTION 6.06.  Limitation on
Suits.  (a)  Except to enforce the right to receive
payment of principal, premium (if any) or interest when due, no Holder may
pursue any remedy with respect to this Indenture or the Securities unless:

(i)  the Holder gives to the Trustee notice
stating that an Event of Default is continuing;

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(ii)  the Holders of at least 25% in principal
amount of the Securities then outstanding make a request to the Trustee to
pursue the remedy;

(iii)  such Holder or Holders offer to the Trustee
reasonable security or indemnity against any loss, liability or expense;

(iv)  the Trustee does not comply with the request
within 60 days after receipt of the request and the offer of security or
indemnity; and

(v)  the Holders of a majority in principal amount
of the Securities then outstanding do not give the Trustee a direction that, in
the opinion of the Trustee is, inconsistent with the request during such 60-day
period.

(b)  A Holder
may not use this Indenture to prejudice the rights of another Holder or to
obtain a preference or priority over another Holder.

SECTION 6.07.  Rights of
Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of principal of and interest on the Securities held
by such Holder, on or after the respective due dates expressed or provided for
in the Securities, or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

SECTION 6.08.  Collection Suit
by Trustee.  If an Event of Default
specified in Sections 6.01(a)(1) or 6.01(a)(2) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Issuer or any other obligor on the Securities for the whole amount
then due and owing (together with interest on any unpaid interest to the extent
lawful) and the amounts provided for in Section 7.07.

SECTION 6.09.  Trustee May
File Proofs of Claim.  The Trustee
may file such proofs of claim and other papers or documents and take such
actions as may be necessary or advisable in order to have the claims of the
Trustee and the Holders allowed in any judicial proceedings relative to the
Issuer or any Note Guarantor, their creditors or their property and, unless
prohibited by law or applicable regulations, may vote on behalf of the Holders
in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.07.

SECTION 6.10.  Priorities.  If the Trustee collects any money or property
pursuant to this Article 6, it shall pay out the money or property in the
following order:

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FIRST:  to the
Trustee, the Paying Agents and the Security Trustee for amounts due under
Section 7.07 and Section 12.06;

SECOND:  in the
case of money or property received pursuant to a Note Guarantee, to holders of
Note Guarantor Senior Indebtedness of the Note Guarantors to the extent
required by Article 11 and the Intercreditor Agreement;

THIRD:  to
Holders for amounts due and unpaid on the Securities for principal and
interest, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities for principal and interest,
respectively; and

FOURTH:  to the
Issuer.

The Trustee may fix a record date and payment date for
any payment to Holders pursuant to this Section 6.10.  At least 15 days before such record date,
the Trustee shall mail to each Holder and the Issuer a notice that states the
record date, the payment date and amount to be paid.

SECTION 6.11.  Undertaking for
Costs.  In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by
the Trustee or a Paying Agent, a suit by a Holder pursuant to Section 6.07 or a
suit by Holders of more than 10% in principal amount of the Securities then
outstanding.

SECTION 6.12.  Waiver of Stay
or Extension Laws.  Neither the
Issuer nor any Note Guarantor (to the extent it may lawfully do so) shall at
any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Issuer and each Note Guarantor (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and shall not hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of
every such power as though no such law had been enacted.

ARTICLE
7

Trustee

SECTION
7.01.  Duties of Trustee.  (a)  If
an Event of Default has occurred and is continuing, the Trustee shall exercise
the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

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(b)  Except during the continuance
of an Event of Default:

(i)  the Trustee undertakes to perform such duties
and only such duties as are specifically set forth in this Indenture and no
implied covenants or obligations shall be read into this Indenture against the
Trustee; and

(ii)  in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture.  However, the Trustee shall
examine such certificates and opinions to determine whether or not they conform
to the requirements of this Indenture.

(c)  The Trustee may not be
relieved from liability for its own negligent action, its own negligent failure
to act or its own wilful misconduct, except that:

(i)  this Section 7.01(c) does not limit the
effect of Section 7.01(b);

(ii)  the Trustee shall not be liable for any error
of judgment made in good faith by a Trust Officer unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and

(iii)  the Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Sections 6.02 or 6.05;

(d)  Every provision of this
Indenture that in any way relates to the Trustee is subject to Sections
7.01(a), 7.01(b) and 7.01(c).

(e)  No provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

(f)  The Trustee shall not be
liable for interest on any money received by it except as the Trustee may agree
in writing with the Issuer.

(g)  Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by law.

(h)  Every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section
7.01 and the TIA.

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SECTION 7.02.  Rights of Trustee.  (a) 
The Trustee may conclusively rely and shall be fully protected in
relying on any document believed by it to be genuine and to have been signed or
presented by the proper Person.  The
Trustee need not investigate any fact or matter stated in the document.

(b)  Before the Trustee acts or
refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel or both.  The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officer’s Certificate or Opinion of Counsel.

(c)  The Trustee may act through
agents and shall not be responsible for the misconduct or negligence of any
agent appointed with due care.

(d)  The Trustee shall not be
liable for any action it takes or omits to take in good faith which it believes
to be authorized or within its rights or powers conferred upon it by this
Indenture or the Intercreditor Agreement; provided, however,
that the Trustee’s conduct does not constitute wilful misconduct or negligence.

(e)  The Trustee may retain
professional advisers to assist it in performing its duties under this
Indenture, the Intercreditor Agreement or any Additional Intercreditor
Agreement.  The Trustee may consult with
counsel, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Securities shall be full and complete
authorization and protection from liability in respect of any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

(f)  The Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, approval, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Issuer or any Note Guarantor, personally or by agent or
attorney at the sole cost of the Issuer.

(g)  The Trustee shall be under
no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Holders pursuant to
the provisions of this Indenture, unless such Holders shall have offered to the
Trustee indemnity or other security reasonably satisfactory to the Trustee
against the costs, expenses and liabilities which may be incurred by it in
compliance with such request, order or direction.

(h)  Except with respect to
Section 4.01, the Trustee shall have no duty to inquire as to the performance
of the Issuer or any Note Guarantor with respect to the covenants contained in
Article 4.  Delivery of reports,
information and documents to the Trustee under Section 4.11 is for
informational purposes only and the Trustee’s receipt of the foregoing shall
not constitute constructive notice of any information contained therein

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or
determinable from information contained therein, including the Issuer’s
compliance with any of their covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officer’s Certificates).

(i)  The Trustee shall not have
any obligation or duty to monitor, determine or inquire as to compliance, and
shall not be responsible or liable for compliance with restrictions on
transfer, exchange, redemption, purchase or repurchase, as applicable, of
minimum denominations imposed under this Indenture or under applicable law or
regulation with respect to any transfer, exchange, redemption, purchase or
repurchase, as applicable, of any interest in any Securities.

(j)  If any Note Guarantor is
substituted to make payments on behalf of the Issuer pursuant to Article 10,
the Issuer shall promptly notify the Trustee of such substitution.

(k)  The rights, privileges,
protections, immunities and benefits given to the Trustee, including its right
to be indemnified, are extended to, and shall be enforceable by the Trustee in
each of its capacities hereunder, under the Intercreditor Agreement and any
Additional Intercreditor Agreements and by each agent (including The Bank of
New York and The Bank of New York (Luxembourg) S.A.), custodian and other
Person employed with due care to act as agent hereunder.  Each Paying Agent and Transfer Agent shall
not be liable for acting in good faith on instructions believed by it to be
genuine and from the proper party.

(l)  The Trustee shall not be
required to give any bond or surety with respect to the performance of its
duties or the exercise of its powers under this Indenture.

(m)  The permissive right of the
Trustee to take the actions permitted by this Indenture will not be construed
as an obligation or duty to do so;

SECTION 7.03.  Individual
Rights of Trustee.  The Trustee in
its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Issuer or its Affiliates with the
same rights it would have if it were not Trustee.  For the avoidance of doubt, any Paying Agent
or Registrar may do the same with like rights. 
However, the Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04.  Trustee’s
Disclaimer.  The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture, any Note Guarantee or the Securities, it shall not be
accountable for the Issuer’s use of the proceeds from the Securities or any
money paid to the Issuer or upon the Issuer’s direction under any provision of
this Indenture, and it shall not be responsible for any statement of the Issuer
or any Note Guarantor in this Indenture or in any document issued in connection
with the sale of the Securities or in the Securities other than the Trustee’s
certificate of authentication.  The
Trustee shall not be charged with knowledge of any Default or Event of Default
under Sections 6.01(3), 6.01(4), 6.01(5), 6.01(6), 6.01(7), 6.01(8) or 6.01(9)
or of the identity of any Significant Subsidiary unless either (a) a Trust
Officer shall have actual knowledge thereof or (b) the Trustee shall have

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received
notice thereof in accordance with Section 13.02 hereof from the Issuer,
any Note Guarantor or any Holder.

SECTION 7.05.  Notice of
Defaults.  If a Default or Event of
Default occurs and is continuing and if it is known by a Trust Officer of the
Trustee, the Trustee shall mail to each Holder notice of the Default within 30
days after it is known to a Trust Officer. 
Except in the case of a Default in payment of principal of or interest
or premium, if any, on any Security (including payments pursuant to the
mandatory redemption provisions of such Security, if any), the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in good
faith determines that withholding the notice is in the interests of Holders.

SECTION 7.06.  Reports by
Trustee to Holders.  As promptly as
practicable after each August 15, beginning with the August 15 following the
date of this Indenture, and in any event prior to September 30 in each year,
the Trustee shall mail to each Holder a brief report dated as of such September
30 that complies with Section 313(a) of the TIA if required by the terms of such
Section.  The Trustee shall also comply
with Section 313(b) of the TIA.  The
Trustee shall also transmit by mail all reports as required by TIA Section
313(c)

A copy of each report at the time of its mailing to
Holders shall be mailed to the Issuer and filed with each stock exchange (if
any) on which the Securities are listed. 
The Issuer agrees to notify promptly the Trustee whenever the Securities
become listed on any stock exchange and of any delisting thereof.

SECTION 7.07.  Compensation
and Indemnity.  The Issuer, failing
which the Note Guarantors, shall pay to the Trustee from time to time
reasonable compensation for its services. 
The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer and each Note Guarantor, jointly and severally, shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it (as evidenced in an invoice from the Trustee), including
costs of collection, in addition to the compensation for its services.  Such expenses shall include the properly
incurred compensation and expenses, disbursements and advances of the Trustee’s
agents, counsel, accountants and experts. 
The Issuer and each Note Guarantor, jointly and severally shall
indemnify the Trustee and the Paying Agents and their respective officers,
directors, agents and employers against any and all loss, liability or expense
(including reasonable attorneys’ fees) incurred by or in connection with the
administration of this trust including the reasonable costs and expenses of
defending itself against any claim or liability in connection with the exercise
or performance of any of their rights, powers or duties hereunder, under the
Intercreditor Agreement, any Additional Intercreditor Agreement or any Security
Agreement, as the case may be.  The
Trustee shall notify the Issuer of any claim for which it may seek indemnity
promptly upon obtaining actual knowledge thereof; provided, however, that any failure so to notify the Issuer
shall not relieve the Issuer or any Note Guarantor of its indemnity obligations
hereunder, under the Intercreditor Agreement, any Additional Intercreditor
Agreement or any Security Agreement, as the case may be.  The Issuer shall defend the claim and the
indemnified party shall provide reasonable cooperation at the

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Issuer’s and
each Note Guarantor’s expense in the defense. 
Notwithstanding the foregoing, such indemnified party may, in its sole
discretion, assume the defense of the claim against it and the Issuer and each
Note Guarantor shall, jointly and severally, pay the reasonable fees and
expenses of the indemnified party’s defense (as evidenced in an invoice from
the Trustee).  Such indemnified parties
may have separate counsel of their choosing and the Issuer and the Note
Guarantors, jointly and severally, shall pay the reasonable fees and expenses
of such counsel (as evidenced in an invoice from the Trustee); provided, however,
that the Issuer shall not be required to pay such fees and expenses if it
assumes such indemnified parties’ defense and, in such indemnified parties’
reasonable judgment, there is no conflict of interest between the Issuer and
the Note Guarantors, as applicable, and such parties in connection with such
defense.  The Issuer need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.  The Issuer need not reimburse
any expense or indemnify against any loss, liability or expense incurred by an
indemnified party through such party’s own wilful misconduct, negligence or bad
faith.

To secure the Issuer’s and each Note Guarantor’s
payment obligations in this Section 7.07, the Trustee and the Paying
Agents shall subject to the Intercreditor Agreement and any Additional
Intercreditor Agreement have a lien prior to the Securities on all money or
property held or collected by the Trustee other than money or property held in
trust to pay principal of and interest on particular Securities.

The Issuer’s and each Note Guarantor’s payment
obligations pursuant to this Section and any lien arising thereunder shall
survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any bankruptcy law or the resignation or
removal of the Trustee and the Paying Agents. 
Without prejudice to any other rights available to the Trustee and the
Paying Agents under applicable law, when the Trustee and the Paying Agents
incur expenses after the occurrence of a Default specified in Section 6.01(6)
with respect to the Issuer, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

For the avoidance of doubt, the rights, privileges,
protections, immunities and benefits given to the Trustee in this Section 7.07,
including its right to be indemnified, are extended to, and shall be
enforceable by the Trustee in each of its capacities hereunder, under the
Intercreditor Agreement and any Additional Intercreditor Agreement and by each
agent (including The Bank of New York and The Bank of New York (Luxembourg)
S.A.), custodian and other Person employed with due care to act as agent
hereunder.

SECTION 7.08.  Replacement of
Trustee.  (a)  The Trustee may resign at any time by so
notifying the Issuer.  The Holders of a
majority in principal amount of the Securities then outstanding may remove the
Trustee by so notifying the Trustee and may appoint a successor Trustee.  The Issuer shall remove the Trustee if:

(i)  the Trustee fails to comply with Section
7.10;

(ii)  the Trustee is adjudged bankrupt or insolvent;

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(iii)  a receiver or other public officer takes
charge of the Trustee or its property; or

(iv)  the Trustee otherwise becomes incapable of
acting as Trustee hereunder.

(b)  If the Trustee resigns, is
removed by the Issuer or by the Holders of a majority in principal amount of
the Securities then outstanding and such Holders do not reasonably promptly
appoint a successor Trustee, or if a vacancy exists in the office of Trustee
for any reason (the Trustee in such event being referred to herein as the
retiring Trustee), the Issuer shall promptly appoint a successor Trustee.

(c)  A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Issuer.  Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture.  The successor Trustee shall
mail a notice of its succession to Holders. 
The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided that all sums owing to the Trustee
hereunder have been paid and subject to the lien provided for in Section 7.07.

(d)  If a successor Trustee does
not take office within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee or the Holders of 10% in principal amount of the
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.

(e)  If the Trustee fails to
comply with Section 7.10, unless the Trustee’s duty to resign is stayed as
provided in Section 310(b) of the TIA, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

(f)  Notwithstanding the
replacement of the Trustee pursuant to this Section, the Issuer’s obligations
under Section 7.07 shall continue for the benefit of the retiring Trustee.

(g)  For the avoidance of doubt,
the rights, privileges, protections, immunities and benefits given to the
Trustee in this Section 7.08, including its right to be indemnified, are
extended to, and shall be enforceable by each Paying Agent or Transfer Agent
employed to act hereunder.

SECTION 7.09.  Successor
Trustee by Merger.  If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

In case at the time such successor or successors by
merger, conversion or consolidation to the Trustee shall succeed to the trusts
created by this Indenture any of the Securities shall have been authenticated
but not delivered, any such successor to the

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Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name
of the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

SECTION 7.10.  Eligibility;
Disqualification.  The Trustee shall
at all times satisfy the requirements of Section 310(a) (1) and (5) of the
TIA.  The Trustee shall have a combined
capital and surplus of at least $100,000,000 as set forth in its most recent
published annual report of condition. 
The Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be
excluded from the operation of Section 310(b)(1) of the TIA any indenture or
indentures under which other securities or certificates of interest or
participation in other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in Section 310(b)(1) of the TIA are
met.

SECTION 7.11.  Preferential
Collection of Claims Against Issuer. 
The Trustee shall comply with Section 311(a) of the TIA, excluding any
creditor relationship listed in Section 311(b) of the TIA.  A Trustee who has resigned or been removed shall
be subject to Section 311(a) of the TIA to the extent indicated.

SECTION 7.12.  Certain
Provisions.  Each Holder by accepting
a Security authorizes and directs on his or her behalf the Trustee to enter
into and to take such actions and to make such acknowledgements as are set
forth in this Indenture and the Intercreditor Agreement or other documents
entered into in connection therewith.

The Trustee shall not be responsible for the legality,
validity, effectiveness, suitability, adequacy or enforceability of any of the
Security Agreements or any obligation or rights created or purported to be
created thereby or pursuant thereto or any security or the priority thereof
constituted or purported to be constituted thereby or pursuant thereto, nor
shall it be responsible or liable to any person because of any invalidity of
any provision of such documents or the unenforceability thereof, whether
arising from statute, law or decision of any court.  The Trustee shall be under no obligation to
monitor or supervise the functions of the Security Trustee under the Security
Agreements and shall be entitled to assume that the Security Trustee is
properly performing its functions and obligations thereunder and the Trustee
shall not be responsible for any diminution in the value of or loss occasioned
to the assets subject thereto by reason of the act or omission by the Security
Trustee in relation to its functions thereunder.  The Trustee shall have no responsibility
whatsoever to the Issuer, any Note Guarantor or any Holder as regards any
deficiency which might arise because the Trustee is subject to any tax in
respect of the Security Agreements, the security created thereby or any part
thereof or any income therefrom or any proceeds thereof.

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ARTICLE 8

Discharge of
Indenture; Defeasance

SECTION 8.01.  Discharge of
Liability on Securities; Defeasance. 
(a)   The Indenture, the Security
Documents and the rights of the Trustee and the Holders under the Intercreditor
Agreement or any Additional Intercreditor Agreement will be discharged and
cease to be of further effect (except as to surviving rights of conversion or
transfer or exchange of the Securities, as expressly provided for in the
Indenture) as to all outstanding Securities when (1) either (a) all the
Securities previously authenticated and delivered (other than certain lost,
stolen or destroyed Securities, and certain Securities for which provision for
payment was previously made and thereafter the funds have been released to KDG)
have been delivered to the Trustee for cancellation; or (b) all Securities not previously
delivered to the Trustee for cancellation (i) have become due and payable, (ii)
will become due and payable at their Stated Maturity within one year or (iii)
are to be called for redemption within one year under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of KDG; (2) KDG has deposited or
caused to be deposited with the Trustee money, U.S. Government Obligations (in
the case of Dollar Notes), European Government Obligations (in the case of Euro
Notes), or a combination thereof, as applicable, in an amount sufficient to pay
and discharge the entire indebtedness on the Securities not previously
delivered to the Trustee for cancellation, for principal, premium, if any, and
interest to the date of deposit (in the case of Securities that have become due
and payable), or to the Stated Maturity or redemption date, as the case may be;
(3) KDG has paid or caused to be paid all other sums payable under the
Indenture; and (4) KDG has delivered to the Trustee an Officer’s Certificate
and an Opinion of Counsel each to the effect that all conditions precedent
under Section 8.01 have been complied with, provided that any such counsel may
rely on any Officer’s Certificate as to matters of fact (including as to
compliance with the foregoing clauses (1), (2) and(3)).

(b)  Subject to Sections 8.01(c)
and 8.02, the Issuer at any time may terminate (i) all of its obligations under
the Securities and this Indenture (“legal defeasance option”)
or (ii) its obligations under Article 4 (other than Sections 4.01, 4.18 and
4.19) and under Section 5.01 (other than clauses (1) and (2) thereof), and
thereafter any omission to comply with such obligations shall not constitute a
Default or an Event of Default with respect to the Securities and the operation
of Section 6.01(5)(a), (5)(b), (6), (7), (8) and (9) (“covenant
defeasance option”).  The
Issuer may exercise its legal defeasance option notwithstanding its prior
exercise of its covenant defeasance option. 
In the event that the Issuer terminates all of its obligations under the
Securities and this Indenture by exercising its legal defeasance option, the
obligations under the Note Guarantees shall each be terminated simultaneously
with the termination of such obligations.

If the Issuer exercises its
legal defeasance option or its covenant defeasance option, the Collateral will
be released and each Note Guarantor will be released from all its obligations
under its Note Guarantee and the Collateral will be released.

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Upon satisfaction of the conditions set forth herein
and upon request of the Issuer, the Trustee shall acknowledge in writing the
discharge of those obligations that the Issuer terminates.

(c)  Notwithstanding Section 8.01
(a) and (b) above, the Issuer’s and the Note Guarantors’ obligations in
Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.10, 2.11, 7.07, 7.08, this
Article 8 and Section 12.06, as applicable, shall survive until the Securities
have been paid in full.  Thereafter, the
Issuer’s and the Note Guarantors’ obligations in Sections 7.07, 8.05, 8.06 and
12.06, as applicable, shall survive.

SECTION 8.02.  Conditions to
Defeasance.  (a)  The Issuer may exercise its legal defeasance
option or its covenant defeasance option only if:

(i)  the Issuer shall have irrevocably deposited
with the Trustee, in trust, for the benefit of the Holders, cash in euro or
euro-denominated non-callable Government Obligations, or a combination thereof
(in the case of Euro Securities) or in U.S. dollars or U.S. Government
Obligations, or a combination thereof (in the case of U.S. Dollar Securities),
in each case, in such amounts as will be sufficient, in the opinion of an
internationally recognized firm of independent public accountants, for the payment
of the aggregate principal, premium, if any, interest and Additional Amounts,
if any, on the Securities to redemption or maturity, as the case may be, and
shall have delivered to the Trustee:

(A)  an Opinion of Counsel in the United
States to the effect that Holders of the relevant Securities will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such
deposit and defeasance and will be subject to U.S. federal income tax on the
same amounts and in the same manner and at the same times as would have been
the case if such deposit and defeasance had not occurred (and, in the case of
the legal defeasance option only, such Opinion of Counsel in the United States
must be based on a ruling of the U.S. Internal Revenue Service or other change
in applicable U.S. federal income tax law); and

(B)  an Opinion of Counsel in the
jurisdiction of organization of the Issuer to the effect that the Holders of
the outstanding Securities will not recognize income, gain or loss for income
tax purposes in such jurisdiction as a result of such deposit and defeasance
and will be subject to income tax in such jurisdiction on the same amounts and
in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred;

(ii)  181 days pass after the deposit is made and
during the 181 day period no Default specified in Section 6.01(6) with respect
to the Issuer or

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any other Person making such deposit occurs
which is continuing at the end of the period;

(iii)  no Default or Event of Default has occurred
and is continuing on the date of such deposit and after giving effect thereto;

(iv)  the Issuer shall have delivered to the
Trustee an Opinion of Counsel to the effect that, as of the date of such
opinion and subject to customary assumptions and exclusions, following the
deposit, the trust funds will not be subject to the effect of any applicable
bankruptcy, liquidation, reorganization, administration, moratorium,
receivership or similar laws affecting creditors’ rights generally under any
applicable US federal or state law or the laws of the jurisdiction of
organization of the Issuer, and that the Trustee has a perfected security
interest in such trust funds for the ratable benefit of the Holders;

(v)  the Issuer shall have delivered to the
Trustee an Officers’ Certificate stating that the deposit was not made by the
Issuer with the intent of defeating, hindering, delaying, defrauding or
preferring any creditors of the Issuer or any Note Guarantors;

(vi)  the Issuer delivers to the Trustee an Opinion
of Counsel to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the U.S.
Investment Company Act of 1940;

(vii)  the Issuer delivers to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent to the defeasance and discharge of the Securities as
contemplated by this Article 8 have been complied with, and

(viii)  the Issuer delivers to the Trustee all other
documents or other information that the Trustee may reasonably require in
connection with the defeasance.

(b)  Before or after a deposit,
the Issuer may make arrangements satisfactory to the Trustee for the redemption
of Securities at a future date in accordance with Article 3.

SECTION 8.03.  Application of
Trust Money.  The Trustee shall hold
in trust money or Government Obligations deposited with it pursuant to this
Article 8.  It shall apply the deposited
money and the money from the Government Obligations through the Paying Agent
and in accordance with this Indenture to the payment of principal of and
interest on the Securities.  Money and
securities so held in trust are not subject to Article 11 or the Intercreditor
Agreement.

SECTION 8.04.  Repayment to Issuer.  The Trustee and the Paying Agent shall
promptly turn over to the Issuer upon request any money or Government

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Obligations
held by it as provided in this Article which, in the written opinion of an
internationally recognized firm of independent public accountants delivered to
the Trustee (which delivery shall only be required if Government Obligations
have been so deposited), are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent discharge or defeasance in
accordance with this Article.

Subject to any applicable abandoned property law, the
Trustee and the Paying Agent shall pay to the Issuer upon written request any
money held by them for the payment of principal or interest that remains
unclaimed for two years, and, thereafter, Holders entitled to the money must
look to the Issuer for payment as general creditors, and the Trustee and the
Paying Agent shall have no further liability with respect to such monies.

SECTION 8.05.  Indemnity for
Government Obligations.  The Issuer
and each Note Guarantor, jointly and severally, shall pay and shall indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against
deposited Government Obligations or the principal and interest received on such
Government Obligations.

SECTION 8.06.  Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or Government Obligations in accordance with this Article 8 by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuer’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article 8 until such time as the Trustee or Paying Agent is
permitted to apply all such money or Government Obligations in accordance with
this Article 8; provided, however,
that, if the Issuer has made any payment of principal of or interest on any
Securities because of the reinstatement of its obligations, the Issuer shall be
subrogated to the rights of the Holders of such Securities to receive such
payment from the money or Government Obligations held by the Trustee or Paying
Agent.

ARTICLE
9

Amendments

SECTION 9.01.  Without Consent
of Holders.  The Issuer, any Note
Guarantor, the Trustee and the other parties thereto may amend or supplement
this Indenture, the Securities, the Security Documents, the Intercreditor
Agreement or any Additional Intercreditor Agreement without notice to or
consent of any Holder:

(1)  to cure any ambiguity, omission, defect or
inconsistency;

(2)  provide for the assumption by a successor
Person of the obligations of KDG or any Note Guarantor under this Indenture, the
Securities, the Security Documents, the Intercreditor Agreement or any
Additional Intercreditor Agreement;

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(3)  provide for uncertificated Securities in
addition to or in place of certificated Securities (provided
that the uncertificated Securities are issued in registered form for purposes
of Section 163(f) of the Code, or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of the Code);

(4)  add to the covenants for the benefit of the
Holders or surrender any right or power conferred upon KDG or any Note
Guarantor;

(5)  make any change that does not adversely
affect the rights of any Holder in any material respect;

(6)  comply with any requirement of the SEC in
connection with the qualification of this Indenture under the TIA;

(7)  make such provisions as necessary (as
determined in good faith by KDG) for the issuance of Additional Securities or
Exchange Securities;

(8)  to provide for any Restricted Subsidiary to
become an Additional Note Guarantor in accordance with Article 10, to add Note
Guarantees with respect to the Securities, to add security to or for the
benefit of the Securities, or to confirm and evidence the release, termination
or discharge of any Note Guarantee or Lien (including the Collateral and the Security
Documents) with respect to or securing the Securities when such release,
termination or discharge is provided for under this Indenture or the Security
Documents;

(9)  to provide that any Indebtedness that becomes
or will become an obligation of a Successor Company or a Note Guarantor
pursuant to a transaction governed by Section 5.01 (that is not a Subordinated
Obligation) is Senior Indebtedness or Note Guarantor Senior Subordinated
Indebtedness for the purposes of this Indenture;

(10)  in the case of the Security Documents, to
mortgage, pledge, hypothecate or grant a security interest in favor of the
Security Trustee for the benefit of parties to the Senior Facilities Agreement
and the Bridge Facility Agreement, in any property which is required by the
Senior Facilities Agreement or the Bridge Facility Agreement (in each case, as
in effect on the Issue Date) to be mortgaged, pledged or hypothecated, or in
which a security interest is required to be granted to the Security Trustee, or
to the extent necessary to grant a security interest for the benefit of any
Person, provided that the granting of such
security interest is not prohibited by this Indenture or the Intercreditor
Agreement and Section 4.15 is complied with;

(11)  to evidence and provide for the acceptance
and appointment under this Indenture of a successor Trustee pursuant to the
requirements thereof or to provide for the accession by the Trustee to the
Intercreditor Agreement or any Additional Intercreditor Agreement; or

(12)  to limit or terminate the benefits available
to any holder of Senior Indebtedness.

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SECTION
9.02.  With Consent of Holders.  The Issuer, any Note Guarantor, the Trustee
and the other parties thereto, as applicable, may amend, supplement or
otherwise modify this Indenture, the Securities, the Security Documents, the
Intercreditor Agreement and any Additional Intercreditor Agreement with the
consent of the holders of a majority in principal amount of the Securities then
outstanding (including consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Securities); and, subject to certain
exceptions, any default or compliance with any provisions thereof may be waived
with the consent of the holders of a majority in principal amount of the
Securities then outstanding (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Securities); provided that, if any amendment, waiver or other
modification will only affect one series of Securities, only the consent of a
majority in principal amount of the then outstanding Securities of such series
shall be required. However, without the consent of each Holder affected (other
than with respect to clause (10) below which shall require the consent of
Holders holding not less than 90% of the then outstanding principal amount of
Securities), an amendment or waiver may not, with respect to any Securities
held by a non-consenting Holder:

(1)  reduce the principal amount of Securities
whose Holders must consent to an amendment;

(2)  reduce the stated rate of or extend the
stated time for payment of interest on any Security;

(3)  reduce the principal of or extend the Stated
Maturity of any Security;

(4)  reduce the premium payable upon the
redemption of any Security or change the time at which any Security may be
redeemed, in each case as described in Section 5 of the Securities;

(5)  make any Security payable in money other than
that stated in the Security;

(6)  make any change to the subordination
provisions of this Indenture that adversely affects the rights of any Holder;

(7)  impair the right of any Holder to receive
payment of principal of and interest on such Holder’s Securities on or after
the due dates therefor or to institute suit for the enforcement of any such
payment on or with respect to such Holder’s Securities;

(8)  make any change to Section 4.02 that
adversely affects the rights of any Holder of such Securities in any material
respect or amends the terms of such Securities in a way that would result in a
loss of an exemption from any of the Taxes described thereunder or an exemption
from any obligation to withhold or deduct Taxes so described thereunder unless
the Payor agrees to pay Additional Amounts, if any, in respect thereof;

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(9)  release any Note Guarantor from any of its
obligations (or modify such obligations in any manner adverse to the Holders)
under any Note Guarantee or this Indenture, as applicable, except in accordance
with the terms of this Indenture;

(10)  release the security interest granted for the
benefit of the Holders in the Collateral other than pursuant to the terms of
the Security Documents, the Intercreditor Agreement, any applicable Additional
Intercreditor Agreement or as otherwise permitted by this Indenture; or

(11)  make any change in this Section 9.02.

