Document:

Exhibit
10.2

 

EXECUTION
VERSION

 

 

 

21 December 2004

 

 

£250,000,000

 

SECOND LIEN FACILITY AGREEMENT

 

 

between

 

 

TELEWEST UK LIMITED

 

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

and, upon its accession,

TELEWEST GLOBAL FINANCE LLC

as Borrowers

 

 

BARCLAYS CAPITAL

BNP PARIBAS

CITIGROUP GLOBAL MARKETS LIMITED

CREDIT SUISSE FIRST BOSTON

DEUTSCHE BANK AG LONDON

THE ROYAL BANK OF SCOTLAND PLC

as Mandated Lead Arrangers

 

BARCLAYS BANK PLC

as Facility Agent and Security Trustee

 

BARCLAYS BANK PLC

as US Paying Agent

 

 

THE ORIGINAL GUARANTORS

 

and

 

 

THE LENDERS

 

 

 

 

5
Old Broad Street

London EC2N 1DW

 

 

TABLE OF CONTENTS

 

 

	
  1.

  	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
   

  
	
   

  	
  1.2

  	
  Accounting Expressions

  	
   

  
	
   

  	
  1.3

  	
  Construction

  	
   

  
	
   

  	
  1.4

  	
  Currency

  	
   

  
	
   

  	
  1.5

  	
  Statutes

  	
   

  
	
   

  	
  1.6

  	
  Time

  	
   

  
	
   

  	
  1.7

  	
  References to Agreements

  	
   

  
	
   

  	
  1.8

  	
  Principal Intercreditor
  Deed

  	
   

  
	
  2.

  	
  THE FACILITY

  	
   

  
	
   

  	
  2.1

  	
  The Facility

  	
   

  
	
   

  	
  2.2

  	
  Purpose

  	
   

  
	
   

  	
  2.3

  	
  Several Obligations

  	
   

  
	
   

  	
  2.4

  	
  Several Rights

  	
   

  
	
  3.

  	
  CONDITIONS

  	
   

  
	
   

  	
  3.1

  	
  Conditions Precedent

  	
   

  
	
   

  	
  3.2

  	
  General Conditions
  Subsequent

  	
   

  
	
  4.

  	
  UTILISATION

  	
   

  
	
   

  	
  4.1

  	
  Conditions to Utilisation

  	
   

  
	
   

  	
  4.2

  	
  Lenders’ Participations

  	
   

  
	
  5.

  	
  REPAYMENT OF OUTSTANDINGS

  	
   

  
	
   

  	
  5.1

  	
  Repayment of Outstandings

  	
   

  
	
   

  	
  5.2

  	
  No Reborrowing of Advance

  	
   

  
	
  6.

  	
  VOLUNTARY PREPAYMENT

  	
   

  
	
   

  	
  6.1

  	
  Voluntary
  Prepayment

  	
   

  
	
   

  	
  6.2

  	
  Right of
  Prepayment and Cancellation in relation to a single Lender

  	
   

  
	
   

  	
  6.3

  	
  Application of Repayments

  	
   

  
	
   

  	
  6.4

  	
  Notice of Repayment

  	
   

  
	
   

  	
  6.5

  	
  Restrictions on Repayment

  	
   

  
	
  7.

  	
  MANDATORY
  PREPAYMENT AND CANCELLATION

  	
   

  
	
   

  	
  7.1

  	
  Change of Control

  	
   

  
	
   

  	
  7.2

  	
  Repayment
  from Net Proceeds of Disposals and Insurance Recoveries

  	
   

  
	
   

  	
  7.3

  	
  Blocked Accounts

  	
   

  
	
   

  	
  7.4

  	
  Repayment from Excess
  Cash Flow

  	
   

  
	
   

  	
  7.5

  	
  Repayment from Debt
  Proceeds

  	
   

  
	
   

  	
  7.6

  	
  Repayment from Equity
  Proceeds

  	
   

  
	
  8.

  	
  INTEREST

  	
   

  
	
   

  	
  8.1

  	
  Interest Periods

  	
   

  
	
   

  	
  8.2

  	
  Duration

  	
   

  
	
   

  	
  8.3

  	
  Payment of Interest

  	
   

  
	
   

  	
  8.4

  	
  Interest Rate

  	
   

  
	
   

  	
  8.5

  	
  Notification

  	
   

  
	
  9.

  	
  MARKET
  DISRUPTION AND ALTERNATIVE INTEREST RATES

  	
   

  
	
   

  	
  9.1

  	
  Market Disruption

  	
   

  
	
   

  	
  9.2

  	
  Substitute
  Interest Period and Interest Rate

  	
   

  
	
   

  	
  9.3

  	
  Alternative Rate

  	
   

  
	
  10.

  	
  COMMISSIONS AND FEES

  	
   

  
	
   

  	
  10.1

  	
  Arrangement and
  Underwriting Fee

  	
   

  
	
   

  	
  10.2

  	
  Agency
  Fee

  	
   

  
	
  11.

  	
  TAXES

  	
   

  
	
   

  	
  11.1

  	
  Tax Gross-up

  	
   

  

 

i

 

	
   

  	
  11.2

  	
  Tax Indemnity

  	
   

  
	
   

  	
  11.3

  	
  Tax
  Credit

  	
   

  
	
  12.

  	
  INCREASED COSTS

  	
   

  
	
   

  	
  12.1

  	
  Increased Costs

  	
   

  
	
   

  	
  12.2

  	
  Increased Costs Claims

  	
   

  
	
   

  	
  12.3

  	
  Exceptions

  	
   

  
	
  13.

  	
  ILLEGALITY

  	
   

  
	
  14.

  	
  MITIGATION

  	
   

  
	
   

  	
  14.1

  	
  Mitigation

  	
   

  
	
   

  	
  14.2

  	
  Limitation of Liability

  	
   

  
	
  15.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
  15.1

  	
  Due Organisation

  	
   

  
	
   

  	
  15.2

  	
  No Deduction

  	
   

  
	
   

  	
  15.3

  	
  Claims Pari Passu

  	
   

  
	
   

  	
  15.4

  	
  No Immunity

  	
   

  
	
   

  	
  15.5

  	
  Governing Law and Judgments

  	
   

  
	
   

  	
  15.6

  	
  All Actions Taken

  	
   

  
	
   

  	
  15.7

  	
  No Filing or Stamp Taxes

  	
   

  
	
   

  	
  15.8

  	
  Binding Obligations

  	
   

  
	
   

  	
  15.9

  	
  No Winding-up

  	
   

  
	
   

  	
  15.10

  	
  No Event of Default

  	
   

  
	
   

  	
  15.11

  	
  No Material Proceedings

  	
   

  
	
   

  	
  15.12

  	
  Original Financial
  Statements

  	
   

  
	
   

  	
  15.13

  	
  No Material Adverse Change

  	
   

  
	
   

  	
  15.14

  	
  No Undisclosed Liabilities

  	
   

  
	
   

  	
  15.15

  	
  Accuracy of Information

  	
   

  
	
   

  	
  15.16

  	
  Indebtedness and
  Encumbrances

  	
   

  
	
   

  	
  15.17

  	
  Execution of Finance
  Documents

  	
   

  
	
   

  	
  15.18

  	
  Structure

  	
   

  
	
   

  	
  15.19

  	
  Environmental Matters

  	
   

  
	
   

  	
  15.20

  	
  Necessary Authorisations

  	
   

  
	
   

  	
  15.21

  	
  Intellectual Property

  	
   

  
	
   

  	
  15.22

  	
  Ownership of Assets

  	
   

  
	
   

  	
  15.23

  	
  Payment of Taxes

  	
   

  
	
   

  	
  15.24

  	
  Pension Plans

  	
   

  
	
   

  	
  15.25

  	
  Security

  	
   

  
	
   

  	
  15.26

  	
  Investment Company Act

  	
   

  
	
   

  	
  15.27

  	
  Public Utility
  Holding Company Act

  	
   

  
	
   

  	
  15.28

  	
  Insurance

  	
   

  
	
   

  	
  15.29

  	
  Centre of Main Interests

  	
   

  
	
   

  	
  15.30

  	
  Broadcasting Act 1990

  	
   

  
	
   

  	
  15.31

  	
  Telecommunications, Cable and Broadcasting
  Laws

  	
   

  
	
   

  	
  15.32

  	
  Liabilities of Telewest UK

  	
   

  
	
   

  	
  15.33

  	
  US Patriot Act

  	
   

  
	
   

  	
  15.34

  	
  Compliance with ERISA

  	
   

  
	
   

  	
  15.35

  	
  Liabilities of the US
  Borrower

  	
   

  
	
   

  	
  15.36

  	
  Repetition

  	
   

  
	
  16.

  	
  FINANCIAL INFORMATION

  	
   

  
	
   

  	
  16.1

  	
  Financial Statements

  	
   

  
	
   

  	
  16.2

  	
  Budget

  	
   

  
	
   

  	
  16.3

  	
  Other Information

  	
   

  
	
   

  	
  16.4

  	
  Compliance Certificates

  	
   

  
	
   

  	
  16.5

  	
  Change in Accounting
  Practices

  	
   

  
	
   

  	
  16.6

  	
  Notifications

  	
   

  
	
  17.

  	
  FINANCIAL CONDITION

  	
   

  

 

ii

 

	
   

  	
  17.1

  	
  Ratios

  	
   

  
	
   

  	
  17.2

  	
  Permitted Capital
  Expenditure

  	
   

  
	
   

  	
  17.3

  	
  Currency calculations

  	
   

  
	
   

  	
  17.4

  	
  Pro Forma Calculations

  	
   

  
	
  18.

  	
  POSITIVE UNDERTAKINGS

  	
   

  
	
   

  	
  18.1

  	
  Application of Advances

  	
   

  
	
   

  	
  18.2

  	
  Financial
  Assistance and Fraudulent Conveyance

  	
   

  
	
   

  	
  18.3

  	
  Necessary Authorisations

  	
   

  
	
   

  	
  18.4

  	
  Compliance with
  Applicable Laws

  	
   

  
	
   

  	
  18.5

  	
  Insurance

  	
   

  
	
   

  	
  18.6

  	
  Intellectual Property

  	
   

  
	
   

  	
  18.7

  	
  Ranking of Claims

  	
   

  
	
   

  	
  18.8

  	
  Pay
  Taxes

  	
   

  
	
   

  	
  18.9

  	
  Hedging

  	
   

  
	
   

  	
  18.10

  	
  Pension Plans

  	
   

  
	
   

  	
  18.11

  	
  Environmental
  Matters

  	
   

  
	
   

  	
  18.12

  	
  Further Assurance

  	
   

  
	
   

  	
  18.13

  	
  Assets

  	
   

  
	
   

  	
  18.14

  	
  Centre of Main Interests

  	
   

  
	
   

  	
  18.15

  	
  Group Structure Chart

  	
   

  
	
   

  	
  18.16

  	
  Contributions to the TCN
  Group

  	
   

  
	
   

  	
  18.17

  	
  “Know your client” checks

  	
   

  
	
   

  	
  18.18

  	
  Change in Auditors

  	
   

  
	
   

  	
  18.19

  	
  Notice of Integrated Merger
  Event

  	
   

  
	
   

  	
  18.20

  	
  ERISA

  	
   

  
	
   

  	
  18.21

  	
  Telewest
  UK

  	
   

  
	
  19.

  	
  NEGATIVE UNDERTAKINGS

  	
   

  
	
   

  	
  19.1

  	
  Undertakings with respect to
  the Flextech Group

  	
   

  
	
   

  	
  19.2

  	
  Negative Pledge

  	
   

  
	
   

  	
  19.3

  	
  Loans and Guarantees

  	
   

  
	
   

  	
  19.4

  	
  Financial Indebtedness

  	
   

  
	
   

  	
  19.5

  	
  Dividends,
  Distributions and Share Capital

  	
   

  
	
   

  	
  19.6

  	
  Disposals

  	
   

  
	
   

  	
  19.7

  	
  Change of Business

  	
   

  
	
   

  	
  19.8

  	
  Mergers

  	
   

  
	
   

  	
  19.9

  	
  Joint Ventures

  	
   

  
	
   

  	
  19.10

  	
  Transactions with
  Affiliates

  	
   

  
	
   

  	
  19.11

  	
  Change in Financial Year

  	
   

  
	
   

  	
  19.12

  	
  Limitations on Hedging

  	
   

  
	
   

  	
  19.13

  	
  Acquisitions and
  Investments

  	
   

  
	
   

  	
  19.14

  	
  No Restrictions on Payments

  	
   

  
	
   

  	
  19.15

  	
  Telewest UK Covenants

  	
   

  
	
   

  	
  19.16

  	
  Following Integrated
  Merger Event

  	
   

  
	
   

  	
  19.17

  	
  US Borrower

  	
   

  
	
  20.

  	
  ACCESSION;
  US BORROWER; ACCEDING GUARANTORS

  	
   

  
	
   

  	
  20.1

  	
  The US Borrower

  	
   

  
	
   

  	
  20.2

  	
  Acceding Guarantors

  	
   

  
	
   

  	
  20.3

  	
  Assumption of
  Rights and Obligations

  	
   

  
	
  21.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
  21.1

  	
  Events
  of Default

  	
   

  
	
   

  	
  21.2

  	
  Non-Payment

  	
   

  
	
   

  	
  21.3

  	
  Covenants

  	
   

  
	
   

  	
  21.4

  	
  Other Obligations

  	
   

  
	
   

  	
  21.5

  	
  Misrepresentation

  	
   

  
	
   

  	
  21.6

  	
  Cross Default

  	
   

  

 

iii

 

	
   

  	
  21.7

  	
  Insolvency

  	
   

  
	
   

  	
  21.8

  	
  Winding-up

  	
   

  
	
   

  	
  21.9

  	
  Execution or Distress

  	
   

  
	
   

  	
  21.10

  	
  Similar Events

  	
   

  
	
   

  	
  21.11

  	
  Repudiation

  	
   

  
	
   

  	
  21.12

  	
  Illegality

  	
   

  
	
   

  	
  21.13

  	
  Intercreditor Default

  	
   

  
	
   

  	
  21.14

  	
  Revocation of
  Necessary Authorisations

  	
   

  
	
   

  	
  21.15

  	
  Material Adverse Effect

  	
   

  
	
   

  	
  21.16

  	
  Resignation of Auditors

  	
   

  
	
   

  	
  21.17

  	
  Material Proceedings

  	
   

  
	
   

  	
  21.18

  	
  Acceleration

  	
   

  
	
   

  	
  21.19

  	
  Repayment on Demand

  	
   

  
	
  22.

  	
  DEFAULT INTEREST

  	
   

  
	
   

  	
  22.1

  	
  Consequences of Non-Payment

  	
   

  
	
   

  	
  22.2

  	
  Default Rate

  	
   

  
	
   

  	
  22.3

  	
  Maturity of Default
  Interest

  	
   

  
	
   

  	
  22.4

  	
  Construction of Unpaid Sum

  	
   

  
	
  23.

  	
  GUARANTEE AND INDEMNITY

  	
   

  
	
   

  	
  23.1

  	
  Guarantee

  	
   

  
	
   

  	
  23.2

  	
  Indemnity

  	
   

  
	
   

  	
  23.3

  	
  Continuing and
  Independent Obligations

  	
   

  
	
   

  	
  23.4

  	
  Avoidance of Payments

  	
   

  
	
   

  	
  23.5

  	
  Immediate Recourse

  	
   

  
	
   

  	
  23.6

  	
  Waiver of Defences

  	
   

  
	
   

  	
  23.7

  	
  No Competition

  	
   

  
	
   

  	
  23.8

  	
  Appropriation

  	
   

  
	
   

  	
  23.9

  	
  Limitation
  of Liabilities of United States Guarantors

  	
   

  
	
   

  	
  23.10

  	
  Droit de
  Discussion / Droit de Division

  	
   

  
	
  24.

  	
  AGENTS

  	
   

  
	
   

  	
  24.1

  	
  Appointment of the Agents

  	
   

  
	
   

  	
  24.2

  	
  Duties of
  the Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  24.3

  	
  Role of the Mandated
  Lead Arrangers

  	
   

  
	
   

  	
  24.4

  	
  No Fiduciary Duties

  	
   

  
	
   

  	
  24.5

  	
  Business with the Group

  	
   

  
	
   

  	
  24.6

  	
  Discretion of
  the Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  24.7

  	
  Instructing Group’s
  Instructions

  	
   

  
	
   

  	
  24.8

  	
  No Responsibility

  	
   

  
	
   

  	
  24.9

  	
  Exclusion of Liability

  	
   

  
	
   

  	
  24.10

  	
  Lender’s Indemnity

  	
   

  
	
   

  	
  24.11

  	
  Resignation

  	
   

  
	
   

  	
  24.12

  	
  Confidentiality

  	
   

  
	
   

  	
  24.13

  	
  Facility Office

  	
   

  
	
   

  	
  24.14

  	
  Lenders’ Associated
  Costs Details

  	
   

  
	
   

  	
  24.15

  	
  Credit Appraisal by the
  Lenders

  	
   

  
	
   

  	
  24.16

  	
  Deduction
  from Amounts Payable by the Agents

  	
   

  
	
   

  	
  24.17

  	
  Obligors’ Agent

  	
   

  
	
   

  	
  24.18

  	
  Co-operation
  with the Facility Agent/US Paying Agent

  	
   

  
	
   

  	
  24.19

  	
  “Know your client” checks

  	
   

  
	
   

  	
  24.20

  	
  Agent’s Management Time

  	
   

  
	
  25.

  	
  TCN’S INDEMNITIES

  	
   

  
	
   

  	
  25.1

  	
  General Indemnities

  	
   

  
	
   

  	
  25.2

  	
  Break Costs

  	
   

  
	
  26.

  	
  CURRENCY OF ACCOUNT

  	
   

  
	
   

  	
  26.1

  	
  Currency

  	
   

  

 

iv

 

	
   

  	
  26.2

  	
  Currency Indemnity

  	
   

  
	
  27.

  	
  PAYMENTS

  	
   

  
	
   

  	
  27.1

  	
  Payment
  to the Facility Agent and the US Paying Agent

  	
   

  
	
   

  	
  27.2

  	
  Same Day Funds

  	
   

  
	
   

  	
  27.3

  	
  Clear Payments

  	
   

  
	
   

  	
  27.4

  	
  Partial Payments

  	
   

  
	
   

  	
  27.5

  	
  Indemnity

  	
   

  
	
   

  	
  27.6

  	
  Notification of Payment

  	
   

  
	
   

  	
  27.7

  	
  Business Days

  	
   

  
	
  28.

  	
  SET-OFF

  	
   

  
	
   

  	
  28.1

  	
  Right to Set-off

  	
   

  
	
   

  	
  28.2

  	
  No Obligation

  	
   

  
	
  29.

  	
  SHARING AMONG THE
  FINANCE PARTIES

  	
   

  
	
   

  	
  29.1

  	
  Payments to Finance Parties

  	
   

  
	
   

  	
  29.2

  	
  Redistribution of Payments

  	
   

  
	
   

  	
  29.3

  	
  Recovering Finance
  Party’s Rights

  	
   

  
	
   

  	
  29.4

  	
  Reversal of Redistribution

  	
   

  
	
   

  	
  29.5

  	
  Exceptions

  	
   

  
	
  30.