KDG will, for so long as the Securities are listed on
the Luxembourg Stock Exchange, to the extent required by the rules of the
Luxembourg Stock Exchange, inform the Luxembourg Stock Exchange of any of the
foregoing amendments, supplements and waivers and provide, if necessary, a
supplement to this prospectus setting forth reasonable details in connection
with any such amendments, supplements or waivers.

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent approves the
substance thereof.  A consent to any
amendment or waiver under this Indenture by any Holder of Securities given in
connection with a tender of such Holder’s Securities will not be rendered
invalid by such tender.

An amendment under this Section 9.02 may not make
any change that materially adversely affects the rights under Article 11 of any
holder under the Senior Facilities then outstanding unless such holder (or any
group or Representative thereof authorized to give a consent) consents to such
change.

After an amendment under this Section 9.02
becomes effective, in case of Holders of Definitive Securities, the Issuer
shall mail to the Holders a notice briefly describing such amendment.  The failure to give such notice to all
Holders, or any defect therein, shall not impair or affect the validity of an
amendment under this Section 9.02. 
In addition, for so long as the Securities are listed on the Luxembourg
Stock Exchange and the rules of such exchange so require, KDG will publish
notice of any amendment, supplement and waiver in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the
Luxemburger Wort).

The Securities
issued on the Issue Date, and any Additional Securities part of the same
series, will be treated as a single class for all purposes under this
Indenture, including with respect to waivers and amendments, except as the
relevant amendment, waiver, consent, modification or similar action affects the
rights of the Holders of the different series of Securities dissimilarly.  For the purposes of calculating the aggregate
principal amount of Securities that have consented to or voted in favor of any
amendment, waiver, consent, modifications or other similar action, the Issuer
(acting reasonably and in good faith) shall be entitled to select a record date
as of which the Euro

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Equivalent of the
principal amount of any Notes shall be calculated in such consent or voting
process.

SECTION 9.03.  Compliance with the TIA.  Every amendment to this Indenture or the
Securities shall comply with the TIA as then in effect.

SECTION 9.04.  Revocation and Effect of Consents and
Waivers.  (a)  A written consent to an amendment or a waiver
by a Holder shall bind the Holder and every subsequent Holder of that Security
or portion of the Security that evidences the same debt as the consenting
Holder’s Security, even if notation of the consent or waiver is not made on the
Security.  However, any such Holder or
subsequent Holder may revoke the written consent or waiver as to such Holder’s
Security or portion of the Security if the Trustee receives the notice of
revocation before the date on which the Trustee receives an Officer’s
Certificate from the Issuer certifying that the requisite number of consents
have been received.  After an amendment
or waiver becomes effective, it shall bind every Holder.  An amendment or waiver becomes effective upon
the (i) receipt by the Issuer or the Trustee of the requisite number of
consents, (ii) satisfaction of conditions to effectiveness as set forth in this
Indenture and any indenture supplemental hereto containing such amendment or
waiver and (iii) execution of such amendment or waiver (or supplemental
indenture) by the Issuer, the Note Guarantors and the Trustee.

(b)  The Issuer may, but shall not be obligated
to, fix a record date for the purpose of determining the Holders entitled to
give their written consent or take any other action described above or required
or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then
notwithstanding Section 9.04(a), those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.  No such consent shall
be valid or effective for more than 120 days after such record date.

SECTION 9.05.  Notation on or Exchange of Securities.  If an amendment changes the terms of a
Security, the Trustee may require the Holder of the Security to deliver it to
the Trustee.  The Trustee may place an
appropriate notation on the Security regarding the changed terms and return it
to the Holder.  Alternatively, if the
Issuer or the Trustee so determines, the Issuer in exchange for the Security
shall issue and the Trustee or an authentication agent shall authenticate a new
Security that reflects the changed terms. 
Failure to make the appropriate notation or to issue a new Security
shall not affect the validity of such amendment.

SECTION 9.06.  Trustee and Security Trustee to Sign
Amendments.  The Trustee and the
Security Trustee shall sign any amendment authorized pursuant to this Article 9
if the amendment does not impose any personal obligations on the Trustee or the
Security Trustee or adversely affect the rights, duties, liabilities or
immunities of the Trustee and the Security Trustee under this Indenture and the
Intercreditor Agreement, as applicable. 
If it does, the Trustee or the Security Trustee may, but need not sign
it.  In signing such amendment the
Trustee and the Security Trustee shall be entitled to receive

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indemnity reasonably satisfactory to it and to receive, and (subject to
Section 7.01) shall be fully protected in relying upon, an Officer’s
Certificate and an Opinion of Counsel stating that such amendment complies with
this Indenture and that such amendment has been duly authorized, executed and
delivered and is the legal, valid and binding obligation of the Issuer and the
Note Guarantors enforceable against them in accordance with its terms, subject
to customary exceptions.  Subject to this
Section 9.06 and the terms of the Intercreditor Agreement, the Security
Trustee shall at the direction of the Trustee sign amendments to this
Indenture.

 

SECTION 9.07.  Payment for
Consent.  Neither the Issuer nor any
Affiliate of the Issuer shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture, the Securities, the Share Pledge, the NewKDS
Share Pledge, Intercreditor Agreement and any Additional Intercreditor
Agreement (or the appointment of any Proxy in relation to any of the foregoing)
unless such consideration is offered to be paid to all Holders that so consent,
waive or agree to amend in the time frame set forth in solicitation documents
relating to such consent, waiver or agreement or proxies in relation thereto.

ARTICLE
10

Note Guarantees

SECTION 10.01.  Note
Guarantees.  (a)  Each Note Guarantor hereby jointly and
severally irrevocably guarantees, as primary obligor and not merely as surety,
on a senior subordinated basis to each Holder, the Security Trustee (on behalf
of and for the benefit of the Holders, for the purposes of this Article 10, and
not in its individual capacity, but solely in its role as representative of the
Holders in holding and enforcing the Collateral and the Security Agreements)
and to the Trustee and its successors and assigns (i) the full and punctual
payment when due, whether at Stated Maturity, by acceleration, or otherwise, of
all payment obligations of the Issuer under this Indenture and the Securities,
whether for payment of principal of, premium, interest or liquidated damages on
the Securities and all other monetary obligations of the Issuer under this
Indenture and the Securities and (ii) the full and punctual performance within
applicable grace periods of all other obligations of the Issuer whether for
fees, expenses, indemnification or otherwise under this Indenture and the
Securities (all the foregoing being hereinafter collectively called the “Guaranteed Obligations”). Each Note Guarantor further agrees
that the Guaranteed Obligations may be extended or renewed, in whole or in
part, without notice or further assent from each such Note Guarantor, and that
each such Note Guarantor shall remain bound under this Article 10
notwithstanding any extension or renewal of any Guaranteed Obligation.

(b)  Each Note Guarantor waives
presentation to, demand of payment from and protest to the Issuer of any of the
Guaranteed Obligations and also waives notice of protest for nonpayment.  Each Note Guarantor waives notice of any
default under the

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Securities or
the Guaranteed Obligations.  The
obligations of each Note Guarantor hereunder shall not be affected by
(i) the failure of any Holder, the Security Trustee on behalf of the Holders
or the Trustee to assert any claim or demand or to enforce any right or remedy
against the Issuer or any other Person under this Indenture, the Securities or
any other agreement or otherwise; (ii) any extension or renewal of any thereof;
(iii) any rescission, waiver, amendment or modification of any of the
terms or provisions of this Indenture, the Securities or any other agreement;
(iv) the release of any Security held by any Holder, the Security Trustee
or the Trustee for the Guaranteed Obligations or any of them; (v) the
failure of any Holder, the Security Trustee on behalf of the Holders or Trustee
to exercise any right or remedy against any other guarantor of the Guaranteed
Obligations; or (vi) any change in the ownership of such Note Guarantor,
except as provided in Section 10.02(b).

(c)  Each Note Guarantor hereby
waives any right to which it may be entitled to have its obligations hereunder
divided among the Note Guarantors, such that such Note Guarantor’s obligations
would be less than the full amount claimed. 
Each Note Guarantor hereby waives any right to which it may be entitled
to have the assets of the Issuer first be used and depleted as payment of the
Issuer’s or such Note Guarantor’s obligations hereunder prior to any amounts
being claimed from or paid by such Note Guarantor hereunder.  Each Note Guarantor hereby waives any right
to which it may be entitled to require that the Issuer be sued prior to an
action being initiated against such Note Guarantor.

(d)  Each Note Guarantor further
agrees that its Note Guarantee herein constitutes a guarantee of payment when
due (and not a guarantee of collection) and waives any right to require that
any resort be had by any Holder or the Trustee to any Security held for payment
of the Guaranteed Obligations.

(e)  If any Note Guarantor makes
payments under its Note Guarantee, each Note Guarantor must contribute its
share of such payments.  Each Note
Guarantor’s share of such payment will be computed based on the proportion that
the net worth of the relevant Note Guarantor represents relative to the
aggregate net worth of all the Note Guarantors combined.

(f)  Each Note Guarantee is, to
the extent and in the manner set forth in Article 11 and the Intercreditor
Agreement, subordinated and subject in right of payment to the prior payment in
full of the principal of and premium, if any, and interest on all Note
Guarantor Senior Indebtedness of the relevant Note Guarantor and is made
subject to such provisions of this Indenture and the Intercreditor Agreement.

(g)  Each Note Guarantor agrees
that its Note Guarantee shall remain in full force and effect until payment in
full of the Guaranteed Obligations. Except as expressly set forth in Sections
4.11, 8.01(b), 10.02 and 10.06, the obligations of each Note Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of

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the Guaranteed
Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of each Note
Guarantor herein shall not be discharged or impaired or otherwise affected by
the failure of any Holder, the Security Trustee on behalf of the Holders or the
Trustee to assert any claim or demand or to enforce any remedy under this
Indenture, the Securities or any other agreement, by any waiver or modification
of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of such Note Guarantor or would otherwise operate as a
discharge of such Note Guarantor as a matter of law or equity.

(h)  Each Note Guarantor agrees
that its Note Guarantee herein shall continue to be effective or be reinstated,
as the case may be, if at any time payment, or any part thereof, of principal
of or interest on any Guaranteed Obligation is rescinded or must otherwise be
restored by any Holder or the Trustee upon the bankruptcy or reorganization of
the Issuer or otherwise unless such Note Guarantee has been released in
accordance with Section 10.4 of the Intercreditor Agreement.

(i)  In furtherance of the
foregoing and not in limitation of any other right which any Holder or the
Trustee has at law or in equity against any Note Guarantor by virtue hereof,
upon the failure of the Issuer to pay the principal of or interest on any
Guaranteed Obligation when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, or to perform or comply
with any other Guaranteed Obligation, each Note Guarantor hereby promises to
and shall, upon receipt of written demand by the Trustee, forthwith pay, or
cause to be paid, in cash, to the Holders or the Trustee an amount equal to the
sum of (i) the unpaid principal amount of the Securities, (ii) accrued and
unpaid interest on the Securities and (iii) all other monetary obligations of
the Issuer to the Holders and the Trustee, including any other unpaid principal
amount of such Guaranteed Obligations, accrued and unpaid interest on such
Guaranteed Obligations (but only to the extent not prohibited by law) and any
Additional Amounts.

(j)  Each Note Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders in respect of any Guaranteed Obligations guaranteed hereby until
payment in full of all Guaranteed Obligations and all obligations to which the
Guaranteed Obligations are subordinated as provided in Article 11 and the
Intercreditor Agreement.  Each Note
Guarantor further agrees that, as between it, on the one hand, and the Holders
and the Trustee, on the other hand, (i) the maturity of the Guaranteed
Obligations guaranteed hereby may be accelerated as provided in Article 6 for
the purposes of any Guarantee herein, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the Guaranteed
Obligations guaranteed hereby, and (ii) in the event of any declaration of
acceleration of such Guaranteed Obligations as provided in Article 6, such Guaranteed
Obligations (whether or not due and payable) shall forthwith become due and
payable by such Note Guarantor for the purposes of this Section 10.01.

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(k)  Each Note Guarantor also
agrees to pay any and all reasonable costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by the Trustee or any Holder in
enforcing any rights under this Section.

(l)  Upon request of the Trustee,
each Note Guarantor shall execute and deliver such further instruments and do
such further acts as the Trustee may reasonably require to carry out more
effectively the purpose of this Indenture.

(m)  The Security Trustee may
only assert a claim or demand or enforce a right or remedy with respect to the
Note Guarantees at the direction of the Trustee.  To the extent permitted by the Intercreditor
Agreement, the Trustee may direct the Security Trustee to take enforcement
action with respect to the Note Guarantees if any amount is declared or becomes
due and payable pursuant to Section 6.02 (but not otherwise).

SECTION 10.02.  Limitation on
Liability.  (a)  Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the Guaranteed
Obligations guaranteed hereunder by any Note Guarantor shall not exceed the
maximum amount that can be hereby guaranteed by the applicable Note Guarantor
without rendering the Note Guarantee, as it relates to such Note Guarantor,
voidable under applicable law relating to fraudulent conveyance, fraudulent
transfer, corporate benefit, financial assistance or similar laws affecting the
rights of creditors generally.

(b)  A Note Guarantee as to any
Note Guarantor shall terminate and be of no further force or effect and such
Note Guarantor shall be deemed to be released from all obligations under this
Article 10 upon:

(1)  the sale of all the partnership interests of
the applicable Note Guarantor pursuant to an Enforcement Sale;

(2)  the sale or other disposition (including
through merger or consolidation) in compliance with this Indenture of the
Capital Stock of the relevant Note Guarantor (or any parent company of such
Note Guarantor other than KDG or a Parent) following which such Note Guarantor
is no longer a Restricted Subsidiary;

(3)  the defeasance or discharge of the Securities
as provided in Article 8;

(4)  the redesignation of a Note Guarantor as an
Unrestricted Subsidiary in compliance with Section 4.06; or

(5)  the occurrence of a Thin Capitalization
Event; provided that such release is necessary
to remedy the loss of deductibility that triggered the Thin Capitalization
Event in accordance with Section 4.04.

(c)  An Additional Note Guarantee
as to any Additional Note Guarantor shall terminate at the option of KDG and be
of no further force or effect and such Note Guarantor shall be deemed to be
released from all obligations under this Article 10 if at

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the date of
such release either (i) there is no Indebtedness of such Additional Note
Guarantor outstanding which was Incurred after the Issue Date and which could
not have been Incurred in compliance with this Indenture if such Additional
Note Guarantor had not been designated as an Additional Note Guarantor, or (ii)
there is no Indebtedness of such Additional Note Guarantor outstanding which
was Incurred after the Issue Date and which could not have been Incurred in
compliance with this Indenture as at the date of such release if such
Additional Note Guarantor were not designated as an Additional Note Guarantor
as at that date.

(d)  The NewKDS Guarantee shall
terminate and be of no further force or effect and NewKDS shall be deemed to be
released from all obligations under this Article 10 if the Step-Up does not
occur as provided for in the Senior Facilities Agreement.

In all cases the Issuer
and such Note Guarantors that are to be released from their Note Guarantees
deliver to the Trustee an Officer’s Certificate and an Opinion of Counsel
certifying compliance with this Section 10.02(b).  At the request of the Issuer, the Trustee
shall execute and deliver an appropriate instrument evidencing such release (in
the form provided by the Issuer).

SECTION 10.03.  Successors and
Assigns.  This Article 10 shall be
binding upon each Note Guarantor and its successors and assigns and shall inure
to the benefit of the successors and assigns of the Trustee and the Holders
and, in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Securities shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions of this Indenture.

SECTION 10.04.  No Waiver.  Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this Article 10 shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise of any right,
power or privilege.  The rights, remedies
and benefits of the Trustee and the Holders herein expressly specified are
cumulative and not exclusive of any other rights, remedies or benefits which
either may have under this Article 10 at law, in equity, by statute or
otherwise.

SECTION 10.05.  Modification.  No modification, amendment or waiver of any
provision of this Article 10, nor the consent to any departure by any Note
Guarantor therefrom, shall in any event be effective unless the same shall be
in writing and signed by the Trustee, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which
given.  No notice to or demand on any
Note Guarantor in any case shall entitle such Note Guarantor to any other or
further notice or demand in the same, similar or other circumstances.

SECTION 10.06.  Limitation of
Note Guarantee.  (a)  To the extent the Note Guarantors guarantee
any obligations under this Article 10 of an affiliated company (verbundenes Unternehmen) of such Note
Guarantor within the meaning of § 15 of the

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German Stock
Corporation Act (Aktiengesetz)
(other than a subsidiary of the Note Guarantor), and the Note Guarantor is
incorporated in Germany as a GmbH or GmbH & Co.  KG, the enforcement of the Note Guarantor’s
guarantee obligations shall be, at the date hereof and at any time hereafter,
limited to an amount equal to the net assets of the Relevant Entity (as defined
below), which are calculated as the Relevant Entity’s total assets less its
liabilities (including liability reserves (Rückstellungen))
less its registered share capital (Stammkapital)
(the “Net Assets”); provided that, for the purposes of calculating the Net Assets, loans and
other contractual liabilities incurred in violation of the provisions of the
Finance Documents (as such term is defined in the Intercreditor Agreement)
shall be disregarded.

Furthermore, if and to the extent legally permissible
and commercially justifiable in respect of the Relevant Entity’s business, the
Relevant Entity shall, in a situation where (1) it does not have sufficient
assets to maintain its capital; and (2) the Facility Agent would be entitled to
enforce the guarantee given in this Article 10, realize any and all of its
assets that (i) are shown in the balance sheet with a book value (Buchwert) which is significantly lower than the market value
of such assets, and (ii) are not necessary for the Relevant Entity’s business (betriebsnotwendig).

“Relevant Entity”
means, if the relevant entity: (i) is incorporated as a GmbH, such GmbH; or
(ii) is incorporated as a GmbH & Co. KG, such GmbH & Co. KG’s general
partner (Komplementär).

(b) For the avoidance of doubt, this Section 10.06 is
only to the benefit of a German Guarantor and protects such German Guarantor
from an enforcement of a guarantee to avoid an infringement of secs. 30, 31
German Act on Companies with Limited Liability; this section 10.06 does not
prevent the guarantee obligation of a German Guarantor from falling due for the
purpose of the realization of any security granted by a third party.  Any third party that has provided security for
the guarantee obligation of a German Guarantor shall not have any defence under
this Section 10.06 in relation to the realization or other enforcement of the
security provided by such third party. 
Also for the avoidance of doubt, none of the above restrictions on
enforcement shall apply if the enforcement relates to obligations of the
Relevant Entity itself; any enforcement of the security interest created under
this Indenture shall be limited only to the extent that such enforcement
reduces the Net Assets of the Relevant Company below an amount equal to its
registered share capital (Stammkapital).

(c) If, applicable the Security Agreements will
contain a limitation wording restricting the enforcement of the security
interests created thereunder analogous to Article 10.06 of this Indenture.

SECTION 10.07.  Execution of
Supplemental Indenture for Future Note Guarantors.  Each Subsidiary which is required to become a
Note Guarantor pursuant to this Indenture shall promptly execute and deliver to
the Trustee a supplemental indenture substantially in the form of Exhibit E
hereto pursuant to which such Subsidiary shall become a Note Guarantor under
this Article 10 and shall guarantee the Guaranteed Obligations.  Concurrently with the execution and delivery
of such supplemental

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indenture, the
Issuer shall deliver to the Trustee an Opinion of Counsel and an Officer’s
Certificate to the effect that such supplemental indenture complies with this
Indenture and has been duly authorized, executed and delivered by such
Subsidiary and that, subject to the application of bankruptcy, insolvency,
moratorium, fraudulent conveyance or transfer and other similar laws relating
to creditors’ rights generally and to the principles of equity, whether
considered in a proceeding at law or in equity, the Note Guarantee of such Note
Guarantor is a legal, valid and binding obligation of such Note Guarantor,
enforceable against such Note Guarantor in accordance with its terms and to
such other matters as the Trustee may reasonably request.

SECTION 10.08.  Non-Impairment.  The failure to endorse a Note Guarantee on
any Security shall not affect or impair the validity thereof.

ARTICLE
11

Subordination of
the Note Guarantees

SECTION 11.01.  Agreement To
Subordinate.  (a)  Each of the Note Guarantors agrees, and each
Holder by accepting a Security and related Note Guarantees agrees, that the
obligations of such Note Guarantor hereunder are subordinated in right of
payment, to the extent and in the manner provided in the Intercreditor
Agreement and, to the extent applicable, each Additional Intercreditor
Agreement entered into in compliance with Section 4.16, to the prior payment in
full of all Note Guarantor Senior Indebtedness of such Note Guarantor and that
the subordination is for the benefit of and enforceable by the holders of such
Note Guarantor Senior Indebtedness against such Note Guarantor.  Each Holder, by accepting a Security, shall
be deemed to have agreed to and accepted the terms and conditions of the
Intercreditor Agreement and, to the extent applicable, each Additional Intercreditor
Agreement entered into in compliance with Section 4.16 (including the
limitations on enforcement and the obligations to turnover contained therein).
A copy of the Intercreditor Agreement and, to the extent applicable, each
Additional Intercreditor Agreement entered into in compliance with Section 4.16
shall be available on any Business Day upon prior written request at the
offices of the Trustee and, for so long as any Securities are listed on the
Luxembourg Stock Exchange, at the offices of the Paying Agent in
Luxembourg.  The obligations hereunder
with respect to a Note Guarantor shall in all respects rank pari passu with all other Note Guarantor Senior Subordinated
Indebtedness of such Note Guarantor and shall rank senior to all existing and
future Note Guarantor Subordinated Indebtedness of such Note Guarantor.

(b)  The Note Guarantors are not
permitted to make any payment in respect of principal of, or premium, if any,
or interest on, the Securities and may not purchase, redeem or otherwise retire
any Securities (collectively, “pay the Note Guarantees”)
(other than Trustee Amounts), if (i) two Business Days prior to the date of the
payment to be made there is an outstanding Senior Payment Default under the
Senior Facilities Agreement or (ii) if so specified in any other Designated
Senior Indebtedness, there is an outstanding Senior Payment Default with
respect to such Designated Senior Indebtedness. 
Regardless of the foregoing, the Note Guarantors are permitted to pay
the

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Note
Guarantees if the Issuer, the Note Guarantors and the Trustee receive written
notice approving such payment from the Representatives of all Designated Senior
Indebtedness with respect to which the Senior Payment Default has occurred and
is continuing.

(c)  While an event of default
under any Designated Senior Indebtedness (a “Payment
Blockage Event”) is outstanding, the Note Guarantors are not
permitted to pay the Note Guarantees (other than Trustee Amounts) for a period
(a “Payment Blockage Period”) commencing on
the date on which the facility agent under the Senior Facilities Agreement or
the Representative under the applicable Designated Senior Indebtedness serves a
notice (a “Stop Notice”) on KDG and the Trustee
specifying that a Payment Blockage Event is outstanding and suspending payments
on the Note Guarantees until the earliest of:

(1)  the date 179 days after the giving of the
Stop Notice;

(2)  a Standstill Period is in effect at the time
of delivery of the Stop Notice, the date on which that Standstill Period expires;

(3)  the date on which the Payment Blockage Event
ceases to be outstanding;

(4)  the date on which the Representative under
the applicable Designated Senior Indebtedness acting on the instructions of the
requisite lenders under the Designated Senior Indebtedness by notice to KDG and
the Trustee, cancels the Stop Notice; or

(5)  the Senior Discharge Date.

Notwithstanding the
provisions described in this Section 11.01(c), unless the holders of Designated
Senior Indebtedness or the Representative of such Designated Senior
Indebtedness have accelerated the maturity of such Designated Senior
Indebtedness, the Note Guarantors will be permitted to resume paying the Note
Guarantees after the end of such Payment Blockage Period.

(d)  Delivery of a Stop Notice by the
Representative under any applicable Designated Senior Indebtedness shall be
subject to the following additional limitations:

(1)  no Stop Notice may be served in reliance on a
particular Payment Blockage Event under the relevant Designated Senior Indebtedness
more than 45 days after the Representative under such Designated Senior
Indebtedness receives notice from any obligor under such Designated Senior
Indebtedness specifying the event or circumstances concerned and that it is an
event of default under such Designated Senior Indebtedness;

(2)  no more than one Stop Notice may be served
with respect to the same particular event or circumstance (whether in relation
to the same Payment Blockage Event or not and regardless of the number of
facilities constituting Designated Senior Indebtedness);

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(3)  a Stop Notice may not be
issued less than 365 days after the service of a prior Stop Notice (or prior to
all interest current on the Securities at the time the previous Stop Notice
expired having been paid in full); provided
that, if any Stop Notice is given within any such 365-day period by or on
behalf of any holders of Designated Senior Indebtedness other than Indebtedness
under the Senior Facilities Agreement the facility agent under the Senior
Facilities Agreement may give another Stop Notice within such period; provided, further, that in no event may
the total number of days for which a Stop Notice is in effect exceed 179 days
in the aggregate during any consecutive 365-day period; and

(4)  no Payment Blockage Event
that existed at the date a Stop Notice was given may be the basis of a
subsequent Stop Notice, unless such Payment Blockage Event has been cured or
complied with for at least 180 consecutive days since the date of issue of the
prior Stop Notice (it being acknowledged that any subsequent action or breach
of any financial covenant for a period ending after the date of delivery of
such initial Stop Notice that gives rise to a Payment Blockage Event under any
provision under which a Payment Blockage Event previously existed or was
continuing shall constitute a new Payment Blockage Event for this purpose).

SECTION 11.02.  Rights of
Trustee and Paying Agent.  The
Trustee or the Paying Agent may continue to make payments on the Securities and
shall not be prohibited from making such payments or otherwise charged with
knowledge of the existence of facts that would prohibit the making of any such
payments (including, without limitation, the issue of a Stop Notice) unless,
not less than two Business Days prior to the date of such payment, a
Responsible Officer of the Trustee or the Paying Agent, as the case may be,
receives written notice satisfactory to it that payments may not be made under
this Article 11 or the Intercreditor Agreement.

The Trustee in its individual or any other capacity
may hold Note Guarantor Senior Indebtedness with the same rights it would have
if it were not Trustee.  For the
avoidance of doubt, the Registrar and co-registrar, the Paying Agent and
the Security Trustee may do the same with like rights.  The Trustee shall be entitled to all the
rights set forth in this Article 11 and the Intercreditor Agreement with
respect to any Note Guarantor Senior Indebtedness which may at any time be held
by it, to the same extent as any other holder of Note Guarantor Senior
Indebtedness; and nothing in Article 7 shall deprive the Trustee of any of
its rights as such holder.  Nothing in
this Article 11 shall apply to claims of, or payments to, the Trustee, the
Paying Agent or the Security Trustee under the Note Guarantees or pursuant to
Section 7.07, Section 12.06 or any other Section of this Indenture.

SECTION 11.03.  Trustee To
Effectuate Subordination.  Each
Holder by accepting a Security authorizes and directs the Trustee on his or her
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Holders and the holders of Note
Guarantor Senior Indebtedness, including by entering into, and as provided for
in, an Intercreditor Agreement and appoints the Trustee as attorney-in-fact for
any and all such purposes.

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SECTION 11.04.  Trustee
Entitled To Rely.  Upon any payment
or distribution pursuant to this Article 11 or the Intercreditor Agreement, the
Trustee and the Holders shall be entitled to rely (a) upon any order or decree
of a court of competent jurisdiction in which any proceedings related to the
bankruptcy, insolvency, winding up, liquidation or reorganization of the Issuer
or any Note Guarantor under any Bankruptcy Law are pending, (b) upon a
certificate of the liquidating trustee or agent or other Person making such
payment or distribution to the Trustee or to the Holders or (c) upon the
Representatives for the holders of Note Guarantor Senior Indebtedness for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Note Guarantor Senior Indebtedness and other
Indebtedness of a Note Guarantor, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 11 or the Intercreditor Agreement.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Note Guarantor Senior Indebtedness to participate in any payment
or distribution pursuant to this Article 11 or the Intercreditor Agreement, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Note Guarantor Senior
Indebtedness of such Note Guarantor held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and
other facts pertinent to the rights of such Person under this Article 11 or the
Intercreditor Agreement, and, if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment. 
The provisions of Sections 7.01 and 7.02 shall be applicable to all
actions or omissions of actions by the Trustee pursuant to this Article 11.

SECTION 11.05.  Trustee Not
Fiduciary.  The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Note Guarantor Senior
Indebtedness and shall not be liable to any such holders if it shall mistakenly
pay over or distribute to the Holders, the Issuer, a Note Guarantor or any
other Person, money or assets to which any holders of Note Guarantor Senior
Indebtedness shall be entitled by virtue of this Article 11 or otherwise.

SECTION 11.06.  Reliance by
Holders of Note Guarantor Senior Indebtedness on Subordination Provisions.  Each Holder by accepting a Security
acknowledges and agrees that the foregoing subordination provisions are, and
are intended to be, an inducement and a consideration to each holder of any
Note Guarantor Senior Indebtedness, whether such Note Guarantor Senior
Indebtedness was created or acquired before or after the issuance of the
Securities, to acquire and continue to hold, or to continue to hold, such Note
Guarantor Senior Indebtedness and such holder of Note Guarantor Senior
Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Note Guarantor Senior Indebtedness.

SECTION
11.07.  Turnover and Application of
Proceeds.  If, at any time when any
Note Guarantor Senior Indebtedness of any Note Guarantor is or may be
outstanding, the Trustee or any Holder receives or recovers any payment in cash
or in kind (including by way of set-off or combination of accounts) under the
Note Guarantees

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which is not
permitted by the Intercreditor Agreement, the Trustee or such Holder, as the
case may be, will hold that amount on trust for the Security Trustee and
promptly pay that amount to the Security Trustee (less any costs or expenses
reasonably incurred by such Holder or the Trustee in receiving or recovering
any such cash or payment in kind), in each case to be held on trust by the
Security Trustee for application in accordance with the order of priority
specified in the Intercreditor Agreements; provided
that the Trustee shall only be required to turn over any amount if (i) it has
actual knowledge (as defined in Clause 5(c) of the Intercreditor Agreement, and
(ii) it has not distributed to Holders in accordance with the Indenture any amount
so received or recovered.