  	
  CALCULATIONS AND ACCOUNTS

  	
   

  
	
   

  	
  30.1

  	
  Day Count Convention

  	
   

  
	
   

  	
  30.2

  	
  Reference Banks

  	
   

  
	
   

  	
  30.3

  	
  Maintain Accounts

  	
   

  
	
   

  	
  30.4

  	
  Control Accounts

  	
   

  
	
   

  	
  30.5

  	
  Prima Facie Evidence

  	
   

  
	
   

  	
  30.6

  	
  Certificate of Finance
  Party

  	
   

  
	
   

  	
  30.7

  	
  Certificate of the
  Facility Agent

  	
   

  
	
  31.

  	
  ASSIGNMENTS AND TRANSFERS

  	
   

  
	
   

  	
  31.1

  	
  Successors and Assignees

  	
   

  
	
   

  	
  31.2

  	
  Assignment or
  Transfers by Obligors

  	
   

  
	
   

  	
  31.3

  	
  Assignments or
  Transfers by Lenders

  	
   

  
	
   

  	
  31.4

  	
  Assignments

  	
   

  
	
   

  	
  31.5

  	
  Transfer Deed

  	
   

  
	
   

  	
  31.6

  	
  Transfer Fee

  	
   

  
	
   

  	
  31.7

  	
  Disclosure of Information

  	
   

  
	
   

  	
  31.8

  	
  No Increased Obligations

  	
   

  
	
   

  	
  31.9

  	
  Notification

  	
   

  
	
  32.

  	
  COSTS AND EXPENSES

  	
   

  
	
   

  	
  32.1

  	
  Transaction Costs

  	
   

  
	
   

  	
  32.2

  	
  Preservation and
  Enforcement Costs

  	
   

  
	
   

  	
  32.3

  	
  Stamp Taxes

  	
   

  
	
   

  	
  32.4

  	
  Amendments, Consents and Waivers

  	
   

  
	
   

  	
  32.5

  	
  Lenders’ Indemnity

  	
   

  
	
   

  	
  32.6

  	
  Value Added Tax

  	
   

  
	
  33.

  	
  REMEDIES AND WAIVERS

  	
   

  
	
  34.

  	
  NOTICES AND
  DELIVERY OF INFORMATION

  	
   

  
	
   

  	
  34.1

  	
  Writing

  	
   

  
	
   

  	
  34.2

  	
  Giving of Notice

  	
   

  
	
   

  	
  34.3

  	
  Use of Websites/E-mail

  	
   

  
	
   

  	
  34.4

  	
  Electronic Communication

  	
   

  
	
   

  	
  34.5

  	
  Certificates of Officers

  	
   

  
	
  35.

  	
  ENGLISH LANGUAGE

  	
   

  
	
  36.

  	
  PARTIAL INVALIDITY

  	
   

  
	
  37.

  	
  AMENDMENTS

  	
   

  
	
   

  	
  37.1

  	
  Amendments

  	
   

  
	
   

  	
  37.2

  	
  Consent

  	
   

  

 

v

 

	
   

  	
  37.3

  	
  Technical Amendments

  	
   

  
	
   

  	
  37.4

  	
  Guarantees and Security

  	
   

  
	
   

  	
  37.5

  	
  Release of
  Guarantees and Security

  	
   

  
	
   

  	
  37.6

  	
  Amendments
  affecting the Facility Agent

  	
   

  
	
   

  	
  37.7

  	
  Deemed Consent

  	
   

  
	
  38.

  	
  THIRD PARTY RIGHTS

  	
   

  
	
  39.

  	
  COUNTERPARTS

  	
   

  
	
  40.

  	
  GOVERNING LAW

  	
   

  
	
   

  	
  40.1

  	
  Governing Law of Agreement

  	
   

  
	
   

  	
  40.2

  	
  Governing
  Law of Claims Against US Borrower

  	
   

  
	
  41.

  	
  JURISDICTION

  	
   

  
	
   

  	
  41.1

  	
  Courts

  	
   

  
	
   

  	
  41.2

  	
  Waiver

  	
   

  
	
   

  	
  41.3

  	
  Service of Process

  	
   

  
	
   

  	
  41.4

  	
  Proceedings in Other
  Jurisdictions

  	
   

  
	
   

  	
  41.5

  	
  General Consent

  	
   

  
	
   

  	
  41.6

  	
  Waiver of Immunity

  	
   

  
	
   

  	
  SCHEDULE 1

  	
   

  
	
   

  	
   

  	
  PART 1 -

  	
  LENDERS
  AND COMMITMENTS

  	
   

  
	
   

  	
   

  	
  PART 2 -

  	
  UK
  NON-BANK LENDERS

  	
   

  
	
   

  	
  SCHEDULE 2 THE ORIGINAL GUARANTORS

  	
   

  
	
   

  	
  SCHEDULE 3 FORM OF DEED OF TRANSFER AND ACCESSION

  	
   

  
	
   

  	
  SCHEDULE 4

  	
   

  
	
   

  	
   

  	
  PART
  1 -

  	
  CONDITIONS
  PRECEDENT TO FIRST UTILISATION

  	
   

  
	
   

  	
   

  	
  PART 2 -

  	
  FORM OF
  CERTIFICATE OF OBLIGOR

  	
   

  
	
   

  	
   

  	
  PART 3 - 

  	
  INITIAL SECURITY
  DOCUMENTS

  	
   

  
	
   

  	
  SCHEDULE 5

  	
   

  
	
   

  	
   

  	
  PART 1 -

  	
  FORM OF UTILISATION REQUEST

  	
   

  
	
   

  	
  SCHEDULE 6 ASSOCIATED COSTS RATE

  	
   

  
	
   

  	
  SCHEDULE 7

  	
   

  
	
   

  	
   

  	
  PART 1 -

  	
  FORM
  OF ACCESSION NOTICE

  	
   

  
	
   

  	
   

  	
  PART 2 -

  	
  ACCESSION DOCUMENTS

  	
   

  
	
   

  	
  SCHEDULE 8

  	
   

  
	
   

  	
   

  	
  PART
  1 - 

  	
  FORM
  OF QUARTERLY COMPLIANCE CERTIFICATE

  	
   

  
	
   

  	
   

  	
  PART
  2 - 

  	
  FORM
  OF COMPLIANCE CERTIFICATE FOLLOWING INTEGRATED MERGER

  	
   

  
	
   

  	
   

  	
  EVENT

  	
   

  
	
   

  	
  SCHEDULE 9

  	
   

  
	
   

  	
   

  	
  PART 1 -

  	
  MEMBERS OF THE TCN
  GROUP

  	
   

  
	
   

  	
   

  	
  PART 2 -

  	
  MEMBERS OF THE
  FLEXTECH GROUP

  	
   

  
	
   

  	
   

  	
  PART 3 - 

  	
  EXCLUDED SUBSIDIARIES

  	
   

  
	
   

  	
  SCHEDULE 10

  	
   

  
	
   

  	
   

  	
  PART 1 -

  	
  EXISTING ENCUMBRANCES

  	
   

  
	
   

  	
   

  	
  PART 2 -

  	
  EXISTING LOANS

  	
   

  
	
   

  	
   

  	
  PART 3 -

  	
  EXISTING FINANCIAL INDEBTEDNESS

  	
   

  
	
   

  	
   

  	
  PART 4 -

  	
  EXISTING PERFORMANCE BONDS

  	
   

  
	
   

  	
   

  	
  PART 5 -

  	
  EXISTING LOAN STOCK

  	
   

  
	
   

  	
  SCHEDULE 11 HEDGING
  AGREEMENTS

  	
   

  
	
   

  	
  SCHEDULE 12 VENDOR
  FINANCING ARRANGEMENTS

  	
   

  

 

vi

 

THIS
AGREEMENT is dated 21 December 2004 and made between:

 

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

 

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

 

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

 

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

 

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

 

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

 

(7)           THE ORIGINAL GUARANTORS (as defined below); and

 

(8)           THE LENDERS (as defined below).

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

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

 

“95% Security
Test” means the requirement that, save as otherwise provided in
Clause 18.12 (Further Assurance),
members of the TCN Group generating not less than 95% of the Consolidated
Annualised TCN Group Net Operating Cash Flow are originally party to or have
acceded as Guarantors to this Agreement as tested by reference to (subject to
the provisions of paragraph (b) of the definition of “Merger Event Conditions”)
each set of quarterly financial information relating to the TCN Group delivered
to the Facility Agent pursuant to Clause 16.1 (Financial
Statements).

 

“Acceding
Guarantor” means any member of the TCN Group (or immediately prior
to the effective date of the Integrated Merger Event, any member of the Target
Group) which has complied with the requirements of Clause 20.1 (Acceding Guarantors).

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

“Advance”
means an advance (as from time to time reduced by repayment) made or to be made
by the Lenders under the Facility.

 

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

 

“Agents”
means the Facility Agent and the US Paying Agent and “Agent” means either of them.

 

“Ancillary
Facility” has the meaning given to such term in the Senior
Facilities Agreement.

 

“Anti-Terrorism
Laws” mean:

 

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

 

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

 

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

 

“Applicable Make Whole Premium” means an
amount equal to the greater of (a) 1% of the amount of the Outstandings to be
repaid (the “relevant Outstandings”)
and (b) the difference on the proposed prepayment date between (i) an amount
equal to the present value of 102% of the relevant Outstandings and any
interest that would have accrued on such relevant Outstandings from the
proposed prepayment date up to and including the last day of the Non-Call
Period computed using a discount rate equal to the Gilt Rate plus 0.50% and
(ii) the principal amount of the relevant Outstandings.

 

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

 

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

 

“Available
Commitment” means, in relation to a Lender and a particular
Borrower, at any time and save as otherwise provided in this Agreement, its
Commitment in relation to that Borrower at such time adjusted to take account
of any cancellation or reduction of, or any transfer by such Lender or any
transfer to it of any Commitment in respect of that Borrower, in each case,
pursuant to the terms of this Agreement.

 

“Available
Facility” means, at any time, the aggregate amount of each Lender’s
Available Commitment.

 

8

 

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

 

“Blocked
Account” means each interest bearing account maintained with
Barclays Bank PLC (or such other bank as the Facility Agent may determine) in
the name of TCN for the purposes of Clause 7.3 (Blocked Accounts) which is secured in favour of the Security
Trustee pursuant to the Security Documents, or as otherwise required by the
terms of this Agreement.

 

“Borrowers”
means TCN and upon its accession in accordance with Clause 20.1 (The US Borrower) the US Borrower, and “Borrower” means either of them as the
context requires.

 

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

 

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

 

exceeds:

 

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

 

“Budget”
means in respect of any financial year the budget for such financial year and
projections for the first Financial Quarter thereof in the form and including
the information required to be delivered by TCN to the Facility Agent pursuant
to Clause 16.2 (Budget).

 

“Business Day”
means a day (other than a Saturday or Sunday) on which (a) banks generally are
open for business in London.

 

“Capital
Expenditure” means, in respect of any period, the aggregate amount
of all fixed asset additions of the TCN Group in accordance with GAAP during
such period less any reclassification of finance or capital leases that has not
resulted in a cash flow during the period; provided that for the purposes of
calculating compliance with Clause 17.2 (Permitted
Capital Expenditure), the following shall be excluded:

 

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

 

(b)           any such expenditure for acquisitions,
investments or Joint Ventures that are not prohibited by Clause 19.9 (Joint Ventures) or 19.13 (Acquisitions and Investments); and

 

(c)           any such expenditure made with Equity
Proceeds or the Net Proceeds of any Financial Indebtedness in accordance with
Clauses 7.5 (Repayment from Debt Proceeds)
and Clauses 7.6 (Repayment from Equity
Proceeds) respectively which are contributed to the TCN Group in
accordance with Clause 18.16 (Contributions
to the TCN Group),

 

and
provided further that for the purposes of paragraph (b)(i) of the definition of
Consolidated TCN Group Cash Flow as used in Clause 17.1 (Ratios), Capital Expenditures shall also
exclude the aggregate amount of all Capital Expenditures for the relevant
period in excess of the cash portion

 

9

 

thereof
as set out in the cash flow statement of the TCN Group for the period in
question, calculated in accordance with GAAP.

 

“Capital
Expenditure Allowance” means, in respect of any period, the figure opposite that period in the
table set out in paragraph (b) of Clause 17.2 (Permitted
Capital Expenditure).

 

“Cash”
means at any time:

 

(a)           all Cash Equivalent Investments; and

 

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

 

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

 

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

 

“Cash
Equivalent Investment” means:

 

(a)           securities which are
freely negotiable and marketable:

 

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

 

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

 

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

 

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

 

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

 

“Change in
Tax Law” means the introduction, implementation, repeal, withdrawal
or change in, or in the interpretation, administration or application of any
Law relating to taxation (a) in the case of a participation in an Advance by a
Lender named in Part 1 of Schedule 1 (Lenders
and Commitments) after the date of this Agreement, or (b) in the
case of a participation in an Advance by any other Lender, after the date on
which such Lender becomes a party to this Agreement in accordance with the
provisions of Clause 31 (Assignments and
Transfers).

 

10

 

“Change of Control” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

“Compliance
Certificate” means:

 

(a)           in the case of a Compliance Certificate
required to be delivered under paragraph (a) of Clause 16.4 (Compliance Certificates), a certificate
substantially in the form set out in Part 1 of Schedule 8 (Form of Quarterly Compliance Certificate);
or

 

11

 

(b)           in the case of a Compliance Certificate
required to be delivered under paragraph (b) of Clause 16.4 (Compliance Certificates), a certificate
substantially in the form set out in Part 2 of Schedule 8 (Form of Compliance Certificate following Integrated
Merger Event),

 

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

 

“Confirmation Date” has the meaning given to
it in paragraph (k) of Clause 11.1 (Tax
Gross-up).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(ii)           taxes or benefits in respect of taxes;

 

(iii)         foreign currency translation differences;

 

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

 

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

 

12

 

(vi)          depreciation and amortisation;

 

(vii)         extraordinary items;

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)           adding back:

 

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

 

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

 

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

 

(iv)          at
the option of TCN, any amount paid during the period paid in relation to video
on demand of up to £30 million per annum where the TCN Group has received a
contribution in accordance with Clause 18.16 (Contributions
to the TCN Group) equal to such amount;

 

(b)           deducting:

 

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

 

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

 

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

 

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

 

(v)            (A)
any amount paid in cash in that period in respect of the items added to Net

 

14

 

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

 

(vi)          any
amount paid in cash (to the extent not taken into account under paragraph
(a)(xii) of definition of Consolidated TCN Group Net Operating Cash Flow) other
than amounts paid by way of loan or credit to members of the Flextech Group
permitted under paragraph (d)(iv) or (v) of Clause 19.3 (Loans and Guarantees)) in that period in
respect of dividends, distributions, loans, investments (other than
acquisitions) or other similar payments made or paid during such period by any
member of the TCN Group to any person who is not a member of the TCN Group and
any cash charges falling under sub-paragraph (a)(ix) of “Consolidated TCN Group
Net Operating Cash Flow” which have been added back for the purposes of
calculating such definition;

 

provided that in no event shall amounts constituting Consolidated Debt Service
be deducted from Consolidated TCN Group Cash Flow, and no amount shall be
included or excluded more than once and provided  further that,
for the avoidance of doubt, in calculating Consolidated TCN Group Cash Flow for
the purposes of Clause 7.4 (Repayment from
Excess Cash Flow), Net Proceeds (including, without limitation, Net
Proceeds arising from any Flextech Disposal), any gains or losses arising as a
result of a Flextech Disposal or Merger Event and the proceeds of any
Subordinated Funding shall be excluded.

 

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

 

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

 

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

 

(ii)           taxes or benefits in respect of taxes;

 

(iii)         foreign currency translation differences;

 

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

 

(v)            interest expense, including, without
limitation, amortisation of debt issuance cost and

 

15

 

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

 

(vi)          depreciation and amortisation;

 

(vii)         extraordinary items;

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Content” means any rights to broadcast,
transmit, distribute or otherwise make available for viewing, exhibition or
reception (whether in analogue or digital format and whether as a channel or an
internet service, a teletext-type service, an interactive service, or an
enhanced television service or any part of any of the foregoing, or on a
pay-per-view basis, or near video-on-demand, or video-on-demand basis or
otherwise) any one or more of audio and/or visual images, audio content, or interactive
content (including hyperlinks, re-purposed web-site content, database content
plus

 

17

 

associated
templates, formatting information and other data including any interactive
applications or functionality), text, data, graphics, or other content, by
means of any means of distribution, transmission or delivery system or
technology (whether now known or hereafter invented).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Documentary
Credit” has the meaning given to such term in the Senior Facilities
Agreement.

 

18

 

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

 

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

 

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

 

“Encumbrance”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

(c)           land (including land
under water).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

19

 

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

 

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

 

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

 

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

 

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

 

“Event of
Default” means any of the events or circumstances described as such
in Clause 21 (Events of Default).

 

“Excess Cash
Flow” means in relation to any financial year of TCN, (i)
Consolidated TCN Group Cash Flow less (ii) the sum of (A) Consolidated Debt
Service for such financial year plus (B) the aggregate amount of all payments
or prepayments of principal, whether voluntary or mandatory, of Consolidated
Total Debt made in such financial year (other than voluntary prepayments
applied in repayment of the Facility in accordance with paragraphs (i), (ii)
and (iii) of the proviso to Clause 2.4 of the Principal Intercreditor Deed), provided
that no such amounts prepaid and used in the calculation under this paragraph
(ii)(B) shall be available for reborrowing; and provided  further
that for the purposes of the calculation set forth in this definition, no
amount shall be included or excluded more than once.

 

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

 

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

 

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

 

“Excluded
Subsidiary” means:

 

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

 

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

 

20

 

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

 

(d)           any member of the Flextech Group; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Facility
Office” means the office notified by a Lender to the Facility Agent
in writing on or before the date it becomes a Lender (or, following that date,
(i) by not less than five Business Days’ written notice) as the office through
which it will perform its obligations under this Agreement where the

 

21

office is situated in Financial Action Task
Force countries, or (ii) with the prior written consent of the Facility Agent,
an office through which it will perform its obligations under this Agreement
situated in non-Financial Action Task Force countries.

 

“Fee Letters”
means the fee letters referred to in Clauses 10.1 (Arrangement and Underwriting Fee) and 10.2 (Agency Fee).

 

“Final
Maturity Date” means the date falling 114 months after the date of
this Agreement, provided that if such day is not a Business Day, the Final
Maturity Date will be the next succeeding Business Day in the then current
calendar month (if there is one) or the preceding Business Day (if there is
not).