ARTICLE
12

Collateral
Security Documents and the Security Trustee

SECTION 12.01.  Collateral and
Security Documents.  (a)  The obligations of KDG under the Securities
and this Indenture will be secured by a second-priority security interest in
the partnership interests in KDS, NewKDS and the Additional NewKDS Limited
Partner and the shares of KDV and the general partner of the Additional NewKDS
Limited Partner as well as the contingent compensation claims of the Additional
NewKDS Limited Partner and of KDG against the relevant partnership in case they
discontinue to be partners in the relevant partnership (collectively, the “Collateral”), created by pledge agreements (in the case of
the agreements related to the partnership interests in KDS and the shares of
KDV, the “Share Pledge” and, in the case of the
agreement related to the partnership interests in NewKDS, the “NewKDS Share Pledge” and, collectively with the Additional
Share Pledge, the Additional NewKDS Share Pledge, the Contingent Additional
Partner Claim Pledge and the Contingent Claim Pledge, the “Security
Agreements”) entered into among KDG, KDS, the Security Trustee and
the Trustee.

(b)  Each of the Issuer, the Note
Guarantors, the Trustee and the Holders agree that the Security Trustee shall
be the joint creditor (together with the Holders) of each and every obligation
of the parties hereto under the Securities and this Indenture, and that
accordingly the Security Trustee will have its own independent right to demand
performance by the Issuer or the relevant Note Guarantor, as applicable, of
those obligations, except that such demand shall only be made with the prior
written consent of the Trustee.  However,
any discharge of such obligation to the Security Trustee, on the one hand, or
to the Trustee or the Holders, as applicable, on the other hand, shall, to the
same extent, discharge the corresponding obligation owing to the other.

(c)  The Security Trustee agrees
that it will hold the security interests in Collateral created under any
Security Agreement to which it is a party as contemplated by this Indenture or
the Intercreditor Agreement, and any and all proceeds thereof, for the benefit
of, among others, the Trustee and the Holders, without limiting the Security Trustee’s
rights including under Section 12.02, to act in preservation of the security
interest in the Collateral.  The Security
Trustee will take action or refrain from taking action in connection therewith
only as directed by the Trustee.

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(d)  Each Holder, by accepting a
Security, shall be deemed to have agreed to all the terms and provisions of the
Security Agreements and the Intercreditor Agreement and any Additional
Intercreditor Agreement entered into in compliance with Section 4.16.  The claims of Holders will be subject to the
Intercreditor Agreement and any Additional Intercreditor Agreement entered into
in compliance with Section 4.16. The Security Trustee shall (upon direction of
the Issuer) release the Share Pledges if and when required by the Intercreditor
Agreement and any Additional Intercreditor Agreement entered into in accordance
with Section 4.16.

(e)  Each Holder by accepting a
Security will be deemed to relieve the Security Trustee from the restrictions
of self-dealing pursuant to Section 181 of the German Civil Code (Bürgerliches Gesetzbuch) to perform its
duties and obligations as Security Trustee under this Indenture and the
Intercreditor Agreement.

SECTION 12.02.  Suits To
Protect the Collateral.  Subject to
the provisions of the Security Agreements and the Intercreditor Agreement, the
Security Trustee shall have power to institute and to maintain such suits and
proceedings as it may deem expedient to prevent any impairment of the
Collateral by any acts which may be unlawful or in violation of any of the
Security Agreements or this Indenture, and such suits and proceedings as the
Security Trustee, in its sole discretion, may deem expedient to preserve or
protect the security interests in the Collateral created under the Security
Agreements (including power to institute and maintain suits or proceedings to
restrain the enforcement of or compliance with any legislative or other
governmental enactment, rule or order that may be unconstitutional or otherwise
invalid if the enforcement of, or compliance with, such enactment, rule or
order would impair the Lien on the Collateral or be prejudicial to the
interests of the Holders or the Trustee).

SECTION 12.03.  Replacement of
Security Trustee.  (a)  The Security Trustee may resign at any time
by so notifying the Issuer, upon not less than 90 days’ prior written
notice.  The Holders of a majority in
principal amount of the Securities may remove the Security Trustee by so
notifying the Trustee; provided
that they concurrently appoint a successor Security Trustee.  The Issuer shall remove the Security Trustee
if:

(i)  the Security Trustee is adjudged bankrupt or
insolvent;

(ii)  a receiver or other public officer takes
charge of the Security Trustee or its property;

(iii)  the long-term debt of the Security Trustee
ceases to be rated “A” by S&P or “A” by Moody’s Investors Service (or such
similar equivalent rating) or higher by at least one nationally recognized
statistical rating organization as defined in Rule 436 under the Securities
Act; or

(iv)  the Security Trustee otherwise becomes
incapable of acting.

(b)  If the Security Trustee
resigns, is removed by the Issuer or by the Holders of a majority in principal
amount of the Securities and such Holders have not previously appointed a
successor Security Trustee, or if a vacancy exists in the office of

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Security
Trustee for any reason (the Security Trustee in such event being referred to
herein as the retiring Security Trustee), the Issuer shall appoint a successor
Security Trustee prior to such resignation taking effect or such removal by the
Issuer.

(c)  A successor Security Trustee
shall deliver a written acceptance of its appointment to the retiring Security
Trustee and to the Issuer.  Thereupon,
the resignation or removal of the retiring Security Trustee shall become
effective, and the successor Security Trustee shall have all the rights, powers
and duties of the Security Trustee under this Indenture.  The successor Security Trustee shall transmit
in accordance with Section 13.02 a notice of its succession to Holders.  The retiring Security Trustee shall promptly
transfer all property held by it as Security Trustee to the successor Security
Trustee.

(d)  If a successor Security
Trustee does not take office within 30 days after the retiring Security Trustee
gives notice of its resignation, the retiring Security Trustee or the Holders
of at least 10% in principal amount of the Securities may appoint a successor
Security Trustee.

(e)  Notwithstanding the
replacement of the Security Trustee pursuant to Section 12.03, the indemnity
obligations of the Issuer and the Note Guarantors under the Security Agreements
shall continue for the benefit of the retiring Security Trustee.

SECTION 12.04.  Amendments.  The Security Trustee agrees that it will
enter into an amendment to the Intercreditor Agreement or enter into or amend
any other Additional Intercreditor Agreement entered into in accordance with
Section 4.16 upon a direction of the Trustee, given in accordance with Section
4.16, to do so.  The Security Trustee shall
sign any amendment authorized pursuant to Article 9 if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Security
Trustee.

SECTION 12.05.  Release of
Collateral.  The Collateral will be
released (a) so long as there is no Default outstanding under this Indenture or
a default outstanding under any other Indebtedness secured by the Collateral,
in the event and for so long as, all holders of Senior Indebtedness (including
the lenders under the Senior Facilities Agreement) have released their lien on
the Collateral or (b) following a Default under this Indenture or a default
under any other Indebtedness secured by the Collateral, pursuant to an
Enforcement Sale. In addition, the Collateral will be released in accordance
with the Intercreditor Agreement or if the applicable Subsidiary of which such
Capital Stock is pledged is redesignated as an Unrestricted Subsidiary in
compliance with Section 4.06.

The Security Trustee will agree to any release of the
Collateral that is in accordance with this Indenture and the Intercreditor
Agreement without requiring any Holder consent. In all cases the Issuer and
such Note Guarantors that are to be released from their Security Document shall
deliver to the Security Trustee an Officer’s Certificate and an Opinion of
Counsel certifying compliance with this Section 12.05.  At the request of the Issuer, the Security
Trustee shall execute and deliver an appropriate instrument evidencing such
release (in the form provided by the Issuer).

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SECTION 12.06.  Compensation
and Indemnity.  The Issuer, failing
which the Note Guarantors, shall pay to the Security Trustee from time to time
reasonable compensation for its services. 
The Security Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Issuer and each Note Guarantor, jointly and severally, shall
reimburse the Security Trustee upon request for all reasonable out-of-pocket
expenses incurred or made by it (as evidenced in an invoice from the Security
Trustee), including costs of collection, in addition to the compensation for
its services.  Such expenses shall
include the properly incurred compensation and expenses, disbursements and
advances of the Security Trustee’s agents, counsel, accountants and
experts.  The Issuer and each Note
Guarantor, jointly and severally shall indemnify the Security Trustee and its
officers, directors, agents and employers against any and all loss, liability
or expense (including reasonable attorneys’ fees) incurred by or in connection
with its rights, duties, and obligations under this Indenture, the
Intercreditor Agreement, any Additional Intercreditor Agreement or any Security
Agreement, as the case may be, including the reasonable costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any such rights, powers or duties.  The Security Trustee shall notify the Issuer
of any claim for which it may seek indemnity promptly upon obtaining actual knowledge
thereof; provided, however, that any failure so
to notify the Issuer shall not relieve the Issuer or any Note Guarantor of its
indemnity obligations hereunder, under the Intercreditor Agreement, any
Additional Intercreditor Agreement or any Security Agreement, as the case may
be.  The Issuer shall defend the claim
and the indemnified party shall provide reasonable cooperation at the Issuer’s
and each Note Guarantor’s expense in the defense.  Notwithstanding the foregoing, such
indemnified party may, in its sole discretion, assume the defense of the claim
against it and the Issuer and each Note Guarantor shall, jointly and severally,
pay the reasonable fees and expenses of the indemnified party’s defense (as
evidenced in an invoice from the Security Trustee).  Such indemnified parties may have separate
counsel of their choosing and the Issuer and the Note Guarantors, jointly and
severally, shall pay the reasonable fees and expenses of such counsel (as
evidenced in an invoice from the Security Trustee); provided,
however, that the Issuer shall not be required to pay such fees and
expenses if it assumes such indemnified parties’ defense and, in such
indemnified parties’ reasonable judgment, there is no conflict of interest
between the Issuer and the Note Guarantors, as applicable, and such parties in
connection with such defense.  The Issuer
need not pay for any settlement made without its consent, which consent shall
not be unreasonably withheld.  The Issuer
need not reimburse any expense or indemnify against any loss, liability or
expense incurred by an indemnified party through such party’s own wilful
misconduct or gross negligence.

To secure the Issuer’s and each Note Guarantor’s
payment obligations in this Section 12.06, the Security Trustee shall subject
to the Intercreditor Agreement and any Additional Intercreditor Agreement, have
a lien on the Collateral and the proceeds of the enforcement of the Collateral
for all monies payable to it under this Section 12.06.

The Issuer’s and each Note Guarantor’s payment
obligations pursuant to this Section 12.06 and any lien arising hereunder shall
survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any

 139
 

 

bankruptcy law or the
resignation or removal of the Security Trustee. 
Without prejudice to any other rights available to the Security Trustee
under applicable law, when the Security Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(6) with respect to the
Issuer, the expenses are intended to constitute expenses of administration
under the Bankruptcy Law.

ARTICLE
13

Miscellaneous

SECTION 13.01.  Trust
Indenture Act Controls.  If and to
the extent that any provision of this Indenture limits, qualifies or conflicts
with the duties imposed by, or with another provision (an “incorporated provision”) included in this
Indenture by operation of, Sections 310 to 318 of the TIA, inclusive, such
imposed duties or incorporated provision shall control.

SECTION 13.02.  Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

if to the Issuer or any Note Guarantor:

Betastrasse 6-8, 85774 

Unterförhung, Germany

Attention of:

Chief Financial Officer

Fax:         00
49 89 96010 198

and:

Attention of:

General Counsel

Fax:         00
49 89 96010 170

with a copy to:

Simpson Thacher &
Bartlett LLP

CityPoint, One Ropemaker
Street

London EC2Y 9HU

United Kingdom

Attention of:

Ryerson Symons

Fax:         00
44 20 7275 6502

if to the Trustee:

 140
 

 

Law Debenture Trust Company of New York

767 Third Avenue., 31st Floor

New York, NY 10017

Attention of:

Corporate Trust Administration

Fax:         001
212 750 1361

if to the Security Trustee:

Deutsche Bank AG London

Winchester House

1 Great Winchester Street

London EC2N 2DB

Attention of: The Managing Director

Fax: 00 44 20 7547 6149

if to the principal Paying Agent:

The Bank of New York

One Canada Square

London E14 5AL

Attention of:

Corporate Trust Administration

Fax: 00 44 20 7964 6399

Each of the Issuer, the Note Guarantors or the Trustee
by notice to the others may designate additional or different addresses for
subsequent notices or communications.

Any notice or communication mailed or sent by telecopy
to a Holder shall be, if mailed, mailed first class mail, to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and
shall be sufficiently given if so mailed or sent within the time prescribed.

Failure to mail or send a notice or communication to a
Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.  If a notice or
communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

SECTION
13.03.  Communication by Holders with
Other Holders.  Holders may
communicate pursuant to Section 312(b) of the TIA with other Holders with

 141
 

 

respect to
their rights under this Indenture or the Securities.  The Issuer, the Trustee, the Registrar and
anyone else shall have the protection of Section 312(c) of the TIA.

SECTION 13.04.  Certificate
and Opinion as to Conditions Precedent. 
Upon any request or application by the Issuer to the Trustee to take or
refrain from taking any action under this Indenture, the Issuer shall furnish
to the Trustee:

(a)  an Officer’s Certificate in
form and substance reasonably satisfactory to the Trustee stating that, in the
opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and any other
matters that the Trustee may reasonably request; and

(b)  an Opinion of Counsel in
form and substance reasonably satisfactory to the Trustee stating that, in the
opinion of such counsel, all such conditions precedent have been complied with
and any other matters that the Trustee may reasonably request.

SECTION 13.05.  Statements
Required in Certificate or Opinion. 
Each certificate or opinion with respect to compliance with a covenant
or condition provided for in this Indenture (other than pursuant to Section
4.17) shall include:

(a)  a statement that the Person
making such certificate or opinion has read such covenant or condition;

(b)  a brief statement as to the
nature and scope of the examination or investigation upon which the statements
or opinions contained in such certificate or opinion are based;

(c)  a statement that, in the
opinion of such Person, such Person has made such examination or investigation
as is necessary to enable him to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

(d)  a statement as to whether or
not, in the opinion of such Person, such covenant or condition has been
complied with.

SECTION 13.06.  When
Securities Disregarded.  In
determining whether the Holders of the required principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the
Issuer, any Note Guarantor or by any Person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Issuer or
any Note Guarantor shall be disregarded and deemed not to be outstanding,
except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities
which the Trustee knows are so owned shall be so disregarded.  Subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

SECTION 13.07.  Rules by
Trustee, Paying Agent and Registrar. 
The Trustee may make reasonable rules for action by or a meeting of
Holders.  The Registrar and the Paying
Agent may make reasonable rules for their functions.

 142
 

 

SECTION 13.08.  Legal Holidays.  If a payment date is a Legal Holiday, payment
shall be made on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.  If a regular record date is a Legal Holiday,
the record date shall not be affected.

SECTION 13.09.  Governing Law.  This Indenture and the Securities shall be
governed by, and construed in accordance with, the laws of the State of New
York.

SECTION 13.10.  Consent to
Jurisdiction and Service.  The Issuer
and each Note Guarantor irrevocably (i) agree that any legal suit, action or
proceeding against the Issuer or any Note Guarantor arising out of or based
upon this Indenture, the Securities or any Note Guarantee or the transactions
contemplated hereby may be instituted in any U.S. Federal or state court in the
Borough of Manhattan, The City of New York court and (ii) waive, to the fullest
extent they may effectively do so, any objection which they may now or
hereafter have to the laying of venue of any such proceeding.  The Issuer and each of Note Guarantor have
appointed CT Corporation System at 111 Eighth Avenue, New York, NY 10011, USA
as their authorized agent (the “Authorized
Agent”) upon whom process may be served in any such action arising
out of or based on this Indenture, the Securities or the transactions
contemplated hereby which may be instituted in any New York court, expressly
consent to the jurisdiction of any such court in respect of any such action,
and waive any other requirements of or objections to personal jurisdiction with
respect thereto.  Such appointment shall
be irrevocable.  The Issuer and each of
the Note Guarantors represents and warrants that the Authorized Agent has
agreed to act as such agent for service of process and agrees to take any and
all action, including the filing of any and all documents and instruments, that
may be necessary to continue such appointment in full force and effect as
aforesaid.  Service of process upon the
Authorized Agent and written notice of such service to the Issuer and each of
the Note Guarantors shall be deemed, in every respect, effective service of
process upon the Issuer and each of the Note Guarantors.

SECTION 13.11.  No Recourse
Against Others.  No director,
officer, employee, incorporator or shareholder of the Issuer or any Note
Guarantor, as such, will have any liability for any obligations of the Issuer
or any Note Guarantor under the Securities, the Note Guarantees or this
Indenture, or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Security waives and
releases such liability. The waiver and release are part of the consideration
for issuance of the Securities.

SECTION 13.12.  Successors.  All agreements of the Issuer and each Note
Guarantor in this Indenture and the Securities shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

SECTION 13.13.  Multiple
Originals.  The parties may sign any
number of copies of this Indenture.  Each
signed copy shall be an original, but all of them together represent the same
agreement.  One signed copy is enough to
prove this Indenture.

 143
 

 

SECTION 13.14.  Table of
Contents; Headings.  The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

 144

IN WITNESS WHEREOF, the parties have caused this
Indenture to be duly executed as of the date first written above.

	
  

  	
  KABEL DEUTSCHLAND GMBH

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ R. Steindorf

  	
   

  
	
   

  	
   

  	
  Name: R. Steindorf

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/Paul Thomason

  	
   

  
	
   

  	
   

  	
  Name: Paul Thomason

  
	
   

  	
   

  	
  Title: CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  KABEL DEUTSCHLAND

  VERWALTUNGS GMBH FOR AND ON

  BEHALF OF KABEL DEUTSCHLAND

  VERTRIEB UND SERVICE GMBH & CO.

  KG

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ R. Steindorf

  	
   

  
	
   

  	
   

  	
  Name: R. Steindorf

  
	
   

  	
   

  	
  Title:  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/Paul Thomason

  	
   

  
	
   

  	
   

  	
  Name: Paul Thomason

  
	
   

  	
   

  	
  Title: CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  KABEL DEUTSCHLAND

  VERWALTUNGS GMBH FOR AND ON

  BEHALF OF KABEL ASSET GMBH &

  CO. KG

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ R. Steindorf

  	
   

  
	
   

  	
   

  	
  Name: R. Steindorf

  
	
   

  	
   

  	
  Title:  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/Paul Thomason

  	
   

  
	
   

  	
   

  	
  Name: Paul Thomason

  
	
   

  	
   

  	
  Title: CFO

  
						

 

 

	
  

  	
  LAW DEBENTURE TRUST COMPANY

  OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Patrick
  Healy

  	
   

  
	
   

  	
   

  	
  Name: Patrick Healy

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK (LUXEMBOURG) S.A., as
  Luxembourg Transfer Agent and Paying Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Paul Pereira

  	
   

  
	
   

  	
   

  	
  Name: Paul Pereira

  
	
   

  	
   

  	
  Title: AVP

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Registrar,

  Transfer Agent and Paying Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Paul Pereira

  	
   

  
	
   

  	
   

  	
  Name: Paul Pereira

  
	
   

  	
   

  	
  Title: AVP

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK AG LONDON, as

  Security Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ C.A. Morris

  	
   

  
	
   

  	
   

  	
  Name: C.A. Morris

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
  /s/ Chris Wilson

  	
   

  
	
   

  	
   

  	
  Name: Chris Wilson

  
	
   

  	
   

  	
  Title: Vice President

  
					

 

 2

APPENDIX A

PROVISIONS RELATING

TO THE SECURITIES

1.  Definitions.

1.1  Definitions.

For the purposes of this Appendix A the following
terms shall have the meanings indicated below:

“Applicable Procedures” means, with respect to any
transfer or transaction involving a Regulation S Global Security or
beneficial interest therein, the rules and procedures of the Depositary for
such Global Security, Euroclear and Clearstream, in each case to the extent
applicable to such transaction and as in effect from time to time.

“Clearstream” means Clearstream Banking, société
anonyme, or any successor securities clearing agency.

“Definitive Security” means a certificated Security
that does not include the Global Securities Legend.

“Depositary” means a common depository of Euroclear
and Clearstream, their nominees and their respective successors and a custodian
for DTC, its nominees and respective successors.

“DTC” means the Depository Trust Company, its nominees
and their respective successors.

“Euroclear” means the Euroclear Bank S.A./N.V., as
operator of the Euroclear system as currently in effect, or any successor
securities clearing agency.

“Global Securities Legend” means the legend set forth
under that caption in Exhibit A to this Indenture.

“Initial Purchasers” means (1) with respect to
the Original Securities issued on the Issue Date, Deutsche Bank AG London,
Morgan Stanley & Co. International Limited, Citigroup Global Markets
Limited, Goldman Sachs International and the other Initial Purchasers named in
the Purchase Agreement referred to in clause (a) of the definition thereof
below and (2) with respect to each issuance of Additional Securities, the
Person purchasing such Additional Securities under the related Purchase
Agreement.

“Private Exchange” means an offer by the Issuer,
pursuant to a Registration Agreement, to issue and deliver to certain
purchasers, in exchange for the Initial Securities held by such purchasers as
part of their initial distribution, a like aggregate principal amount of
Private Exchange Securities.

 

“Private Exchange Securities” means the Securities of
the Issuer issued in exchange for Initial Securities pursuant to this Indenture
in connection with a Private Exchange pursuant to a Registration Agreement.

“Purchase Agreement” means (a) the Purchase
Agreement dated as of June 24, 2004, among Kabel Deutschland GmbH, Kabel
Deutschland Vertrieb und Service GmbH & Co. KG and Kabel Asset GmbH &
Co. KG and the Initial Purchasers and (b) any other similar Purchase
Agreement relating to Additional Securities.

“QIB” means a “qualified institutional buyer” as
defined in Rule 144A.

“Registered Exchange Offer” means an offer by the
Issuer, pursuant to a Registration Agreement, to certain Holders of Initial
Securities, to issue and deliver to such Holders, in exchange for their Initial
Securities, a like aggregate principal amount of Exchange Securities registered
under the Securities Act.

“Registration Agreement” means (a) the Registration
Rights Agreement dated as of July 2, 2003, among the Issuer, the Note Guarantors
and the Initial Purchasers, and (b) any other similar Registration Rights
Agreement relating to Additional Securities.

“Regulation S” means Regulation S under the
Securities Act.

“Regulation S Securities” means all Initial Securities
offered and sold outside the United States in reliance on Regulation S.

“Restricted Period”, with respect to any Securities,
means the period of 40 consecutive days beginning on and including the later of
(a) the day on which such Securities are first offered to persons other
than distributors (as defined in Regulation S under the Securities Act) in
reliance on Regulation S, notice of which day shall be promptly given by the
Issuer to the Trustee, and (b) the Issue Date with respect to such
Securities.

“Restricted Securities Legend” means the legend set
forth in Section 2.3(e)(i) herein.

“Rule 144A” means Rule 144A under the Securities
Act.

“Rule 144A Securities” means all Initial Securities
offered and sold to QIBs in reliance on Rule 144A.

“Securities Act” means the Securities Act of 1933, as
amended.

“Securities Custodian” means the custodian with
respect to a Global Security or any successor person thereto, who shall
initially be The Bank of New York.

 2
 

 

“Shelf Registration Statement” means a registration
statement filed by the Issuer in connection with the offer and sale of Initial
Securities pursuant to a Registration Agreement.

“Transfer Restricted Securities” means Definitive
Securities and any other Securities that bear or are required to bear the
Restricted Securities Legend.

1.2  Other Definitions.

	
  Term:

  	
   

  	
  Defined in Section:

  
	
  “Agent Members”

  	
   

  	
  2.1(c)

  
	
  “Global
  Security”

  	
   

  	
  2.1(b)

  
	
  “Regulation S
  Global Security”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A
  Global Security”

  	
   

  	
  2.1(b)

  

2.  The
Securities.

2.1  Form and Dating.

(a)  The Initial Securities
issued on the date hereof will be (i) offered and sold by the Issuer pursuant
to a Purchase Agreement and (ii) resold, initially only to (1) QIBs in reliance
on Rule 144A and (2) Persons other than U.S. Persons (as defined in Regulation
S) in reliance on Regulation S.  Such
Initial Securities may thereafter be transferred to, among others, QIBs and
purchasers in reliance on Regulation S. 
Additional Securities offered after the date hereof may be offered and
sold by the Issuer from time to time pursuant to one or more Purchase
Agreements in accordance with applicable law.

(b)  Global Securities.  Securities issued on the Issue Date will be
issued in a U.S. dollar series and a euro series.  Rule 144A Securities shall be issued
initially in the form of one or more permanent global Securities in definitive,
fully registered form (collectively, the “Rule 144A Global Security”)
and Regulation S Securities shall be issued initially in the form of one or
more global Securities (collectively, the “Regulation S Global
Security”), in each case without interest coupons and bearing the
Global Securities Legend and Restricted Securities Legend, which shall be
deposited on behalf of the purchasers of the Securities represented thereby
with the Securities Custodian, and registered in the name of the applicable
Depositary or a nominee of such Depositary, duly executed by the Issuer and
authenticated by the Trustee or an authentication agent as provided in this
Indenture.  Beneficial ownership
interests in the Regulation S Global Security shall not be exchangeable for
interests in the Rule 144A Global Security or any other Security without a
Restricted Securities Legend until the expiration of the Restricted
Period.  The Rule 144A Global Security
and the Regulation S Global Security are each referred to herein as a “Global
Security” and are collectively referred to herein as “Global Securities” provided
that the term “Global Security” when used in Sections 2.1(b), 2.1(c),
2.3(g)(i), 2.3(h)(i) and 2.4 shall also include any Security in global form
issued in connection with a Registered Exchange Offer or Private Exchange.  The

 3
 

 

aggregate
principal amount of the Global Securities may from time to time be increased or
decreased by adjustments made on the records of the [Trustee][Registrar] and
the Depositary or its nominee and on the schedules thereto as hereinafter
provided.

(c)  Book-Entry Provisions.  This Section 2.1(c) shall apply only to a
Global Security deposited with or on behalf of the Depositary.

The Issuer shall execute and the Trustee or an
authentication agent shall, in accordance with this Section 2.1(c) and
Section 2.2 and pursuant to an order of the Issuer signed by one Officer,
authenticate and deliver initially one or more Global Securities that (i) shall
be registered in the name of the Depositary for such Global Security or Global
Securities or the nominee of such Depositary and (ii) shall be delivered
by the Trustee to such Depositary or pursuant to such Depositary’s instructions
or held by the Securities Custodian.

Members of, or participants in, DTC, Euroclear or
Clearstream (“Agent Members”) shall have no
rights under this Indenture with respect to any Global Security held on their
behalf by the Depositary or by the Securities Custodian or under such Global
Security, and the Depositary may be treated by the Issuer, the Note Guarantors,
the Trustee and any agent of the Issuer, the Note Guarantors, or the Trustee as
the absolute owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, the Note Guarantors, the Trustee or any agent of the
Issuer, the Note Guarantors, or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by DTC, Euroclear or
Clearstream or impair, as between DTC, Euroclear or Clearstream and their
respective Agent Members, the operation of customary practices thereof
governing the exercise of the rights of a holder of a beneficial interest in
any Global Security.

(d)  Definitive Securities.  Except as provided in Section 2.3 or 2.4,
owners of beneficial interests in Global Securities will not be entitled to
receive physical delivery of certificated Securities.

2.2  Authentication.  The Trustee or an authentication agent shall authenticate
and make available for delivery upon a written order of the Issuer signed by
one of its Officers (a) Original Securities for original issue on the date
hereof in an aggregate principal amount of €250,000,000 in Euro Securities and
$610,000,000 in U.S. Dollar Securities, (b) subject to the terms of this
Indenture, Additional Securities and (c) the (i) Exchange Securities for
issue only in a Registered Exchange Offer and (ii) Private Exchange
Securities for issue only in a Private Exchange, in the case of each of (i) and
(ii), pursuant to a Registration Agreement and for a like principal amount of
Initial Securities exchanged pursuant thereto. 
Such order shall (a) specify the amount of the Securities to be authenticated,
the date on which the original issue of Securities is to be authenticated and
whether the Securities are to be Initial Securities, Exchange Securities or
Private Exchange Securities, (b) direct the Trustee or an authentication agent
to authenticate such Securities and (c) certify that all conditions precedent
to the issuance of such Securities have been complied with in accordance with
the terms hereof.

 4
 

 

2.3  Transfer and Exchange.  (a)  Transfer
and Exchange of Definitive Securities. 
When Definitive Securities are presented to the Registrar with a
request:

(i)   to register the transfer of such Definitive
Securities; or

(ii)  to exchange such Definitive Securities for an
equal principal amount of Definitive Securities of other authorized
denominations,

the Registrar shall
register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met, provided, however,
that the Definitive Securities surrendered for transfer or exchange:

(1)  shall be duly endorsed or
accompanied by a written instrument of transfer in form reasonably satisfactory
to the Issuer and the Registrar, duly executed by the Holder thereof or its
attorney duly authorized in writing; and

(2)  in the case of Transfer Restricted
Securities, are accompanied by the following additional information and
documents, as applicable:

(1)if such Definitive Securities are being delivered
to the Registrar by a Holder for registration in the name of such Holder,
without transfer, a certification from such Holder to that effect (in the form
set forth on the reverse side of the Initial Security); or

(2)if such Definitive Securities are being transferred
to the Issuer, a certification to that effect (in the form set forth on the
reverse side of the Initial Security); or

(3)if such Definitive Securities are being transferred
pursuant to an exemption from registration in accordance with Rule 144A,
Regulation S or Rule 144 under the Securities Act or in reliance upon
another exemption from the registration requirements of the Securities Act,
(x) a certification to that effect (in the form set forth on the reverse
side of the Initial Security) and (y) if the Issuer or Registrar so
requests, an opinion of counsel or other evidence reasonably satisfactory to it
as to the compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

(b)  Restrictions on Transfer
of a Definitive Security for a Beneficial Interest in a Global Security.  A Definitive Security may not be exchanged
for a beneficial interest in a Global Security except upon satisfaction of the
requirements set forth below.  Upon
receipt by the Trustee of a Definitive Security, duly endorsed or accompanied
by a written instrument of transfer in form reasonably satisfactory to the
Issuer, the Trustee, the Transfer Agent and the Registrar, together with:

(i)  certification (in the form set forth on the
reverse side of the Initial Security) that such Definitive Security is being
transferred (1) to a QIB in accordance with Rule 144A or (2) outside the United
States in an

 5
 

 

offshore transaction within the meaning of
Regulation S and in compliance with Rule 904 under the Securities Act; and

(ii)  written instructions directing the Registrar
to make, or to direct the Securities Custodian to make, an adjustment on its
books and records with respect to such Global Security to reflect an increase
in the aggregate principal amount of the Securities represented by the Global
Security, such instructions to contain information regarding the account to be
credited with such increase;

then the Trustee shall cancel such Definitive Security
and cause, or direct the Securities Custodian to cause, in accordance with the
standing instructions and procedures existing between the Depositary and the
Securities Custodian, the aggregate principal amount of Securities represented
by the Global Security to be increased by the aggregate principal amount of the
Definitive Security to be exchanged and shall credit or cause to be credited to
the account of the Person specified in such instructions a beneficial interest
in the Global Security equal to the principal amount of the Definitive Security
so canceled.  If no Global Securities are
then outstanding and the Global Security has not been previously exchanged for certificated
securities pursuant to Section 2.4, the Issuer shall issue and the Trustee
or an authentication agent shall authenticate, upon written order of the Issuer
in the form of an Officer’s Certificate, a new Global Security in the
appropriate principal amount.

(c)  Transfer and Exchange of
Global Securities.

(i)  The transfer and exchange of Global
Securities or beneficial interests therein shall be effected through the
Depositary, in accordance with this Indenture (including applicable
restrictions on transfer set forth herein, if any) and the procedures of the
Depositary therefor.  A transferor of a
beneficial interest in a Global Security shall deliver a written order given in
accordance with the Depositary’s procedures containing information regarding
the participant account of the Depositary to be credited with a beneficial
interest in such Global Security or another Global Security and such account
shall be credited in accordance with such order with a beneficial interest in
the applicable Global Security and the account of the Person making the
transfer shall be debited by an amount equal to the beneficial interest in the
Global Security being transferred. 
Transfers by an owner of a beneficial interest in the Rule 144A Global
Security to a transferee who takes delivery of such interest through the
Regulation S Global Security, whether before or after the expiration of the
Restricted Period, shall be made only upon receipt by the Registrar of a
certification in the form provided in Exhibit C from the transferor to the
effect that such transfer is being made in accordance with Regulation S or (if
available) Rule 144 under the Securities Act and that, if such transfer is
being made prior to the expiration of the Restricted Period, the interest
transferred shall be held immediately thereafter through Euroclear or
Clearstream.

(ii)  If the proposed transfer is a transfer
of a beneficial interest in one Global Security to a beneficial interest in
another Global Security, the Registrar shall reflect on its books and records
the date and an increase in the principal amount of the

 6
 

 

Global Security to which
such interest is being transferred in an amount equal to the principal amount
of the interest to be so transferred, and the Registrar shall reflect on its
books and records the date and a corresponding decrease in the principal amount
of Global Security from which such interest is being transferred.

(iii)  Notwithstanding any other provisions
of this Appendix A (other than the provisions set forth in Section 2.4), a
Global Security may not be transferred as a whole except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary
or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.

(iv)  In the event that a Global Security is
exchanged for Definitive Securities pursuant to Section 2.4 prior to the
consummation of a the Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Securities, such Securities may be
exchanged only in accordance with such procedures as are substantially
consistent with the provisions of this Section 2.3 (including the
certification requirements set forth on the reverse of the Initial Securities intended
to ensure that such transfers comply with Rule 144A, Regulation S or such other
applicable exemption from registration under the Securities Act, as the case
may be) and such other procedures as may from time to time be adopted by the
Issuer, the Trustee and the Registrar.

(d)  Restrictions on Transfer
of Regulation S Global Security.

(i)  Prior to the expiration of the
Restricted Period, interests in the Regulation S Global Security may only
be held through Euroclear or Clearstream. 
During the Restricted Period, beneficial ownership interests in the
Regulation S Global Security may only be sold, pledged or transferred through
Euroclear or Clearstream in accordance with the Applicable Procedures and only
(1) to the Issuer, (2) so long as such security is eligible for
resale pursuant to Rule 144A, to a person whom the selling holder
reasonably believes is a QIB that purchases for its own account or for the
account of a QIB to whom notice is given that the resale, pledge or transfer is
being made in reliance on Rule 144A, (3) in an offshore transaction
in accordance with Regulation S, (4) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if applicable)
under the Securities Act or any other available exemption or (5) pursuant
to an effective registration statement under the Securities Act, in each case
in accordance with any applicable securities laws of any state of the United
States.  Prior to the expiration of the
Restricted Period, transfers by an owner of a beneficial interest in the
Regulation S Global Security to a transferee who takes delivery of such
interest through the Rule 144A Global Security shall be made only in accordance
with Applicable Procedures and upon receipt by the Registrar of a written certification
from the transferor of the beneficial interest in the form provided in Exhibit
C to the effect that such transfer is being made to a QIB within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A.  Such written certification shall no longer be
required after the expiration of the Restricted Period.

 7
 

 

(ii)  Upon the expiration of the Restricted
Period, beneficial ownership interests in the Regulation S Global Security
shall be transferable in accordance with applicable law and the other terms of
this Indenture.

(e)  Legend.

(i)  Except as permitted by the following
paragraph (ii), (iii) or (iv), each Security certificate evidencing the
Global Securities and the Definitive Securities (and all Securities issued in
exchange therefor or in substitution thereof) shall bear a legend in
substantially the following form (each defined term in the legend being defined
as such for purposes of the legend only):

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
(THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM.  THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.”

 8
 

 

Each Definitive Security
shall bear the following additional legend:

“IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.”

(ii)  Upon any sale or transfer of a
Transfer Restricted Security (including any Transfer Restricted Security
represented by a Global Security) that is a Definitive Security, the Registrar
shall permit the Holder thereof to exchange such Transfer Restricted Security
for a Definitive Security that does not bear the legends set forth above and
rescind any restriction on the transfer of such Transfer Restricted Security if
the Holder certifies in writing to the Transfer Agent and Registrar that its
request for such exchange was made in reliance on Rule 144 (such
certification to be in the form set forth on the reverse of the Initial
Security).

(iii)  After a transfer of any Initial
Securities or Private Exchange Securities during the period of the
effectiveness of a Shelf Registration Statement with respect to such Initial
Securities or Private Exchange Securities, as the case may be, all requirements
pertaining to the Restricted Securities Legend on such Initial Securities or
such Private Exchange Securities shall cease to apply and the requirements that
any such Initial Securities or such Private Exchange Securities be issued in
global form shall continue to apply.

(iv)  Upon the consummation of a Registered
Exchange Offer with respect to the Initial Securities pursuant to which Holders
of such Initial Securities are offered Exchange Securities in exchange for
their Initial Securities, all requirements pertaining to Initial Securities
that Initial Securities be issued in global form shall continue to apply, and
Exchange Securities in global form without the Restricted Securities Legend
shall be available to Holders that exchange such Initial Securities in such
Registered Exchange Offer.

(v)  Upon the consummation of a Private
Exchange with respect to the Initial Securities pursuant to which Holders of
such Initial Securities are offered Private Exchange Securities in exchange for
their Initial Securities, all requirements pertaining to such Initial
Securities that Initial Securities be issued in global form shall continue to
apply, and Private Exchange Securities in global form with the Restricted
Securities Legend shall be available to Holders that exchange such Initial
Securities in such Private Exchange.

(vi)  Upon a sale or transfer after the
expiration of the Restricted Period of any Initial Security acquired pursuant
to Regulation S, all requirements that such Initial Security bear the
Restricted Securities Legend shall cease to apply and the requirements
requiring any such Initial Security be issued in global form shall continue to
apply.

 9
 

 

(vii)  Any additional Securities sold in a
registered offering shall not be required to bear the Restricted Securities
Legend.

(f)            Cancellation
or Adjustment of Global Security.  At
such time as all beneficial interests in a Global Security have either been
exchanged for Definitive Securities, transferred, redeemed, repurchased or
canceled, such Global Security shall be returned by the Depositary to the
Trustee for cancellation or retained and canceled by the Trustee.  At any time prior to such cancellation, if
any beneficial interest in a Global Security is exchanged for Definitive
Securities, transferred in exchange for an interest in another Global Security,
redeemed, repurchased or canceled, the principal amount of Securities
represented by such Global Security shall be reduced and an adjustment shall be
made on the books and records of the Registrar (if it is then the Securities
Custodian for such Global Security) with respect to such Global Security, by
the Trustee or the Securities Custodian, to reflect such reduction.

(g)           Obligations
with Respect to Transfers and Exchanges.

(i)  To permit registrations of transfers
and exchanges, the Issuer shall execute and the Trustee or an authentication
agent shall authenticate, Definitive Securities and Global Securities at the
Registrar’s request.

(ii)  No service
charge shall be made for any registration of transfer or exchange, but the
Issuer may require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in connection therewith
(other than any such transfer taxes, assessments or similar governmental charge
payable upon exchange or transfer pursuant to Sections 2.07, 3.06,
4.03, 4.09 and 9.05 of this Indenture).

(iii)  Prior to
the due presentation for registration of transfer of any Security, the Issuer,
the Trustee, the Paying Agent or the Registrar may deem and treat the person in
whose name a Security is registered as the absolute owner of such Security for
the purpose of receiving payment of principal of and interest on such Security
and for all other purposes whatsoever, whether or not such Security is overdue,
and none of the Issuer, the Trustee, the Paying Agent or the Registrar shall be
affected by notice to the contrary.

(iv)  All Securities issued upon any
transfer or exchange pursuant to the terms of this Indenture shall evidence the
same debt and shall be entitled to the same benefits under this Indenture as
the Securities surrendered upon such transfer or exchange.

(h)           No
Obligation of the Trustee.

The Trustee shall
have no responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in the Depositary or any other Person
with respect to the accuracy of the records of the Depositary or its nominee or
of any participant or member thereof, with respect to any ownership interest in
the Securities or with respect to the delivery to any participant, member,
beneficial owner or

 10
 

 

other Person (other than
the Depositary) of any notice (including any notice of redemption or
repurchase) or the payment of any amount, under or with respect to such
Securities.  All notices and communications
to be given to the Holders and all payments to be made to Holders under the
Securities shall be given or made only to the registered Holders (which shall
be the Depositary or its nominee in the case of a Global Security).  The rights of beneficial owners in any Global
Security shall be exercised only through the Depositary subject to the
applicable rules and procedures of the Depositary.  The Trustee may rely and shall be fully
protected in relying upon information furnished by the Depositary with respect
to its members, participants and any beneficial owners.

(ii)  The Trustee shall have no obligation
or duty to monitor, determine or inquire as to compliance, and shall not be
responsible or liable for compliance, with any restrictions on transfer,
exchange, redemption, purchase or repurchase, as applicable imposed under the
Indenture or under applicable law or regulation with respect to any transfer,
exchange, redemption, purchase or repurchase, as applicable of any interest in
any Security (including, without limitation, any transfers between or among
Depositary participants, members or beneficial owners in any Global Security)
other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by, the terms of this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof; it
being understood that without limiting the generality of the foregoing, the
Trustee shall not have any obligation or duty to monitor, determine or inquire
as to compliance, and shall not be responsible or liable for compliance, with
restrictions on transfer, exchange, redemption, purchase or repurchase, as
applicable, of minimum denominations imposed under this Indenture or under
applicable law or regulation with respect to any transfer, exchange,
redemption, purchase or repurchase, as applicable, of any interest in any
Security.

2.4  Definitive Securities.

(a)           A
Global Security deposited with the Depositary or with the Securities Custodian
pursuant to Section 2.1 or issued in connection with a Registered Exchange
Offer or Private Exchange shall be transferred to the beneficial owners thereof
in the form of Definitive Securities in an aggregate principal amount equal to
the principal amount of such Global Security, in exchange for such Global
Security, only if such transfer complies with Section 2.3 and (i) the
Depositary notifies the Issuer that it is unwilling or unable to continue as a
Depositary for such Global Security or if at any time the Depositary ceases to
be a “clearing agency” registered under the Exchange Act, and a successor
depositary is not appointed by the Issuer within 120 days of such notice
or after the Issuer becomes aware of such cessation, or (ii) if the
Depositary so requests following an Event of Default or (iii) the Issuer, in
its sole discretion, notifies the Trustee in writing that it elects to cause
the issuance of certificated Securities under this Indenture.

(b)           Any Global Security that is
transferable to the beneficial owners thereof pursuant to this Section 2.4
shall be surrendered by the Depositary to the Trustee, to be so transferred, in
whole or from time to time in part, without charge, and the Trustee or an
authentication agent shall authenticate and deliver, upon such transfer of each

 11
 

 

portion of such Global
Security, an equal aggregate principal amount of Definitive Securities of
authorized denominations.  Any portion of
a Global Security transferred pursuant to this Section shall be executed,
authenticated and delivered only in minimum denominations of €50,000 or
$75,000, as applicable, and multiples of €1,000 or $1,000, as applicable, in
excess thereof and registered in such names as the Depositary shall
direct.  Any certificated Initial
Security in the form of a Definitive Security delivered in exchange for an
interest in the Global Security shall, except as otherwise provided
by Section 2.3(e), bear the Restricted Securities Legend.

(c)           Subject
to the provisions of Section 2.4(b), the registered Holder of a Global
Security may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the
Securities.

(d)           In
the event of the occurrence of any of the events specified in
Section 2.4(a)(i), (ii) or (iii), the Issuer will promptly make
available to the Trustee a reasonable supply of Definitive Securities in fully
registered form without interest coupons.

 12

 

EXHIBIT A

[FORM OF FACE OF
SECURITY]

[Global Securities
Legend]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF [THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
NEW YORK, NEW YORK/EUROCLEAR BANK S.A./N.V., AS OPERATOR OF THE EUROCLEAR
SYSTEM (“EUROCLEAR”), OR CLEARSTREAM BANKING, SOCIÈTÈ ANONYME (“CLEARSTREAM”)],
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ITS AUTHORIZED NOMINEE,
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
[DTC/EUROCLEAR OR CLEARSTREAM] (AND ANY PAYMENT IS MADE TO ITS AUTHORIZED
NOMINEE, OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF [DTC/EUROCLEAR OR CLEARSTREAM]), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, ITS AUTHORIZED NOMINEE, HAS AN
INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF [DTC/EUROCLEAR OR
CLEARSTREAM] OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

[[FOR REGULATION S GLOBAL SECURITY ONLY]  UNTIL 40 DAYS AFTER THE CLOSING OF THE
OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER
(AS DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION
REQUIREMENTS OF THE U.S. SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE
THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

[Restricted
Securities Legend]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR

 

OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
(THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER
OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM.  THIS LEGEND WILL BE REMOVED UPON
THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

Each Definitive Security shall bear the following
additional legend:

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 2

 

	
  No.

  	
  [$/€]          

  

 

[·]%
Senior Notes due 2014

Common Code.       

ISIN No.       

[CUSIP No.       ]

Kabel Deutschland GmbH, a limited partnership
organized under the laws of Germany, promises to pay
to [            ],
or its registered assigns, the principal sum [$/€][     ]
[subject to adjustments listed on the Schedule of Increases or Decreases in
Global Security attached hereto](1) on
[          ], 2014.

Interest Payment Dates: [·]
and [·].

Record Dates:  [·]
and [·].

(1) Use the
Schedule of Increases and Decreases language if Security is in Global Form.

 

Additional provisions of this Security are set forth
on the other side of this Security.

	
  

  	
  KABEL DEUTSCHLAND GMBH,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  AUTHENTICATION AGENT’S CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK,

  	
   

  
	
   

  	
   

  
	
  as
  Authentication Agent, certifies

  	
   

  
	
  that this is one
  of

  	
   

  
	
  the Securities
  referred

  	
   

  
	
  to in the
  Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  
							

 

*/ If
the Security is to be issued in global form, add the Global Securities Legend
and the attachment from Exhibit A captioned “TO BE ATTACHED TO GLOBAL
SECURITIES - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”.

 

[FORM OF REVERSE
SIDE OF SECURITY]

[·]%
Senior Notes due 2014

1.  Interest

(a)           Interest.  Kabel Deutschland GmbH, a limited partnership
organized under the laws of Germany (such partnership, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Issuer”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.  The Issuer shall pay interest semiannually on
January 1 and July 1 of each year. 
Interest on the Securities shall accrue from the most recent date to
which interest has been paid or duly provided for or, if no interest has been
paid or duly provided for, from July 2, 2004 until the principal hereof is
due.  Interest shall be computed on the
basis of a 360-day year of twelve 30-day months. The Issuer shall
pay interest on overdue principal at the rate borne by the Securities plus 1%
per annum, and it shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

(b)           Liquidated
Damages.  The Holder of this Security
is entitled to the benefits of a Registration Rights Agreement, dated July 2,
2004, among the Issuer, the Note Guarantors and Deutsche Bank AG London, Morgan
Stanley & Co. International Limited, Citigroup Global Markets Limited and
Goldman Sachs International, on behalf of the Initial Purchasers. Capitalized
terms used in this paragraph (b) but not defined herein have the meanings
assigned to them in the Registration Rights Agreement.  If  (i)
the Exchange Offer Registration Statement required by the Registration Rights
Agreement has not been filed (or submitted or a confidential basis) with the
Commission by April 30, 2006 (or if April 30, 2006 is not a business day, the
first business day thereafter), (ii) the Exchange Offer Registration Statement
or, if required to be filed (or submitted on a confidential basis), the Shelf
Registration Statement is not declared effective by the Commission within 180
days of April 30, 2006 (or if the 180th day is not a business day, the first
business day thereafter), (iii)  the
Exchange Offer is not consummated on or before the 30th day (or if the 30th day
is not a business day, the first business day thereafter) after the Exchange
Offer Registration Statement is declared effective by the Commission, (iv)  if obligated to file (or submit on a
confidential basis) a Shelf Registration Statement, such Shelf Registration
Statement is not filed with (or submitted on a confidential basis to) the
Commission  on or before the 30th day (or
if the 30th day is not a business day, the first business day thereafter) after
the date (the “Shelf Filing Date”) on which the
obligation to file a Shelf Registration Statement arises, (v)  if obligated to file (or submit on a
confidential basis) a Shelf Registration Statement, the Shelf Registration
Statement is not declared effective on or before the 180th day (or if the 180th
day is not a business day, the first business day thereafter) after the Shelf
Filing Date, or (vi)  if after either the
Exchange Offer Registration Statement or the Shelf Registration Statement is
declared effective (A) such Registration Statement thereafter ceases to be
effective; or (B) such Registration Statement or the related prospectus ceases
to be usable (except as permitted in clauses (c) and (d) below) in connection
with resales of Transfer Restricted Securities during the periods specified
herein because either (1) any event occurs as a result of which the related
prospectus forming part of such

 

Registration Statement would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein in the light of the circumstances under which they
were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the
Securities Act or the Exchange Act or the respective rules thereunder (each
such event in clauses (i) through (vi) below a “Registration
Default”) , then the Issuer shall pay liquidated damages, in the
form of additional interest to each Holder of Initial Securities over and above
the interest set forth in the title of the Securities from and including the
date on which any such Registration Default shall occur to but excluding the
date on which all such Registration Defaults have been cured, at a rate of
0.50% per annum for the first 180-day period immediately following the
occurrence of a Registration Default, and such rate will increase by an
additional 0.50% per annum with respect to each subsequent 90-day period, up to
a maximum liquidated damages rate of 2.0% per annum.  Any amounts of liquidated damages due will be
payable in cash on the regular interest payment dates with respect to the
Initial Securities. The amount of liquidated damages will be determined by
multiplying the applicable liquidated damages rate by the principal amount of
the Initial Securities, multiplied by a fraction, the numerator of which is the
number of days such liquidated damages rate was applicable during such period
(determined on the basis of a 360-day year comprised of twelve 30-day months),
and the denominator of which is 360. For purposes of the foregoing, “Transfer Restricted Securities” means each Security until
(i) the date on which such Transfer Restricted Security has been exchanged by a
person other than a broker-dealer for a freely transferable Exchange Security
in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of a Initial Security for an
Exchange Security, the date on which such Exchange Security is sold to a
purchaser who receives from such broker-dealer on or prior to the date of such
sale a copy of the prospectus contained in the Exchange Offer Registration
Statement, (iii) the date on which such Security has been effectively
registered under the Securities Act and disposed of in accordance with the
Shelf Registration Statement or (iv) the date on which such Security is
distributed to the public pursuant to Rule 144 under the Securities Act or is
saleable pursuant to Rule 144(k) under the Securities Act.

(c)           A
Registration Default referred to in clause (b) above shall be deemed not to
have occurred and be continuing in relation to a Shelf Registration Statement
or the related prospectus if such Registration Default has occurred solely as a
result of the filing of a post-effective amendment to such Shelf Registration
Statement to incorporate annual audited financial information with respect to
the Issuer where such post-effective amendment is not yet effective and needs
to be declared effective to permit holders of Securities eligible for
registration under the Shelf Registration Statement to use the related
prospectus; provided, however, that in any case if such Registration Default
occurs for a continuous period in excess of 30 days, liquidated damages shall
be payable in accordance with clause (b) above from the day such Registration
Default is cured.

(d)           Notwithstanding
clause (b) above, a Registration Default shall be deemed not to have occurred
and be continuing in relation to a Shelf Registration Statement or the related
prospectus if the Issuer issues notices suspending the Shelf

 

Registration Statement in accordance with Section 2(c)
of the Registration Rights Ageement.  In
the event that the aggregate number of days in any consecutive twelve-month
period for which such notices are issued and effective exceeds 60 days in the
aggregate, the interest rate borne by the Securities eligible to be registered
under the Shelf Registration Statement shall be increased by 0.50% per annum
for the first 180-day period immediately following any such notice (which rate
will be increased by an additional 0.50% per annum with respect to each
subsequent 90-day period; provided that the aggregate increase in such annual
interest rate shall in no event exceed 2.0% per annum).  Upon the issuance of a notice by the Issuer
that the Shelf Registration Statement is usable (and the Shelf Registration
Statement is so usable) again after the period of time described in the
preceding sentence, the accrual of such liquidated damages will cease and the
interest rate on such Securities will revert to the rate set forth in the title
of the Securities.

2.  Method of Payment

The Issuer shall pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders at the
close of business on the January 1 or July 1 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date.  Holders must surrender Securities to the
relevant Paying Agent to collect principal payments.  The Issuer shall pay principal, premium, if
any, liquidated damages, if any, and interest in [U.S. dollar/ euro or such
other lawful currency of the participating member states in the Third Stage of
European Economic and Monetary Union of the Treaty Establishing the European
Community that at the time of payment is legal tender for payment of public and
private debts].  Payments in respect of
the Securities represented by a Global Security (including principal, premium,
if any, liquidated damages, if any, and interest) shall be made by wire
transfer of immediately available funds to the accounts specified by [DTC or
any successor depositary /Euroclear or Clearstream or any successor
depositary].  The Issuer will make all
payments in respect of a Definitive Security (including principal, premium, if
any, liquidated damages, if any, and interest), at the office of the relevant
Paying Agent, except that, at the option of the Issuer, payment of interest may
be made by mailing a check to the registered address of each Holder thereof, provided, however, that
payments on the Securities may also be made, in the case of a Holder of at
least [$/€]1,000,000 aggregate principal amount of Securities, by wire transfer
to a [U.S. dollar/euro] account maintained by the payee with a bank in [the
United States/a country that is a member of the European Union] if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 30 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

3.  Paying Agent and Registrar

Initially, The Bank of New York, London Branch and The
Bank of New York, New York Branch, will act as Paying Agents and Transfer
Agents, The Bank of New York, London Branch will act as Registrar.  The Issuer may appoint and change any Paying
Agent or Registrar.  The Issuer, the
Company or any of its Restricted Subsidiaries may act as Paying Agent or
Registrar.

So long as the Securities are listed on the Luxembourg
Stock Exchange and its rules so require, the Issuer shall maintain at all times
that payments are required to be made in respect of the Securities a paying
agent and transfer agent in Luxembourg. 
Initially, The Bank of New York (Luxembourg) S.A. will act as Luxembourg
paying agent and transfer agent.

4.  Indenture

The Issuer issued the Securities under an Indenture
dated as of July 2, 2004 (the “Indenture”),
among the Issuer, the Note Guarantors, the Law Debenture Trust Company of New
York, as trustee (the “Trustee”),
Deutsche Bank AG London, as the security trustee (the “Security
Trustee”), The Bank of New York, as Registrar, Transfer Agent and
Paying Agent, and The Bank of New York (Luxembourg) S.A., as Paying Agent and
Luxembourg Transfer Agent.  The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect on the date of the Indenture (the “TIA”).  Terms defined
in the Indenture and not defined herein have the meanings ascribed thereto in
the Indenture.  The Securities are
subject to all terms and provisions of the Indenture and the TIA, and Holders
(as defined in the Indenture) are referred to the Indenture for a statement of
such terms and provisions.  In the event
of a conflict, the terms of the Indenture control.

The Securities are senior obligations of the
Issuer.  This Security is one of the
Securities referred to in the Indenture. 
The Securities include the Initial Securities and any Exchange
Securities and Private Exchange Securities issued in exchange for Initial
Securities pursuant to the Indenture. The Initial Securities and any Exchange
Securities and Private Exchange Securities are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on the
ability of the Issuer and its Restricted Subsidiaries to, among other things,
make certain Investments and other Restricted Payments, pay dividends and other
distributions, incur Indebtedness and layer Indebtedness, enter into consensual
restrictions upon the payment of certain dividends and distributions by such
Restricted Subsidiaries, issue or sell shares of capital stock of such
Restricted Subsidiaries, enter into or permit certain transactions with
Affiliates, create or incur Liens, make asset sales, impair certain security
interests, issue certain guarantees and designate Restricted and Unrestricted
Subsidiaries. The Indenture also imposes limitations on the ability of the
Issuer and each Note Guarantor to consolidate or merge with or into any other
Person or convey, transfer or lease all or substantially all its property.

 

To guarantee the due and punctual payment of the
principal, interest and liquidated damages, if any, on the Securities and all
other amounts payable by the Issuer under the Indenture and the Securities when
and as the same shall be due and payable, whether at maturity, by acceleration
or otherwise, according to the terms of the Securities and the Indenture, the
Note Guarantors have jointly and severally unconditionally guaranteed the
Guaranteed Obligations on a senior subordinated basis pursuant to the terms of
the Indenture.  The Note Guarantees are
subject to the provisions of the Intercreditor Agreement.  Reference is made to the Indenture and the
Intercreditor Agreement for the terms of any such Note Guarantees, including
the release, termination and discharge thereof. 
Neither the Issuer nor any Note Guarantor shall be required to make any
notation on this Security to reflect any Note Guarantee or any such release,
termination or discharge.

5.  Optional Redemption

Except as set forth in this paragraph 5 and in
paragraph 6, the Securities shall not be redeemable at the option of the Issuer
prior to July 1, 2009.  On and after, the
Securities shall be redeemable at the option of the Issuer, in whole or in
part, at the following redemption prices (expressed as percentages of principal
amount), plus accrued and unpaid interest and liquidated damages, if any, to
the redemption date (subject to the right of Holders of record on the relevant
record date to receive interest and liquidated damages, if any, due on the
relevant interest payment date), if redeemed during the twelve-month
period commencing on July 1 of the years set forth below:

	
  Year

  	
   

  	
  Redemption

  Price [Euro/U.S. Dollar] Securities

  	
   

  
	
  2009

  	
   

  	
  [·]

  	
  %

  
	
  2010

  	
   

  	
  [·]

  	
  %

  
	
  2011

  	
   

  	
  [·]

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  [·]

  	
  %

  

 

The Issuer may choose to redeem the Securities at any
time, or from time to time, prior to July 1, 2009, upon not less than 30 nor
more than 60 days’ notice delivered as set forth in the Indenture.  If it does so, it may redeem all or any
portion of the Securities, at once or over time.  To redeem the Securities, the Issuer must pay
a redemption price equal to the sum of:

(a) 100% of the principal amount of the Securities to
be redeemed, plus

(b) the Applicable Premium,

plus accrued and unpaid
interest and liquidated damages, if any, to the redemption date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date). 
Any such redemption and notice may, at the Issuer’s discretion, be
subject to the satisfaction of one or more conditions precedent.

 

At any time and from time to time, prior to July 1,
2007, the Issuer may redeem up to a maximum of 35% of the principal amount of
the Securities (calculated giving effect to any issuance of Additional
Securities) with the net proceeds of one or more Equity Offerings, at a
redemption price equal to [·]%
of the principal amount thereof for the [U.S. Dollar/Euro] Securities plus
accrued and unpaid interest and liquidated damages, if any, thereon to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date), provided, however, that after giving effect to any such
redemption, at least 65% in principal amount of the Securities of the series
being redeemed (including the principal amount of any Additional Securities of
such series) remains outstanding after each such redemption.  Any such redemption shall be made within
180 days of the closing of such relevant Equity Offering.

6.  Optional Tax Redemption

The Issuer may, at its option, redeem all but not part
of the Securities, at any time upon giving not less than 30 nor more than
60 days’ notice to the Holders at a redemption price equal to 100% of the
principal amount thereof, together with accrued and unpaid interest, if any, to
the date of redemption (a “Tax Redemption
Date”) (subject to
the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date) and all liquidated damages, if any,
then due and which will become due on the Tax Redemption Date as a result of
the redemption or otherwise, if the Issuer determines in good faith that, as a
result of:

(1)           any
change in, or amendment to, the laws or treaties (or any regulations or rulings
promulgated thereunder) of the Relevant Tax Jurisdiction (as defined below)
affecting taxation; or

(2)           any
change in position regarding the application, administration or interpretation
of such laws, treaties, regulations or rulings (including a holding, judgment
or order by a court of competent jurisdiction);

the Issuer with respect
to the Securities, or a Note Guarantor with respect to a Note Guarantee is, or
on the next interest payment date in respect of the Securities would be,
required to pay Additional Amounts, and such obligation cannot be avoided by
taking reasonable measures available to it (including, for the avoidance of
doubt, the appointment of a new Paying Agent in accordance with the Section
2.04(d) of the Indenture or, where such payment method would be reasonable
under the circumstances, payment through another Note Guarantor or the Issuer).
In the case of the Issuer, Kabel Deutschland Vertrieb und Service GmbH &
Co. KG. (“KDS”) or 
Kabel Asset GmbH & Co. KG (“NewKDS”), the
Change in Tax Law must become effective on or after the date of the offering
memorandum. In the case of an Additional Note Guarantor, or any successor of
any Person specified in the preceding sentence, the Change in Tax Law must
become effective on or after the date that such Person became a Note Guarantor
or such a successor.

 

Notice of redemption for taxation reasons will be
published in accordance with the procedures set forth in Section 3.03 of
the Indenture.

Notwithstanding the foregoing, no such notice of
redemption will be given (a) earlier than 90 days prior to the earliest date on
which the Issuer or a Note Guarantor, or a successor of the foregoing, as the
case may be, would be obliged to make such payment of Additional Amounts and
(b) unless at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect. Prior to the publication or mailing of any
notice of redemption of any series of Securities pursuant to the foregoing, the
Issuer will deliver to the Trustee (a) an Officer’s Certificate stating that it
is entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to its right so to redeem have been
satisfied and (b) an opinion of an independent tax counsel of recognized
standing to the effect that the circumstances referred to above exist. The
Trustee will accept such Officer’s Certificate and opinion as sufficient
evidence of the satisfaction of the conditions precedent described above, in
which event it will be conclusive and binding on the Holders.