 

“Finance
Documents” means:

 

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

 

(b)           the Fee Letters;

 

(c)           the Security Documents;

 

(d)           the
Principal Intercreditor Deed;

 

(e)           each TGD
Intercreditor Agreement;

 

(f)            following an Integrated Merger Event, any other
intercreditor agreement that is entered into with, amongst others, members of
the Target Group;

 

(g)           any Hedging
Agreements entered into with one or more Hedge Counterparties pursuant to
Clause 18.9 (Hedging);

 

(h)           the
Barclays Intercreditor Agreement;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)           moneys borrowed;

 

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

 

22

 

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

 

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

 

(e)           receivables sold or
discounted (other than any receivables to the extent they are sold on a
non-recourse basis, including, without limitation, pursuant to any
securitisation programme or receivables factoring transaction referred to in
paragraph (g) of Clause 19.6 (Disposals));

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

23

 

group, together with their respective successor
and assigns in accordance with any relevant provisions of this Agreement.

 

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

 

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

 

“Gilt Rate”
means, as at any prepayment date, the weekly average yield to maturity as of
such prepayment date on actually traded United Kingdom government securities
denominated in Sterling with a fixed maturity most nearly equal to the period
from such prepayment date to the end of the Non-Call Period adjusted to a fixed
maturity of one year.

 

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

 

“Group
Structure Chart” means the group structure chart delivered to the
Facility Agent pursuant to paragraph 6 of Part 1 of Schedule 4 (Conditions Precedent to Utilisation) or
any updated group structure chart which is delivered to the Facility Agent
pursuant to Clause 18.15 (Group Structure
Chart) from time to time.

 

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

 

“Guarantors”
means the Original Guarantors upon its accession hereto pursuant to Clause 20.1
(The US Borrower), the US
Borrower, and any Acceding Guarantors and “Guarantor”
means any one of them as the context requires, provided that in either case,
such person has not been released from its rights and obligations as a
Guarantor hereunder pursuant to Clause 37.5 (Release
of Guarantees or Security).

 

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

 

“Hedge
Counterparty” means each Lender or Senior Lender or Affiliate
thereof which is a party to a Hedging Agreement entered into for the purposes
of Clause 18.9 (Hedging) and “Hedge Counterparties” means all such
Lenders or Affiliates.

 

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

 

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

 

24

 

“Increased
Cost” means:

 

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

 

(b)           any additional or
increased cost; or

 

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

 

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

 

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

 

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

 

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

 

“Instructing
Group” means:

 

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

 

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

 

in each case calculated taking account of those
Lenders who have actually given their instructions and those who, not having
done so, are deemed to have done so pursuant to Clause 37.7 (Deemed Consent).

 

“Integrated
Merger Event” means the designation by TCN of an Integrated Merger
Event and the notification to the Facility Agent pursuant to Clause 18.19 (Notice of Integrated Merger Event) (subject
to satisfaction of the Merger Event Conditions) of the proposed effective date
of such Integrated Merger Event, the purpose of which is to enable TCN to
better integrate the businesses of the TCN Group and the businesses of the
Target Group.

 

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

 

“Integrated
Merger Senior Leverage Ratio” means the ratio of (i) the aggregate of (A) Consolidated Senior Debt
(as at close of business on the proposed effective date of the Integrated
Merger Event) of the TCN Group (as constituted immediately prior to the
proposed effective date of

 

25

 

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

 

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

 

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

 

“Interest
Period” means, save as otherwise provided in this Agreement, any of
those periods mentioned in Clause 8.1 (Interest
Periods).

 

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

 

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

 

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

 

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

 

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

 

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

 

26

 

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

 

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

 

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

 

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

 

“Law”
means:

 

(a)           common or customary
law;

 

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

 

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

 

“Legal
Opinions” means any of the legal opinions referred to in paragraph 8
of Part 1 to Schedule 4 (Conditions
Precedent to Utilisation) and paragraph 2 of Part 2 to Schedule 7
(Accession Documents) required to
be delivered pursuant to Clause 3.1 (Conditions
Precedent) and Clause 20 (Accession:
US Borrower; Guarantors), respectively.

 

“Lender”
means a person which:

 

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

 

(b)           has become a party to
this Agreement in accordance with the provisions of Clause 31 (Assignments and Transfers),

 

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

 

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

 

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

 

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

 

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

 

“Margin”
means 4.00% per annum.

 

27

 

“Marketable
Securities” means any security which is listed on any publicly
recognised stock exchange which is rated at least AA by Standard & Poor’s
or Aa2 by Moody’s and which has, or is issued by a company which has, a
capitalisation of not less than £1 billion (or its equivalent in other
currencies) as at the time such Marketable Securities are acquired by any
member of the TCN Group by way of consideration for any disposal permitted
under Clause 19.6 (Disposals).

 

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

 

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

 

(b)           the ability of any
Obligor to perform and comply with its payment or other material obligations
under any Finance Document (taking into account the resources available to such
TCN Group Obligor from any other member of the TCN Group or the Flextech Group
(while it remains a member of the Group)).

 

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

 

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

 

“Merger Event”
means:

 

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

 

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

 

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

 

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

 

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

 

(a)           either:

 

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

 

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

 

28

 

(b)           save as permitted
pursuant to the proviso to Clause 18.12 (Further
Assurance), such members of the Target Group who are to become
members of the TCN Group upon the Integrated Merger Event shall have acceded to
this Agreement as Acceding Guarantors pursuant to Clause 20.1 (Acceding Guarantors), as are necessary to
ensure that immediately following the Integrated Merger Event, the 95% Security
Test would be satisfied, where the 95% Security Test is calculated by reference
to the aggregate of (i) Consolidated TCN Group Net Operating Cash Flow for the
Financial Quarter ending on the most recent Quarter Date prior to the effective
date of the Integrated Merger Event and (ii) Target Group Net Operating Cash
Flow for the most recent Financial Quarter ending on the date prior to the
effective date of the Integrated Merger Event for which the most recent
quarterly financial information is available for the Target Group; and

 

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

 

“Merger Event
Integration Tests” means:

 

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

 

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

 

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

 

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

 

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

 

29

 

the effective date of
the Integrated Merger Event, such calculations shall be made on an annualised
basis for the period between the Quarter Date at the beginning of the first
full Financial Quarter arising after the Integrated Merger Event and ending on
such Quarter Date;

 

	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  	
  Quarter
  Date

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2004

  	
   

  	
  1.42x

  	
   

  	
  31 March 2008

  	
   

  	
  1.45x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2004

  	
   

  	
  1.54x

  	
   

  	
  30 June 2008

  	
   

  	
  1.51x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2005

  	
   

  	
  1.52x

  	
   

  	
  30 September 2008

  	
   

  	
  1.34x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2005

  	
   

  	
  1.55x

  	
   

  	
  31 December 2008

  	
   

  	
  1.37x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2005

  	
   

  	
  1.51x

  	
   

  	
  31 March 2009

  	
   

  	
  1.37x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  1.53x

  	
   

  	
  30 June 2009

  	
   

  	
  1.40x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2006

  	
   

  	
  1.46x

  	
   

  	
  30 September 2009

  	
   

  	
  1.50x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2006

  	
   

  	
  1.51x

  	
   

  	
  31 December 2009

  	
   

  	
  1.54x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2006

  	
   

  	
  1.43x

  	
   

  	
  31 March 2010

  	
   

  	
  1.57x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  1.50x

  	
   

  	
  30 June 2010

  	
   

  	
  1.61x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2007

  	
   

  	
  1.42x

  	
   

  	
  30 September 2010

  	
   

  	
  1.65x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2007

  	
   

  	
  1.47x

  	
   

  	
  31 December 2010

  	
   

  	
  1.69x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2007

  	
   

  	
  1.43x

  	
   

  	
  31 March 2011 and
  thereafter

  	
   

  	
  1.72x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2007

  	
   

  	
  1.48x

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(e)           subject to paragraph
(f) below, the ratio of (i) the aggregate of (A) projected Consolidated Net
Borrowings as of the close of business on the proposed effective date of the
Integrated Merger Event plus (without
double counting)  (B) Pro Forma
Target Group Debt (provided that  for the
purposes of calculating the aggregate figure for this sub-paragraph (i), if the
aggregate of the Cash balances deducted from Consolidated Total Debt in
arriving at Consolidated Net Borrowings is less than £200,000,000 (or its
equivalent in other currencies), an amount of cash and the value of any Cash
Equivalent Investments held by the Target Group may be deducted from Pro Forma
Target Group Debt, provided further that in no event may the aggregate of all
such amounts deducted for the purposes of this sub-paragraph (i) exceed
£200,000,000 (or its equivalent in other currencies)), to (ii) the aggregate of (A) Consolidated
Annualised TCN Group Net Operating Cash Flow for the Semi-Annual Period ending
on the Quarter Date of the TCN Group immediately prior to the proposed
effective date of the Integrated Merger Event and (B) Target Group Net
Operating Cash Flow calculated on an annualised basis for the Semi-Annual
Period ending on the Quarter Date for the Target Group immediately prior to the
proposed effective date of the Integrated Merger Event shall not be more than X
(where X has the value indicated opposite the Quarter Date immediately prior to
the proposed effective date of the Integrated Merger Event in the table set out
in paragraph (d) to Clause 17.1 (Ratios)
under the caption “Consolidated Net Borrowings to Consolidated Annualised TCN
Group Net Operating Cash Flow”);

 

30

 

(f)            if:

 

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

 

(ii)           (A) the amount of Target Group Interim
Indebtedness plus Target Group Financial Indebtedness included for the purposes
of the Merger Event Integration Tests exceeds the amount of Target Group
Financial Indebtedness as of the date of the Unintegrated Merger Event; and (B)
during the period between the effective date of the Unintegrated Merger Event
and the proposed effective date of the Integrated Merger Event, the Target
Group has entered into or made acquisitions of businesses or investments in
joint ventures outside the ordinary course of business (in each case excluding
businesses or joint ventures acquired from or entered into with any other
member of the Group and excluding acquisitions of assets made in exchange for
similar assets) or paid any dividends or distributions to any member of the
Group other than to another member of the Target Group or to a member of the
TCN Group where the consideration paid, the investments contractually committed
and the dividends and distributions paid in aggregate exceed £250,000,000 (or
its equivalent in other currencies),

 

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

 

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

 

	
  Quarter Date

  	
   

  	
  Ratio

  	
   

  	
  Quarter
  Date

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2004

  	
   

  	
  4.05x

  	
   

  	
  31 December 2007

  	
   

  	
  2.46x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2004

  	
   

  	
  3.60x

  	
   

  	
  31 March 2008

  	
   

  	
  2.30x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2005

  	
   

  	
  3.49x

  	
   

  	
  30 June 2008

  	
   

  	
  2.27x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2005

  	
   

  	
  3.45x

  	
   

  	
  30 September 2008

  	
   

  	
  2.10x

  	
   

  

 

31

 

	
  30 September 2005

  	
   

  	
  3.42x

  	
   

  	
  31 December 2008

  	
   

  	
  2.08x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  3.37x

  	
   

  	
  31 March 2009

  	
   

  	
  1.92x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2006

  	
   

  	
  3.21x

  	
   

  	
  30 June 2009

  	
   

  	
  1.88x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2006

  	
   

  	
  3.12x

  	
   

  	
  30 September 2009

  	
   

  	
  1.76x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2006

  	
   

  	
  2.96x

  	
   

  	
  31 December 2009

  	
   

  	
  1.75x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  2.90x

  	
   

  	
  31 March 2010

  	
   

  	
  1.61x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31 March 2007

  	
   

  	
  2.73x

  	
   

  	
  30 June 2010

  	
   

  	
  1.59x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 June 2007

  	
   

  	
  2.66x

  	
   

  	
  30 September 2010

  	
   

  	
  1.47x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30 September 2007

  	
   

  	
  2.51x

  	
   

  	
  31 December 2010

  	
   

  	
  1.47x

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  31 March 2011 and
  thereafter

  	
   

  	
  1.34x

  	
   

  

 

(y)           the actual ratio of Consolidated Net Borrowings
to Consolidated TCN Group Net Operating Cash Flow for the Quarter Date
immediately prior to the proposed effective date of the Integrated Merger Event
calculated with respect to the TCN Group only (without including any members of
the Target Group) and in the manner set forth in paragraph (a) of Clause 17.1 (Ratios), provided that the ratio in this
paragraph (y) shall in no event be higher than X (where X has the value
indicated opposite the Quarter Date immediately prior to the proposed effective
date of the Integrated Merger Event, in the table set out in paragraph (d) of
Clause 17.1 (Ratios) under the
caption “Consolidated Net Borrowings to Consolidated Annualised TCN Group Net
Operating Cash Flow”) and

 

(g)           the ratio of (i) (A) Consolidated Annualised
TCN Group Net Operating Cash Flow for the 
Semi-Annual Period ending on the Quarter Date of the TCN Group
immediately prior to the proposed effective 
date of the Integrated Merger Event plus
(B) Target Group Net Operating Cash Flow calculated on an annualised
basis for the  Semi-Annual Period ending
on the Quarter Date of the Target Group immediately prior to the proposed
effective date of the Integrated Merger Event, to
(ii) (A) Total Interest Charges calculated on an annualised basis for such
Semi-Annual Period relating to the TCN Group (as constituted immediately prior
to the effective date of the Integrated Merger Event) plus (without double counting) (B) Pro
Forma Target Group Total Interest Charges, calculated on an annualised basis
for such Semi-Annual Period relating to the Target Group, shall be not less
than Y (where Y has the value indicated opposite the Quarter Date immediately
prior to the proposed effective date of the Integrated Merger Event in the
table set out in paragraph (d) to Clause 17.1 (Ratios)
under the caption “Consolidated Annualised TCN Net Operating Cash Flow to Total
Interest Charges”)),

 

provided that:

 

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

 

32

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Net Proceeds”
means:

 

(a)           any cash proceeds
received by any member of the TCN Group (including, when received, any cash
proceeds received by way of deferred instalment of purchase price or from the
sale of Cash Equivalent Investments or Marketable Securities acquired by any
member of the TCN Group in consideration for any Disposal as contemplated under
Clause 19.6 (Disposals)) in
connection with any Disposal after deducting:

 

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

 

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

 

(iii)         all reasonable fees, commissions, costs and
expenses incurred by any member of the TCN Group in arranging or effecting that
Disposal, including, without limitation, any

 

33

 

amount required to be
paid by any member of the TCN Group to any proprietor of any intellectual
property rights (including intellectual property licences) related to the
assets disposed of where such payment is on arms length terms and is required
to enable such intellectual property rights to be transferred with such assets
to the extent necessary to facilitate the applicable Disposal;

 

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

 

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

 

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

 

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

 

“Non-Call
Period” means the period commencing on the Closing Date and ending
one day prior to the date falling 12 months thereafter.

 

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

 

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

 

“Obligors’
Agent” means TCN in its capacity as agent for the Obligors, pursuant
to Clause 24.17 (Obligors’ Agent).

 

“OFCOM”
means the UK Office of Communications;

 

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

 

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

 

“Outstandings”
means, at any time, the aggregate principal amount of each Advance outstanding
under this Agreement.

 

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

 

34

 

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

 

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

 

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

 

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

 

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

 

“Permitted
Capital Expenditure” has the meaning ascribed to it in Clause 17.2 (Permitted Capital Expenditure).

 

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

 

“Permitted
Payments” means:

 

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

 

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

 

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

 

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

 

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

 

(i)            the terms of the
Finance Documents;

 

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

 

(iii)         the terms of the
Senior Finance Documents, any Senior Debt Refinancing and any Second Lien
Refinancing (or in each case, any guarantee of the obligations thereunder), to
the extent such payment is permitted by the terms of the Principal

 

35

 

Intercreditor Deed,
other than any payments in relation to any fees, costs, expenses, commissions
or other payments required to be made in respect of any amendment, consent or
waiver in respect of the Senior Finance Documents, any Senior Debt Refinancing
or any such Second Lien Refinancing (or any guarantee of the obligations
thereunder);

 

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

 

(v)            the terms of the TCN
Notes; or

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)           such Post Merger Target Group Refinancing is
raised by (i) any member of the TCN Group provided that such Post Merger Target
Group Refinancing is not (in the reasonable opinion of the Facility Agent
having taken legal advice from counsel where appropriate) raised at a level

 

36

 

which is structurally
superior to the level at which the Target Group Financial Indebtedness or
Target Group Refinancing Indebtedness being refinanced was raised or (ii) any
other member of the Group which is not a member of the TCN Group.

 

“Prepayment
Premium” means in relation to a prepayment an amount equal to the
percentage of the principal amount of the Outstandings being prepaid as set out
below opposite the relevant period:

 

	
  Prepayment Date

  	
   

  	
  Percentage

  	
   

  
	
  during the period commencing on the first day after the Non—Call
  Period and ending on the day before the Second Anniversary

  	
   

  	
  2.0

  	
  %

  
	
  during the period commencing on the Second Anniversary and ending on
  the day before the Third Anniversary

  	
   

  	
  1.0

  	
  %

  
	
  during the period commencing on the Third
  Anniversary

  	
   

  	
  0.0

  	
  %

  

 

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

 

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

 

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

 

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

 

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

 

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

 

37

 

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

 

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

 

“Proportion”
in relation to a Lender, means:

 

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

 

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

 

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

 

“Qualifying
Lender” means a Lender which is either:

 

(a)           a UK Bank Lender;

 

(b)           a UK Treaty Lender;
or

 

(c)           a UK Non-Bank Lender.

 

“Quarter Date”
means (i) in relation to
the TCN Group, each of 31 March, 30 June, 30 September and 31 December in
each year and (ii) in relation to the Target Group for any period prior to an
Integrated Merger Event, each of the quarter dates in the financial year of the
Target Group as at which quarterly financial information is prepared for the
Target Group.

 

“Quotation Date” means, in relation to any
period for which an interest rate is to be determined, the first day of that
period.

 

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

 

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

 

38

 

“Repeating
Representations” means the representations and warranties set out in
Clauses 15.1 (Due Organisation),
15.4 (No Immunity), 15.5 (Governing Law and Judgments), 15.6 (All Actions Taken), 15.8 (Binding Obligations), 15.10 (No Event of Default), 15.17 (Execution of Finance Documents), 15.26 (Investment Company Act), 15.27 (Public Utility Holding Company Act), 15.33
(U.S. Patriot Act), 15.34 (Compliance with ERISA) and 15.35 (Liabilities of the US Borrower).

 

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

 

“Reservations”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

“Revolving
Facility” has the meaning given to such term in the Senior
Facilities Agreement.

 

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

 

“Second
Anniversary” means the date falling 24 months after the Closing
Date.

 

“Second Lien
Refinancing” means any Financial Indebtedness incurred for the
purposes of refinancing a portion (but not all) of the Facility including any
Financial Indebtedness incurred for the purpose of the payment of a portion of
the principal, interest, fees, expenses, commissions, make whole and any other
contractual premium payable under the Facility and any reasonable fees, costs
and expenses incurred in connection with such refinancing, in respect of which
the following terms apply:

 

39

 

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

 

(b)           the average life of the Second Lien Refinancing
is at least equal to the remaining average life of the Facility, as at the time
of such refinancing;

 

(c)           the Financial
Indebtedness constituted by any Second Lien Refinancing is pari passu with or,
at the Borrower’s option, structurally and/or contractually subordinated to the
Facility;

 

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

 

(e)           immediately upon
completion of such refinancing, TCN is able to show compliance with the
financial covenants set out in paragraphs (b) and (c) of Clause 17.1 (Ratios) calculated on a pro forma basis
for each of the twelve month periods immediately preceding and following the
date of such refinancing.