7.  Withholding Taxes

All payments made by the Issuer, any Note Guarantor or
a successor of any of the foregoing (each, a “Payor”)
on the Securities or the Note Guarantees will be made free and clear of and
without withholding or deduction for, or on account of, any Taxes unless the
withholding or deduction of such Taxes is then required by law. If any
deduction or withholding for, or on account of, any Taxes imposed or levied by
or on behalf of:

(1)           Germany
or any political subdivision or governmental authority thereof or therein
having power to tax;

(2)           any
jurisdiction from or through which payment on the Securities or any Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

(3)           any
other jurisdiction in which the Payor is organized or otherwise considered to
be a resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of clause (1), (2)
and (3), a “Relevant Taxing Jurisdiction”),

will at any time be
required from any payments made with respect to the Securities, including
payments of principal, redemption price, interest or premium, if any, the Payor
will pay (together with such payments) such additional amounts (the “Additional Amounts”) as may be necessary in order that the
net amounts received in respect of such payments by the Holders or the Trustee,
as the case may be, after such withholding or deduction (including any such
deduction or withholding from such Additional Amounts), will not be less than
the amounts which would have been received in respect of such payments on the
Securities in the absence of such withholding or deduction; provided, however,
that no such Additional Amounts will be payable for or on account of:

 

(1)           any
Taxes that would not have been so imposed but for the existence of any present
or former connection between the relevant Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of power over the
relevant Holder, if the relevant Holder is an estate, nominee, trust,
partnership, limited liability company or corporation) and the Relevant Taxing
Jurisdiction (including being a citizen or resident or national of, or carrying
on a business or maintaining a permanent establishment in, or being physically
present in, the Relevant Taxing Jurisdiction) but excluding, in each case, any
connection arising solely from the acquisition, ownership or holding of such
Security or the receipt of any payment in respect thereof;

(2)           any
Taxes that would not have been so imposed if (i) the Holder of the Security had
made a declaration of non-residence or any other claim or filing for exemption
to which it is entitled (provided that (x) such declaration of non-residence or
other claim or filing for exemption is required by the applicable law of the
Relevant Taxing Jurisdiction as a precondition to exemption from the
requirement to deduct or withhold all or a part of any such Taxes and (y) at
least 30 days prior to the first payment date with respect to which such
declaration of non-residence or other claim or filing for exemption is required
under the applicable law of the Relevant Taxing Jurisdiction, the relevant
Holder at that time has been notified in writing by the Payor or any other
person through whom payment may be made that a declaration of non-residence or other
claim or filing for exemption is required to be made); or (ii) in the case of
Taxes imposed by or on behalf of Germany or any political subdivision or
governmental authority thereof or therein having the power to tax (each of the
foregoing a “German Taxing Jurisdiction”), the
Holder of the Security had provided such other evidence as is reasonably
necessary to enable the Payor or any other person through whom payment may be
made to determine the residence of the Holder (provided that (x) such determination
of residence is necessary under the applicable laws of the German Taxing
Jurisdiction to determine the application of the exemption from the requirement
to deduct or withhold all or a part of any such Taxes and (y) at least 30 days
prior to the first payment date with respect to which such determination is
required under the applicable law of the German Taxing Jurisdiction, the
relevant Holder at that time has been notified in writing by the Payor or any
other person through whom payment may be made that such evidence must be
provided);

(3)           any
Taxes that are payable otherwise than by withholding from a payment of the
principal of, premium, if any or interest, if any, on the Securities or under
any Note Guarantee;

(4)           any
estate, inheritance, gift, sales, excise, transfer, personal property or
similar tax, assessment or other governmental charge;

(5)           any
Taxes that are required to be deducted or withheld on a payment to an
individual pursuant to the European Council Directive 2003/48/EC regarding the
taxation of savings income or any law implementing, or introduced in order to
conform to, such Directive;

 

(6)           except
in the case of the liquidation, dissolution or winding-up of the Payor, any
Taxes imposed in connection with a Security presented for payment by or on
behalf of a Holder or beneficial owner who would have been able to avoid such
Tax by presenting the relevant Security to, or otherwise accepting payment
from, another paying agent in a member state of the European Union; or

(7)           any
combination of the above.

Such Additional Amounts will also not be payable (x)
if the payment could have been made without such deduction or withholding if
the beneficiary of the payment had presented the Security for payment (where
presentation is required) within 30 days after the relevant payment was first
made available for payment to the Holder or (y) where, had the beneficial owner
of the Security been the Holder of the Security, such beneficial owner would
not have been entitled to payment of Additional Amounts by reason of any of
clauses (1) to (7) inclusive above.

The Payor will (i) make any required withholding or
deduction and (ii) remit the full amount deducted or withheld to the Relevant
Taxing Jurisdiction in accordance with applicable law. The Payor will use all
reasonable efforts to obtain certified copies of tax receipts evidencing the
payment of any Taxes so deducted or withheld from each Relevant Taxing
Jurisdiction imposing such Taxes and will provide such certified copies to the
Trustee. Such copies shall be made available to the Holders upon request and
will be made available at the offices of the Luxembourg Paying Agent if the
Securities are then listed on the Luxembourg Stock Exchange. The Payor will
attach to each certified copy a certificate stating (x) that the amount of
withholding Taxes evidenced by the certified copy was paid in connection with
payments in respect of the principal amount of Securities then outstanding and
(y) the amount of such withholding Taxes paid per [$1,000 principal amount of
the U.S. Dollar Securities /€1,000 principal amount of the Euro Securities].

If any Payor will be obligated to pay Additional
Amounts under or with respect to any payment made on the Securities, at least
30 days prior to the date of such payment, the Payor will deliver to the
Trustee an Officer’s Certificate stating the fact that Additional Amounts will
be payable and the amount so payable and such other information necessary to
enable the Paying Agent to pay Additional Amounts to Holders on the relevant
payment date (unless such obligation to pay Additional Amounts arises less than
45 days prior to the relevant payment date, in which case the Payor may deliver
such Officer’s Certificate as promptly as practicable after the date that is 30
days prior to the payment date).

Wherever in this Security there are mentioned, in any
context: (1) the payment of principal, (2) purchase prices in connection with a
purchase of Securities, (3) interest, or (4) any other amount payable on or
with respect to any of the Securities or any Note Guarantee, such reference
shall be deemed to include payment of Additional Amounts as described under
this heading to the extent that, in such context, Additional Amounts are, were
or would be payable in respect thereof.

 

The Payor will pay any present or future stamp, court
or documentary taxes, or any other excise, property or similar taxes, charges
or levies that arise in any jurisdiction from the execution, delivery,
registration or enforcement of any Securities, the Indenture, the Share Pledge,
the NewKDS Share Pledge or any other document or instrument in relation thereto
(other than a transfer of the Securities) excluding any such taxes, charges or
similar levies imposed by any jurisdiction that is not a Relevant Taxing Jurisdiction,
and the Payor agrees to indemnify the Holders for any such taxes paid by such
Holders. The foregoing obligations will survive any termination, defeasance or
discharge of the Indenture and will apply mutatis mutandis to any jurisdiction
in which any successor to a Payor or any Note Guarantor is organized or any
political subdivision or taxing authority or agency thereof or therein.

8.  Sinking Fund

The Securities are not subject to any sinking fund.

9.  Notice of Redemption

At least 30 days but not more than 60 days before a
date for redemption of Securities, the Issuer shall transmit a notice of
redemption in accordance with Section 13.02 of the Indenture and as provided
below to each Holder of Securities to be redeemed at such Holder’s registered
address; provided, however, that any notice of a redemption provided for by
paragraph 6 of this Security shall not be given earlier than 90 days prior to
the earliest date on which the Payor would be obligated to make a payment of
Additional Amounts were a payment in respect of the Securities then due and
payable. In addition, for so long as the Securities are listed on the
Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so
require, the Issuer shall publish notice of redemption in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort).  Securities in denominations larger than
[$75,000/€50,000] may be redeemed in part but only in whole multiples of
[$1,000/€1,000], provided, however,
that, after giving effect to such redemption, the applicable Security shall
have a denomination of no less than [$75,000/€50,000].  If money sufficient to pay the redemption
price of and accrued and unpaid interest and liquidated damages. if any, on all
Securities (or portions thereof) to be redeemed on the redemption date is
deposited with the Paying Agent on or before the redemption date and certain
other conditions are satisfied, on and after such date interest ceases to
accrue on such Securities (or such portions thereof) called for redemption.

10.               Repurchase of
Securities at the Option of Holders upon (i) a Change of Control,
(ii) the Release of Security Agreement after Thin Capitalization Event and
(iii) the occurrence  of certain
Asset Sales

If a Change of Control occurs, each Holder of
Securities will have the right, subject to certain conditions specified in the
Indenture, to require the Issuer to repurchase all or any part of the
Securities of such Holder at a purchase price equal to 101% of the principal
amount of the Securities to be repurchased plus accrued and unpaid interest and
liquidated damages, if any, to the date of purchase (subject to the right of

 

Holders of record on the relevant record date to
receive interest due and liquidated damages, if any, on the relevant interest
payment date) as provided in, and subject to the terms of, the Indenture.

In accordance with Section 4.04 of the Indenture,
the Issuer will be required to offer to repurchase all of the Securities upon
the release of any Security Agreement after a Thin Capitalization Event.

In accordance with Section 4.09 and Section 4.20
of the Indenture, the Issuer will be required to offer to purchase Securities
upon the occurrence of certain events, including certain Asset Sales or
termination of certain acquisitions.

11.  Subordination

The Note Guarantees of the Note Guarantors are
subordinated to existing and future Note Guarantor Senior Indebtedness and will
rank pari  passu in right
of payment with all existing and future Note Guarantor Senior Subordinated
Indebtedness.  To the extent provided in
the Indenture and the Intercreditor Agreement, Note Guarantor Senior
Indebtedness must be paid before the Note Guarantees of such Guarantors may be
paid.  The Issuer and each Note Guarantor
agree, and each Holder by accepting a Security agrees, to the subordination
provisions contained in the Indenture and the Intercreditor Agreement and
authorizes the Trustee to give it effect and appoints the Trustee as
attorney-in-fact for such purpose.

12.  Security

The Securities will be secured on a second priority
basis by the Collateral.  Reference is
made to the Indenture for terms relating to such security, including the
release, termination and discharge thereof. 
Enforcement of the Security Agreements is subject to the Intercreditor
Agreement.  Neither the Issuer nor any
Note Guarantor shall be required to make any notation on this Security to
reflect any grant of such security or any such release, termination or
discharge.

13.  Denominations; Transfer; Exchange

The Securities are in registered form without interest
coupons in minimum denominations of [$75,000/€50,000] and whole multiples of
[$1,000/€1,000] in excess thereof.  A
Holder may transfer or exchange Securities in accordance with the
Indenture.  In connection with any such
transfer or exchange, the Indenture will require the transferring or exchanging
Holder to, among other things, furnish appropriate endorsements and transfer
documents, to furnish information regarding the account of the transferee at
Euroclear, Clearstream or DTC, where appropriate, to furnish certain
certificates and opinions, and to pay any taxes, duties and governmental
charges in connection with such transfer or exchange. Any such transfer or
exchange will be made without charge to the Holder, other than any taxes,
duties and governmental charges payable in connection with such transfer.

 

Notwithstanding the foregoing, the Issuer is not
required to register the transfer or exchange of any Securities: (1) for a
period of 15 calendar days prior to any date fixed for the redemption of the
Securities; (2) for a period of 15 calendar days immediately prior to the date
fixed for selection of Securities to be redeemed in part; (3) for a period of
15 calendar days prior to the record date with respect to any interest payment
date; or (4) which the Holder has tendered (and not withdrawn) for repurchase
in connection with a Change of Control Offer, an Asset Disposition Offer or a
Special Repurchase Offer (each as defined in the Indenture).

14.  Persons Deemed Owners

Except as provided in
paragraph 2 of this Security, the registered Holder of this Security will be
treated as the owner of it for all purposes.

15.  Unclaimed Money

If money for the payment of principal or interest, or
liquidated damages, if any, remains unclaimed for two years, the Trustee or
Paying Agent shall pay the money back to the Issuer at its written request
unless an abandoned property law designates another Person.  After any such payment, Holders entitled to
the money must look to the Issuer for payment as general creditors and the
Trustee and the Paying Agent shall have no further liability with respect to
such monies.

16.  Discharge and Defeasance

Subject to certain conditions, the Issuer at any time
may terminate some of or all its obligations under the Securities and the
Indenture if the Issuer, among other things, deposits with the Trustee cash in
[U.S. Dollars or U.S. Government Obligations denominated in U.S. Dollars/euro
or European Government Obligations denominated in euro] in such amounts as will
be sufficient for the payment of the entire Indebtedness including principal
of, premium and interest on, and liquidated damages, if any, on the Securities
to the date of redemption or maturity, as the case may be.

17.  Amendment, Waiver

The Indenture and the Securities may be amended as set
forth in the Indenture.

18.  Defaults and Remedies

The following events constitute “Events of Default”
under the Indenture:  An “Event of
Default” occurs if or upon:

(1)  default in
any payment of interest on any Security issued pursuant to the Indenture when
due and payable, continued for 30 days;

 

(2)  default in
the payment of principal of or premium, if any, on any Security issued pursuant
to the Indenture when due at its Stated Maturity, upon optional redemption,
upon required repurchase, upon declaration or otherwise;

(3)  failure to
comply for 30 days after notice by the Trustee or the Holders of 25% in
principal amount of the outstanding Securities with any of its obligations
under Article 4 and 5 of the Indenture (in each case, other than a failure to
purchase Securities which will constitute an Event of Default under clause (2)
above);

(4)  failure to
comply for 60 days after notice by the Trustee or the Holders of 25% in
principal amount of the outstanding Securities with its other agreements
contained in the Indenture;

(5)  default under
any mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any Indebtedness for money borrowed by
the Issuer or any of its Restricted Subsidiaries (or the payment of which is
Guaranteed by the Issuer or any of its Restricted Subsidiaries) other than
Indebtedness owed to the Issuer or a Restricted Subsidiary whether such
Indebtedness or Guarantee now exists, or is created after the Issue Date, which
default:

(a)  is caused
by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness (“payment default”); or

(b)  results in
the acceleration of such Indebtedness prior to its maturity (the “cross acceleration provision”);

and, in each case, the
principal amount of any such Indebtedness, together with the principal amount
of any other such Indebtedness under which there has been a payment default or
the maturity of which has been so accelerated, aggregates €35 million or more;

(6)  (a) the
Issuer or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law: (i) commences a voluntary case; (ii) consents to the entry of
an order for relief against it in an involuntary case; (iii) consents to the
appointment of a Custodian of it or for any substantial part of its property;
(iv) makes a general assignment for the benefit of its creditors, or (v) takes
any comparable action under any foreign laws relating to insolvency; or (b) a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: (i) is for relief against the Issuer or any Significant Subsidiary in
an involuntary case; (ii) appoints a Custodian of the Issuer or any Significant
Subsidiary or for any substantial part of its property; (iii) orders the
winding up or liquidation of the Issuer or any Significant Subsidiary, or (iv)
any similar relief is granted under any foreign laws, and any such order or
decree remains unstayed and in effect for 60 days.

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

 

The term “Bankruptcy Law”
means the German Insolvency Code (Insolvenzordnung)
or any other German law dealing with the incapability of a debtor to pay its
debt, the debtor’s over indebtedness or a lack of assets to cover a debtor’s
outstanding debt, Title 11, United States Code, or any similar U.S. Federal or
state law for the relief of debtors or the laws of any other jurisdiction
relating to bankruptcy, insolvency, winding up, liquidation, reorganization or
the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law.

(7)  failure by
the Issuer or any Significant Subsidiary or group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements for the Issuer and its Restricted Subsidiaries), would constitute a
Significant Subsidiary to pay final judgments aggregating in excess of €35
million (exclusive of any amounts that a solvent insurance company has
acknowledged liability for), which judgments are not paid, discharged or stayed
for a period of 60 days after the judgment becomes final (the “judgment default provision”);

(8)  any Note
Guarantee of a Significant Subsidiary ceases to be in full force and effect
(other than in accordance with the terms of such Note Guarantee or the
Indenture) or is declared invalid or unenforceable in a judicial proceeding or
any Note Guarantor denies or disaffirms in writing its obligations under its
Note Guarantee and any such Default continues for 10 days (the “guarantee provisions”); and

(9)  any
security interest under the Share Pledge or the NewKDS Share Pledge shall, at
any time, cease to be in full force and effect (other than in accordance with
the terms of the Share Pledge or the NewKDS Share Pledge, as applicable, the
Intercreditor Agreement and the Indenture) for any reason other than the
satisfaction in full of all obligations under the Indenture or the release of
any such security interest in accordance with the terms of the Indenture, the
Intercreditor Agreement, the Share Pledge or the NewKDS Share Pledge or any
such security interest created thereunder shall be declared invalid or unenforceable
or the Issuer shall assert in writing that any such security interest is
invalid or unenforceable and any such Default continues for 10 days (the “security default provisions”).

However, a default under clauses (3) and (4) above
will not constitute an Event of Default until the Trustee or the Holders of 25%
in principal amount of the outstanding Securities under the Indenture notify
the Issuer of the default and the Issuer does not cure such default within the
time specified in such clauses (3) or (4) above, as applicable, after receipt
of such notice.

Clause (6) shall not in any case apply to any
bankruptcy, insolvency or court protection relating to Callahan Kabel NRW GmbH
& Co. KG arising out of or related to its ownership of ish until 90 days after
such time that a court of competent jurisdiction has finally and judicially
determined or the Issuer or any of its Subsidiaries has agreed in writing that
Callahan Kabel NRW GmbH & Co. KG holds the legal title to the partnership
interests in ish GmbH & Co. KG.

 

If an Event of Default (other than an Event of Default
described in clause (6) above) occurs and is continuing, the Trustee by notice
to the Issuer or the Holders of at least 25% in principal amount of the
outstanding Securities under the Indenture by notice to the Issuer and the
Trustee, may, and the Trustee at the request of such Holders shall, declare the
principal of, premium, if any, and accrued and unpaid interest and liquidated
damages, if any, on all the Securities under the Indenture to be due and
payable. Upon such a declaration, such principal, premium and accrued and
unpaid interest and liquidated damages, if any, will be due and payable
immediately.  In the event of a
declaration of acceleration of the Securities because an Event of Default
described in clause (5) above has occurred and is continuing, the declaration
of acceleration of the Securities shall be automatically annulled if the event
of default or payment default triggering such Event of Default pursuant to
clause (5) above shall be remedied or cured, or waived by the holders of the
Indebtedness, or the Indebtedness that gave rise to such Event of Default shall
have been discharged in full, within 30 days after the declaration of
acceleration with respect thereto and if (1) the annulment of the acceleration
of the Securities would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, except
nonpayment of principal, premium or interest on the Securities that became due
solely because of the acceleration of the Securities, have been cured or
waived.  If an Event of Default described
in clause (6) above occurs and is continuing, the principal of, premium, if
any, and accrued and unpaid interest and liquidated damages, if any, on all the
Securities will become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holders.

19.  Trustee Dealings with the Issuer

Subject to certain limitations imposed by the TIA, the
Trustee under the Indenture, in its individual or any other capacity, may
become the owner or pledgee of Securities and may otherwise deal with and
collect obligations owed to it by the Issuer or its Affiliates and may
otherwise deal with the Issuer or its Affiliates with the same rights it would
have if it were not Trustee.

20.  No Recourse Against Others

No director, manager, officer, employee, incorporator
or shareholder of the Issuer or any of its Subsidiaries or any parent company
of the Issuer shall have any liability for any obligations of the Issuer or any
Subsidiary with respect to the Securities, the Note Guarantees, the Security or
the Indenture, or for any claim based on, in respect of, or by reason of such
obligations or their creation. Each Holder by accepting a Security waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities. Such waiver may not be effective
to waive liabilities under the U.S. federal securities laws, and it is the view
of the Commission that such a waiver is against public policy.

 

21.  Authentication

This Security shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Security. The signature shall be conclusive evidence that the security has been
authenticated under the Indenture.

22.  Abbreviations

Customary abbreviations may be used in the name of a
Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants
by the entireties), JT TEN (=joint tenants with rights of survivorship and not
as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

23.  Governing Law

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

24.  Common Codes [,CUSIP] and ISIN Numbers

The Issuer in issuing the Securities
may use Common Codes [, CUSIP] and ISIN numbers (if then generally in use) and,
if so, the Trustee shall use Common Codes, CUSIP and ISIN numbers in notices of
redemption as a convenience to Holders; provided,
however, that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Securities, and any
such redemption shall not be affected by any defect in or omission of such
numbers.  The Issuer will promptly notify
the Trustee and the Paying Agent of any
change in the Common Code, CUSIP or ISIN numbers.

The Issuer will furnish to any Holder of
Securities upon written request and without charge to the Holder a copy of the
Indenture which has in it the text of this Security.

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

(Print or type assignee’s name, address and zip code)

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint                           agent
to transfer this Security on the books of the Issuer.  The agent may substitute another to act for
him.

	
  

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
   

  
	
  Sign exactly as
  your name appears on the other side of this Security.

  

 

 

CERTIFICATE TO BE
DELIVERED UPON EXCHANGE OR REGISTRATION OF TRANSFER RESTRICTED SECURITIES

This certificate relates to [$/€]                   
principal amount of Securities held in (check applicable space)        
book-entry or               
definitive form by the undersigned.

The undersigned (check one box below):

o                                    has
requested the Trustee by written order to deliver in exchange for its
beneficial interest in the Global Security held by the Depositary a Security or
Securities in definitive, registered form of authorized denominations and an
aggregate principal amount equal to its beneficial interest in such Global Security
(or the portion thereof indicated above);

o                                    has
requested the Trustee by written order to exchange or register the transfer of
a Security or Securities.

In connection with any transfer of any of the
Securities evidenced by this certificate occurring prior to the expiration of
the period referred to in Rule 144(k) under the Securities Act, the
undersigned confirms that such Securities are being transferred in accordance
with its terms:

CHECK ONE BOX BELOW

(1)                                  o                              to the
Issuer; or

(2)                                  o                              to the
Registrar for registration in the name of the Holder, without transfer; or

(3)                                  o                              pursuant
to an effective registration statement under the Securities Act of 1933; or

(4)                                  o                              inside
the United States to a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act of 1933) that purchases for its own
account or for the account of a qualified institutional buyer to whom notice is
given that such transfer is being made in reliance on Rule 144A, in each case
pursuant to and in compliance with Rule 144A under the Securities Act of
1933; or

(5)                                  o                              outside
the United States in an offshore transaction within the meaning of
Regulation S under the Securities Act in compliance with Rule 904 under
the Securities Act of 1933 and such Security shall be held immediately after
the transfer through Euroclear or Clearstream until the expiration of the
Restricted Period (as defined in the Indenture); or

(6)                                  o                              pursuant
to another available exemption from registration provided
by Rule 144 under the Securities Act of 1933.

 

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any Person
other than the registered Holder thereof, provided, however, that if box (5) or (6) is checked, the Trustee
may require, prior to registering any such transfer of the Securities, such
legal opinions, certifications and other information as the Trustee or Issuer
has reasonably requested to confirm that such transfer is being made pursuant
to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

	
  

  	
   

  	
   

  
	
   

  	
  Your Signature

  
	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature must
  be guaranteed

  by a participant in a recognized

  signature guaranty medallion program

  or other signature guarantor acceptable to the Trustee

  	
  Signature of Signature Guarantee

  
	
   

  	
   

  
						

TO BE COMPLETED BY
PURCHASER IF (4) ABOVE IS CHECKED.

The undersigned represents and warrants that it is
purchasing this Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such
information regarding the Issuer as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	
  Dated: 

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE: To be executed by an executive officer

  

 

 

[TO BE ATTACHED TO
GLOBAL SECURITIES]

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

The initial principal amount of this Global Security
is [$/€] [        ].  The following increases or decreases in this
Global Security have been made:

	
  Date of

  Increase/decrease

  	
   

  	
  Amount of decrease in

  Principal Amount of this

  Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of this

  Global Security

  	
   

  	
  Principal amount of this

  Global Security following

  such decrease or increase

  	
   

  	
  Signature of authorized

  signatory of Trustee or

  [Securities

  Custodian/Depositary]

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

OPTION OF HOLDER
TO ELECT PURCHASE

If you want to elect to have this Security purchased
by the Issuer pursuant to Section  4.03 (Change of Control), 4.04 (Thin
Capitalization Repurchase), Section 4.09 (Asset Disposition) or Section 4.20
(Acquisition Termination Repurchase Offer) of the Indenture, check the box:

Asset Disposition o
Change of Control o Thin
Capitalization Repurchase o  Acquisition Termination Repurchase o

If you want to elect to have only part of this
Security purchased by the Issuer pursuant to Section  4.03, 4.04, 4.09 or
4.20, of the Indenture, state the amount ([€50,000 or €1,000/$75,000 or $1,000]
multiples in excess thereof):

€

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
  (Sign exactly as
  your name appears on the other side of the Security)

  
	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
   

  	
  Signature must
  be guaranteed by a participant in a recognized signature guaranty medallion
  program or other signature guarantor acceptable to the Trustee

  
							

 

 

EXHIBIT B

[FORM OF FACE OF
SECURITY]

[Global Securities
Legend]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF [THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
NEW YORK, NEW YORK/EUROCLEAR BANK S.A./N.V., AS OPERATOR OF THE EUROCLEAR
SYSTEM (“EUROCLEAR”), OR CLEARSTREAM BANKING, SOCIÈTÈ ANONYME (“CLEARSTREAM”)],
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ITS AUTHORIZED NOMINEE,
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
[DTC/EUROCLEAR OR CLEARSTREAM] (AND ANY PAYMENT IS MADE TO ITS AUTHORIZED
NOMINEE, OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF [DTC/EUROCLEAR OR CLEARSTREAM]), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, ITS AUTHORIZED NOMINEE, HAS AN
INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF [DTC/EUROCLEAR OR
CLEARSTREAM] OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO
ON THE REVERSE HEREOF.

[[FOR REGULATION S GLOBAL SECURITY ONLY]  UNTIL 40 DAYS AFTER THE CLOSING OF THE
OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER
(AS DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION
REQUIREMENTS OF THE U.S. SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE
THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

Each Definitive Security shall bear the following
additional legend:

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

 

	
  No.

  	
  [$/€]                    

  

 

[·]%
Senior Notes due 2014

Common Code.             

ISIN No.             

[CUSIP No.             ]

Kabel Deutschland GmbH, a limited partnership
organized under the laws of Germany, promises to pay
to [            ],
or its registered assigns, the principal sum [$/€][     ]
[subject to adjustments listed on the Schedule of Increases or Decreases in
Global Security attached hereto](2) on
[          ], 2014.

Interest Payment Dates: [·]
and [·].

Record Dates:  [·]
and [·].

(2) Use the
Schedule of Increases and Decreases language if Security is in Global Form.

 

Additional provisions of this Security are set forth
on the other side of this Security.

	
  

  	
  KABEL DEUTSCHLAND GMBH,

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  AUTHENTICATION
  AGENT’S CERTIFICATE OF

  	
   

  
	
  AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  THE BANK OF NEW
  YORK,

  	
   

  
	
   

  	
   

  
	
  as Authentication Agent, certifies

  	
   

  
	
  that this is one of

  	
   

  
	
  the Securities referred

  	
   

  
	
  to in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  	
   

  
							

 

*/ If
the Security is to be issued in global form, add the Global Securities Legend
and the attachment from Exhibit A captioned “TO BE ATTACHED TO GLOBAL
SECURITIES - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”.

 

[FORM OF REVERSE
SIDE OF SECURITY]

[·]%
Senior Notes due 2014

1.  Interest

(a)           Interest.  Kabel Deutschland GmbH, a limited partnership
organized under the laws of Germany (such partnership, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Issuer”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.  The Issuer shall pay interest semiannually on
January 1 and July 1 of each year. 
Interest on the Securities shall accrue from the most recent date to
which interest has been paid or duly provided for or, if no interest has been
paid or duly provided for, from July 2, 2004 until the principal hereof is
due.  Interest shall be computed on the
basis of a 360-day year of twelve 30-day months. The Issuer shall
pay interest on overdue principal at the rate borne by the Securities plus 1%
per annum, and it shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

2.  Method of Payment

The Issuer shall pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders at the
close of business on the January 1 or July 1 next preceding the interest
payment date even if Securities are cancelled, repurchased or redeemed after
the record date and on or before the interest payment date.  Holders must surrender Securities to the
relevant Paying Agent to collect principal payments.  The Issuer shall pay principal, premium, if
any, and interest in [U.S. dollar/ euro or such other lawful currency of the
participating member states in the Third Stage of European Economic and
Monetary Union of the Treaty Establishing the European Community that at the
time of payment is legal tender for payment of public and private debts].  Payments in respect of the Securities
represented by a Global Security (including principal, premium, if any, and
interest) shall be made by wire transfer of immediately available funds to the
accounts specified by [DTC or any successor depositary /Euroclear or
Clearstream or any successor depositary]. 
The Issuer will make all payments in respect of a Definitive Security
(including principal, premium, if any, and interest), at the office of the
relevant Paying Agent, except that, at the option of the Issuer, payment of
interest may be made by mailing a check to the registered address of each
Holder thereof, provided, however,
that payments on the Securities may also be made, in the case of a Holder of at
least [$/€]1,000,000 aggregate principal amount of Securities, by wire transfer
to a [U.S. dollar/euro] account maintained by the payee with a bank in [the
United States/a country that is a member of the European Union] if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 30 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

3.  Paying Agent and Registrar

Initially, The Bank of New York, London Branch and The
Bank of New York, New York Branch, will act as Paying Agents and Transfer
Agents, The Bank of New York, London Branch will act as Registrar.  The Issuer may appoint and change any Paying
Agent or Registrar.  The Issuer, the
Company or any of its Restricted Subsidiaries may act as Paying Agent or
Registrar.

So long as the Securities are listed on the Luxembourg
Stock Exchange and its rules so require, the Issuer shall maintain at all times
that payments are required to be made in respect of the Securities a paying
agent and transfer agent in Luxembourg. 
Initially, The Bank of New York (Luxembourg) S.A. will act as Luxembourg
paying agent and transfer agent.

4.  Indenture

The Issuer issued the Securities under an Indenture
dated as of July 2, 2004 (the “Indenture”),
among the Issuer, the Note Guarantors, the Law Debenture Trust Company of New
York, as trustee (the “Trustee”),
Deutsche Bank AG London, as the security trustee (the “Security
Trustee”), The Bank of New York, as Registrar, Transfer Agent and
Paying Agent, and The Bank of New York (Luxembourg) S.A., as Paying Agent and
Luxembourg Transfer Agent.  The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect on the date of the Indenture (the “TIA”).  Terms defined
in the Indenture and not defined herein have the meanings ascribed thereto in
the Indenture.  The Securities are
subject to all terms and provisions of the Indenture and the TIA, and Holders
(as defined in the Indenture) are referred to the Indenture for a statement of
such terms and provisions.  In the event
of a conflict, the terms of the Indenture control.

The Securities are senior obligations of the
Issuer.  This Security is one of the
Securities referred to in the Indenture. 
The Securities include the Initial Securities and any Exchange
Securities and Private Exchange Securities issued in exchange for Initial
Securities pursuant to the Indenture. The Initial Securities and any Exchange
Securities and Private Exchange Securities are treated as a single class of
securities under the Indenture. The Indenture imposes certain limitations on
the ability of the Issuer and its Restricted Subsidiaries to, among other
things, make certain Investments and other Restricted Payments, pay dividends
and other distributions, incur Indebtedness and layer Indebtedness, enter into
consensual restrictions upon the payment of certain dividends and distributions
by such Restricted Subsidiaries, issue or sell shares of capital stock of such
Restricted Subsidiaries, enter into or permit certain transactions with
Affiliates, create or incur Liens, make asset sales, impair certain security
interests, issue certain guarantees and designate Restricted and Unrestricted
Subsidiaries. The Indenture also imposes limitations on the ability of the
Issuer and each Note Guarantor to consolidate or merge with or into any other
Person or convey, transfer or lease all or substantially all its property.

 C-1-D
 

 

To guarantee the due and punctual payment of the
principal and interest, if any, on the Securities and all other amounts payable
by the Issuer under the Indenture and the Securities when and as the same shall
be due and payable, whether at maturity, by acceleration or otherwise,
according to the terms of the Securities and the Indenture, the Note Guarantors
have jointly and severally unconditionally guaranteed the Guaranteed
Obligations on a senior subordinated basis pursuant to the terms of the
Indenture.  The Note Guarantees are
subject to the provisions of the Intercreditor Agreement.  Reference is made to the Indenture and the
Intercreditor Agreement for the terms of any such Note Guarantees, including
the release, termination and discharge thereof. 
Neither the Issuer nor any Note Guarantor shall be required to make any
notation on this Security to reflect any Note Guarantee or any such release,
termination or discharge.

5.  Optional Redemption

Except as set forth in this paragraph 5 and in
paragraph 6, the Securities shall not be redeemable at the option of the Issuer
prior to July 1, 2009.  On and after, the
Securities shall be redeemable at the option of the Issuer, in whole or in
part, at the following redemption prices (expressed as percentages of principal
amount), plus accrued and unpaid interest, if any, to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during
the twelve-month period commencing on July 1 of the years set forth
below:

	
  Year

  	
   

  	
  Redemption

  Price [Euro/U.S. Dollar] Securities

  	
   

  
	
  2009

  	
   

  	
  [·]

  	
  %

  
	
  2010

  	
   

  	
  [·]

  	
  %

  
	
  2011

  	
   

  	
  [·]

  	
  %

  
	
  2012 and
  thereafter

  	
   

  	
  [·]

  	
  %

  

 

The Issuer may choose to redeem the Securities at any
time, or from time to time, prior to July 1, 2009, upon not less than 30 nor
more than 60 days’ notice delivered as set forth in the Indenture.  If it does so, it may redeem all or any
portion of the Securities, at once or over time.  To redeem the Securities, the Issuer must pay
a redemption price equal to the sum of:

(a) 100% of the principal amount of the Securities to
be redeemed, plus

(b) the Applicable Premium,

plus accrued and unpaid interest, if any, to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date).  Any such redemption and notice may, at the Issuer’s
discretion, be subject to the satisfaction of one or more conditions precedent.

 C-1-E
 

 

At any time and
from time to time, prior to July 1, 2007, the Issuer may redeem up to a maximum
of 35% of the principal amount of the Securities (calculated giving effect to
any issuance of Additional Securities) with the net proceeds of one or more
Equity Offerings, at a redemption price equal to [·]%
of the principal amount thereof for the [U.S. Dollar/Euro] Securities plus
accrued and unpaid interest, if any, thereon to the redemption date (subject to
the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date), provided, however,
that after giving effect to any such redemption, at least 65% in principal
amount of the Securities of the series being redeemed (including the principal
amount of any Additional Securities of such series) remains outstanding after
each such redemption.  Any such
redemption shall be made within 180 days of the closing of such relevant
Equity Offering.

6.  Optional Tax Redemption

The Issuer may, at its option, redeem all but not part
of the Securities, at any time upon giving not less than 30 nor more than
60 days’ notice to the Holders at a redemption price equal to 100% of the
principal amount thereof, together with accrued and unpaid interest, if any, to
the date of redemption (a “Tax Redemption
Date”) (subject to
the right of Holders of record on the relevant record date to receive interest
due on the relevant interest payment date) then due and which will become due
on the Tax Redemption Date as a result of the redemption or otherwise, if the
Issuer determines in good faith that, as a result of:

(1)           any
change in, or amendment to, the laws or treaties (or any regulations or rulings
promulgated thereunder) of the Relevant Tax Jurisdiction (as defined below)
affecting taxation; or

(2)           any
change in position regarding the application, administration or interpretation
of such laws, treaties, regulations or rulings (including a holding, judgment
or order by a court of competent jurisdiction);

the Issuer with respect
to the Securities, or a Note Guarantor with respect to a Note Guarantee is, or
on the next interest payment date in respect of the Securities would be,
required to pay Additional Amounts, and such obligation cannot be avoided by
taking reasonable measures available to it (including, for the avoidance of
doubt, the appointment of a new Paying Agent in accordance with the Section
2.04(d) of the Indenture or, where such payment method would be reasonable
under the circumstances, payment through another Note Guarantor or the Issuer).
In the case of the Issuer, Kabel Deutschland Vertrieb und Service GmbH &
Co. KG. (“KDS”) or Kabel Asset GmbH & Co. KG (“NewKDS”), the Change in Tax Law must become effective on or
after the date of the offering memorandum. In the case of an Additional Note
Guarantor, or any successor of any Person specified in the preceding sentence,
the Change in Tax Law must become effective on or after the date that such
Person became a Note Guarantor or such a successor.

 C-1-F
 

 

Notice of
redemption for taxation reasons will be published in accordance with the
procedures set forth in Section 3.03 of the Indenture.

Notwithstanding the foregoing, no such notice of
redemption will be given (a) earlier than 90 days prior to the earliest date on
which the Issuer or a Note Guarantor, or a successor of the foregoing, as the
case may be, would be obliged to make such payment of Additional Amounts and
(b) unless at the time such notice is given, such obligation to pay such
Additional Amounts remains in effect. Prior to the publication or mailing of
any notice of redemption of any series of Securities pursuant to the foregoing,
the Issuer will deliver to the Trustee (a) an Officer’s Certificate stating
that it is entitled to effect such redemption and setting forth a statement of
facts showing that the conditions precedent to its right so to redeem have been
satisfied and (b) an opinion of an independent tax counsel of recognized
standing to the effect that the circumstances referred to above exist. The
Trustee will accept such Officer’s Certificate and opinion as sufficient
evidence of the satisfaction of the conditions precedent described above, in
which event it will be conclusive and binding on the Holders.

7.  Withholding Taxes

All payments made by the Issuer, any Note Guarantor or
a successor of any of the foregoing (each, a “Payor”)
on the Securities or the Note Guarantees will be made free and clear of and
without withholding or deduction for, or on account of, any Taxes unless the
withholding or deduction of such Taxes is then required by law. If any
deduction or withholding for, or on account of, any Taxes imposed or levied by
or on behalf of:

(1)           Germany
or any political subdivision or governmental authority thereof or therein
having power to tax;

(2)           any
jurisdiction from or through which payment on the Securities or any Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

(3)           any
other jurisdiction in which the Payor is organized or otherwise considered to
be a resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of clause (1), (2)
and (3), a “Relevant Taxing Jurisdiction”),

will at any time be
required from any payments made with respect to the Securities, including
payments of principal, redemption price, interest or premium, if any, the Payor
will pay (together with such payments) such additional amounts (the “Additional Amounts”) as may be necessary in order that the
net amounts received in respect of such payments by the Holders or the Trustee,
as the case may be, after such withholding or deduction (including any such
deduction or withholding from such Additional Amounts), will not be less than
the amounts which would have been received in respect of such

 C-1-G
 

 

payments on the
Securities in the absence of such withholding or deduction; provided, however,
that no such Additional Amounts will be payable for or on account of:

(1)           any
Taxes that would not have been so imposed but for the existence of any present
or former connection between the relevant Holder (or between a fiduciary,
settlor, beneficiary, member or shareholder of, or possessor of power over the
relevant Holder, if the relevant Holder is an estate, nominee, trust,
partnership, limited liability company or corporation) and the Relevant Taxing
Jurisdiction (including being a citizen or resident or national of, or carrying
on a business or maintaining a permanent establishment in, or being physically
present in, the Relevant Taxing Jurisdiction) but excluding, in each case, any
connection arising solely from the acquisition, ownership or holding of such
Security or the receipt of any payment in respect thereof;

(2)           any
Taxes that would not have been so imposed if (i) the Holder of the Security had
made a declaration of non-residence or any other claim or filing for exemption
to which it is entitled (provided that (x) such declaration of non-residence or
other claim or filing for exemption is required by the applicable law of the
Relevant Taxing Jurisdiction as a precondition to exemption from the
requirement to deduct or withhold all or a part of any such Taxes and (y) at
least 30 days prior to the first payment date with respect to which such
declaration of non-residence or other claim or filing for exemption is required
under the applicable law of the Relevant Taxing Jurisdiction, the relevant
Holder at that time has been notified in writing by the Payor or any other
person through whom payment may be made that a declaration of non-residence or
other claim or filing for exemption is required to be made); or (ii) in the
case of Taxes imposed by or on behalf of Germany or any political subdivision
or governmental authority thereof or therein having the power to tax (each of
the foregoing a “German Taxing Jurisdiction”), the
Holder of the Security had provided such other evidence as is reasonably
necessary to enable the Payor or any other person through whom payment may be
made to determine the residence of the Holder (provided that (x) such
determination of residence is necessary under the applicable laws of the German
Taxing Jurisdiction to determine the application of the exemption from the
requirement to deduct or withhold all or a part of any such Taxes and (y) at
least 30 days prior to the first payment date with respect to which such
determination is required under the applicable law of the German Taxing
Jurisdiction, the relevant Holder at that time has been notified in writing by
the Payor or any other person through whom payment may be made that such
evidence must be provided);

(3)           any
Taxes that are payable otherwise than by withholding from a payment of the
principal of, premium, if any or interest, if any, on the Securities or under
any Note Guarantee;

(4)           any
estate, inheritance, gift, sales, excise, transfer, personal property or
similar tax, assessment or other governmental charge;

(5)           any Taxes that are required to be
deducted or withheld on a payment to an individual pursuant to the European
Council Directive 2003/48/EC

 C-1-H
 

 

regarding the taxation of
savings income or any law implementing, or introduced in order to conform to,
such Directive;

(6)           except
in the case of the liquidation, dissolution or winding-up of the Payor, any
Taxes imposed in connection with a Security presented for payment by or on
behalf of a Holder or beneficial owner who would have been able to avoid such
Tax by presenting the relevant Security to, or otherwise accepting payment
from, another paying agent in a member state of the European Union; or

(7)           any
combination of the above.

Such Additional Amounts will also not be payable (x)
if the payment could have been made without such deduction or withholding if
the beneficiary of the payment had presented the Security for payment (where
presentation is required) within 30 days after the relevant payment was first
made available for payment to the Holder or (y) where, had the beneficial owner
of the Security been the Holder of the Security, such beneficial owner would
not have been entitled to payment of Additional Amounts by reason of any of
clauses (1) to (7) inclusive above.

The Payor will (i) make any required withholding or
deduction and (ii) remit the full amount deducted or withheld to the Relevant
Taxing Jurisdiction in accordance with applicable law. The Payor will use all
reasonable efforts to obtain certified copies of tax receipts evidencing the
payment of any Taxes so deducted or withheld from each Relevant Taxing
Jurisdiction imposing such Taxes and will provide such certified copies to the
Trustee. Such copies shall be made available to the Holders upon request and
will be made available at the offices of the Luxembourg Paying Agent if the
Securities are then listed on the Luxembourg Stock Exchange. The Payor will
attach to each certified copy a certificate stating (x) that the amount of
withholding Taxes evidenced by the certified copy was paid in connection with
payments in respect of the principal amount of Securities then outstanding and
(y) the amount of such withholding Taxes paid per [$1,000 principal amount of
the U.S. Dollar Securities /€1,000 principal amount of the Euro Securities].

If any Payor will be obligated to pay Additional
Amounts under or with respect to any payment made on the Securities, at least
30 days prior to the date of such payment, the Payor will deliver to the
Trustee an Officer’s Certificate stating the fact that Additional Amounts will
be payable and the amount so payable and such other information necessary to
enable the Paying Agent to pay Additional Amounts to Holders on the relevant
payment date (unless such obligation to pay Additional Amounts arises less than
45 days prior to the relevant payment date, in which case the Payor may deliver
such Officer’s Certificate as promptly as practicable after the date that is 30
days prior to the payment date).

Wherever in this
Security there are mentioned, in any context: (1) the payment of principal, (2)
purchase prices in connection with a purchase of Securities, (3) interest, or
(4) any other amount payable on or with respect to any of the Securities or

 C-1-I
 

 

any Note Guarantee, such
reference shall be deemed to include payment of Additional Amounts as described
under this heading to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof.

The Payor will pay any present or future stamp, court
or documentary taxes, or any other excise, property or similar taxes, charges
or levies that arise in any jurisdiction from the execution, delivery,
registration or enforcement of any Securities, the Indenture, the Share Pledge,
the NewKDS Share Pledge or any other document or instrument in relation thereto
(other than a transfer of the Securities) excluding any such taxes, charges or
similar levies imposed by any jurisdiction that is not a Relevant Taxing
Jurisdiction, and the Payor agrees to indemnify the Holders for any such taxes
paid by such Holders. The foregoing obligations will survive any termination,
defeasance or discharge of the Indenture and will apply mutatis mutandis to any
jurisdiction in which any successor to a Payor or any Note Guarantor is
organized or any political subdivision or taxing authority or agency thereof or
therein.

8.  Sinking Fund

The Securities are not subject to any sinking fund.

9.  Notice of Redemption

At least 30 days but not more than 60 days before a
date for redemption of Securities, the Issuer shall transmit a notice of
redemption in accordance with Section 13.02 of the Indenture and as provided below
to each Holder of Securities to be redeemed at such Holder’s registered
address; provided, however, that any notice of a redemption provided for by
paragraph 6 of this Security shall not be given earlier than 90 days prior to
the earliest date on which the Payor would be obligated to make a payment of
Additional Amounts were a payment in respect of the Securities then due and
payable. In addition, for so long as the Securities are listed on the
Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so
require, the Issuer shall publish notice of redemption in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort).  Securities in denominations larger than
[$75,000/€50,000] may be redeemed in part but only in whole multiples of
[$1,000/€1,000], provided, however,
that, after giving effect to such redemption, the applicable Security shall
have a denomination of no less than [$75,000/€50,000].  If money sufficient to pay the redemption
price of and accrued and unpaid interest on all Securities (or portions
thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Securities
(or such portions thereof) called for redemption.

 C-1-J
 

 

10.               Repurchase of
Securities at the Option of Holders upon (i) a Change of Control,
(ii) the Release of Security Agreement after Thin Capitalization Event and
(iii) the occurrence of certain Asset Sales

If a Change of Control occurs, each Holder of
Securities will have the right, subject to certain conditions specified in the
Indenture, to require the Issuer to repurchase all or any part of the Securities
of such Holder at a purchase price equal to 101% of the principal amount of the
Securities to be repurchased plus accrued and unpaid interest, if any, to the
date of purchase (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date) as
provided in, and subject to the terms of, the Indenture.

In accordance with Section 4.04 of the Indenture,
the Issuer will be required to offer to repurchase all of the Securities upon
the release of any Security Agreement after a Thin Capitalization Event.

In accordance with Section 4.09 and Section 4.20
of the Indenture, the Issuer will be required to offer to purchase Securities
upon the occurrence of certain events, including certain Asset Sales or
termination of certain acquisitions.

11.  Subordination

The Note Guarantees of the Note Guarantors are
subordinated to existing and future Note Guarantor Senior Indebtedness and will
rank pari  passu in right
of payment with all existing and future Note Guarantor Senior Subordinated
Indebtedness.  To the extent provided in
the Indenture and the Intercreditor Agreement, Note Guarantor Senior
Indebtedness must be paid before the Note Guarantees of such Guarantors may be
paid.  The Issuer and each Note Guarantor
agree, and each Holder by accepting a Security agrees, to the subordination
provisions contained in the Indenture and the Intercreditor Agreement and
authorizes the Trustee to give it effect and appoints the Trustee as
attorney-in-fact for such purpose.

12.  Security

The Securities will be secured on a second priority
basis by the Collateral.  Reference is
made to the Indenture for terms relating to such security, including the
release, termination and discharge thereof. 
Enforcement of the Security Agreements is subject to the Intercreditor
Agreement.  Neither the Issuer nor any
Note Guarantor shall be required to make any notation on this Security to
reflect any grant of such security or any such release, termination or
discharge.

13.  Denominations; Transfer;
Exchange

The Securities are in registered form without interest
coupons in minimum denominations of [$75,000/€50,000] and whole multiples of
[$1,000/€1,000] in excess thereof.  A
Holder may transfer or exchange Securities in accordance with the
Indenture.  In connection with any such
transfer or exchange, the Indenture will require the

 C-1-K
 

 

transferring or
exchanging Holder to, among other things, furnish appropriate endorsements and
transfer documents, to furnish information regarding the account of the
transferee at Euroclear, Clearstream or DTC, where appropriate, to furnish
certain certificates and opinions, and to pay any taxes, duties and
governmental charges in connection with such transfer or exchange. Any such
transfer or exchange will be made without charge to the Holder, other than any
taxes, duties and governmental charges payable in connection with such transfer.

Notwithstanding the foregoing, the Issuer is not
required to register the transfer or exchange of any Securities: (1) for a
period of 15 calendar days prior to any date fixed for the redemption of the
Securities; (2) for a period of 15 calendar days immediately prior to the date
fixed for selection of Securities to be redeemed in part; (3) for a period of
15 calendar days prior to the record date with respect to any interest payment
date; or (4) which the Holder has tendered (and not withdrawn) for repurchase
in connection with a Change of Control Offer, an Asset Disposition Offer or a
Special Repurchase Offer (each as defined in the Indenture).

14.  Persons Deemed Owners

Except as provided in
paragraph 2 of this Security, the registered Holder of this Security will be
treated as the owner of it for all purposes.

15.  Unclaimed Money

If money for the payment of principal or interest
remains unclaimed for two years, the Trustee or Paying Agent shall pay the
money back to the Issuer at its written request unless an abandoned property
law designates another Person.  After any
such payment, Holders entitled to the money must look to the Issuer for payment
as general creditors and the Trustee and the Paying Agent shall have no further
liability with respect to such monies.

16.  Discharge and Defeasance

Subject to certain conditions, the Issuer at any time
may terminate some of or all its obligations under the Securities and the
Indenture if the Issuer, among other things, deposits with the Trustee cash in
[U.S. Dollars or U.S. Government Obligations denominated in U.S. Dollars/euro
or European Government Obligations denominated in euro] in such amounts as will
be sufficient for the payment of the entire Indebtedness including principal
of, premium and interest on the Securities to the date of redemption or
maturity, as the case may be.

17.  Amendment, Waiver

The Indenture and the Securities may be amended as set
forth in the Indenture.

 C-1-L
 

 

18.  Defaults and Remedies

The following events constitute “Events of Default”
under the Indenture:  An “Event of
Default” occurs if or upon:

(1)  default in
any payment of interest on any Security issued pursuant to the Indenture when
due and payable, continued for 30 days;

(2)  default in
the payment of principal of or premium, if any, on any Security issued pursuant
to the Indenture when due at its Stated Maturity, upon optional redemption,
upon required repurchase, upon declaration or otherwise;

(3)  failure to
comply for 30 days after notice by the Trustee or the Holders of 25% in
principal amount of the outstanding Securities with any of its obligations
under Article 4 and 5 of the Indenture (in each case, other than a failure to
purchase Securities which will constitute an Event of Default under clause (2)
above);

(4)  failure to
comply for 60 days after notice by the Trustee or the Holders of 25% in
principal amount of the outstanding Securities with its other agreements
contained in the Indenture;

(5)  default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Issuer or any of its Restricted Subsidiaries (or the payment of which is
Guaranteed by the Issuer or any of its Restricted Subsidiaries) other than Indebtedness
owed to the Issuer or a Restricted Subsidiary whether such Indebtedness or
Guarantee now exists, or is created after the Issue Date, which default:

(a)  is caused
by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness (“payment default”); or

(b)  results in
the acceleration of such Indebtedness prior to its maturity (the “cross acceleration provision”);

and, in each case, the
principal amount of any such Indebtedness, together with the principal amount
of any other such Indebtedness under which there has been a payment default or
the maturity of which has been so accelerated, aggregates €35 million or more;

(6)  (a) the
Issuer or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law: (i) commences a voluntary case; (ii) consents to the entry of
an order for relief against it in an involuntary case; (iii) consents to the
appointment of a Custodian of it or for any substantial part of its property;
(iv) makes a general assignment for the benefit of its creditors, or (v) takes
any comparable action under any foreign laws relating to insolvency; or (b) a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: (i) is for relief against the Issuer or any Significant Subsidiary in
an involuntary case; (ii) appoints a Custodian of

 C-1-M
 

 

the Issuer or any
Significant Subsidiary or for any substantial part of its property; (iii)
orders the winding up or liquidation of the Issuer or any Significant
Subsidiary, or (iv) any similar relief is granted under any foreign laws, and
any such order or decree remains unstayed and in effect for 60 days.

The foregoing shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

The term “Bankruptcy Law”
means the German Insolvency Code (Insolvenzordnung)
or any other German law dealing with the incapability of a debtor to pay its
debt, the debtor’s over indebtedness or a lack of assets to cover a debtor’s
outstanding debt, Title 11, United States Code, or any similar U.S. Federal or
state law for the relief of debtors or the laws of any other jurisdiction
relating to bankruptcy, insolvency, winding up, liquidation, reorganization or
the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee,
liquidator, custodian or similar official under any Bankruptcy Law.

(7)  failure by
the Issuer or any Significant Subsidiary or group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements for the Issuer and its Restricted Subsidiaries), would constitute a
Significant Subsidiary to pay final judgments aggregating in excess of €35
million (exclusive of any amounts that a solvent insurance company has
acknowledged liability for), which judgments are not paid, discharged or stayed
for a period of 60 days after the judgment becomes final (the “judgment default provision”);

(8)  any Note
Guarantee of a Significant Subsidiary ceases to be in full force and effect
(other than in accordance with the terms of such Note Guarantee or the
Indenture) or is declared invalid or unenforceable in a judicial proceeding or
any Note Guarantor denies or disaffirms in writing its obligations under its
Note Guarantee and any such Default continues for 10 days (the “guarantee provisions”); and

(9)  any
security interest under the Share Pledge or the NewKDS Share Pledge shall, at
any time, cease to be in full force and effect (other than in accordance with
the terms of the Share Pledge or the NewKDS Share Pledge, as applicable, the
Intercreditor Agreement and the Indenture) for any reason other than the
satisfaction in full of all obligations under the Indenture or the release of
any such security interest in accordance with the terms of the Indenture, the
Intercreditor Agreement, the Share Pledge or the NewKDS Share Pledge or any
such security interest created thereunder shall be declared invalid or unenforceable
or the Issuer shall assert in writing that any such security interest is
invalid or unenforceable and any such Default continues for 10 days (the “security default provisions”).

However, a default under clauses (3) and (4) above
will not constitute an Event of Default until the Trustee or the Holders of 25%
in principal amount of the

 C-1-N
 

 

outstanding Securities
under the Indenture notify the Issuer of the default and the Issuer does not
cure such default within the time specified in such clauses (3) or (4) above,
as applicable, after receipt of such notice.

Clause (6) shall not in any case apply to any
bankruptcy, insolvency or court protection relating to Callahan Kabel NRW GmbH
& Co. KG arising out of or related to its ownership of ish until 90 days after
such time that a court of competent jurisdiction has finally and judicially
determined or the Issuer or any of its Subsidiaries has agreed in writing that
Callahan Kabel NRW GmbH & Co. KG holds the legal title to the partnership
interests in ish GmbH & Co. KG.

If an Event of Default (other than an Event of Default
described in clause (6) above) occurs and is continuing, the Trustee by notice
to the Issuer or the Holders of at least 25% in principal amount of the
outstanding Securities under the Indenture by notice to the Issuer and the
Trustee, may, and the Trustee at the request of such Holders shall, declare the
principal of, premium, if any, and accrued and unpaid interest, if any, on all
the Securities under the Indenture to be due and payable. Upon such a
declaration, such principal, premium and accrued and unpaid interest, if any,
will be due and payable immediately.  In
the event of a declaration of acceleration of the Securities because an Event
of Default described in clause (5) above has occurred and is continuing, the
declaration of acceleration of the Securities shall be automatically annulled
if the event of default or payment default triggering such Event of Default
pursuant to clause (5) above shall be remedied or cured, or waived by the holders
of the Indebtedness, or the Indebtedness that gave rise to such Event of
Default shall have been discharged in full, within 30 days after the
declaration of acceleration with respect thereto and if (1) the annulment of
the acceleration of the Securities would not conflict with any judgment or
decree of a court of competent jurisdiction and (2) all existing Events of
Default, except nonpayment of principal, premium or interest on the Securities
that became due solely because of the acceleration of the Securities, have been
cured or waived.  If an Event of Default
described in clause (6) above occurs and is continuing, the principal of,
premium, if any, and accrued and unpaid interest, if any, on all the Securities
will become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holders.

19.  Trustee Dealings with the
Issuer

Subject to certain limitations imposed by the TIA, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Issuer or its Affiliates and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were
not Trustee.

20.  No Recourse Against
Others

No director, manager, officer, employee, incorporator
or shareholder of the Issuer or any of its Subsidiaries or any parent company
of the Issuer shall have any

 C-1-O
 

 

liability for any
obligations of the Issuer or any Subsidiary with respect to the Securities, the
Note Guarantees, the Security or the Indenture, or for any claim based on, in
respect of, or by reason of such obligations or their creation. Each Holder by
accepting a Security waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Securities. Such
waiver may not be effective to waive liabilities under the U.S. federal
securities laws, and it is the view of the Commission that such a waiver is
against public policy.

21.  Authentication

This Security shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Security. The signature shall be conclusive evidence that the security has been
authenticated under the Indenture.

22.  Abbreviations

Customary abbreviations may be used in the name of a
Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants
by the entireties), JT TEN (=joint tenants with rights of survivorship and not
as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

23.  Governing Law

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

24.  Common Codes [,CUSIP] and
ISIN Numbers

The Issuer in issuing the Securities
may use Common Codes [, CUSIP] and ISIN numbers (if then generally in use) and,
if so, the Trustee shall use Common Codes, CUSIP and ISIN numbers in notices of
redemption as a convenience to Holders; provided,
however, that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Securities, and any
such redemption shall not be affected by any defect in or omission of such
numbers.  The Issuer will promptly notify
the Trustee and the Paying Agent of any
change in the Common Code, CUSIP or ISIN numbers.

The Issuer will furnish to any Holder of
Securities upon written request and without charge to the Holder a copy of the
Indenture which has in it the text of this Security.

 C-1-P

 

ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

(Print or type assignee’s name, address and zip code)

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably
appoint                           agent
to transfer this Security on the books of the Issuer.  The agent may substitute another to act for
him.

	
  

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  Sign exactly as your name appears on the other side
  of this Security.

  
					

 C-1-Q
 

 

CERTIFICATE TO BE
DELIVERED UPON EXCHANGE OR REGISTRATION OF TRANSFER RESTRICTED SECURITIES

This certificate relates to [$/€]               
principal amount of Securities held in (check applicable space)           
book-entry or              
definitive form by the undersigned.

The undersigned (check one box below):

o                                    has
requested the Trustee by written order to deliver in exchange for its
beneficial interest in the Global Security held by the Depositary a Security or
Securities in definitive, registered form of authorized denominations and an
aggregate principal amount equal to its beneficial interest in such Global
Security (or the portion thereof indicated above);

o                                    has
requested the Trustee by written order to exchange or register the transfer of
a Security or Securities.

In connection with any transfer of any of the
Securities evidenced by this certificate occurring prior to the expiration of
the period referred to in Rule 144(k) under the Securities Act, the
undersigned confirms that such Securities are being transferred in accordance
with its terms:

CHECK ONE BOX BELOW

(1)                                  o            to the Issuer; or

(2)                                  o            to the Registrar for registration in
the name of the Holder, without transfer; or

(3)                                  o            pursuant to an effective
registration statement under the Securities Act of 1933; or

(4)                                  o            inside the United States to a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act of
1933) that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that such transfer is being made in
reliance on Rule 144A, in each case pursuant to and in compliance with
Rule 144A under the Securities Act of 1933; or

(5)                                  o            outside the United States in an
offshore transaction within the meaning of Regulation S under the Securities
Act in compliance with Rule 904 under the Securities Act of 1933 and such
Security shall be held immediately after the transfer through Euroclear or
Clearstream until the expiration of the Restricted Period (as defined in the
Indenture); or

 C-1-R
 

 

(6)           o            pursuant to another available
exemption from registration provided by
Rule 144 under the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any Person
other than the registered Holder thereof, provided, however, that if box (5) or (6) is checked, the Trustee
may require, prior to registering any such transfer of the Securities, such
legal opinions, certifications and other information as the Trustee or Issuer
has reasonably requested to confirm that such transfer is being made pursuant
to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

	
  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature

  
	
   

  	
   

  	
   

  
	
  Signature
  Guarantee:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature must be
  guaranteed

  by a participant in a recognized

  signature guaranty medallion program

  or other signature guarantor acceptable

  to the Trustee

  	
   

  	
  Signature of Signature Guarantee

  
	
   

  	
   

  	
   

  
	
   

  
						

TO BE COMPLETED BY
PURCHASER IF (4) ABOVE IS CHECKED.