 

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

 

“Security
Documents” means:

 

(a)           each of the Initial
Security Documents;

 

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

 

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

 

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

 

(e)           any other document
executed at any time pursuant to Clause 18.12 (Further
Assurance) or any similar covenant in any of the Security Documents
referred to in paragraph (a) to (d) above.

 

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

 

“Senior Debt
Refinancing” means, subject to the terms of the Principal
Intercreditor Deed, any Financial Indebtedness incurred for the purposes of
refinancing all or any portion of the Senior Facilities, including any
Financial Indebtedness incurred for the purpose of the payment of all or any
portion of the principal, interest, fees, expenses, commissions, make whole and
any other contractual premium payable under the Senior Facilities and any reasonable
fees, costs and expenses incurred in connection with such refinancing.

 

“Senior
Facilities Agreement” means the senior facilities agreement dated as
at the date of this Agreement and made between, inter alios, TCN, Telewest UK, Barclays Capital, BNP Paribas,
Citigroup Global Markets Limited, Credit Suisse First Boston, Deutsche Bank AG
London, GE Capital Structured Finance Group Limited and The Royal Bank of
Scotland plc as Mandated Lead

 

40

 

Arrangers, Barclays Bank PLC as Facility Agent,
US Paying Agent and Security Trustee, GE Capital Structured Finance Group
Limited as Administrative Agent and the Senior Lenders.

 

“Senior
Facilities” means the £1,550,000,000 multi-currency term and
revolving loan facilities made available to TCN and the US Borrower under the
Senior Facilities Agreement.

 

“Senior
Finance Documents” means the Finance Documents (as defined in the
Senior Facilities Agreement).

 

“Senior
Finance Parties” means the “Finance
Parties” as such term is defined in the Senior Facilities Agreement.

 

“Senior
Lenders” means the “Lenders”
as defined in the Senior Facilities Agreement.

 

“Serviceable Non-TCN Group Debt” means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

41

 

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

 

(a)           constitutes Parent Intercompany Debt;

 

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

 

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

 

(d)           constitutes Equity
Equivalent Funding; or

 

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

 

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

 

(ii)           constitutes Equity Equivalent Funding; or

 

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

 

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

 

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

 

“Subsidiary”
of a person means (a) any
company or entity directly or indirectly controlled by such person (for which
purpose “control” means either ownership of more than 50 per cent. of the
voting share capital (or equivalent right of ownership) of such company or
entity or power to direct its policies and management whether by contract or
otherwise or the right to receive more than 50 per cent. of any distributions
(of whatever nature) made in respect of the share capital or other ownership
interests of such company or entity) and (b) (for the purpose only of the
preparation of the financial statements to be prepared pursuant to Clause 16.1
(Financial Statements) and the
undertakings in Clause 17 (Financial
Condition) a company that is consolidated with such person in
accordance with GAAP.

 

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

 

“Successful
Syndication” has the meaning given to it in the Fee Letter referred
to in Clause 10.1 (Arrangement and
Underwriting Fee).

 

42

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

43

 

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

 

(a)           adding back:

 

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

 

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

 

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

 

(b)           deducting:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

44

 

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

 

“Target Group
Financial Indebtedness” means:

 

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

 

(b)           Financial
Indebtedness constituting Target Group Interim Indebtedness,

 

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

 

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

 

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

 

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

 

(b)           taxes or benefits in respect of taxes;

 

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

 

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

 

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

 

(f)            depreciation and amortisation;

 

(g)           extraordinary items;

 

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

 

45

 

any availability under, at TCN’s option, either or both of the baskets set
out in paragraph (i) below) and (ii) in connection with any other transactions
contemplated under this sub-paragraph (h), the aggregate amount added back in
respect of such fees and expenses shall not exceed £20,000,000;

 

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

 

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

 

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

 

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

 

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

 

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

 

“Target Group
Obligors” means any member of the Target Group that becomes an
Obligor under this Agreement, pursuant to the provisions of Clause 20.1 (Acceding Guarantors).

 

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

 

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

 

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

 

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

 

“Tax
Liability” has the meaning set out in paragraph (e) of Clause 11.2 (Tax Indemnity).

 

46

“Tax Payment”
means the increase in any payment made by an Obligor to a Finance Party under
paragraph (c) of Clause 11.1 (Tax Gross-up) or
any amount payable under paragraph (d) of Clause 11.1 (Tax Gross-up) or under Clause 11.2 (Tax Indemnity).

 

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

 

“TCN Group”
means TCN and its direct and indirect Subsidiaries and associated partnerships
but (a) excluding the Excluded Subsidiaries and (b) following an Integrated
Merger Event including each Target Group Obligor and each other person which
was a Subsidiary or Holding Company of the Target immediately prior to the
Integrated Merger Event which is designated as a member of the TCN Group by TCN
pursuant to Clause 18.19 (Notice of
Integrated Merger Event) or by notice to the Facility Agent from
time to time and for so long as such company is a member of the Group.

 

“TCN Group
Consolidated Revenues” means, in respect of any period, the
consolidated revenues for the TCN Group for that period as evidenced by the financial
information provided in respect of that period pursuant to Clause 16.1 (Financial Statements).

 

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

 

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

 

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

 

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

 

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

 

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

 

“Termination
Date” means the date falling 30 days after the date of this
Agreement.

 

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

 

“Third
Anniversary” means the date falling 36 months after the Closing
Date.

 

“Total
Interest Charges” means, in relation to any period, (A) the total amount (without
duplication) of (i) all interest, amounts in the nature of interest and
commitment, non-utilisation and other periodic fees and commissions accruing in
respect of Financial Indebtedness (including in respect of obligations under
finance or capital leases or hire purchase payments but excluding amortisation
of underwriting, arrangement and similar upfront fees and debt issuance costs)
paid or payable by the TCN Group during such period plus (ii) net cash amounts
paid or payable by the TCN Group (or

 

47

 

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

 

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

 

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

 

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

 

“Transferee”
means a bank or other institution to which a Lender seeks to transfer all or
part of its rights, benefits and obligations under this Agreement pursuant to
and in accordance with Clause 31 (Assignments
and Transfers).

 

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

 

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

 

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

 

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

 

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

 

48

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Utilisation”
means the utilisation of the Facility under this Agreement by way of an
Advance.

 

“Utilisation
Date” means the date on which an Advance is (or is requested) to be
made in accordance with the terms of this Agreement.

 

“Utilisation
Request” means a duly completed notice in the form set out in Part 1
to Schedule 5 (Form of Utilisation
Request).

 

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

 

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

 

49

 

1.2          Accounting Expressions

 

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

 

1.3          Construction

 

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

 

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

 

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

 

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

 

“company”
includes any body corporate;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

provided that in the case of Financial
Indebtedness proposed to be incurred to refinance other Financial Indebtedness
denominated in a currency other than Sterling or other than the currency in
which such refinanced Financial Indebtedness is denominated, if such
refinancing would cause any

 

50

 

applicable Sterling-denominated restriction to
be exceeded if calculated at the relevant currency exchange rate in effect on
the date of such refinancing, such Sterling-denominated restriction shall be
deemed not to be exceeded so long as the principal amount of such refinancing
Financial Indebtedness does not exceed the principal amount of such Financial
Indebtedness being refinanced in the applicable currency at the then current
exchange rate.

 

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

 

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

 

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

 

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

 

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

 

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

 

the “winding-up”,
“dissolution” or “administration” of a company shall be
construed so as to include any equivalent or analogous proceedings under the
Law of the jurisdiction in which such company is incorporated, established or
organised or any jurisdiction in which such company carries on business,
including the seeking of liquidation, winding-up, dissolution, administration,
adjustment, protection from creditors or relief of debtors.

 

1.4          Currency

 

 “£” and “Sterling” denote the lawful currency of the
United Kingdom and “$” and “Dollars”
denote the lawful currency of the United States of America.

 

51

 

1.5          Statutes

 

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

 

1.6          Time

 

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

 

1.7          References to Agreements

 

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

 

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

 

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

 

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

 

1.8          Principal Intercreditor Deed

 

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

 

2.             THE FACILITY

 

2.1          The Facility

 

The Lenders grant to the Borrowers, upon the
terms and subject to the conditions of this Agreement, a term loan facility in
an amount of £250,000,000 (the “Facility”)
which shall be available in Sterling by way of no more than one drawing by each
of the Borrowers on the Closing Date provided that drawings shall be made by
each of the Borrowers in such proportions as the Facility Agent shall have
notified TCN prior to the first drawing hereunder.

 

2.2          Purpose

 

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

 

(b)           The US
Borrower shall apply all amounts borrowed by it under this Agreement in or
towards funding of the TCN Short Term Notes, and TCN shall apply all amounts
borrowed under this

 

52

 

Agreement and the TCN Short
Term Notes in or towards satisfaction of the purposes referred to in paragraph
(a).

 

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

 

2.3          Several Obligations

 

The obligations of each Finance Party under
this Agreement are several and the failure by a Finance Party to perform any of
its obligations under this Agreement shall not affect the obligations of any of
the Obligors towards any other party to this Agreement nor shall any other
party be liable for the failure by such Finance Party to perform its obligations
under this Agreement.

 

2.4          Several Rights

 

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

 

3.             CONDITIONS

 

3.1          Conditions Precedent

 

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

 

3.2          General Conditions Subsequent

 

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

 

4.             UTILISATION

 

4.1          Conditions to Utilisation

 

Save as otherwise provided in this Agreement,
an Advance will be made by the Lenders to each of the Borrowers at the relevant
Borrower’s request if:

 

(a)           the
Facility Agent has received from TCN or Telewest Global Finance LLC, as
appropriate, a duly completed Utilisation Request no earlier than the day which
is 10 Business Days and no later than 2:00 p.m. on the day which is
3 Business Days prior to the proposed Utilisation Date for such Advance,
receipt of which shall oblige the relevant Borrower to borrow the amount
requested on the Utilisation Date stated therein upon the terms and subject to
the conditions contained in this Agreement;

 

(b)           the
proposed Utilisation Date is a Business Day which is or precedes the
Termination Date;

 

53

 

(c)           the
Utilisation would result in the maximum principal amount of the Available
Facility being borrowed;

 

(d)           the
Facility Agent has received evidence satisfactory to it that £1,450,000,000 (or
its equivalent in other currencies) has been or will, simultaneously with the
drawing of the first Advance hereunder, be drawn by the Borrowers under the
Senior Facilities;

 

(e)           interest
rate applicable to such Advance’s first Interest Period will not have to be
determined under Clause 9 (Market Disruption
and Alternative Interest Rates);

 

(f)            on the
date of the Utilisation Request and the proposed Utilisation Date, all
representations set out in Clause 15 (Representations
and Warranties) made by each of the persons identified as making
those representations are true in all material respects by reference to the
circumstances then existing and no Default is continuing or would result from
the making of the proposed Advance.

 

4.2          Lenders’ Participations

 

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

 

5.             REPAYMENT OF OUTSTANDINGS

 

5.1          Repayment of Outstandings

 

The Borrowers shall repay the Outstandings in
full on the Final Maturity Date.

 

5.2          No Reborrowing of Advance

 

No Borrower may reborrow any part of the
Facility which is repaid.

 

6.             VOLUNTARY PREPAYMENT

 

6.1          Voluntary
Prepayment

 

(a)           During the
Non-Call Period, TCN may by giving to the Facility Agent not less than 5
Business Days’ prior written notice to that effect (unless an Instructing Group
has given its prior consent to a short period), repay or procure that there is
repaid the Outstandings in whole or in part at par together with an amount
equal to the Applicable Make-Whole Premium.

 

(b)           At any
time after the end of the Non-Call Period, TCN may by giving to the Facility
Agent not less than 5 Business Days’ prior written notice to that effect
(unless an Instructing Group has given its prior consent to a shorter period),
repay or procure that there is repaid the Outstandings in whole or in part (but
if in part, in an amount that reduces the Outstandings by a minimum amount of
£5,000,000 and an integral multiple of £1,000,000) together with the applicable
Prepayment Premium, if any, and accrued interest on the amount repaid without
premium or penalty but subject to the payment of any Break Costs.

 

6.2          Right of Prepayment and
Cancellation in relation to a single Lender

 

If any sum payable to any Lender by an Obligor
is required to be increased under Clause 11.1 (Tax
Gross-up) or a Lender claims indemnification from any Borrower under
the provisions of Clause 11.2 (Tax Indemnity)
or Clause 12.1 (Increased Costs)
TCN may elect, by providing at least 5 Business Days’ prior notice of its
intention to repay or to cause to be repaid such Lender’s share of the
Outstandings to the Facility Agent, to repay such Lender’s share of the

 

54

 

Outstandings. 
In such event, TCN shall procure that on the last day of the then
current Interest Period repay such Lender’s portion of each Advance.

 

6.3          Application of Repayments

 

Subject
to the provisions of the Principal Intercreditor Deed and, upon and following
an Integrated Merger Event to any other applicable intercreditor agreement, to
the extent applicable, any repayment made pursuant to Clauses 6.1 (Voluntary Prepayment), 7.2 (Repayment from Net Proceeds of Disposals and
Insurance Recoveries), 7.4 (Repayment
from Excess Cash Flow), 7.5 (Repayment
from Debt Proceeds) and 7.6 (Repayment
from Equity Proceeds) under the circumstances set out therein, shall
be applied in repayment of the Outstandings pro tanto.

 

6.4          Notice of Repayment

 

Any notice of repayment given by either
Borrower pursuant to Clauses 6.1 (Voluntary
Prepayment) or 6.2 (Right of
Prepayment and Cancellation in relation to a single Lender) shall be
irrevocable, shall specify the date upon which such repayment is to be made and
the amount of such repayment and shall oblige such Borrower to make such
repayment on such date.

 

6.5          Restrictions on Repayment

 

No Borrower may repay all or any part of any
Advance except at the times and in the manner expressly provided for in this
Agreement.

 

7.             MANDATORY PREPAYMENT AND
CANCELLATION

 

7.1          Change of Control

 

If, other than to the extent arising from or in
connection with a Merger Event:

 

(a)           there
occurs a sale of all or substantially all of the assets and/or business of the
TCN Group, (excluding for the purposes of this Clause 7.1(a), any Flextech
Disposal), taken as a whole;

 

(b)           Telewest
UK ceases to be a direct or indirect wholly-owned Subsidiary of the Ultimate
Parent;

 

(c)           TCN ceases
to be a direct wholly-owned Subsidiary of Telewest UK; or

 

(d)           a Change
of Control occurs,

 

all of the Available Commitments shall
immediately be cancelled, the Commitments of each Lender shall be reduced to zero
and TCN shall procure that the Outstandings are immediately repaid in full
together with unpaid interest accrued thereon and all other amounts payable
pursuant to Clause 25 (TCN’s Indemnities)
and any other provision of this Agreement.

 

7.2          Repayment from Net Proceeds of
Disposals and Insurance Recoveries

 

(a)           Subject to
the provisions of the Principal Intercreditor Deed and, upon and following an
Integrated Merger Event to any other applicable intercreditor agreement, TCN
shall procure that, subject to paragraph (b) below or unless the Facility Agent
(acting on the instructions of the Instructing Group) otherwise agrees, an
amount equal to the Net Proceeds (other than Net Proceeds of Financial
Indebtedness) received:

 

(i)            by any
member of the TCN Group in excess of an aggregate of £6,000,000 (or its
equivalent in other currencies) in any financial year of TCN; or

 

55

 

(ii)           by any
member of the TCN Group in respect of any insurance policy in aggregate exceeding
£6,000,000 (or its equivalent in other currencies) in any financial year of
TCN,

 

is applied in or
towards repayment of the Outstandings in accordance with Clause 6.3 (Application of Repayments) at the end of
the Interest Period current at the time of receipt of such Net Proceeds.

 

(b)           Paragraph
(a) shall not apply to Net Proceeds:

 

(i)            arising
from a Disposal where such Net Proceeds are used for the acquisition of or
reinvestment in assets used or useful in the business of the TCN Group or in a
business directly related to the business of the TCN Group or are applied
towards Capital Expenditures of the TCN Group, in each case, within 12 months
of the date of receipt of such Net Proceeds and to the extent not otherwise
restricted by the provisions of this Agreement;

 

(ii)           arising
from any Disposal referred to in paragraphs (a), (b) (where the Net Proceeds of
any individual such Disposal, or series of Disposals forming part of the same
transaction, are less than £3,000,000 (or its equivalent in other currencies)),
(c) (other than to the extent such Net Proceeds relate to the Disposal of Cash
Equivalent Investments or Marketable Securities acquired in consideration of
any disposal which is subject to the proviso to Clause 19.6 (Disposals)), (d), (e), (f), (g), (h), (i),
(j), (k), (l) and (p) of Clause 19.6 (Disposals);

 

(iii)         arising
from any insurance recovery, where the Net Proceeds arising out of the same are
applied within 12 months of receipt of such Net Proceeds in replacing,
reinstating or repairing the relevant damaged or destroyed assets in
refinancing any expenditure incurred in the replacement, reinstatement and/or
repair of such assets, for the acquisition of or reinvestment in assets
acquired for use in the business of the TCN Group or for application towards
Capital Expenditures of the TCN Group;

 

(iv)          arising
out of or in connection with all or any part of a Flextech Disposal; or

 

(v)            to the
extent applied in repayment of the Senior Facilities in accordance with the
Principal Intercreditor Deed.

 

7.3          Blocked Accounts

 

(a)           In
relation to any amount of Net Proceeds or Equity Proceeds in excess of
£20,000,000 (i) referred to in paragraphs (b)(i) and (b)(iii) of Clause 7.2(a)
(Repayment from Net Proceeds of Disposals
and Insurance Receivables), (ii) contributed to the TCN Group under
sub-paragraph (b)(ix) of Clause 7.5 (Repayment
from Debt Proceeds) or (iii) contributed to or invested in the TCN
Group under sub-paragraph (b)(ii) of Clause 7.6 (Repayment from Equity Proceeds) pending the acquisition, reinvestment,
replacement, reinstatement or repair or application towards Capital
Expenditures contemplated in Clause 7.2(b), or the application towards any
acquisition, investment or Capital Expenditures contemplated in Clause 7.5(b)
or Clause 7.6(b), all such amounts shall be deposited in a Blocked Account.

 

(b)           While
there are any Outstandings or any of the Commitments are available for drawing,
no amount shall be withdrawn from any Blocked Account by any member of the
Group or the Facility Agent except for (i) amounts applied in accordance with
sub-paragraphs (b)(i) and (b)(iii) of Clause 7.2 (Repayment from Net Proceeds of Disposals and Insurance Recoveries),
sub-paragraph (b)(ix) of Clause 7.5 (Repayment
from Debt Proceeds) and sub-paragraph (b)(ii) of Clause 7.6 (Repayment from Equity Proceeds), (ii)
amounts applied in or towards

 

56

 

repayment of Outstandings in
accordance with Clause 7.2 (Repayment from
Net Proceeds of Disposals and Insurance Recoveries), Clause 7.5 (Repayment from Debt Proceeds) or Clause
7.6 (Repayment from Equity Proceeds),
(iii) at the election of TCN, amounts applied in or towards repayment of
Revolving Facility Outstandings, or (iv) following the Acceleration Date,
applications by the Facility Agent of the whole or any part of the sums
standing to the credit of a Blocked Account in or towards payment of any sums
due and unpaid at any time from any Obligor under any Finance Document.