The undersigned represents and warrants that it is
purchasing this Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under
the Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such
information regarding the Issuer as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by Rule 144A.

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:  To be
  executed by an executive officer

  

 C-1-S
 

 

[TO BE ATTACHED TO
GLOBAL SECURITIES]

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

The initial principal amount of this Global Security
is [$/€] [        ].  The following increases or decreases in this
Global Security have been made:

	
  Date of

  Increase/decrease

  	
   

  	
  Amount of decrease in

  Principal  Amount of this

  Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of this

  Global Security

  	
   

  	
  Principal amount of this

  Global Security following

  such decrease or increase

  	
   

  	
  Signature of authorized

  signatory of Trustee or 

  [Securities

  Custodian/Depositary]

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 C-1-T
 

 

OPTION OF HOLDER
TO ELECT PURCHASE

If you want to elect to have this Security purchased
by the Issuer pursuant to Section  4.03 (Change of Control), 4.04 (Thin
Capitalization Repurchase), Section 4.09 (Asset Disposition) or Section 4.20
(Acquisition Termination Repurchase Offer) of the Indenture, check the box:

Asset Disposition o
Change of Control o Thin
Capitalization Repurchase o

Acquisition
Termination Repurchase o

If you want to elect to have only part of this
Security purchased by the Issuer pursuant to Section  4.03, 4.04, 4.09 or
4.20, of the Indenture, state the amount ([€50,000 or €1,000/$75,000 or $1,000]
multiples in excess thereof):

€

	
  Date:

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
  (Sign exactly as your name appears on the other side
  of the Security)

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
  Signature must be guaranteed by a participant in a
  recognized signature guaranty medallion program or other signature guarantor
  acceptable to the Trustee

  
						

 

 C-1-U

 

EXHIBIT C

[FORM OF DEFINITIVE
SECURITY]

 

EXHIBIT D

[FORM OF SUPPLEMENTAL INDENTURE]

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as
of 
            ,
among [NOTE GUARANTOR] (the “New Guarantor”), a subsidiary of Kabel
Deutschland GmbH, a limited partnership organized under the laws of Germany
(the “Issuer”),  the Issuer,  [EXISTING GUARANTORS], The Law Debenture
Trust Company of New York, as trustee (the “Trustee”), The Bank of New
York, as Registrar, Transfer Agent and Paying Agent, The Bank of New York
(Luxembourg) S.A., as Paying Agent and Luxembourg Transfer Agent and Deutsche
Bank AG London, as Security Trustee.

W I T N E S S E T
H :

WHEREAS the Issuer and [EXISTING GUARANTORS] (the “Existing
Guarantors”) have heretofore executed and delivered to the Trustee an
Indenture (the “Indenture”) dated as of [·],
2004, providing for the issuance of [·]% Senior Notes due
2014 (the “Securities”);

WHEREAS Section 10.7 of the Indenture provides
that under certain circumstances the Issuer is required to cause the New
Guarantor to execute and deliver to the Trustee a supplemental indenture
pursuant to which the New Guarantor shall unconditionally guarantee all the
Issuer’s obligations under the Securities pursuant to a  Note Guarantee on the terms and conditions
set forth herein; and

WHEREAS pursuant to Section 9.01 of the
Indenture, the Trustee, the Issuer and the Existing Guarantors are authorized
to execute and deliver this Supplemental Indenture;

NOW THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the New Guarantor, the Issuer, the Existing Guarantors and the
Trustee mutually covenant and agree for the equal and ratable benefit of the
Holders of the Securities as follows:

1.  Agreement
to Guarantee.  The New Guarantor
hereby agrees, jointly and severally with all the Existing Guarantors, to
unconditionally guarantee the Issuer’s obligations under the Securities on the
terms and subject to the conditions set forth in Articles 10 and 11 of the
Indenture and to be bound by all other applicable provisions of the Indenture,
the Securities and the Intercreditor Agreement.

2.  Ratification of Indenture;
Supplemental Indentures Part of Indenture.  Except as expressly
amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and
effect.  This Supplemental Indenture
shall form a part of the Indenture for all

 

purposes, and every
Holder of Securities heretofore or hereafter authenticated and delivered shall
be bound hereby.

3.  Governing
Law.  THIS SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

4.  Trustee,
Paying Agent [and Secutiry Trustee] Make No Representation.  The Trustee, Paying Agent [and Security
Trustee] make no representation as to the validity or sufficiency of this
Supplemental Indenture.

5.  Counterparts.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same
agreement.

6.  Effect of Headings.  The Section headings herein are for
convenience only and shall not affect the construction thereof.

 C-1-2
 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Supplemental Indenture to be duly executed as of the date first above
written.

	
  

  	
  [NEW GUARANTOR],

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  KABEL DEUTSCHLAND GMBH

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  KABEL DEUTSCHLAND VERTRIEB UND

  SERVICE GMBH & CO. KG

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 C-1-3
 

 

 

	
  

  	
  KABEL ASSET GMBH & CO. KG

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 C-1-4
 

 

 

	
  

  	
    [EXISTING
  GUARANTORS],

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  LAW DEBENTURE TRUST COMPANY OF

  NEW YORK, as Trustee,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  THE BANK OF NEW YORK (LUXEMBOURG)

  S.A., as Luxembourg Transfer Agent and Paying

  Agent,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  THE BANK OF NEW YORK, as Registrar,

  Transfer Agent and Paying Agent,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 C-1-5
 

 

 

	
  

  	
  [DEUTSCHE BANK AG LONDON], as Security

  Trustee,

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 C-1-6

EXHIBIT E

FORM OF CERTIFICATE OF TRANSFER

The Bank of New York

One Canada Square

London E14 5AL

Attn: Corporate Trust Administration

Re:  [·]% Senior Notes due 2014
of Kabel Deutschland GmbH (the “Securities”)

Reference is hereby made to the Indenture, dated as of
[·], 2004 (the “Indenture”), among Kabel Deutschland GmbH, as Issuer, the
Note Guarantors, the Law Debenture Trust Company of New York, as Trustee, The
Bank of New York, as Registrar, Transfer Agent and Paying Agent, The Bank of
New York (Luxembourg) S.A., as Paying Agent and Luxembourg Transfer Agent and
J.P. Morgan Europe Limited, as Security Trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

                          ,
(the “Transferor”) owns and proposes to
transfer the Security/Securities or interest in such Security/Securities
specified in Annex A hereto, in the principal amount of [$/€]               
in such Security/Securities or interests (the “Transfer”),
to                       
(the “Transferee”), as further specified in Annex
A hereto.  In connection with the
Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1.  o   Check if Transfer is
Pursuant to Rule 144A. 
The Transfer is being effected pursuant to and in accordance with Rule
144A under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and, accordingly, the Transferor
hereby further certifies that the book-entry interest or Definitive Security is
being transferred to a Person that the Transferor reasonably believed and
believes is purchasing the book-entry interest or Definitive Security for its
own account, or for one or more accounts with respect to which such Person
exercises sole investment discretion, and such Person and each such account is
a “qualified institutional buyer” within the meaning of Rule 144A to whom
notice was given that the Transfer was being made in reliance on Rule 144A and
such Transfer is in compliance with any applicable securities laws of any state
of the United States or any other jurisdiction. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred book-entry interest or Definitive Security
will be subject to the restrictions on transfer enumerated in the Restricted
Securities Legend printed on the Rule 144A Global Security and/or the Rule 144A
Definitive Security and in the Indenture and the U.S. Securities Act.

2.  o   Check if Transfer is
pursuant to Regulation S. 
The Transfer is being effected pursuant to and in accordance with
Regulation S under the U.S. Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the Transfer is not being made to a person in
the United States and (A) at the time the buy order was originated, the
Transferee was outside the United States or such Transferor and any Person
acting on its

 

behalf reasonably believed and believes that the
Transferee was outside the United States or (B) the transaction was executed
in, on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States; (ii) no directed
selling efforts have been made in contravention of the requirements of
Regulation S under the U.S. Securities Act; 
(iii) the transaction is not part of a plan or scheme to evade the
registration requirements of the U.S. Securities Act; and (iv) if the Transfer
is being made prior to the expiration of the Restricted Period, the transfer is
not being made to a U.S. Person or for the account or benefit of a U.S.
Person.  Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Security will be subject to the
restrictions on Transfer contained in the U.S. Securities Act, the Indenture
and any applicable securities laws of any state of the United States or any
other jurisdiction.

3.  o  Check if Transfer is
pursuant to Rule 144.  (i)
The Transfer is being effected pursuant to and in accordance with Rule 144
under the U.S. Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable securities laws of any state of
the United States or any other jurisdiction; (ii) the Transferor is not (and
during the three months preceding the Transfer was not) an Affiliate of the
Issuer, or any Guarantor; (iii) at least two years have elapsed since such
Transferor (or any previous transferor of such book-entry interest or
Definitive Security that was not an Affiliate of the Issuer or any Guarantor)
acquired such book-entry interest or Definitive Security from the Issuer,
any Guarantor or an Affiliate of the Issuer or any Guarantor, and (iv) the
restrictions on transfer contained in the Indenture and the Restricted
Securities Legend are not required in order to maintain compliance with the
U.S. Securities Act.  Upon consummation
of the proposed Transfer in accordance with the terms of the Indenture, the
transferred book-entry interest or Rule 144A Definitive Security will no longer
be subject to the restrictions on transfer enumerated in the Restricted
Securities Legend printed on the Rule 144A Global Security and/or the Rule 144A
Definitive Security and in the Indenture.

This certificate and the statements contained herein
are made for your benefit and the benefit of the Issuer and the Trustee.

	
  

  	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
    Name:

  
	
   

  	
    Title:

  
	
   

  
	
  Dated:

  	
   

  	
   

  
						

 C-1-H
 

 

ANNEX A TO CERTIFICATE OF TRANSFER

1.             The
Transferor owns and proposes to transfer the following:

[CHECK ONE]

(a) o  a
book-entry interest held through [DTC Account No.                          /
Euroclear Account No.                          
or Clearstream Banking Account No.                          ],
in the:

(i)            o   Rule 144A Global Security ([ISIN/CUSIP]                   ),
or

(ii)           o   Regulation S Global Security ([ISIN/CUSIP]               ),
or

(b)  o  a
Rule 144A Definitive Security.

(c)  o  a
Regulation S Definitive Security.

2.             After
the Transfer the Transferee will hold:

[CHECK ONE]

(a) o  a
book-entry interest through [DTC Account No.                      /
Euroclear Account No.                 
or Clearstream Banking Account No.                               ]
in the:

(i)            o  Rule 144A Global Security ([ISIN/CUSIP]                      ),
or

(ii)           o  Regulation S Global Security ([ISIN/CUSIP]                  ),
or

(b) o  a
Rule 144A Definitive Security; or

(c) o  a
Regulation S Definitive Security; or

(d) o  an
unrestricted Definitive Security

 C-1-IExhibit 4.04

EXECUTION COPY

Kabel
Deutschland GmbH

$610,000,000
10.625% Senior Notes due 2014

€ 250,000,000 10.750% Senior Notes due 1014

REGISTRATION
RIGHTS AGREEMENT

July 2, 2004

Deutsche Bank AG London

Morgan Stanley & Co. International Limited

Citigroup Global Markets Limited

Goldman Sachs International

As Representatives of the Initial Purchasers

c/o          Deutsche Bank AG London

Winchester House

1 Great Winchester Street

London EC2N 2DB

Dear Sirs:

Kabel
Deutschland GmbH, a limited liability company organized and existing under the
laws of Germany (the “Company”) proposes to issue and sell (the “Offering”) to
Deutsche Bank AG London and the several initial purchasers listed in Schedule I
to the Purchase Agreement (collectively, the “Initial Purchasers”) upon the
terms set forth in a purchase agreement, dated June 24, 2004 (the “Purchase
Agreement”) €250,000,000 in aggregate principal amount of its 10.750% Senior
Notes due 2014 (the “Euro Notes”) and $610,000,000 in aggregate principal
amount of its 10.625% Senior Notes due 2014 (the “Dollar Notes” and together
with the Euro Notes, the “Initial Securities”). 
The Initial Securities are to be issued under an indenture (the “Indenture”),
of even date herewith by and among the Company, Kabel Deutschland Vertrieb und
Service GmbH & Co. KG (“KDS”), a limited partnership organized and existing
under the laws of Germany, Kabel Asset GmbH & Co. KG (“New KDS”), a limited
partnership organized and existing under the laws of Germany (together, the “Guarantors”)
and Law Debenture Trust Company of New York, as trustee (the “Trustee”).  The Initial Securities will be secured by
second priority pledges over all partnership interests in the Guarantors
pursuant to pledge agreements (the “Interest Pledges”) and over all shares in Kabel
Deutschland Verwaltungs GmbH (“KDV”) pursuant to a pledge agreement (the “Share
Pledge”), of even date herewith, 2004 and will be guaranteed on a senior
subordinated basis by the Guarantors (the “Guarantees”).

1.  Registered Exchange Offer.  The Company and the
Guarantors shall, at their own cost, prepare and, no later than April 30, 2006
(or if April 30, 2006 is not a business day, the first business day
thereafter), file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Exchange Offer Registration Statement”) on an
appropriate form under the Securities Act of 1933, as amended (the “Securities
Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to
the Holders of Transfer Restricted Securities (as defined in Section 7
hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such
Holders, in exchange for the Initial Securities, a like aggregate principal
amount of debt securities (the “Exchange Securities”) of the Company issued
under the Indenture and identical in all material respects 

 

to the Initial
Securities (except for the transfer restrictions relating to the Initial
Securities and the provisions relating to the matters described in Section 7
hereof) that would be registered under the Securities Act.  The Company and the Guarantors shall use
their reasonable best efforts to cause such Exchange Offer Registration
Statement to become effective under the Securities Act within 180 days (or if
the 180th day is not a business day, the first business day thereafter) after
April 30, 2006 (or if April 30, 2006 is not a business day, the first business
day thereafter) and shall keep the Exchange Offer Registration Statement
effective for not less than 30 days (or longer, if required by applicable
law) after the date notice of the Registered Exchange Offer is mailed to the
Holders.

The
Company and the Guarantors may, in lieu of an initial filing of the Exchange
Offer Registration Statement, confidentially submit such Exchange Offer
Registration Statement with the Commission; provided that they
shall promptly provide to the Trustee a copy of the cover letter accompanying
such submission.  If the Company effects
the Registered Exchange Offer, the Company will be entitled to close the
Registered Exchange Offer 30 days after the commencement thereof provided that
the Company has accepted all the Initial Securities theretofore validly
tendered in accordance with the terms of the Registered Exchange Offer.

Following
the declaration of the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange Offer,
it being the objective of such Registered Exchange Offer to enable each Holder
of Transfer Restricted Securities electing to exchange the Initial Securities
for Exchange Securities (assuming that such Holder (a) is not an affiliate of
the Company within the meaning of Rule 405 under the Securities Act, (b) acquires
the Exchange Securities in the ordinary course of such Holder’s business, (c)
has no arrangements or understanding with any person to participate in the
distribution of the Exchange Securities and (d) is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer)
to trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of the several states of the United
States.

The
Company acknowledges that, pursuant to current interpretations by the
Commission’s staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market-making activities or other trading activities, for
Exchange Securities (an “Exchanging Dealer”), is required to deliver a
prospectus containing the information set forth in (a) Annex A hereto on the
cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section (or comparable section, however captioned), and
(c) Annex C hereto in the “Plan of Distribution” section of such prospectus in
connection with a sale of any such Exchange Securities received by such
Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an Initial
Purchaser that elects to sell Private Exchange Securities (as defined below)
acquired in exchange for Initial Securities constituting any portion of an
unsold allotment is required to deliver a prospectus containing the information
required by Items 9.B and 9.D of Form 20-F under the Securities Act, as
applicable, in connection with such sale.

The
Company and the Guarantors shall use their reasonable best efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such
period shall be the lesser of 180 days and the date on which all Exchanging
Dealers and the Initial Purchasers have sold all Exchange Securities held by
them (unless such period is extended pursuant to Section 4(j) below) and (ii)
the Company shall make such prospectus and any amendment or supplement thereto,
available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of not less than 180 days after the
consummation of the Registered Exchange Offer.

If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the
Company, simultaneously with the delivery of 

 2
 

 

the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver
to such Initial Purchaser upon the written request of such Initial Purchaser,
in exchange (the “Private Exchange”) for the Initial Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Company
issued under the Indenture and identical in all material respects (including
the existence of restrictions on transfer under the Securities Act and the
securities laws of the several states of the United States, to the Initial
Securities (the “Private Exchange Securities”). 
The Initial Securities, the Exchange Securities and the Private Exchange
Securities are herein collectively called “Securities.”

In
connection with the Registered Exchange Offer, the Company shall:

(a)  mail to
each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and
related documents;

(b)  keep the
Registered Exchange Offer open for not less than 30 days (or longer, if
required by applicable law) after the date notice thereof is mailed to the
Holders;

(c)  utilize
the services of a depositary for the Registered Exchange Offer with an address
in the Borough of Manhattan, The City of New York, which may be the Trustee or
an affiliate of the Trustee;

(d)  permit
Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered
Exchange Offer shall remain open; and

(e)  otherwise
comply with all applicable laws.

As
soon as practicable after the close of the Registered Exchange Offer or the
Private Exchange, as the case may be, the Company shall:

(x)  accept for
exchange all the Initial Securities validly tendered and not withdrawn pursuant
to the Registered Exchange Offer and the Private Exchange;

(y)  deliver to
the Trustee for cancellation all the Initial Securities so accepted for
exchange; and

(z)  cause the
trustee to authenticate and deliver promptly to each Holder of the Initial
Securities, Exchange Securities or Private Exchange Securities, as the case may
be, equal in principal amount to the Initial Securities of such Holder so
accepted for exchange.

The
Indenture will provide that the Exchange Securities will not be subject to the
transfer restrictions applicable to the Initial Securities and that all the
Securities will vote and consent together on all matters as one class and that
none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

Interest
on each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last
interest payment date on which interest was paid on the Initial Securities
surrendered in exchange therefor or, if no interest has been paid on the
Initial Securities, from the date of original issue of the Initial Securities.

Each
Holder participating in the Registered Exchange Offer shall be required to
represent to the Company that at the time of the consummation of the Registered
Exchange Offer (i) any Exchange Securities received by such Holder will be
acquired in the ordinary course of its business, (ii) such Holder will
have no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an 

 3
 

 

“affiliate,” as
defined in Rule 405 of the Securities Act, of the Company or if it is an
affiliate, such Holder will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, and
(iv) if such Holder is a broker-dealer, that it will receive Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities
and that it will be required to deliver a prospectus in connection with any
resale of such Exchange Securities.

Notwithstanding
any other provisions hereof, the Company and the Guarantors will ensure that
(i) any Exchange Offer Registration Statement and any amendment thereto and any
prospectus forming part thereof and any supplement thereto complies in all
material respects with the Securities Act and the rules and regulations
thereunder, (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any supplement
to such prospectus, does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

2.  Shelf Registration. 
If, (i) because of any change in law or in applicable interpretations
thereof by the staff of the Commission, the Company is not permitted to effect
a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the
Registered Exchange Offer is not consummated within 210 days of April 30, 2006
(or if the 210th day is not a business day, the first business
day thereafter), (iii) any Initial Purchaser so requests in writing with
respect to the Initial Securities (or the Private Exchange Securities) not
eligible to be exchanged for Exchange Securities in the Registered Exchange
Offer and held by it following consummation of the Registered Exchange Offer or
(iv) any Holder (other than an Exchanging Dealer) is not eligible to
participate in the Registered Exchange Offer or, in the case of any Holder
(other than an Exchanging Dealer) that participates in the Registered Exchange
Offer, such Holder does not receive freely tradeable Exchange Securities on the
date of the exchange, the Company shall take the following actions:

(a)  The
Company and the Guarantors shall, at their cost, (i) as promptly as practicable
(but in no event more than 30 days after so required or requested pursuant to
this Section 2) file with the Commission and thereafter shall use their
reasonable best efforts to cause to be declared effective a registration
statement (the “Shelf Registration Statement” and, together with the Exchange
Offer Registration Statement, a “Registration Statement”) and (ii) (A) in the
case of clause (i) in the precededing paragraph, use their reasonable best
efforts to cause the Shelf Registration Statement to be declared effective
under the Securities Act within 180 days following April 30, 2006 (or if such
date is not a business day, the first business day thereafter) and (B) in the
case of clauses (ii), (iii) and (iv) of the preceding paragraph, use their
reasonable best efforts to cause a Shelf Registration Statement to be declared
effective on or prior to the 180th day (or if the 180th day is a business day, the first day
thereafter) after which the Shelf Registration Statement is required to be
filed on an appropriate form under the Securities Act relating to the offer and
sale of the Transfer Restricted Securities (as defined in Section 7 hereof) by
the Holders thereof from time to time in accordance with the methods of
distribution set forth in the Shelf Registration Statement and Rule 415 under
the Securities Act (hereinafter, the “Shelf Registration”); provided, however,
that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such
Holder agrees in writing to be bound by all the provisions of this Agreement
applicable to such Holder.  The Company
and the Guarantors may, in lieu of an initial filing of a Shelf Registration
Statement, confidentially submit such Shelf Registration Statement with the
Commission; provided that they shall promptly
provide to the Trustee a copy of the cover letter accompanying such submission.

(b)  The
Company and the Guarantors shall use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective in order to permit the
prospectus included therein to be lawfully delivered by the Holders of the
relevant Securities, for a period of time that 

 4
 

 

will terminate when all the Securities covered by the
Shelf Registration Statement (i) have been sold pursuant thereto or (ii) can be
sold pursuant to Rule 144 (k) under the Securities Act, or any successor rule
thereof (any such case, the “Shelf Registration Period”).  The Company and the Guarantors shall be
deemed not to have used their reasonable best efforts to keep the Shelf
Registration Statement effective during the requisite period if either the
Company or the Guarantors voluntarily take any action that would result in
Holders of Securities covered thereby not being able to offer and sell such
Securities during that period, unless (A) such action is required by applicable
law or (B) such action was permitted by Section 2(c) hereof.

(c)  Notwithstanding
the provisions of Section 2(b) hereof, the Company may issue a notice
suspending the use of the Shelf Registration Statement pending the announcement
of a material business combination or other material corporate event or other
material development; provided that
no more than two such notices may be issued in any consecutive twelve-month
period.

(d)  Notwithstanding
any other provisions of this Agreement to the contrary, the Company and the
Guarantors shall cause the Shelf Registration Statement and the related
prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement, amendment or supplement, (i) to comply in all
material respects with the applicable requirements of the Securities Act and
the rules and regulations of the Commission and (ii) not to contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

3.  Piggyback Registration. 
If the Company or the Guarantors at any time propose or are required to
register under the Securities Act any high yield bonds issued to refinance
borrowings under the Senior Credit Agreement, dated March 29, 2004, as amended
and restated, in the amount of €2,600,000,000 among the Company, certain of its
subsidiaries and the lenders named therein, or under the Bridge Credit
Agreement, dated March 29, 2004, as amended and restated, in the amount of €1,575,000,000
among the Company and the lenders named therein, or in lieu of, or in addition
to the facilities provided under the Senior Credit Agreement and the Bridge
Credit Agreement, in each case in connection with any of the Target
Acquisitions or the Alternative Transaction (each as defined in the offering
memorandum dated June 24, 2004 for €250,000,000 10.750% Senior Notes due 2014
and $610,000,000 10.625% Senior Notes due 2014 of the Company), they will
include in such registration statement the Transfer Restricted Securities.

4.  Registration Procedures. 
In connection with any Shelf Registration contemplated by Section 2
hereof and, to the extent applicable, any Registered Exchange Offer
contemplated by Section 1 hereof, the following provisions shall apply:

(a)  The
Company shall (i) furnish to each Initial Purchaser, prior to the filing
thereof with the Commission, a copy of the Registration Statement and each
amendment thereof and each supplement, if any, to the prospectus included
therein and, in the event that an Initial Purchaser (with respect to any
portion of an unsold allotment from the original offering) is participating in
the Registered Exchange Offer or the Shelf Registration Statement, the Company
shall use its best efforts to reflect in each such document, when so filed with
the Commission, such comments as such Initial Purchaser reasonably may propose;
(ii) include substantially the information set forth in Annex A hereto on the
cover, in Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose
of the Exchange Offer” section (or comparable sections, however captioned) and
in Annex C hereto in the “Plan of Distribution” section of the prospectus
forming a part of the Exchange Offer Registration Statement and include the
information set forth in Annex D hereto in the Letter of Transmittal delivered
pursuant to the Registered Exchange Offer; (iii) if requested by an Initial
Purchaser, include the information required by Items 9.B and 9.D of Form 20-F
under the Securities Act, as applicable, in the prospectus forming a part of
the Exchange Offer Registration Statement; (iv) include within the
prospectus contained in the Exchange Offer Registration Statement a section
entitled “Plan of Distribution,” reasonably acceptable to the Initial
Purchasers, 

 5
 

 

which shall contain a summary statement of the
positions taken or policies made by the staff of the Commission with respect to
the potential “underwriter” status of any broker-dealer that is the beneficial
owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) of Exchange Securities received by such
broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”),
whether such positions or policies have been publicly disseminated by the staff
of the Commission or such positions or policies, in the reasonable judgment of
the Initial Purchasers based upon advice of counsel (which may be in-house
counsel), represent the prevailing views of the staff of the Commission; and
(v) in the case of a Shelf Registration Statement, include the names of the
Holders, who propose to sell Securities pursuant to the Shelf Registration
Statement, as selling securityholders.

(b)  The
Company shall give written notice to the Initial Purchasers, the Holders of the
Securities covered by the Registration Statement and any Participating
Broker-Dealer from whom the Company has received prior written notice that it
will be a Participating Broker-Dealer in the Registered Exchange Offer (which
notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made):

(i)  when the
Registration Statement or any amendment thereto has been filed (or submitted on
a confidential basis) with the Commission and when the Registration Statement
or any post-effective amendment thereto has become effective;

(ii)  of any
request by the Commission for amendments or supplements to the Registration
Statement following its effective date or the prospectus included therein or
for additional information;

(iii)  of the
issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that
purpose;

(iv)  of the
receipt by the Company or its legal counsel of any notification with respect to
the suspension of the qualification of the Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; and

(v)  of the
happening of any event that requires the Company to make changes in the
Registration Statement or the prospectus in order that the Registration
Statement or the prospectus do not contain an untrue statement of a material
fact nor omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the prospectus, in
light of the circumstances under which they were made) not misleading.

(c)  The
Company and the Guarantor shall make every reasonable effort to obtain the
withdrawal at the earliest possible time, of any order suspending the
effectiveness of the Registration Statement.

(d)  The
Company shall furnish to each Holder of Securities included within the coverage
of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, and, if the Holder so requests in writing,
all exhibits thereto (including those, if any, incorporated by reference).

(e)  The
Company shall deliver to each Exchanging Dealer and each Initial Purchaser, and
to any other Holder who so requests, without charge, at least one copy of the
Exchange Offer Registration Statement and any post-effective amendment thereto,
including financial statements 

 6
 

 

and schedules, and, if any Initial Purchaser or any
such Holder requests, all exhibits thereto (including those incorporated by
reference).

(f)  The
Company shall, during the Shelf Registration Period, deliver to each Holder of
Securities included within the coverage of the Shelf Registration, without
charge, as many copies of the prospectus (including each preliminary
prospectus) included in the Shelf Registration Statement and any amendment or
supplement thereto as such person may reasonably request. The Company and the
Guarantors consent, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

(g)  The
Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a
prospectus following the Registered Exchange Offer, without charge, as many
copies of the final prospectus included in the Exchange Offer Registration
Statement and any amendment or supplement thereto as such persons may
reasonably request.  The Company and the
Guarantor consent, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by any Initial Purchaser,
if necessary, any Participating Broker-Dealer and such other persons required
to deliver a prospectus following the Registered Exchange Offer in connection
with the offering and sale of the Exchange Securities covered by the
prospectus, or any amendment or supplement thereto, included in such Exchange
Offer Registration Statement.

(h)  Prior to
any public offering of the Securities, pursuant to any Registration Statement,
the Company and the Guarantors will use their reasonable best efforts to
register or qualify or cooperate with the Holders of the Securities included
therein and their respective counsel in connection with the registration or
qualification of the Securities for offer and sale under the securities or “blue
sky” laws of such states of the United States as any Holder of the Securities
reasonably requests in writing and do any and all other acts or things
necessary or advisable to enable the offer and sale in such jurisdictions of
the Securities covered by such Registration Statement; provided, however, that
the Company and the Guarantors will not be required to (i) qualify generally to
do business in any jurisdiction where they are not then so qualified or (ii)
take any action which would subject them to general service of process or to
taxation in any jurisdiction where they are not then so subject.

(i)  The
Company shall cooperate with the Holders of the Securities to facilitate the
timely preparation and delivery of certificates representing the Securities to
be sold pursuant to any Registration Statement free of any restrictive legends
and in such denominations and registered in such names as the Holders may
request a reasonable period of time prior to sales of the Securities pursuant
to such Registration Statement.

(j)  Upon the
occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 4(b) above during the period for which the Company is required to
maintain an effective Registration Statement, the Company and the Guarantors shall
promptly prepare and file a post-effective amendment to the Registration
Statement or a supplement to the related prospectus and any other required
document so that, as thereafter delivered to Holders of the Securities or
purchasers of Securities, the prospectus will not contain an untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  If the Company notifies the Initial
Purchasers, the Holders of the Securities and any known Participating
Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 4(b)
above to suspend the use of the prospectus until the requisite changes to the
prospectus have been made, then the Initial Purchasers, the Holders of the
Securities and any such Participating Broker-Dealers shall suspend use of such
prospectus, and the period of effectiveness of the Shelf Registration Statement
provided for in Section 2(b) above and the Exchange Offer Registration
Statement provided for in 

 7
 

 

Section 1 above shall each be extended by the number
of days from and including the date of the giving of such notice to and
including the date when the Initial Purchasers, the Holders of the Securities
and any known Participating Broker-Dealer shall have received such amended or
supplemented prospectus pursuant to this Section 4(j).

(k)  Not later
than the effective date of the applicable Registration Statement, the Company
will provide CUSIP, Common Code and ISIN number, as applicable, for the Initial
Securities, the Exchange Securities or the Private Exchange Securities, as the
case may be, and provide the applicable trustee with printed certificates for
the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, in a form eligible for deposit with The
Depository Trust Company, Euroclear System or Clearstream Banking, as
applicable.  The Company shall give
notice of the CUSIP, Common Code and ISIN numbers for the Exchange Securities
and the Private Exchange Securities to the Luxembourg Stock Exchange, and
notice containing that information shall also be published in a newspaper
having a general circulation in Luxembourg (which is expected to be the Luxemburger
Wort).