 

7.4          Repayment from Excess Cash
Flow

 

(a)           Subject to
the provisions of the Principal Intercreditor Deed and, upon and following an
Integrated Merger Event, to any other applicable intercreditor agreement, TCN
shall ensure that, to the extent Excess Cash Flow exceeds £10,000,000 in any
financial year of TCN, subject to paragraph (b) below, an amount equal to:

 

(i)            (A)          50% of Excess Cash
Flow in such financial year in the event that the Compliance Certificate
delivered pursuant to Clause 16.4 (Compliance
Certificates) and the annual financial information delivered
pursuant to Clause 16.1 (Financial
Statements) demonstrate that the ratio of Consolidated Total Debt as
at the end of such financial year to Consolidated Annualised TCN Group Net
Operating Cash Flow the Semi-Annual Period ending on the last day of such
financial year, is greater than 3.5 to 1.0; or

 

(B)           25% of Excess Cash
Flow in such financial year, in the event that the Compliance Certificate
delivered pursuant to Clause 16.4 (Compliance
Certificates) and the annual financial information delivered pursuant
to Clause 16.1 (Financial Statements)
demonstrate that the ratio of Consolidated Total Debt as at the end of such
financial year to Consolidated Annualised TCN Group Net Operating Cash Flow for
the Semi-Annual Period ending on the last day of such financial year, is 3.5 to
1.0 or less but is more than 2.75 to 1.0,

 

minus

 

(ii)           the
aggregate amount of Excess Cash Flow for such financial year applied or to be
applied in repayment of the Senior Facilities in accordance with the Principal
Intercreditor Deed;

 

is applied in or
towards repayment of Outstandings in accordance with Clause 6.3 (Application of Repayments) within 10
Business Days after the delivery to the Facility Agent of the annual financial
information of the TCN Group for such financial year.

 

(b)           No
repayments shall be required under paragraph (a) above in respect of (i) the
financial year ending 31 December 2004 or (ii) any other financial year in
the event that, in the case of this paragraph (b)(ii), the Compliance
Certificate delivered pursuant to Clause 16.4 (Compliance
Certificates) and the annual financial information delivered
pursuant to Clause 16.1 (Financial
Statements) in respect of such other financial year demonstrate that
the ratio of Consolidated Total Debt as at the end of such financial year to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on the last day of such financial year, is 2.75 to 1.0 or less.

 

7.5          Repayment from Debt Proceeds

 

(a)           Subject to
the provisions of the Principal Intercreditor Deed and, upon and following an
Integrated Merger Event to any other applicable intercreditor agreement and
unless the Facility Agent (acting on the instructions of the Instructing Group)
otherwise agrees, TCN

 

57

 

shall, subject to paragraph
(b) below, ensure that an amount equal to 50% of the Net Proceeds in excess of
£10,000,000 of any Financial Indebtedness raised by the Ultimate Parent,
Telewest UK or any member of the TCN Group in connection with any single
raising of Financial Indebtedness after the date hereof shall be contributed to
a member of the TCN Group, if applicable, in accordance with Clause 18.16 (Contributions to the TCN Group) and, to
the extent such Net Proceeds have not been or are not required to be applied in
repayment of the Senior Facilities in accordance with the Principal
Intercreditor Deed, applied in or towards repayment of Outstandings in
accordance with Clause 6.3 (Application of
Repayments) in the incremental amount at the end of Interest Periods
next ending on or after the 10th Business Day following the date of receipt of
such Net Proceeds by the relevant member of the Group.

 

(b)           Paragraph
(a) above shall not apply to:

 

(i)            the Net
Proceeds of the Senior Facilities or any Financial Indebtedness raised in
respect of any Senior Debt Refinancing or Second Lien Refinancing provided that
any amount received in connection with any such Senior Debt Refinancing or
Second Lien Refinancing which exceeds the aggregate of (A) the aggregate
principal amount of the Financial Indebtedness being refinanced, (B) any
accrued interest thereon, (C) any make-whole and any other contractual premium
payable in respect thereof and (D) any fees, costs, expenses, commissions and
other similar charges reasonably incurred in connection with such refinancing,
shall be required to be repaid in accordance with paragraph (a) above except to
the extent such excess would be excluded from the application of paragraph (a)
above under the terms of any other provision of this paragraph (b);

 

(ii)           in
connection with an Unintegrated Merger Event or at any time prior to an
Integrated Merger Event, the Net Proceeds of any Target Group Refinancing
Indebtedness raised by the Ultimate Parent or Telewest UK;

 

(iii)         in
connection with or at any time after an Integrated Merger Event, the Net
Proceeds of any Target Group Refinancing Indebtedness and any Post Merger
Target Group Refinancing raised by the Ultimate Parent, Telewest UK or any
member of the Group, which is not otherwise prohibited by this Agreement,
(provided in each case, that any amount received in connection with any Target
Group Refinancing Indebtedness or any Post Merger Target Group Refinancing
which exceeds the aggregate of (A) the aggregate principal amount of the Target
Group Financial Indebtedness and/or Target Group Refinancing Indebtedness (as
the case may be) which is being refinanced, (B) any accrued interest thereon,
(C) make-whole and any other contractual premium payable in respect thereof
which is not inconsistent with standard market practice, and (D) any reasonable
fees, costs, expenses, commissions and other similar charges reasonably
incurred in connection with such refinancing, shall be required to be repaid in
accordance with paragraph (a) above, except to the extent such excess would be
excluded from the application of paragraph (a) above under the terms of any
other provision in this paragraph (b));

 

(iv)          the Net
Proceeds of any Financial Indebtedness in respect of any Hedging Agreement
entered into by any member of the Group;

 

(v)            the Net
Proceeds of any Financial Indebtedness raised by the Ultimate Parent, Telewest
UK or any member of the TCN Group from any other member of the Group to the
extent not otherwise prohibited by this Agreement;

 

(vi)          the Net
Proceeds of any Financial Indebtedness raised by the Ultimate Parent, Telewest
UK or a member of the TCN Group to the extent such Financial

 

58

 

Indebtedness is permitted by
Clause 19.4 (Financial Indebtedness)
or paragraph (b) of Clause 19.15 (Telewest
UK Covenants);

 

(vii)         the Net
Proceeds of any Telewest Global Debt raised by the Ultimate Parent or Telewest
UK which Net Proceeds are, within 90 Business Days of receipt thereof, contributed
to the TCN Group in accordance with Clause 18.16 (Contributions to the TCN Group)and deposited into a Blocked
Account to the extent contemplated by Clause 7.3 (Blocked Accounts) and applied within 90 days after such
deposit towards the purchase price of any acquisition or investment permitted
by Clause 19.13 (Acquisitions and
Investments) or within 12 months thereafter towards Capital
Expenditure in compliance with the provisions of Clause 17.2 (Permitted  Capital
Expenditure) or towards amounts relating to video on demand as set
out in paragraph (a)(iv) of the definition of Consolidated TCN Group Cash Flow;

 

(viii)        the Net
Proceeds of any Serviceable Non TCN Group Debt raised by the Ultimate Parent or
Telewest UK which Net Proceeds are contributed to the TCN Group in accordance
with Clause 18.16 (Contributions to the TCN
Group), provided that if such Serviceable Non TCN Group Debt had
been incurred by a member of the TCN Group, it would have been permitted
pursuant to paragraph (g) or (m) of Clause 19.4 (Financial Indebtedness); or

 

(ix)          the Net
Proceeds of any Telewest Global Debt raised by the Ultimate Parent or Telewest
UK which constitutes Target Group Acquisition Indebtedness or Target Group
Acquisition Refinancing Indebtedness (provided that any amount received in
connection with any Target Group Acquisition Refinancing Indebtedness which
exceeds the aggregate of (A) the aggregate principal amount of the Target Group
Acquisition Indebtedness being refinanced, (B) any accrued interest thereon,
(C) make-whole and any other contractual premium payable in respect thereof
which is not inconsistent with standard market practice, and (D) any fees,
costs, expenses, commissions and other similar charges reasonably incurred in
connection with such refinancing, shall be required to be repaid in accordance
with paragraph (a) above, except to the extent such excess would be excluded
from the application of paragraph (a) above under the terms of any other
provision in this paragraph (b)).

 

7.6          Repayment from Equity Proceeds

 

(a)           Subject to
the provisions of the Principal Intercreditor Deed and, upon and following an
Integrated Merger Event to any other applicable intercreditor agreement and
unless the Facility Agent (acting on the instructions of the Instructing Group)
otherwise agrees, TCN shall (subject to paragraph (b) below) ensure, to the
extent Equity Proceeds exceed £10,000,000 in any financial year of TCN, that an
amount equal to:

 

(i)            50% of
Equity Proceeds in respect of any single raising of equity, in the event that
the Compliance Certificate most recently delivered pursuant to Clause 16.4 (Compliance Certificates) and the quarterly
financial information delivered pursuant to Clause 16.1 (Financial Statements) for each Financial
Quarter in the Semi-Annual Period ending on the Quarter Date to which such
Compliance Certificate relates demonstrate that the ratio of Consolidated Total
Debt as at such Quarter Date to Consolidated Annualised TCN Group Net Operating
Cash Flow for the Semi-Annual Period ending on such Quarter Date is more than
3.5 to 1.0; or

 

(ii)           25% of
Equity Proceeds in respect of any single raising of equity, in the event that
the Compliance Certificate most recently delivered pursuant to Clause 16.4 (Compliance Certificates) and the quarterly
financial information delivered pursuant to Clause 16.1 (Financial Statements) for each Financial
Quarter in the Semi-Annual Period ending

 

59

 

on the Quarter Date to which
such Compliance Certificate relates demonstrate that the ratio of Consolidated
Total Debt as at such Quarter Date to Consolidated Annualised TCN Group Net
Operating Cash Flow for the Semi-Annual Period ending on such Quarter Date is
3.5 to 1.0  or less but is more than 3.0
to 1.0,

 

shall be contributed
to a member of the TCN Group in accordance with Clause 18.16 (Contributions to the TCN Group) and, to
the extent such Net Proceeds have not been or are not required to be applied in
repayment of the Senior Facilities in accordance with the Principal
Intercreditor Deed, applied in or towards repayment of Outstandings in
accordance with Clause 6.3 (Application of
Repayments) in each case at the end of Interest Periods next ending
on or after the 10th Business Day following the date of receipt of such Net
Proceeds by the relevant  issuer.

 

(b)           Paragraph
(a) shall not apply to any Equity Proceeds:

 

(i)            to the
extent that any Borrower has made a voluntary prepayment of the Outstandings in
accordance with Clause 6.1 (Voluntary
Prepayment) using the proceeds of any Telewest Global Debt (the “Voluntary Prepayment Amount”) and such
Equity Proceeds are applied in prepayment of the Telewest Global Debt so used;

 

(ii)           to the
extent such Equity Proceeds are contributed to or invested in the TCN Group in
accordance with Clause 18.16 (Contributions
to the TCN Group) and immediately upon such contribution, are
deposited into a Blocked Account to the extent contemplated by Clause 7.3 (Blocked Accounts) and applied within 180
days thereafter towards the purchase price of any acquisition or investment
permitted by Clause 19.13 (Acquisitions and
Investments) or within 12 months thereafter towards any Capital
Expenditures not prohibited by the provisions of Clause 17.2 (Permitted Capital Expenditure) or towards
amounts relating to video on demand as set out in paragraph (a)(iv) of the
definition of Consolidated TCN Group Cash Flow;

 

(iii)         to the
extent such Equity Proceeds are applied towards consideration payable in
connection with, and any reasonable fees, commissions, expenses or other
similar charges incurred by the Group in relation to, a Merger Event;

 

(iv)          arising
from the exercise of stock options or any other issuance of similar securities
to directors, officers, employees or consultants of any member of the Group;

 

(v)            to the
extent such Equity Proceeds are applied towards any refinancing of Target Group
Acquisition Indebtedness, Target Group Acquisition Refinancing Indebtedness,
Target Group Financial Indebtedness, Target Group Refinancing Indebtedness or
Post Merger Target Group Refinancing; and

 

(vi)          to the
extent raised by any member of the Group which is a Joint Venture but which is
not a member of the TCN Group and applied for its own purposes.

 

(c)           TCN’s
obligations under Clause 7.6(a) above shall not apply in respect of Equity
Proceeds if, on the last day of the Financial Quarter ended most recently prior
to the receipt of such Equity Proceeds in respect of which a Compliance
Certificate has been delivered pursuant to Clause 16.4 (Compliance Certificates) and quarterly
financial information has been delivered pursuant to Clause 16.1 (Financial Statements), the ratio of
Consolidated Total Debt as at the last day of such Financial Quarter to
Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual
Period ending on such day is 3.0 to 1.0 or less.

 

60

 

8.             INTEREST

 

8.1          Interest Periods

 

The period for which an Advance is outstanding
shall be divided into successive periods (each an “Interest Period”) each of which (other than the first) shall
start on the last day of the preceding such period.

 

8.2          Duration

 

The duration of each Interest Period shall,
save as otherwise provided in this Agreement, be 1, 2, 3 or 6 months or such
other period of up to 12 months as all the Lenders may agree, as the relevant
Borrower may select by no later than 2:00 p.m. on the date falling 3 Business
Days before the first day of the relevant Interest Period, provided that:

 

(a)           if the
relevant Borrower fails to give such notice of selection in relation to an
Interest Period, the duration of that Interest Period shall, subject to the
other provisions of this Clause 8, be 3 months;

 

(b)           prior to
the Syndication Date, unless the Facility Agent otherwise agrees, the duration
of each Interest Period shall be 1 month (or, if less, such duration as may be
necessary to ensure that such Interest Period ends on the Syndication Date);
and

 

(c)           any
Interest Period that would otherwise end during the month preceding or extend
beyond the Final Maturity Date shall be of such duration that it shall end on
the Final Maturity Date.

 

8.3          Payment of Interest

 

On (a) the last day of each Interest Period (or
if such day is not a Business Day, on the immediately succeeding Business Day
in the then current month (if there is one) or the preceding Business Day (if
there is not)), and if the relevant Interest Period exceeds 6 months, on the
expiry of each 6 month period during that Interest Period, or (b) if Clause
11.1(k) applies, the relevant Confirmation Date, the Borrower to whom the relevant Advance was made shall pay
accrued interest on such Advance.

 

8.4          Interest Rate

 

The rate of interest applicable to an Advance
at any time during an Interest Period relating to it shall be the rate per annum
which is the sum of the Margin, the Associated Costs Rate for such Advance at
such time (if applicable) and LIBOR for such Interest Period.

 

8.5          Notification

 

The Facility Agent shall promptly notify the
relevant Borrower and the Lenders of each determination of LIBOR, the
Associated Costs Rate, and any change to the proposed length of an Interest
Period or any interest rate occasioned by the operation of Clause 9 (Market Disruption and Alternative Interest Rates).

 

9.             MARKET DISRUPTION AND
ALTERNATIVE INTEREST RATES

 

9.1          Market Disruption

 

If, in relation to any Interest Period:

 

(a)           LIBOR is
to be determined by reference to the Reference Banks and, at or about 11.00
a.m. (London time) on the Quotation Date for such Interest Period, none or only
one of the

 

61

 

Reference Banks supplies a
rate for the purpose of determining LIBOR, as the case may be, for the relevant
period; or

 

(b)           before the
close of business in London on the Quotation Date for such Interest Period, the
Facility Agent has been notified by a Lender or each of a group of Lenders to
whom in aggregate 40% or more of the relevant Advance is owed (or, in the case
of an undrawn Advance, if made, would be owed) that the cost to it of obtaining
matching deposits for the relevant Advance in the London interbank market would
be in excess of LIBOR,

 

then the Facility Agent shall notify the
relevant Borrowers and the Lenders of such event and, notwithstanding anything
to the contrary in this Agreement, Clause 9.2 (Substitute
Interest Period and Interest Rate) shall apply (if the relevant
Advance is already outstanding).  If
either paragraph (a) or (b) applies to a proposed Advance such Advance shall
not be made.

 

9.2          Substitute Interest Period and
Interest Rate

 

(a)           If
paragraph (a) of Clause 9.1 (Market
Disruption) applies, the duration of the relevant Interest Period
shall be 1 month or, if less, such that it shall end on the Termination Date.

 

(b)           If either
paragraph of Clause 9.1 (Market Disruption)
applies to an Advance, the rate of interest applicable to each Lender’s portion
of such Advance during the relevant Interest Period shall (subject to any
agreement reached pursuant to Clause 9.3 (Alternative
Rate)) be the rate per annum which is the sum of:

 

(i)            the
Margin;

 

(ii)           the rate
per annum notified to the Facility Agent by such Lender before the last day of
such Interest Period to be that which expresses as a percentage rate per annum
the cost to such Lender of funding from whatever sources it may reasonably
select its portion of such Advance during such Interest Period; and

 

(iii)         the
Associated Costs Rate, if any, applicable to such Lender’s participation in the
relevant Advance.

 

9.3          Alternative Rate

 

If Clause 9.1 (Market
Disruption) applies and the Facility Agent or any Borrower so
requires, the Facility Agent and TCN shall enter into negotiations with a view
to agreeing an alternative basis:

 

(a)           for determining the
rate of interest from time to time applicable to such Advances; and/or

 

(b)           upon which such
Advances may be maintained thereafter,

 

and any such alternative basis that is agreed
shall take effect in accordance with its terms and be binding on each party to
this Agreement, provided that the Facility Agent may not agree any such
alternative basis without the prior consent of each Lender, acting reasonably.

 

10.          COMMISSIONS AND FEES

 

10.1        Arrangement and Underwriting
Fee

 

TCN shall pay to the Mandated Lead Arrangers
the arrangement fee specified in the letter dated 2 November 2004 from the
Mandated Lead Arrangers to TCN at the time and in the amount specified in such
letter.

 

62

 

10.2        Agency Fee

 

TCN shall pay to the Facility Agent for its own
account the fees specified in the letter dated on or around the date hereof
from the Facility Agent to TCN at the times and in the amounts specified in
such letter.

 

11.          TAXES

 

11.1        Tax Gross-up

 

(a)           Each
payment made by an Obligor under a Finance Document shall be made by it without
any Tax Deduction, unless a Tax Deduction is required by Law.

 

(b)           As soon as
it becomes aware that an Obligor is or will be required by Law to make a Tax
Deduction (or that there is any change in the rate at which or the basis on
which such Tax Deduction is to be made) the relevant Obligor shall notify the
Facility Agent accordingly.  Similarly, a
Lender shall notify the Facility Agent upon becoming so aware in respect of a
payment payable to that Lender.

 

(c)           If a Tax
Deduction is required by Law to be made by an Obligor, the amount of the
payment due shall, unless paragraph (f) below applies, be increased to an
amount so that, after the required Tax Deduction is made, the payee receives an
amount equal to the amount it would have received had no Tax Deduction been
required.