(l)  The
Company and the Guarantor will comply with all rules and regulations of the
Commission to the extent and so long as they are applicable to the Registered
Exchange Offer or the Shelf Registration and will make generally available to
their security holders an earnings statement satisfying the provisions of
Section 11(a) of the Securities Act as soon as practicable after the effective
date of the applicable Registration Statement.

(m)  The
Company and the Guarantor shall cause the indenture to be qualified under the
Trust Indenture Act of 1939, as amended, in a timely manner and containing such
changes, if any, as shall be necessary for such qualification.  In the event that such qualification would
require the appointment of a new trustee under the Indenture, the Company shall
appoint a new trustee thereunder pursuant to the applicable provisions of the
Indenture.

(n)  The
Company may require each Holder of Securities to be sold pursuant to the Shelf
Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to
time reasonably require for inclusion in the Shelf Registration Statement, and
the Company may exclude from such registration the Securities of any Holder
that unreasonably fails to furnish such information within a reasonable time
after receiving such request.

(o)  In the
case of any Shelf Registration, the Company and the Guarantors shall enter into
such customary agreements (including, if requested by Holders of a majority
aggregate principal amount of Securities and registered under the Shelf
Registration Statement, an underwriting agreement in customary form) and take
all such other action, if any, as Holders of a majority of the aggregate
principal amount of Securities being registered under the Shelf Registration
Statement shall reasonably request in order to facilitate the disposition of
the Securities pursuant to any Shelf Registration.

(p)  In the
case of any Shelf Registration, the Company and the Guarantors shall (i) make
reasonably available for inspection at a location where they are normally kept
during normal business hours by the Holders of the Securities eligible for
registration under the Shelf Registration Statement, any underwriter
participating in any disposition pursuant to the Shelf Registration Statement
and any attorney, accountant or other agent retained by such Holders or any
such underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and the Guarantors and (ii) cause the
Company’s and the Guarantor’s officers, directors, employees, accountants and
auditors to supply all relevant information reasonably requested by such
Holders or any such underwriter, attorney, accountant or agent (each, an “Inspector”)
in connection with the Shelf Registration Statement, in each case, as shall be
reasonably necessary to enable such persons, to conduct a reasonable
investigation within the 

 8
 

 

meaning of Section 11 of the Securities Act; provided, however, that, to the extent customary for such
Inspector in similar transactions, any such Inspector shall first agree in
writing with the Company and the Guarantors that any information that is
designated by the Company and the Guarantors in good faith as confidential at
the time such information is made available shall be kept confidential by such
Inspector, unless (A) disclosure of such information is required by court or
administrative order or is necessary to respond to inquiries of regulatory
authorities, (B) disclosure of such information is required by law (including
any disclosure requirements pursuant to federal securities laws in connection
with the filing of such Shelf Registration Statement or the use of any
prospectus), (C) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard such information
by such person or (D) such information becomes available to such Inspector from
a source other than the Company or the Guarantors and such source is not known
by the relevant Holder to be bound by a confidentiality agreement or is not
otherwise under a duty of trust to the Company or any Guarantor; provided,
however, that the foregoing inspection and information gathering shall be
coordinated on behalf of the Holders by one representative designated by and on
behalf of the Holders.

(q)  In the
case of any Shelf Registration, the Company and the Guarantors, if requested by
Holders of the majority in aggregate amount of Securities covered thereby or
the managing underwriters (if any) in association with such Shelf Registration
Statement, shall cause (i) their counsel to deliver an opinion and updates
thereof relating to the Securities in customary form for underwritten offerings
and covering such other matters as may be reasonably requested by such Holders
or underwriters addressed to such Holders and the managing underwriters, if
any, thereof and dated, in the case of the initial opinion, the effective date
of such Shelf Registration Statement; (ii) their officers to execute and
deliver all customary documents and certificates and updates thereof reasonably
requested by any underwriters (if any) of the applicable Securities and
(iii) their independent public accountants and the independent public
accountants with respect to any other entity for which financial information is
provided in the Shelf Registration Statement to provide to the selling Holders
of the applicable Securities and any underwriter therefore (if any) a comfort
letter in customary form and covering matters of the type customarily covered
in comfort letters in connection with primary underwritten offerings, subject
to receipt of appropriate documentation as contemplated, and only if permitted,
by Statement of Auditing Standards No. 72.

(r)  If a
Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other
Person as directed by the Company) in exchange for the Exchange Securities or
the Private Exchange Securities, as the case may be, the Company shall mark, or
caused to be marked, on the Initial Securities so exchanged that such Initial
Securities are being canceled in exchange for the Exchange Securities or the
Private Exchange Securities, as the case may be; in no event shall the Initial
Securities be marked as paid or otherwise satisfied.

(s)  In the
event that any broker-dealer registered under the Exchange Act shall underwrite
any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the
Conduct Rules (the “Rules”) of the National Association of Securities Dealers,
Inc. (“NASD”)) thereof, whether as a Holder of such Securities or as an
underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company and the Guarantor will assist such
broker-dealer in complying with the requirements of such Rules, including,
without limitation, by (i) if such Rules, including Rule 2720, shall so
require, engaging a “qualified independent underwriter” (as defined in Rule
2720) to participate in the preparation of the Registration Statement relating
to such Securities, to exercise usual standards of due diligence in respect
thereto and, if any portion of the offering contemplated by such Registration
Statement is an underwritten offering or is made through a placement or sales
agent, to recommend the yield of such Securities, (ii) indemnifying any
such qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

 9
 

 

(t)  The
Company and the Guarantors shall use their reasonable best efforts to take all
other steps necessary to affect the registration of the Securities covered by a
Registration Statement contemplated hereby.

5.  Registration Expenses. 
The Company and the Guarantors, jointly and severally, shall bear all
fees and expenses incurred in connection with the performance of their
obligations under Sections 1 through 4 hereof (including the reasonable fees
and expenses, if any, of counsel for the Initial Purchasers, incurred in
connection with the Registered Exchange Offer), whether or not the Registered
Exchange Offer or a Shelf Registration is filed or becomes effective, and, in
the event of a Shelf Registration, shall bear or reimburse the Holders of the
Securities covered thereby for the reasonable fees and disbursements of one
firm of counsel designated by the Holders of a majority in principal amount of
the Initial Securities covered thereby to act as counsel for the Holders of the
Initial Securities in connection therewith, provided however that the
enforcement of any claim under this clause 5 against the Guarantors for payment
of fees and expenses incurred by KDG in connection with the performance of its
obligations under Sections 1 through 4 hereof shall be, at the date hereof and
at any time hereafter until the full and complete discharge of any and all such
claims, limited to the extent that such enforcement would have the effect of
causing KDV’s Net Assets (as defined in Clause 6 below) to fall below an amount
equal to its registered share capital (Stammkapital).  Each Holder shall pay all underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holders Securities.

6.  Indemnification. 
(a)  The Company and the
Guarantors, jointly and severally agree to indemnify and hold harmless each
Holder of the Securities, any Participating Broker-Dealer and each person, if
any, who controls such Holder or such Participating Broker-Dealer within the
meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred to
collectively as the “Indemnified Parties”) from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in
any amendment or supplement thereto or in any preliminary prospectus relating
to a Shelf Registration, or arise out of, or are based upon, the omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, and shall
reimburse, as incurred, the Indemnified Parties for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action in respect thereof; provided,
however, that (i) the Company and the Guarantors shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises
out of or is based upon any untrue statement or alleged untrue statement or omission
or alleged omission made in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus relating to a
Shelf Registration in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such
Holder specifically for inclusion therein and (ii) with respect to any
untrue statement or omission or alleged untrue statement or omission made in
any preliminary prospectus relating to a Shelf Registration Statement, the
indemnity agreement contained in this subsection (a) shall not inure to
the benefit of any Holder or Participating Broker-Dealer from whom the person
asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Participating
Broker-Dealer under the Securities Act in connection with such purchase and any
such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such
person, at or prior to the written confirmation of the sale of such Securities
to such person, a copy of the final prospectus if the Company had previously
furnished copies thereof to such Holder or Participating Broker-Dealer and
provided further, however, that, to the extent that any such claim against KDS
or New KDS for indemnification or holding harmless from any losses, claims,
damages or liabilities, or any other actions in respect thereof (including but
not limited to any losses, claims, damages, liabilities or actions relating to
purchases and sales of the Securities) (the “Losses”) arises out of or is based
upon (i) any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any

 10

 

amendment or
supplement thereto or in any preliminary prospectus relating to a Shelf
Registration, or (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, which, in the case of KDS, relates solely to or is only
made by KDG or, in the case of New KDS, relates solely to or is made only by
KDG and/or KDS, the enforcement of any such claim against KDS or New KDS for
indemnification or holding harmless from any Losses shall be, at the date
hereof and at any time hereafter until the full and complete discharge of any
and all such claims, limited to the extent that such enforcement would have the
effect of causing KDV’s Net Assets (as defined below) to fall below an amount
equal to its registered share capital (Stammkapital);  KDV’s Net Assets (the “Net Assets”) are
calculated as KDV’s total assets less its liabilities (including accruals (Rückstellungen)); for the purposes of calculating the Net
Assets, loans and other contractual liabilities incurred in violation of the
provisions of the Purchase Agreement, any of the other Transaction Documents
(as defined in the Purchase Agreement), the Amended and Restated Senior Credit
Agreement dated May 26, 2004, and executed May 27, 2004 among KDG, KDS,
Deutsche Bank AG London, as amended, and the Amended and Restated Bridge Credit
Agreement dated May 26, 2004 and executed May 27, 2004 among, inter alios, KDG, KDS and Deutsche Bank AG London, as
amended, shall be disregarded. 
Furthermore, in the event that KDV should not have sufficient assets to
maintain its capital, KDV shall, in order to determine its Net Assets, realize
any and all of its assets that (i) are reflected on the balance sheet with a
book value (Buchwert) which is significantly lower
than the market value of such assets, and (ii) are not necessary for the
relevant company’s business (betriebsnotwendig);
provided further, however, that this indemnity agreement will be in addition to
any liability which the Company and the Guarantors may otherwise have to such
Indemnified Party.  The Company and the
Guarantor shall also indemnify underwriters, their officers and directors and
each person who controls such underwriters within the meaning of the Securities
Act or the Exchange Act to the same extent as provided above with respect to
the indemnification of the Holders of the Securities if requested by such
Holders.

(b)  Each
Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company, the Guarantors and each person, if any, who controls the
Company and the Guarantors within the meaning of the Securities Act or the
Exchange Act from and against any losses, claims, damages or liabilities or any
actions in respect thereof, to which the Company, the Guarantors or any such
controlling person may become subject under the Securities Act, the Exchange
Act or otherwise, insofar as such losses, claims, damages, liabilities or
actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or arise out of or are based upon
the omission or alleged omission to state therein a material fact necessary to
make the statements therein not misleading, but in each case only to the extent
that the untrue statement or omission or alleged untrue statement or omission
was made in reliance upon and in conformity with written information pertaining
to such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein; and, subject to the limitation set forth
immediately preceding this clause, shall reimburse, as incurred, the Company
and the Guarantors for any legal or other expenses reasonably incurred by the
Company, the Guarantors or any such controlling person in connection with
investigating or defending any loss, claim, damage, liability or action in
respect thereof.  This indemnity
agreement will be in addition to any liability which such Holder may otherwise
have to the Company, the Guarantors or any of their controlling persons.

(c)  Promptly
after receipt by an indemnified party under this Section 6 of notice of the
commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 6, notify the
indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have under subsection (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection  (a) or (b) above.  In case any such action is brought against
any indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense 

 11
 

 

thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 6 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof.  No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened action in respect of
which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement (i)
includes an unconditional release of such indemnified party from all liability on
any claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party. 
The indemnifying party shall not be liable for any settlement of any
action, proceeding or claim effected without its prior written consent (such
consent not to be unreasonably withheld).

(d)  If
the indemnification provided for in this Section 6 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or (b)
above, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to in subsection (a) or
(b) above (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party or parties on the one hand and the
indemnified party on the other from the exchange of the Securities for Exchange
Securities and the resale of Securities under a Shelf Registration Statement,
or (ii) if the allocation provided by the foregoing clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the indemnifying party or parties on the one hand and the indemnified party
on the other in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities (or actions in respect thereof) as
well as any other relevant equitable considerations.  The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company or the
Guarantors on the one hand or such Holder or such other indemnified party, as
the case may be, on the other, and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.  The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any action or claim which
is the subject of this subsection (d). 
Notwithstanding any other provision of this Section 6(d), the Holders of
the Securities shall not be required to contribute any amount in excess of the
amount by which the proceeds received by such Holders from the sale of the
Securities pursuant to a Registration Statement exceeds the amount of damages
which such Holders have otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  For
purposes of this paragraph (d), each person, if any, who controls such
indemnified party within the meaning of the Securities Act or the Exchange Act
shall have the same rights to contribution as such indemnified party and each
person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act shall have the same rights to contribution as the
Company.

(e)  The
agreements contained in this Section 6 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any indemnified party.

7.  Additional Interest Under Certain Circumstances.  (a) 
Additional interest (the “Additional Interest”) with respect to the
Initial Securities shall be assessed as follows if any of the following events
occur (each such event in clauses (i) through (vi) below a “Registration
Default”), :

 12
 

 

(i)  If by
April 30, 2006 (or if April 30, 2006 is not a business day, the first business
day thereafter), the Exchange Offer Registration Statement required by this
Agreement has not been filed (or submitted or a confidential basis) with the
Commission;

(ii)  If within
180 days of April 30, 2006 (or if the 180th day is not a business day, the first business
day thereafter) the Exchange Offer Registration Statement or, if obligated to
file (or submit on a confidential basis) a Shelf Registration Statement
pursuant to Section 2(i) above, the Shelf Registration Statement is not
declared effective by the Commission;

(iii)  If the
Exchange Offer is not consummated on or before the 30th day (or if the 30th day
is not a business day, the first business day thereafter) after the Exchange
Offer Registration Statement is declared effective by the Commission;

(iv)  If
obligated to file (or submit on a confidential basis) a Shelf Registration
Statement, such Shelf Registration Statement is not filed with (or submitted on
a confidential basis to) the Commission on or before the 30th day (or if the
30th day is not a business day, the first business day thereafter) after the
date (the “Shelf Filing Date”) on which the obligation to file a Shelf
Registration Statement arises;

(v)  If
obligated to file (or submit on a confidential basis) a Shelf Registration
Statement pursuant to Section 2(ii), (iii) or (iv) above, the Shelf
Registration Statement is not declared effective on or before the 180th day (or
if the 180th day is not a business day, the first business day thereafter)
after the Shelf Filing Date;

(vi)  If after
either the Exchange Offer Registration Statement or the Shelf Registration
Statement is declared effective (A) such Registration Statement thereafter
ceases to be effective; or (B) such Registration Statement or the related
prospectus ceases to be usable (except as permitted in paragraphs (b) and
(c) below) in connection with resales of Transfer Restricted Securities during
the periods specified herein because either (1) any event occurs as a
result of which the related prospectus forming part of such Registration
Statement would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein in the light
of the circumstances under which they were made not misleading, or (2) it
shall be necessary to amend such Registration Statement or supplement the
related prospectus, to comply with the Securities Act or the Exchange Act or
the respective rules thereunder.

Additional
Interest shall accrue on the Initial Securities over and above the interest set
forth in the title of the Securities from and including the date on which any
such Registration Default shall occur to but excluding the date on which all
such Registration Defaults have been cured, at a rate of 0.50% per annum for
the first 180-day period immediately following the occurrence of a Registration
Default, and such rate will increase by an additional 0.50% per annum with
respect to each subsequent 90-day period, up to a maximum Additional Interest
rate of 2.0% per annum..

(b)  A
Registration Default referred to in Section 7(a)(vi)(B) hereof shall be
deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if such Registration Default
has occurred solely as a result of the filing of a post-effective amendment to
such Shelf Registration Statement to incorporate annual audited financial information
with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the
related prospectus; provided, however, that in any case if such Registration
Default occurs for a continuous period in excess of 30 days, Additional
Interest shall be payable in accordance with the above paragraph from the day
such Registration Default occurs until such Registration Default is cured.

(c)  Notwithstanding
Section 7(a)(vi) hereof, a Registration Default shall be deemed not to have
occurred and be continuing in relation to a Shelf Registration Statement or the
related prospectus if the Company issues notices suspending the Shelf
Registration Statement in accordance with Section 2(c) 

 13
 

 

hereof.  In the event that the aggregate number of
days in any consecutive twelve-month period for which such notices are issued
and effective exceeds 60 days in the aggregate, the interest rate borne by the
Securities eligible to be registered under the Shelf Registration Statement
shall be increased by 0.50% per annum for the first 180-day period immediately
following any such notice (which rate will be increased by an additional 0.50%
per annum with respect to each subsequent 90-day period; provided
that the aggregate increase in such annual interest rate shall in no
event exceed 2.0% per annum).  Upon the
issuance of a notice by the Company that the Shelf Registration Statement is
usable (and the Shelf Registration Statement is so usable) again after the period
of time described in the preceding sentence, the accrual of such additional
interest will cease and the interest rate on such Securities will revert to the
rate set forth in the title of the Securities.

(d)  Any
amounts of Additional Interest due pursuant to clause (i), (ii), (iii), (iv),
(v) or (vi) of Section 7(a) above will be payable in cash on the regular
interest payment dates with respect to the Initial Securities. The amount of
Additional Interest will be determined by multiplying the applicable Additional
Interest rate by the principal amount of the Initial Securities, multiplied by
a fraction, the numerator of which is the number of days such Additional
Interest rate was applicable during such period (determined on the basis of a
360-day year comprised of twelve 30-day months), and the denominator of which
is 360.

(e)  ”Transfer
Restricted Securities” means each Security until (i) the date on which such
Transfer Restricted Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered
Exchange Offer, (ii) following the exchange by a broker-dealer in the
Registered Exchange Offer of a Initial Security for an Exchange Note, the date
on which such Exchange Note is sold to a purchaser who receives from such
broker-dealer on or prior to the date of such sale a copy of the prospectus
contained in the Exchange Offer Registration Statement, (iii) the date on which
such Security has been effectively registered under the Securities Act and disposed
of in accordance with the Shelf Registration Statement or (iv) the date on
which such Security is distributed to the public pursuant to Rule 144 under the
Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act.

8.  Rules 144 and 144A.  The Company shall use its
best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder of Initial Securities, make publicly available other information so long
as necessary to permit sales of their securities pursuant to Rules 144 and
144A.  The Company covenants that it will
take such further action as any Holder of Initial Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Initial Securities without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A (including
the requirements of Rule 144A(d)(4)). 
Notwithstanding the foregoing, nothing in this Section 8 shall be
deemed to require the Company to register any of its securities pursuant to the
Exchange Act.

9.  Underwritten Registrations.  If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing Underwriters”)
will be selected by the Holders of a majority in aggregate principal amount of
such Transfer Restricted Securities to be included in such offering subject to
the prior written consent of the Company (which consent shall not be
unreasonably withheld).

No
person may participate in any underwritten registration hereunder unless such
person (i) agrees to sell such person’s Transfer Restricted Securities on the
basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

10.  Luxembourg Listing.  The Company and the Guarantors shall use
their reasonable best efforts to have the Securities listed on the Luxembourg
Stock Exchange (or, failing the approval of the listing of 

 14
 

 

the Securities on
the Luxembourg Stock Exchange, they will use their reasonable best efforts to
cause the Securities to be listed on another stock exchange satisfactory to the
Initial Purchasers) as soon as practicable and in any event prior to the date
of the first interest payment on the applicable Securities and cause that such
listing continues for so long as any of the applicable Securities are
outstanding.  In the event of a
Registered Exchange Offer, the Company shall (i) give notice to the Luxembourg
Stock Exchange  or such other stock
exchange announcing the beginning of the Registered Exchange Offer, and
following completion of such offer, the results of such offer and shall publish
such notice in a newspaper having general circulation in Luxembourg (which is
expected to be the Luxemburger Wort)
or  where such other stock exchange is
located and (ii) appoint an exchange agent in Luxembourg or where such other
exchange is located, through which all relevant documents with respect to the
Registered Exchange Offer will be made available; the exchange agent shall be
able to perform all agency functions to be performed by an exchange agent,
including providing a letter of transmittal and other relevant documents to
Holders, and accepting such documents on behalf of the Company.

11.  Miscellaneous.

(a)  Amendments and Waivers.  The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, except by the
Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consents.

(b)  Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
first-class mail, facsimile transmission, or air courier which guarantees
overnight delivery:

(1)  if to a Holder of the Securities, at the most
current address given by such Holder to the Company.

(2)  if to the Initial Purchasers;

Deutsche Bank AG London

Winchester House

1 Great Winchester Street

London
EC2N 2DB

with a
copy to:

Cravath, Swaine &
Moore LLP

CityPoint

One Ropemaker Street

London
EC2Y 9HR

(3)           if to the Company or the Guarantors:

Kabel Deutschland GmbH

Betastrasse 6-8

D-85774 Unterföhring

Germany

Attention:              Chief Financial Officer

Facsimile
No.:       +49 89 96010 198

 15
 

 

with a
copy to:

Simpson Thacher &
Bartlett LLP

CityPoint

One Ropemaker Street

London
EC2Y 9HU

Attention:              Ryerson Symons

Facsimile
No.:       + 44 20 7275 6502

All
such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; three business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile
machine operator, if sent by facsimile transmission; and on the day delivered,
if sent by overnight air courier guaranteeing next day delivery.

(c)  No Inconsistent Agreements.  The Company and the
Guarantors have not, as of the date hereof, entered into, nor shall, on or
after the date hereof, enter into, any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders herein or otherwise
conflicts with the provisions hereof.

(d)  Successors and Assigns.  This Agreement shall be
binding upon the Company, the Guarantors and their successors and assigns.

(e)  Counterparts.  This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

(f)  Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

(g)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

(h)  Severability.  If any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

(i)  Securities Held by the Company.  Whenever the
consent or approval of Holders of a specified percentage of principal amount of
Securities is required hereunder, Securities held by the Company or its
affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

(j)  
Agent for Service; Submission to Jurisdiction;
Waiver of Immunities.  To the fullest extent permitted by
applicable law, each of the Company and the Guarantors submits to the
non-exclusive jurisdiction of any federal or state court in the Borough of
Manhattan in the City of New York, County and State of New York, United States
of America, in any suit or proceeding arising under or in connection with this
Agreement or any of the transactions contemplated hereby, and irrevocably
agrees that all claims in respect of such suit or proceeding may be determined
in any such court.  Each of the Company
and the 

 16
 

 

Guarantors, to the
fullest extent permitted by applicable law, irrevocably and fully waives the
defense of an inconvenient forum to the maintenance of such suit or proceeding
and irrevocably waives to the fullest extent it may effectively do so any
objection it may now or hereafter have to the laying of venue of any such
proceeding, and hereby irrevocably designates and appoints CT Corporation
Systems at Eighth Avenue, New York, New York 10011 (the “Authorized Agent”), as its authorized
agent upon whom process may be served in any such suit or proceeding.  Each of the Company and the Guarantors
represents that it has notified the Authorized Agent of such designation and
appointment and that the Authorized Agent has accepted the same in
writing.  Each of the Company and the
Guarantors hereby irrevocably authorizes and directs its Authorized Agent to
accept such service.  Each of the Company
and the Guarantors further agrees that service of process upon its Authorized
Agent and written notice of said service to it mailed by first class mail or
delivered to its Authorized Agent shall be deemed in every respect effective
service of process upon it in any such suit or proceeding.  Nothing herein shall affect the right of any
person to serve process in any other manner permitted by law.  Each of the Company and the Guarantors agrees
that a final action in any such suit or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other
lawful manner.  Notwithstanding the
foregoing, any action against any of the Company and the Guarantors arising out
of or in connection with this Agreement or the transactions contemplated hereby
may also be instituted by any Holder of Securities, its officers and employees
or any person who controls such Holder (within the meaning of Rule 405 under
the Securities Act) in any competent court in Germany and each of the Company
and the Guarantors expressly accepts the jurisdiction of any such court in any
such action.

Each of the Company and
the Guarantors hereby irrevocably waives, to the extent permitted by law, any
immunity to jurisdiction to which it may otherwise be entitled (including,
without limitation, immunity to pre-judgment attachment, post-judgment
attachment and execution) in any legal suit, action or proceeding against it
arising out of or in connection with this Agreement or any of the transactions
contemplated hereby.

The provisions of this
clause (j) are intended to be effective upon the execution of this Agreement
without any further action by the Company and the Guarantors or the Holders of
Securities and the introduction of a true copy of this Agreement into evidence
shall be conclusive and final evidence as to such matters.

(k)  Judgment Currency.  The indemnifying party agrees to indemnify
the indemnified party against any loss incurred as a result of any judgment or
order being given or made for any amount due under this Agreement and such
judgment or order being expressed or paid in a currency (the “Judgment Currency”) other than euros
and as a result of any variation as between (i) the rate of exchange at which
the euro amount is converted into such Judgment Currency for the purposes of
such judgment or order, and (ii) the spot rate of exchange in the City of New
York at which any such person on the date of payment of such judgment or order
is able to purchase euros with the amount of the Judgment Currency actually
received by such person.  The foregoing
indemnity shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid.  The term
“spot rate of exchange” shall include any premiums or costs of exchange payable
in connection with the purchase of, or conversion into, euros.

If the
foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers and the Company and the Guarantors in accordance with its
terms.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  KABEL
  DEUTSCHLAND GMBH

  

 17
 

 

 

	
  

  	
  By:

  	
    /s/
  R. Steindorf

  	
   

  
	
   

  	
    Name:
  R. Steindorf

  
	
   

  	
    Title:
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Paul Thomason

  	
   

  
	
   

  	
    Name:
  Paul Thomason

  
	
   

  	
    Title:
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KABEL
  DEUTSCHLAND VERWALTUNGS

  
	
   

  	
  GMBH FOR AND ON
  BEHALF OF KABEL

  
	
   

  	
  DEUTSCHLAND
  VERTRIEB AND SERVICE

  
	
   

  	
  GMBH & CO.
  KG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  R. Steindorf

  	
   

  
	
   

  	
    Name:
  R. Steindorf

  
	
   

  	
    Title:
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Paul Thomason

  	
   

  
	
   

  	
    Name:
  Paul Thomason

  
	
   

  	
    Title:
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KABEL
  DEUTSCHLAND VERWALTUNGS

  
	
   

  	
  GMBH FOR AND ON
  BEHALF OF KABEL

  
	
   

  	
  ASSET GMBH &
  CO. KG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  R. Steindorf

  	
   

  
	
   

  	
    Name:
  R. Steindorf

  
	
   

  	
    Title:
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul
  Thomason

  	
   

  
	
   

  	
    Name:
  Paul Thomason

  
	
   

  	
    Title:
  CFO

  

 

The
foregoing Registration Rights Agreement is hereby confirmed and accepted as of
the date above first written.

	
  DEUTSCHE BANK AG LONDON

  
	
   

  	
  For itself and on behalf of the

  
	
   

  	
  several Initial Purchasers listed in

  
	
   

  	
  Schedule I hereto.

  
	
   

  	
   

  
	
  By:

  	
   /s/ Guy du Parc Braham

  	
   

  
	
   

  	
   Name: Guy du Parc Braham

  
	
   

  	
   Title: Director

  
	
   

  	
   

  
	
  By:

  	
   /s/ Anthony Forshaw

  	
   

  
	
   

  	
   Name: Anthony Forshaw

  
	
   

  	
   Title: Director

  
				

 18
 

 

 

	
  MORGAN STANLEY & CO. INTERNATIONAL LIMITED

  
	
   

  	
  For itself and on behalf of the

  
	
   

  	
  several Initial Purchasers listed in

  
	
   

  	
  Schedule I hereto.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Harry Stanley

  	
   

  
	
   

  	
   Name: Harry Stanley

  
	
   

  	
   Title: Executive Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  	
  For itself and on behalf of the

  
	
   

  	
  several Initial Purchasers listed in

  
	
   

  	
  Schedule I hereto.

  
	
   

  	
   

  
	
  By:

  	
   /s/ Ivan Browne

  	
   

  
	
   

  	
   Name: Ivan Browne

  
	
   

  	
   Title: Duly authorized attorney

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS INTERNATIONAL

  
	
   

  	
  For itself and on behalf of the

  
	
   

  	
  several Initial Purchasers listed in

  
	
   

  	
  Schedule I hereto.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Francesca McWilliams

  	
   

  
	
   

  	
   Name: Francesca McWilliams

  
	
   

  	
   Title: Authorized Signatory

  
				

 

 19

ANNEX A

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.  This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired by
such broker-dealer as a result of market-making activities or other trading
activities.  The Company has agreed that,
for a period of 180 days after the consummation of the Exchange Offer, it will
make this Prospectus available to any broker-dealer for use in connection with
any such resale.  See “Plan of
Distribution.”

ANNEX B

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. 
See “Plan of Distribution.”

ANNEX C

PLAN OF
DISTRIBUTION

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired as a result of market-making
activities or other trading activities. 
The Company has agreed that, for a period of 180 days after the consummation
of the Exchange Offer, it will make this Prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any
such resale.  In addition, until [DATE]
all dealers effecting transactions in the Exchange Securities may be required
to deliver a prospectus.(1)

The
Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers.  Exchange Securities
received by broker-dealers for their own account pursuant to the Exchange Offer
may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Securities or a combination of such methods of resale,
at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. 
Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such
Exchange Securities.  Any broker-dealer
that resells Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities Act.  The Letter of Transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act. 

For
a period of 180 days after the consummation of the Exchange Offer the Company
will promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal.  The
Company has agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the Holders of the Securities) other
than commissions or concessions of any brokers or dealers and will indemnify
the Holders of the Securities (including any broker-dealers) against certain
liabilities, including liabilities under the Securities Act.

(1) In
addition, the legend required by Item 502(b) of Regulation S-K will appear on
the back cover page of the Exchange Offer prospectus.

ANNEX D

o            CHECK HERE IF YOU ARE A
BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10
COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

Name:

Address:

 

The undersigned
represents that it is not an affiliate (within the meaning of Rule 405 of the
Securities Act of 1933, as amended) of the issuer.  If the undersigned is not a broker-dealer,
the undersigned represents that it acquired the Exchange Securities in the
ordinary course of its business, it is not engaged in, and does not intend to
engage in, a distribution of Exchange Securities and it has no arrangement or
understanding with any person to participate in a distribution of Exchange
Securities.  If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities, it acknowledges that it will deliver a
prospectus in connection with any resale of such Exchange Securities; however,
by so acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

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