 

(d)           If a Tax
Deduction is required by Law to be made by the Facility Agent, the US Paying
Agent or the Security Trustee (other than by reason of the Facility Agent or
the Security Trustee performing its obligations as such under this Agreement
through an office located outside the United Kingdom or the US Paying Agent
performing its obligations as such through an office located outside the United
States) from any payment to any Finance Party which represents an amount or
amounts received from an Obligor, that Obligor shall, unless paragraph (f)
below applies, pay directly to that Finance Party an amount which, after making
the required Tax Deduction enables the payee of that amount to receive an
amount equal to the payment which it would have received if no Tax Deduction
had been required

 

(e)           If a Tax
Deduction is required by Law to be made by the Facility Agent, the US Paying
Agent or the Security Trustee from any payment to any Finance Party, the
Facility Agent, the US Paying Agent or the Security Trustee as appropriate
shall make that Tax Deduction and any payment required in connection with that
Tax Deduction to the relevant taxing authority within the time allowed and in
the minimum amount required by Law and within 30 days of making either a Tax
Deduction or any payment in connection with that Tax Deduction, the Facility
Agent, the US Paying Agent or the Security Trustee as appropriate making that
Tax Deduction or other payment shall deliver to TCN or the US Borrower, as
appropriate, evidence that the Tax Deduction or other payment has been made or
accounted for to the relevant tax authority.

 

(f)            No Obligor
is required to make a Tax Payment to a Lender under paragraphs (c) or (d) above
for a Tax Deduction in respect of tax imposed by the United Kingdom on a
payment of interest in respect of a participation in an Advance by that Lender
to TCN where that Lender is not a Qualifying Lender on the date on which the
relevant payment of interest is due (otherwise than as a consequence of a
Change in Tax Law) to the extent that payment could have been made without a
Tax Deduction if that Lender had been a Qualifying Lender on that date.

 

63

 

(g)           The
relevant Obligor which is required to make a Tax Deduction shall make that Tax
Deduction and any payment required in connection with that Tax Deduction to the
relevant taxing authority within the time allowed and in the minimum amount
required by Law.

 

(h)           Within 30
days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the relevant Obligor making that Tax Deduction or
other payment shall deliver to the Facility Agent or the US Paying Agent, as
appropriate, for the Finance Party entitled to the interest to which such Tax
Deduction or payment relates evidence that the Tax Deduction or other payment
has been made or accounted for to the relevant tax authority.

 

(i)            Each
Lender expressed to be a “UK Non-Bank Lender” in Part 2 of Schedule 1 (UK Non-Bank Lenders) or in the Transfer
Deed pursuant to which it becomes a Lender represents and warrants to:

 

(i)            the
Facility Agent and TCN, on the date of this Agreement, or on the relevant
Transfer Date (as the case may be) that it is within paragraph (a) of the
definition of UK Non-Bank Lender on that date (unless, if it is not within
paragraph (a), it is within paragraph (b) of the definition of UK Non-Bank
Lender on that date, and has notified the Facility Agent of the circumstances
by virtue of which it falls within such paragraph (b) and has provided evidence
of the same to TCN if and to the extent requested to do so, and the Facility
Agent); and

 

(ii)           the
Facility Agent and TCN that, unless it notifies the Facility Agent and TCN to
the contrary in writing prior to any such date, its representation and warranty
in paragraph (i) of this Clause 11.1(i) is true in relation to that Lender’s
participation in each Advance made to TCN, on each date that TCN makes a
payment of interest in relation to such Advance.

 

(j)            A Lender
that intends to qualify as a UK Treaty Lender and the relevant Obligor that
makes a payment to which that Lender is entitled shall co-operate in completing
any procedural formalities necessary for the relevant Obligor to obtain
authorisation to make that payment without a Tax Deduction.

 

(k)           (i)            If, in
relation to any interest payment to a Lender on an Advance:

 

(A)          that Lender has
confirmed to TCN and the Facility Agent before that interest payment would
otherwise fall due that:

 

(1)           it has completed the
necessary procedural formalities referred to in paragraph (j) of this
Clause 11.1; and

 

(2)           the Inland Revenue
has not declined to issue the authorisation referred to in the definition of “UK
Treaty Lender” (the “Authorisation”)
to that Lender in relation to that Advance, or if the Inland Revenue has
declined, the Lender is disputing that decision in good faith; and

 

(B)          the relevant Obligor has not received the
Authorisation,

 

then, that interest payment (the “relevant Interest Payment”) shall not be
due and payable under or Clause 8.3 (Payment
of Interest) until the date (the “Confirmation
Date”) which is  2 Business
Days after the earlier of:

 

(x)           the date on which the Authorisation is
received by the relevant Obligor;

 

64

 

(y)           the date that Lender confirms to TCN and the
Facility Agent that it is not entitled to claim full relief from liability to
taxation otherwise imposed by the United Kingdom (in relation to that Lender’s
participation in Advances made to TCN) on interest under a Double Taxation
Treaty in relation to the relevant Interest Payment; and

 

(z)           the date which is 6 months after the date on
which the relevant Interest Payment had otherwise been due and payable.

 

(ii)           For the avoidance of doubt, in the event that
sub-paragraph (i) of this paragraph (k) applies the Interest Period to which
the relevant Interest Payment relates shall not be extended and the start of
the immediately succeeding Interest Period shall not be delayed.

 

11.2        Tax Indemnity

 

(a)           Subject to
paragraph (b) of this Clause, TCN shall (within 5 Business Days of demand by
the Facility Agent) pay (or procure that the relevant Obligor pays) for the
account of a Protected Party an amount equal to any Tax Liability which that
Protected Party reasonably determines has been or will be suffered by that
Protected Party (directly or indirectly) in connection with any Finance
Document.

 

(b)           Paragraph
(a) of this Clause shall not apply:

 

(i)            with
respect to any Tax Liability of a Protected Party in respect of Tax on Overall
Net Income of that Protected Party;

 

(ii)           to the
extent that any Tax Liability has been compensated for by an increased payment
or other payment under paragraphs (c) or (d) of Clause 11.1 (Tax Gross-up) or would have been
compensated for by such an increased payment or other payment, but for the
application of paragraph (f) of Clause 11.1 (Tax
Gross-up); or

 

(iii)         until the
Closing Date has occurred.

 

(c)           A
Protected Party making, or intending to make, a claim pursuant to paragraph (a)
of this Clause 11.2 shall promptly notify the Facility Agent of the event which
will give, or has given, rise to the claim together with supporting evidence,
following which the Facility Agent shall notify TCN and provide such evidence
to it.

 

(d)           A
Protected Party shall, on receiving a payment from an Obligor under this Clause
11.2, notify the Facility Agent.

 

(e)           In this
Clause 11.2:

 

“Tax Liability” means, in respect of any
Protected Party:

 

(i)            any
liability or any increase in the liability of that person to make any payment
of or in respect of tax;

 

(ii)           any loss
of any relief, allowance, deduction or credit in respect of tax which would
otherwise have been available to that person;

 

(iii)         any
setting off against income, profits or gains or against any tax liability of
any relief, allowance, deduction or credit in respect of tax which would
otherwise have been available to that person; and

 

65

 

(iv)          any loss
or setting off against any tax liability of a right to repayment of tax which
would otherwise have been available to that person.

 

For this purpose, any
question of whether or not any relief, allowance, deduction, credit or right to
repayment of tax has been lost or set off in relation to any person, and if so,
the date on which that loss or set-off took place, shall be conclusively
determined by that person, acting reasonably and in good faith and such
determination shall be binding on the relevant parties to this Agreement.

 

“Tax on Overall Net Income” means, in relation
to a Protected Party, tax (other than tax deducted or withheld from any
payment) imposed on the net income received or receivable (but not any sum
deemed to be received or receivable) by that Protected Party by the
jurisdiction in which the relevant Finance Party is incorporated or, if
different, the jurisdiction (or jurisdictions) in which the Finance Party is
treated as residing for tax purposes or in which the relevant Finance Party’s
Facility Office or head office is situated.

 

(f)            A
Protected Party making or intending to make a claim under paragraph (a) above
shall promptly notify the Facility Agent of the event which will give, or has
given, rise to the claim together with supporting evidence, following which the
Facility Agent shall notify TCN and provide such evidence to it.

 

(g)           A
Protected Party shall, on receiving a payment from an Obligor under this Clause
11.2, notify the Facility Agent.

 

11.3        Tax Credit

 

(a)           If an
Obligor makes a Tax Payment and the relevant Finance Party determines (acting
in good faith and reasonably) that:

 

(i)            a Tax
Credit is attributable to that Tax Payment; and

 

(ii)           that
Finance Party has obtained, utilised and retained that Tax Credit,

 

the Finance Party
shall (subject to paragraph (b) below and to the extent that such Finance Party
can do so without prejudicing the availability and/or the amount of the Tax
Credit and the right of that Finance Party to obtain any other benefit, relief
or allowance which may be available to it) pay to the relevant Obligor such
amount which that Finance Party determines, acting reasonably and in good
faith, will leave it (after that payment) in the same after-tax position as it
would have been in had the Tax Payment not been made by the relevant Obligor.

 

(b)           (i)            Each
Finance Party shall have an absolute discretion as to the time at which and the
order and manner in which it realises or utilises any Tax Credits and shall not
be obliged to arrange its business or its tax affairs in any particular way in
order to be eligible for any credit or refund or similar benefit.

 

(ii)           No Finance Party
shall be obliged to disclose to any other person any information regarding its
business, tax affairs or tax computations.

 

(iii)         If a Finance Party
has made a payment to an Obligor pursuant to this Clause 11.3 on account of a
Tax Credit and it subsequently transpires that that Finance Party did not
receive that Tax Credit or received a reduced Tax Credit, such Obligor shall,
on demand, pay to that Finance Party the amount which that Finance Party determines,
acting reasonably and in good faith, will put it (after that payment is
received) in the same after tax position as it would have been in had no such
payment or a reduced payment been made to such Obligor.

 

66

 

(c)           No Finance
Party shall be obliged to make any payment under this Clause 11.3 if, by doing
so, it would contravene the terms of any applicable Law or any notice,
direction or requirement of any governmental or regulatory authority (whether
or not having the force of law).

 

12.          INCREASED COSTS

 

12.1        Increased Costs

 

Subject to Clause 12.3, (Exceptions) TCN shall, within 3 Business Days of a demand by
the Facility Agent, pay for the account of a Finance Party the amount of any
Increased Cost incurred by that Finance Party or any of its Affiliates as a
result (direct or indirect) of:

 

(a)           the
introduction or implementation of or any change in (or any change in the
interpretation, administration or application of) any Law, regulation, practice
or concession or any directive, requirement, request or guideline (whether or
not having the force of law but where such law, regulation, practice,
concession, directive, requirement, request or guideline does not have the
force of law, it is one with which banks or financial institutions subject to
the same are generally accustomed to comply) of any central bank, including the
European Central Bank, the Financial Services Authority or any other fiscal,
monetary, regulatory or other authority after the date of this Agreement;

 

(b)           compliance
with any Law, regulation, practice, concession or any such directive,
requirement, request or guideline made after the date of this Agreement; or

 

(c)           the
implementation of economic or monetary union by any Member State which is not
already a Participating Member State.

 

12.2        Increased Costs Claims

 

(a)           A Finance
Party intending to make a claim pursuant to Clause 12.1 (Increased Costs) shall notify the Facility
Agent of the event giving rise to the claim, following which the Facility Agent
shall promptly notify TCN.

 

(b)           Each
Finance Party shall, as soon as practicable after a demand by the Facility
Agent, provide a certificate confirming the amount of its or if applicable, its
Affiliate’s Increased Costs setting out in reasonable detail its calculations
in relation to such Increased Costs.

 

12.3        Exceptions

 

Clause 12.1 (Increased
Costs) does not apply to the extent any Increased Cost is:

 

(a)           attributable
to a Tax Deduction required by Law to be made by an Obligor, as the case may
be;

 

(b)           compensated
for by Clause 11.2 (Tax Indemnity)
(or would have been compensated for by Clause 11.2 but was not so compensated
solely because paragraph (b) of Clause 11.2 applied);

 

(c)           compensated
for by the payment of the Associated Costs Rate;

 

(d)           attributable
to the gross negligence of, or wilful breach by, the relevant Finance Party or
if applicable, any of its Affiliates of any law, regulation, practice,
concession, directive, requirement, request or guideline, to which the
imposition of such Increased Cost relates; or

 

67

 

(e)           attributable
to a delay of more than 30 days in the relevant Finance Party notifying the
Facility Agent of any claim pursuant to paragraph (a) of Clause 12.2 (Increased Costs Claims) after such Finance
Party has become aware that it had suffered the relevant Increased Cost.

 

13.          ILLEGALITY

 

If it becomes unlawful in any relevant
jurisdiction for a Lender to perform any of its obligations as contemplated by
this Agreement or to fund or maintain its participation in any Advance:

 

(a)           that
Lender shall promptly notify the Facility Agent upon becoming aware of that
event;

 

(b)           upon the
Facility Agent notifying TCN, the Available Commitments of that Lender will
immediately be cancelled and its Commitments reduced to zero and such Lender
shall not thereafter be obliged to participate in any Advance; and

 

(c)           if so
required by the Facility Agent on behalf of the relevant Lender, TCN shall
repay or procure that there is repaid that Lender’s participation in the
Advances made to it and to the US
Borrower on the last day of the current Interest Period occurring after the
Facility Agent has notified TCN or, if earlier, the date specified by the
Lender in the notice delivered to the Facility Agent (being no earlier than the
last day of any applicable grace period permitted by Law).

 

14.          MITIGATION

 

14.1        Mitigation

 

(a)           Each
Finance Party shall in consultation with TCN, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount
becoming payable under, or pursuant to, or cancelled pursuant to, any of Clause
11 (Taxes), Clause 12 (Increased Costs) or Clause 13 (Illegality) including (but not limited to)
transferring its rights and obligations under the Finance Documents to another
Affiliate or Facility Office or financial institution acceptable to TCN which
is willing to participate in the Facility.

 

(b)           Paragraph
(a) of this Clause does not in any way limit the obligations of any Obligor
under the Finance Documents.

 

14.2        Limitation of Liability

 

(a)           With
effect from the Closing Date, TCN agrees to indemnify each Finance Party for
all costs and expenses reasonably incurred by that Finance Party as a result of
steps taken by it under Clause 14.1 (Mitigation).

 

(b)           A Finance
Party is not obliged to take any steps under Clause 14.1 (Mitigation) if, in the opinion of that
Finance Party (acting reasonably), to do so might in any way be prejudicial to
it.

 

15.          REPRESENTATIONS AND WARRANTIES

 

(a)           Telewest UK makes each of the representations
and warranties set out in this Clause 15, other than Clauses 15.9 (No Winding-up), 15.10 (No Event of Default), 15.12 (Original Financial Statements), 15.13 (No Material Adverse Change), 15.14 (No Undisclosed Liabilities), 15.15 (Accuracy of Information), paragraphs (a)
and (b) of Clause 15.16 (Indebtedness and
Encumbrances), 15.18 (Structure),
15.26 (Investment Company Act),
15.27 (Public Utility Holding Company Act)
or 15.35 (Liabilities of US Borrower)
to each Finance Party on the

 

68

 

date of this
Agreement and (if different) on the Closing Date (except where the Closing Date
falls on the date immediately after the date of this Agreement) with respect to
itself.

 

(b)           TCN makes each of the representations and
warranties set out in this Clause 15, other than Clause 15.32 (Liabilities of Telewest UK) and 15.35 (Liabilities of US Borrower) with respect to itself and, save to the
extent such representation provides otherwise, Telewest UK and each TCN Group
Obligor, to each Finance Party on the date of this Agreement and (if different)
on the Closing Date (except where the Closing Date falls on the date
immediately after the date of this Agreement).

 

(c)           The US Borrower makes each of the
representations and warranties set out in this Clause 15 other than those
expressed to be made by TCN or Telewest UK only, to each Finance Party on the
date of its accession to this Agreement and (if different) on the Closing Date
(except where the Closing Date falls on the date immediately after the date of
this Agreement) with respect to itself.

 

(d)           Each
Obligor (other than Telewest UK, TCN and the US Borrower) makes each of the
representations and warranties set out in this Clause 15 other than those
expressed to be made by TCN,
Telewest UK or the US Borrower, only to each Finance Party on the date of this
Agreement or, in the case of an Acceding Guarantor, on the date of its
accession hereto and (if different) on the Closing Date (except where the
Closing Date falls on the date immediately after the date of this Agreement)
with respect to itself.

 

15.1        Due Organisation

 

It is a company duly organised, or a
partnership duly formed, under the laws of its jurisdiction of incorporation or
establishment with power and authority to enter into those of the Finance
Documents to which it is party and to exercise its rights and perform its
obligations thereunder and all corporate and (subject to paragraphs (d) and (e)
of the definition of Reservations) other action required to authorise its
execution of those of the Finance Documents to which it is party and its
performance of its obligations have been duly taken.

 

15.2        No Deduction

 

At the date of this Agreement, it will not be
required to make any deduction for or withholding on account of tax from any
payment it may make under any of the Finance Documents to any Lender which is a
Qualifying Lender.

 

15.3        Claims Pari Passu

 

Subject to the Reservations, under the laws of
its jurisdiction of incorporation or establishment, and, if different, England,
in force at the date of this Agreement, the claims of the Finance Parties
against it under the Finance Documents to which it is party rank and will rank
at least pari passu with the
claims of all its unsecured and unsubordinated creditors save those whose
claims are preferred by any bankruptcy, insolvency, liquidation or similar laws
of general application.

 

15.4        No Immunity

 

In any legal proceedings taken in its
jurisdiction of incorporation or establishment and, if different, England in
relation to any of the Finance Documents to which it is party it will not be
entitled to claim for itself or any of its assets immunity from suit,
execution, attachment or other legal process.

 

69

 

15.5        Governing Law and Judgments

 

Subject to the Reservations, in any legal
proceedings taken in its jurisdiction of incorporation or establishment in
relation to any of the Finance Documents to which it is party, the choice of
law expressed in such documents to be the governing law of it and any judgment
obtained in such jurisdiction will be recognised and enforced.

 

15.6        All Actions Taken

 

All acts, conditions and things required to be
done, fulfilled and performed in order:

 

(a)           to enable
it lawfully to enter into, exercise its rights under and perform and comply
with all material obligations expressed to be assumed by it in the Finance
Documents to which it is party;

 

(b)           subject to
the Reservations, to ensure that all material obligations expressed to be
assumed by it in the Finance Documents to which it is party are legal, valid
and binding; and

 

(c)           subject to
the Reservations, to make the Finance Documents to which it is party admissible
in evidence in its jurisdiction of incorporation or establishment and, if
different, the United Kingdom,

 

have been done, fulfilled and performed.

 

15.7        No Filing or Stamp Taxes

 

Under the laws of the United Kingdom or the
United States of America, in force at the date of this Agreement, it is not
necessary that any of the Finance Documents to which it is party be filed,
recorded or enrolled with any court or other authority in such jurisdiction or
that any stamp, registration or similar tax be paid on or in relation to any of
them other than those filings which are necessary to perfect the Security and
save as stated in the Reservations, provided that for the purposes of this
Clause 15.7, “Finance Documents”
does not include any Transfer Deeds.

 

15.8        Binding Obligations

 

Subject to the Reservations, the obligations
expressed to be assumed by it in the Finance Documents to which it is party,
are legal, valid and binding and enforceable against it in accordance with the
terms thereof and no limit on its powers will be exceeded as a result of the
borrowings, grant of security or giving of guarantees contemplated by such
Finance Documents or the performance by it of any of its obligations
thereunder.

 

15.9        No Winding-up

 

In the case of TCN only, none of the Ultimate Parent, Telewest UK
or any TCN Group Obligor is taking any corporate action nor are any other steps
being taken (including the commencement of any legal proceedings) against the
Ultimate Parent, Telewest UK or any TCN Group Obligor, for its winding-up,
suspension of payments, moratorium, dissolution, administration or
reorganisation, composition or compromise of other arrangement, for the
appointment of a liquidator, receiver, administrative receiver, administrator,
compulsory manager, conservator, custodian, trustee or similar officer of it or
of any or all of its assets or revenues save as disclosed to the Facility Agent
prior to the date of this Agreement.

 

70

 

15.10      No Event of Default

 

In the case of TCN only, no Event of Default is continuing or might
reasonably be expected to result from the making of any Advance.

 

15.11      No Material Proceedings

 

In the case of TCN and Telewest UK only, no
litigation, arbitration or administrative proceeding of or before any court,
arbitral body, or agency in which there is a reasonable possibility of an
adverse decision which could reasonably be expected to have a Material Adverse
Effect has been started or, to the best of its knowledge, is threatened in
writing or (in the case of TCN only) is pending against it or any member of the
TCN Group, other than litigation, arbitration or administrative proceedings
commenced prior to the date of this Agreement, details of which are set out in
the Information Memorandum.

 

15.12      Original Financial Statements

 

In the case of TCN only, except as described in Note 1 to the
Original Financial Statements, the Original Financial Statements were prepared
in accordance with applicable GAAP which have been consistently applied (unless
and to the extent expressly disclosed to the Facility Agent in writing to the
contrary before the date of this Agreement) and fairly present in all material
respects the consolidated financial position of the TCN Group at the date as of
which they were prepared and/or (as appropriate) the results of operations and
changes in financial position during the period for which they were prepared.

 

15.13      No Material Adverse Change

 

In the case of TCN only, since publication of its Original
Financial Statements no event or series of events has occurred, in each case
which has had or could reasonably be expected to have a Material Adverse
Effect.

 

15.14      No Undisclosed Liabilities

 

In the case of TCN only, as at 31 December 2003, neither TCN nor any of its Subsidiaries had any material
liabilities (contingent or otherwise) which were not disclosed in the Original
Financial Statements (or by the notes thereto) or reserved against therein and
the TCN Group had no material unrealised or anticipated losses arising from
commitments entered into by it which were not so disclosed or reserved against,
in each case, to the extent required to be disclosed by applicable GAAP.

 

15.15      Accuracy of Information

 

In the case of TCN only:

 

(a)           to the
best of its knowledge and belief having made all reasonable and proper
enquiries, all statements of fact relating to the business, assets, financial
condition and operations of the Group contained in the Information Memorandum
and the Supplement are true, complete and accurate in all material respects as
at their respective dates, and in any event the matters contained in the
Supplement have not had and will not have a Material Adverse Effect;

 

(b)           the
opinions and views expressed in the Information Memorandum, the Long Range Plan
and the current Budget represent the honestly held opinions and views of TCN
and were arrived at after careful consideration and were based on reasonable
grounds as at the dates on which they were prepared;

 

71

(c)           all financial
projections and forecasts made by any member of the TCN Group in the
Information Memorandum, the Long Range Plan and the current Budget have been
prepared in good faith and are based upon reasonable assumptions (it being
understood that such financial projections are subject to significant
uncertainties, many of which are beyond the control of TCN and that no
assurance can be given that such projections will be realised);

 

(d)           (other than in
respect of the financial projections and forecasts referred to in paragraph (c)
above), the Information Memorandum did not omit to disclose or take into
account any matter known to TCN after due and careful enquiry where failure to
disclose or take into account such matter would result in any of the Information
Memorandum (or any factual information contained therein) being misleading in
any material respect as at the date thereof.

 

15.16      Indebtedness
and Encumbrances

 

In the case of TCN only, other than in the case of
paragraph (c):

 

(a)           save as permitted
under this Agreement, neither it nor any member of the TCN Group has incurred
any Financial Indebtedness which is outstanding.

 

(b)           save as permitted
under this Agreement, no Encumbrance exists over all or any of the present or
future revenues or assets of any member of the TCN Group.

 

(c)           in the case of
Telewest UK only, save as provided in the Security Documents or granted in
respect of the Existing Credit Facility, no Encumbrance exists over any of its
rights, title or interest in the shares of TCN or the Parent Intercompany Debt.

 

15.17      Execution
of Finance Documents

 

Its execution of
the Finance Documents to which it is party and the exercise of its rights and
performance of its obligations thereunder do not and will not:

 

(a)           conflict with any
agreement, mortgage, bond or other instrument or treaty to which it is a party
or which is binding upon it or any of its assets (save as contemplated by
paragraphs (d) and (e) of the definition of Reservations) in a manner that
could reasonably be expected to have a Material Adverse Effect;

 

(b)           conflict with any
matter contained in its constitutional documents;

 

(c)           conflict with any
applicable law.

 

15.18      Structure

 

In the case of TCN only:

 

(a)           the Group Structure
Chart is a complete and accurate representation of the structure of the TCN
Group and the Holding Companies of TCN in all material respects;

 

(b)           the US Borrower is a
wholly-owned Subsidiary of TCN;

 

(c)           TCN is a wholly owned
Subsidiary of Telewest UK;

 

(d)           Telewest UK is a
wholly owned Subsidiary of the Ultimate Parent; and

 

(e)           the Ultimate Parent
is a Holding Company of the Group.

 

72

 

15.19      Environmental
Matters

 

(a)           It has to the best of
its knowledge and belief:

 

(i)            complied with all
Environmental Laws to which it is subject;

 

(ii)           obtained all
Environmental Licences required in connection with its business; and

 

(iii)         complied with the
terms of all such Environmental Licences,

 

in each case where failure to do so could reasonably
be expected to have a Material Adverse Effect.

 

(b)           To the best of its
knowledge and belief, there is no Environmental Claim pending or threatened
against it, which could reasonably be expected to have a Material Adverse
Effect.

 

(c)           No:

 

(i)            property
currently or previously owned, leased, occupied or controlled by it is
contaminated with any Hazardous Substance; and

 

(ii)           discharge,
release, leaking, migration or escape of any Hazardous Substance into the
Environment has occurred or is occurring on, under or from that property,

 

in each case in circumstances where the same could
reasonably be expected to have a Material Adverse Effect.

 

15.20      Necessary
Authorisations

 

(a)           The Necessary
Authorisations required by it are in full force and effect,

 

(b)           It is in compliance with
the material provisions of each Necessary Authorisation relating to it,

 

(c)           To the best of its
knowledge, none of the Necessary Authorisations relating to it are the subject
of any pending or threatened proceedings or revocation,

 

in each case, except
where any failure to maintain such Necessary Authorisations in full force and
effect, any non-compliance or any proceedings or revocation could not
reasonably be expected to have a Material Adverse Effect and subject to the
Reservations.

 

15.21      Intellectual
Property

 

The Intellectual
Property Rights owned by or licensed to it are all the material Intellectual
Property Rights required by it in order to carry out, maintain and operate its
business, properties and assets, and so far as it is aware, it does not
infringe, in any way any Intellectual Property Rights of any third party save,
in each case, where the failure to own or license the relevant Intellectual
Property Rights or any infringement thereof could not reasonably be expected to
have a Material Adverse Effect.

 

15.22      Ownership of Assets

 

Save to the extent
disposed of in a manner permitted by the terms of any of the Finance Documents
with effect from and after the Closing Date, it has good title to or valid
leases or licences of or is otherwise entitled to use all material assets
necessary to conduct its business in a manner consistent with the Long Range Plan except to the
extent that the failure to have such title, leases or licences or to be so
entitled could not be reasonably expected to have a Material Adverse Effect.

 

73

 

15.23      Payment of Taxes

 

It has no claims or
liabilities which are being, or are reasonably likely to be, asserted against
it with respect to taxes which, if adversely determined, could reasonably be
expected to have a Material Adverse Effect save to the extent it (or TCN) having set aside
proper reserves for such claims or liabilities, can demonstrate that the same
are being contested in good faith on the basis of appropriate professional
advice.

 

15.24      Pension Plans

 

(a)           Each defined benefit
pension plan operated by it generally for the benefit of the employees of
Telewest UK or any member of the TCN Group has been valued by an actuary
appointed by the trustees of such plan in all material respects in accordance
with all laws applicable to it and using actuarial assumptions and
recommendations complying with statutory requirements or approved by the
actuary and since the most recent valuation the relevant employers have paid
contributions to the plan in accordance with the schedule of contributions
in force from time to time in relation to the plan, in each case save to the
extent that any failure to do so could not reasonably be expected to have a
Material Adverse Effect.

 

(b)           It is in compliance
in all material respects with all applicable laws relating to any pension plan
operated by it or in which it participates, save to the extent that any failure
to comply could not reasonably be expected to have a Material Adverse Effect.

 

(c)           It does not maintain
or contribute to, and is not obliged to maintain or contribute to, any pension
plan that is required by Title IV of ERISA.

 

15.25      Security

 

Subject to the
Reservations, it is the legal or beneficial owner of all assets and other property
which it purports to charge, mortgage, pledge, assign or otherwise secure
pursuant to each Security Document and all shares subject to the Security are
fully paid and not subject to any restrictions on transfer in the
constitutional documents of the relevant Obligor or company which would be
contravened by the creation of the Security if any necessary consent is not in
full force and effect and (subject to their registration or filing at
appropriate registries for the purposes of perfecting the Security created
thereunder and the Reservations) those Security Documents to which it is a
party create and give rise to valid and effective Security having the ranking
expressed in those Security Documents.

 

15.26      Investment
Company Act

 

In the case of TCN only, neither the
Ultimate Parent nor any of its Subsidiaries is an “investment company” which is
registered or required to be registered under the United States Investment
Company Act of 1940 or a company “controlled” by such an “investment company”.

 

15.27      Public
Utility Holding Company Act

 

In the case of TCN only, neither the
Ultimate Parent nor any of its Subsidiaries is a “holding company” or a “Subsidiary
company” of a “holding company” or an “affiliate” of a “holding company” or of
a “Subsidiary company” of a “holding company” within the meaning of the United
States Public Utility Holding Company Act of 1935.

 

15.28      Insurance

 

In the case of TCN
and Telewest UK only, it and (in the case of TCN only) each member of the TCN
Group is adequately insured for the purposes of its business with reputable
underwriters or insurance companies against such risks and to such extent as is
necessary or usual for prudent companies

 

74

 

carrying on such a
business (other than insurance in respect of the underground portion of the
cable network and various pavement-based electronics associated with the cable
network as disclosed in the Group’s public disclosure documents) and except to
the extent that the failure to so insure could not reasonably be expected to
have a Material Adverse Effect.

 

15.29      Centre of
Main Interests

 

Its Centre of Main
Interests is the place in which its registered office is situated or, if
different, another place in the country in which its registered office is
situated, or England.

 

15.30      Broadcasting Act 1990

 

Neither it (and in
the case of TCN only)
nor any member of any Joint Venture Group is (other than being a body corporate
which is controlled by a person or persons falling within paragraph 1(1)(b) of
Part 11 of schedule 2 to the Broadcasting Act 1990 (as amended)) a “disqualified
person” for the purposes schedule 2 to such Act.

 

15.31      Telecommunications, Cable and Broadcasting Laws

 

(a)           It and (in the case
of TCN only) each member of each Joint Venture Group complies and has at all
times complied in all material respects with all Telecommunications, Cable and
Broadcasting Laws (but excluding, for these purposes only, breaches of
Telecommunications, Cable and Broadcasting Laws which have been expressly
waived by the relevant regulatory authority).

 

(b)           It and (in the case
of TCN only) each member of each Joint Venture Group complies and has at all
times complied in all material respects with any and all conditions set by the
Director General of Telecommunications or by OFCOM under section 45 of the
Communications Act 2003 as are applicable to it or such member of the Joint
Venture Group (as the case may be).

 

15.32      Liabilities
of Telewest UK

 

In the case of
Telewest UK only, Telewest UK is a Holding Company of TCN and:

 

(a)           has not traded or
undertaken any commercial activities of any kind (other than by entering into
any of the Finance Documents or Senior Finance Documents);

 

(b)           does not have any
assets other than shares in its relevant Subsidiaries, rights in respect of
Parent Intercompany Debt owed to it and cash;

 

(c)           does not have any
material liabilities or obligations (actual or contingent) to any person other
than (i) pursuant to the Transfer Agreement, (ii) as contemplated by the terms
of the Finance Documents and/or the Senior Finance Documents and (iii) pursuant
to any intercompany loans or obligations owing as at the date of this Agreement
to any members of the Group; and

 

(d)           as at the date of
this Agreement, no material claims have been made or threatened in writing
against Telewest UK pursuant to the Transfer Agreement.

 

15.33      US Patriot Act

 

(a)           It has no reason to
believe that it or any of its Affiliates:

 

(i)            is a Restricted
Party or controlled by a Restricted Party or has received funds or property
from a Restricted Party; or

 

75

 

(ii)           has violated any
Anti-Terrorism Law or is the subject of any action or investigation (including
any relating to asset seizure, forfeiture or confiscation) under any
Anti-Terrorism Law.

 

(b)           It and its Affiliates
have taken reasonable measures to ensure compliance with the Anti-Terrorism
Laws.

 

15.34      Compliance with ERISA

 

(a)           Each Plan (and each
related trust, insurance contract or fund) is in compliance with its terms and
with all applicable laws, including without limitation ERISA and the Code, save
where the failure to be so compliant would not result in a material liability.

 

(b)           Each Plan (and each
related trust, if any) which is intended to be qualified under Section 401(a)
of the Code has received a determination letter from the Internal Revenue
Service to the effect that it meets the requirements of Sections 401(a) and
501(a) of the Code.

 

(c)           No Reportable Event
has occurred in relation to a Plan.

 

(d)           Neither it nor any
member of the Group nor any ERISA Affiliate contributes to or has or ever had
any obligation to contribute to, any Multiemployer Plan.

 

(e)           No Plan has an
Unfunded Current Liability which, when added to the aggregate amount of Unfunded
Current Liabilities with respect to all other Plans, exceeds $10,000,000.

 

(f)            No Plan which is
subject to section 412 of the Code or section 302 of ERISA has an
accumulated funding deficiency, within the meaning of such sections of the Code
or ERISA, or has applied for or received a waiver of an accumulated funding
deficiency or an extension of any amortisation period, within the meaning of section 412
of the Code or section 303 or 304 of ERISA.

 

(g)           All contributions
required to be made with respect to a Plan have been made within the time limit
therefor, save where the failure to do so would not result in a material
liability.

 

(h)           Neither it nor any
other member of the Group nor any ERISA Affiliate has incurred any material
liability (including any indirect, contingent or secondary liability) to or on
account of a Plan pursuant to sections 409, 502(i), 502(l), 515, 4062, 4063,
4064, 4069, 4201, 4204 or 4212 of ERISA or section 401(a)(29), 4971 or
4975 of the Code or expects to incur any such material liability under any of
the foregoing sections with respect to any Plan.

 

(i)            To Telewest UK’s
knowledge, no condition exists which presents a material risk to it or any
other member of the Group or any ERISA Affiliate of incurring a liability to or
on account of a Plan pursuant to the provisions of ERISA and the Code
enumerated in paragraph (h) of this Clause 15.34.

 

(j)            No proceedings have
been instituted to terminate or appoint a trustee to administer any Plan
maintained by it which is subject to Title IV of ERISA.

 

(k)           No action, suit,
proceeding, hearing, audit or investigation with respect to the administration,
operation or the investment of assets of any Plan (other than routine claims
for benefits) is pending or, to Telewest UK’s knowledge, expected or
threatened.

 

(l)            Each group health
plan (as defined in section 607(1) of ERISA or section 4980B(g)(2) of
the Code) which covers or has covered employees or former employees of any
member of the Group or any ERISA Affiliate has at all times been operated in
compliance with the

 

76

 

provisions of Part 6 of subtitle B of Title I
of ERISA and section 4980B of the Code, save where the failure to do so
would not result in a material liability.

 

(m)          No lien imposed under
the Code or ERISA on its assets or the assets of any other member of the Group
or any ERISA Affiliate exists or is likely to arise on account of any Plan.

 

(n)           It and each other
member of the Group do not maintain or contribute to any employee welfare
benefit plan (as defined in Section 3(1) of ERISA) which provides benefits
to retired employees or other former employees (other than as required by Section 601
of ERISA) or any Plan the obligations with respect to which could reasonably be
expected to have a Material Adverse Effect.

 

(o)           Each Foreign Pension
Plan has been maintained in substantial compliance with its terms and with the
requirements of any and all applicable laws, statutes, rules, regulations and
orders and has been maintained, where required, in good standing with
applicable regulatory authorities, save where the failure to do so would not
result in a material liability.

 

(p)           All contributions
required to be made with respect to a Foreign Pension Plan maintained by it
have been made within the time limit therefor, save where the failure to do so
would not result in a material liability.

 

15.35      Liabilities
of the US Borrower

 

In the case of the US Borrower only, it is a wholly
owned Subsidiary of TCN and:

 

(a)           has not traded or
undertaken any commercial activities of any kind (other than by entering into
the Finance Documents and Senior Finance Documents to which it is party or the
TCN Notes);

 

(b)           does not have any
assets other than its rights under and payments received pursuant to the TCN
Notes; and

 

does not have any material liabilities or obligations
(actual or contingent) to any person other than as contemplated by the terms of
the Finance Documents and Senior Finance Documents.

 

15.36      Repetition

 

Each Repeating
Representation is deemed to be made by the party identified as making such
Repeating Representation above in relation to itself, or in the case of TCN in relation to
itself and each TCN Group Obligor or the TCN Group as a whole (as applicable),
by reference to the facts and circumstances then existing:

 

(a)           on the Utilisation
Date and on the first day of each Interest Period; and

 

(b)           in the case of any
Acceding Guarantor, on the day the same becomes an Acceding Guarantor.

 

16.          FINANCIAL INFORMATION

 

16.1        Financial
Statements

 

The Borrower shall provide to the Facility
Agent in sufficient copies for all the Lenders, the following financial
information relating to each of the TCN Group and the Group:

 

(a)           as soon as the same
become available, but in any event within 120 days after the end of each
of TCN’s financial years, the consolidated financial statements for such
financial year in respect of the TCN Group and of the Group, audited by a firm
of auditors meeting the

 

77

 

requirements of Clause 18.18 (Change in Auditors), and accompanied by
the related auditor’s report, such report not to be qualified in any material
respect as a result of the investigation described in the Supplement;

 

(b)           as soon as they
become available but in any event within 45 days after the end of the first
three Financial Quarters of each financial year, the unaudited consolidated
quarterly financial statements of the TCN Group and of the Group commencing
with the Financial Quarter ending on 31 March 2005, provided that the
unaudited consolidated quarterly financial statements for the Financial Quarter
during which a Merger Event or an Integrated Merger Event occurs shall be
required to be delivered within 90 days after the end of such Financial
Quarter;

 

(c)           as soon as
they become available but in any event within 45 days after the end of the last
Financial Quarter in each of TCN’s financial years, the unaudited consolidated
management accounts of the TCN Group and of the Group in respect of such
Financial Quarter.

 

In relation to the
financial information of the Group only, the above requirements (including in
relation to the financial statements in (c) above) may be satisfied by the
provision, within the specified time periods, of copies of reports for the Group
already filed with the Securities and Exchange Commission (“SEC”) for the relevant period (it being
acknowledged that the SEC does not as at the date hereof require the filing of
quarterly financial statements for the fourth Financial Quarter of any financial
year).

 

16.2        Budget

 

In respect of each
financial year, as soon as the same becomes available and in any event by no
later than 31 January in any financial year, TCN shall deliver to the Facility
Agent, in sufficient copies for the Lenders, the annual operating budget, which
as regards paragraphs (b) and (c) below shall be in the agreed form or with
such amendments as may be necessary to reflect changes made to the Group’s
public financial information as agreed by the Facility Agent (acting reasonably)
and prepared by reference to each Financial Quarter in respect of such
financial year and projections for the first Financial Quarter (the “initial Financial Quarter”) in respect such financial year of the TCN
Group.  The annual operating budget and
the projections for the initial Financial Quarter shall be prepared in form and
context consistent with past practice of TCN and shall include:

 

(a)           forecasts of any
projected material Disposals (including timing and anticipated Net Proceeds
thereof) on a consolidated basis for the TCN Group;

 

(b)           projected annual
statements of operations (including projected revenue and operating costs) on a
consolidated basis for the TCN Group in the agreed form or with such amendments
as may be necessary to reflect changes made to the Group’s public financial
information as agreed by the Facility Agent (acting reasonably);

 

(c)           projected estimated
pro forma balance sheets and estimated pro forma statements of cash flows on a
consolidated basis for the TCN Group in the agreed form or with such amendments
as may be necessary to reflect changes made to the Group’s public financial
information as agreed by the Facility Agent (acting reasonably);

 

(d)           projected Capital
Expenditure to be included for each Financial Quarter of such financial year
and on a consolidated basis for the TCN Group; and

 

(e)           a commentary from the
management in relation to the key drivers for the TCN Group for such financial
year and for the initial Financial Quarter.

 

78

 

TCN shall provide
the Facility Agent with any details of material changes in the projections set
out in any Budget delivered under this Clause 16.2 as soon as reasonably
practicable after it becomes aware of any such change.

 

16.3        Other Information

 

TCN shall and shall
procure that each of the Obligors shall from time to time on the request of the
Facility Agent:

 

(a)           provide the Facility
Agent with such information about the business and financial condition of the
TCN Group or any member of the TCN Group (including such member’s business) as
the Facility Agent may reasonably require, provided that TCN shall not be under
any obligation to provide, or procure the providing of, any information the
supply of which would be contrary to any confidentiality obligation binding on
any member of the TCN Group or where the supply of such information could
prejudice the retention of legal privilege in such information and provided
further that no Obligor shall (and TCN shall procure that no member of the TCN
Group shall) be able to deny the Facility Agent any such information by reason
of it having entered into a confidentiality undertaking which would prevent it
from disclosing, or be able to claim any legal privilege in respect of, any
financial information relating to itself or the Group; and

 

(b)           provide all then
existing information about the business and financial condition of the TCN
Group or any member of the TCN Group (including such member’s business) as
Standard & Poor’s or Moody’s may reasonably require and extend all
reasonable co-operation for the purpose of determining or assessing the credit
ratings (if any) assigned to the Facility and TCN shall use all reasonable
efforts to meet with representatives of Standard & Poor’s and Moody’s no
less frequently than once in each calendar year and in connection with an
Integrated Merger Event.

 

16.4        Compliance
Certificates

 

(a)           TCN shall ensure that
each set of financial information delivered by it pursuant to Clause 16.1 (Financial Statements) is accompanied by a
working paper (the “Attached Working Paper”) setting out the calculations
showing compliance with the financial covenants set out in Clause 17 (Financial Condition) and the information
from which such calculations are derived (including the calculations for the
components of such covenants on a line by line basis) and a Compliance
Certificate signed by two of its authorised signatories (at least one of whom
shall be a Financial Officer) confirming:

 

(i)            compliance with
the relevant financial covenants set out in Clause 17 (Financial Condition) and showing figures
representing the actual financial ratios then in effect and the amount of
Capital Expenditure spent in the relevant period;

 

(ii)           the ratio of
Consolidated Net Borrowings to Consolidated Annualised TCN Group Net Operating
Cash Flow;

 

(iii)         the ratio of
Consolidated Annualised TCN Group Net Operating Cash Flow to Total Interest
Charges;

 

(iv)          the ratio of
Consolidated TCN Group Cash Flow to Consolidated Debt Service;

 

(v)            compliance with
the 95% Security Test;

 

(vi)          the absence of
any Default; and

 

(vii)         that the
information contained in the Attached Working Paper has been prepared on 

 

79

 

the basis of the same information and
methodology used to prepare the appropriate financial information,

 

in each case, as at the end of such financial year or
Financial Quarter to which such financial information relates or detailing any
non-compliance.

 

(b)           Upon the occurrence
of an Integrated Merger Event, TCN shall deliver:

 

(i)            a Compliance
Certificate signed by two of its authorised signatories (at least one of whom
shall be a Financial Officer) confirming that as at the effective date of such
Integrated Merger Event, the Merger Event Condition set out in paragraph (b) of
the definition thereof and (unless the consent of an Instructing Group has been
obtained to the Integrated Merger Event pursuant to paragraph (a)(ii) of the
definition of Merger Event Conditions) the Merger Event Integration Tests set
out in paragraphs (c), (d), (e) or (f) (as applicable) and (g) of the
definition thereof have been satisfied, such certificate to set out (in the
case of such Merger Event Integration Tests) the relevant ratios, the
calculations showing compliance with such ratios and the information from which
such calculations were derived (including the calculations for the components
of such ratios on a line by line basis); and

 

(ii)           a business plan
for the combined businesses of the TCN Group and the Target Group for the period
up to the Final Maturity Date in respect of Facility C.

 

(c)           If:

 

(i)            an Event of
Default has occurred, but only while such Event of Default is continuing,
(provided that with respect to an Event of Default relating to a breach of any
covenant in Clause 17 (Financial Condition),
such Event of Default shall be deemed to be continuing until such time as TCN
has delivered a Compliance Certificate pursuant to Clause 16.5 (Compliance Certificates) demonstrating
that TCN is in compliance with each of the covenants set out in Clause 17 (Financial Condition)); or

 

(ii)           in the reasonable
opinion of an Instructing Group, a breach of any covenant in Clause 17 (Financial Condition) is reasonably likely
to occur,

 

in each such circumstance, at TCN’s expense (in the
case of sub-paragraph (i)) and at the Lenders’ expense (in the case of
sub-paragraph (ii)), but without causing any undue interruption to the normal
business operations of such Obligor or any member of the TCN Group:

 

(x)           the Facility Agent shall be
entitled to call for an independent audit and investigation which is reasonable
in scope and degree having regard to the nature of the Event of Default or
suspected breach (as the case may be) of the financial position of the TCN
Group; and

 

(y)           the Facility Agent,
any Finance Party, or representative of the Facility Agent or such Finance
Party (an “Inspecting Party”) shall be
entitled to have access, together with its accountants or other professional
advisers, during normal business hours, to inspect or observe such part of the
business of the TCN Group as is owned or operated by any Obligor, and to have
access to books, records, accounts, documents, computer programmes, data or
other information in the possession of or available to such Obligor or member
of the TCN Group and to take such copies as may be considered appropriate by
such Inspecting Party, provided that no Obligor shall (and TCN shall not be
obliged to procure that any member of the TCN Group shall) be under any
obligation to allow any person to have access to any books, records, accounts,
documents, computer programmes, data or other information or to take

 

80

 

copies thereof where to do so would breach any
confidentiality obligation binding on any member of the Group or would
prejudice the retention of legal privilege to which such Obligor or member of
the Group is then entitled in respect of such books, records, accounts,
documents, computer programmes, data or other information and provided further that
no Obligor shall (and TCN shall procure that no member of the TCN Group shall)
be able to deny the Facility Agent any such information by reason of it having
entered into a confidentiality undertaking which would prevent it from
disclosing, or be able to claim any legal privilege in respect of, any
financial information relating to itself or the Group.

 

16.5        Change
in Accounting Practices

 

TCN shall ensure that each set of financial information
delivered to the Facility Agent pursuant to Clause 16.1 (Financial Statements) is prepared using
accounting policies, practices and procedures consistent with US GAAP as at the
date hereof, unless in relation to any such set of financial
information TCN
elects to notify the Facility Agent that there have been one or more changes in
any such accounting policies, practices or procedures (including, without
limitation, any change in the basis upon which costs are capitalised):

 

(a)           TCN provides:

 

a description of the changes and the adjustments which
would be required to be made to that financial information in order to cause
them to reflect US GAAP as at the date hereof and any reference in this
Agreement to that financial information shall be construed as a reference to
that financial information as adjusted to reflect US GAAP as at the date
hereof; or

 

(b)           TCN notifies the
Facility Agent that it is not longer practicable to test compliance with the
financial covenants set out in Clause 17 (Financial
Condition) against the financial information required to be delivered
pursuant to this Clause 16 or that it wishes to cease preparing the additional
information required by sub-paragraph (a) above, in which case:

 

(i)            the Facility
Agent and TCN shall enter into negotiations with a view to agreeing alternative
financial covenants to replace those contained in Clause 17 (Financial Condition) in order to maintain
a consistent basis for such financial covenants (and for approval by an
Instructing Group);

 

(ii)           if the Facility
Agent and TCN agree alternative financial covenants to replace those contained
in Clause 17 (Financial Condition)
which are acceptable to an Instructing Group, such alternative financial
covenants shall be binding on all parties hereto; and

 

(iii)         if, after three
months following the date of the notice given to the Facility Agent pursuant to
this sub-paragraph (b), the Facility Agent and TCN cannot agree alternative
financial covenants which are acceptable to an Instructing Group, the Facility
Agent shall refer the matter to any of the Permitted Auditors as may be agreed
between TCN and the Facility Agent for determination of the adjustments
required to be made to such financial information or the calculation of such
ratios to take account of such change, such determination to be binding on the
parties hereto, provided that pending such determination (but not thereafter)
TCN shall continue to prepare financial information and calculate such
covenants in accordance with paragraph (a) above.

 

16.6        Notifications

 

TCN shall furnish or procure that
there shall be furnished to the Facility Agent in sufficient copies for each of
the Lenders:

 

81

 

(a)           as soon as reasonably
practicable, documents required to be despatched by the Ultimate Parent to its
shareholders generally (or any class of them) in their capacity as such and all
documents relating to the financial obligations of any Obligor despatched by or
on behalf of any Obligor to its creditors generally (in their capacity as
creditors) it being agreed that to the extent such information is filed with
the Securities and Exchange Commission, such filing will satisfy TCN’s
obligations with regard to the provision of such information;

 

(b)           as soon as reasonably
practicable after the same are instituted or, to its knowledge, threatened,
details of any litigation, arbitration or administrative proceedings involving
any member of the TCN Group which, is reasonably likely to be adversely
determined and if adversely determined, could reasonably be expected to have a
Material Adverse Effect;

 

(c)           written details of
any Default promptly upon becoming aware of the same, and of all remedial steps
being taken and proposed to be taken in respect of that Default; and

 

(d)           as soon as reasonably
practicable after receipt of a request by the Facility Agent, TCN shall supply
to the Facility Agent a certificate signed by a director or its Chief Financial
Officer (given without personal liability) on its behalf certifying that no
Default is continuing (or if a Default is continuing, specifying the Default
and the steps, if any, being taken to remedy the same).

 

17.          FINANCIAL CONDITION

 

17.1        Ratios

 

The financial
condition of the TCN Group as evidenced by the financial information provided
pursuant to Clause 16.1 (Financial
Statements) and the Attached Working Paper referred to in paragraph
(a) of Clause 16.4 (Compliance Certificates)
shall be such that:

 

(a)           Consolidated
Net Borrowings to Consolidated Annualised TCN Group Net Operating Cash Flow

 

Consolidated Net Borrowings
as at any Quarter Date specified in the table in paragraph (d) of this Clause
17.1, shall not be more than X times Consolidated Annualised TCN Group Net
Operating Cash Flow for the Semi-Annual Period ending on such Quarter Date,
where X has the value indicated for such Quarter Date in such table.

 

(b)           Consolidated
Annualised TCN Group Net Operating Cash Flow to Total Interest Charges

 

Consolidated Annualised TCN Group Net Operating Cash Flow for the Semi-Annual Period
ending on any Quarter Date specified in the table in paragraph (d) of this
Clause 17.1, shall not be less than Y times Total Interest Charges calculated
on an annualised basis based on the Total Interest Charges for such Semi-Annual
Period, where Y has the value indicated for such period in such table.

 

(c)           Consolidated
TCN Group Cash Flow to Consolidated Debt Service

 

Consolidated TCN Group Cash Flow in respect of the
twelve month period ending on each Quarter Date commencing with 30 June 2005
specified in the table in paragraph (d) of this Clause 17.1 shall not be less
than Z times Consolidated Debt Service for such twelve month period, where Z
has the value indicated for such period in such table, provided that (i) in the
case of the test on 30 June 2005, this ratio shall be calculated by
reference to Consolidated TCN Group Cash Flow and Consolidated Debt Service for
the Semi-Annual Period ending on 30 June 2005 multiplied by 2 and (ii) in
the case of the test on 30 September 2005, this ratio shall be calculated
by reference to Consolidated TCN Group Cash Flow and Consolidated

 

82

 

Debt Service for the nine month period ending on 30 September 2005
multiplied by 4/3.

 

(d)           Ratio Table

 

This is the table referred to in paragraphs (a) to (c)
above.

 

	
  Quarter Date

  	
   

  	
  Consolidated
  Net

  Borrowings to

  Consolidated

  Annualised TCN

  Group Net

  Operating Cash

  Flow

  	
   

  	
  Consolidated

  Annualised TCN

  Group Net

  Operating Cash

  Flow to Total

  Interest Charges

  	
   

  	
  Consolidated

  TCN Group Cash

  Flow to

  Consolidated Debt

  Service

  	
   

  
	
   

  	
   

  	
  X

  	
   

  	
  Y

  	
   

  	
  Z

  	
   

  
	
  31 March 2005

  	
   

  	
  4.40

  	
   

  	
  2.35

  	
   

  	
   

  	
   

  
	
  30 June 2005

  	
   

  	
  4.35

  	
   

  	
  2.45

  	
   

  	
  1.00

  	
   

  
	
  30 September 2005

  	
   

  	
  4.20

  	
   

  	
  2.55

  	
   

  	
  1.00

  	
   

  
	
  31 December 2005

  	
   

  	
  4.05

  	
   

  	
  2.65

  	
   

  	
  1.00

  	
   

  
	
  31 March 2006

  	
   

  	
  4.00

  	
   

  	
  2.65

  	
   

  	
  1.00

  	
   

  
	
  30 June 2006

  	
   

  	
  3.95

  	
   

  	
  2.70

  	
   

  	
  1.00

  	
   

  
	
  30 September 2006

  	
   

  	
  3.80

  	
   

  	
  2.80

  	
   

  	
  1.00

  	
   

  
	
  31 December 2006

  	
   

  	
  3.65

  	
   

  	
  2.95

  	
   

  	
  1.00

  	
   

  
	
  31 March 2007

  	
   

  	
  3.55

  	
   

  	
  3.00

  	
   

  	
  1.00

  	
   

  
	
  30 June 2007

  	
   

  	
  3.45

  	
   

  	
  3.00

  	
   

  	
  1.00

  	
   

  
	
  30 September 2007

  	
   

  	
  3.30

  	
   

  	
  3.15

  	
   

  	
  1.00

  	
   

  
	
  31 December 2007

  	
   

  	
  3.15

  	
   

  	
  3.25

  	
   

  	
  1.00

  	
   

  
	
  31 March 2008

  	
   

  	
  3.05

  	
   

  	
  3.35

  	
   

  	
  1.00

  	
   

  
	
  30 June 2008

  	
   

  	
  2.90

  	
   

  	
  3.40

  	
   

  	
  1.00

  	
   

  
	
  30 September 2008

  	
   

  	
  2.80

  	
   

  	
  3.60

  	
   

  	
  1.00

  	
   

  
	
  31 December 2008

  	
   

  	
  2.60

  	
   

  	
  3.75

  	
   

  	
  1.00

  	
   

  
	
  31 March 2009

  	
   

  	
  2.55

  	
   

  	
  3.90

  	
   

  	
  1.00

  	
   

  
	
  30 June 2009

  	
   

  	
  2.50

  	
   

  	
  4.05

  	
   

  	
  1.00

  	
   

  
	
  30 September 2009

  	
   

  	
  2.50

  	
   

  	
  4.30

  	
   

  	
  1.00

  	
   

  
	
  31 December 2009

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  
	
  31 March 2010

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  
	
  30 June 2010 and thereafter

  	
   

  	
  2.50

  	
   

  	
  4.50

  	
   

  	
  1.00

  	
   

  

 

17.2        Permitted
Capital Expenditure

 

(a)           Capital Expenditure
during each financial year of the TCN Group shall not exceed the aggregate of:

 

(i)            the Capital
Expenditure Allowance (as set out in paragraph (b) below) for such financial
year; plus

 

(ii)           to the extent not
used in the immediately preceding financial year, up to 25% of the Capital
Expenditure Allowance for the immediately preceding financial year (“Carried Forward Capex”),

 

(together, the “Permitted Capital
Expenditure”) provided that in the case of any financial year:

 

(A)          for the purposes of
calculating Permitted Capital Expenditure for such financial year, any Carried
Forward Capex shall be deemed to have been utilised last and shall not be
carried forward more than once;

 

(B)         in no circumstances may Permitted Capital Expenditure in such financial
year exceed 

 

83

 

125% of the Capital Expenditure Allowance for such
financial year;

 

(C)          an amount of up to
£75,000,000 in aggregate (or its equivalent in other currencies) of Capital
Expenditure may be incurred (in addition to any Permitted Capital Expenditure
allowed under this Clause 17.2) to the extent such Capital Expenditure is
funded from Equity Proceeds which are contributed to the TCN Group and applied
from time to time towards Capital Expenditure as contemplated by sub-paragraph
(b)(ii) of Clause 7.6 (Repayment from Equity
Proceeds).

 

(b)           The Capital
Expenditure Allowance (subject to its adjustment in accordance with paragraph
(c) below) in respect of each financial year is as follows:

 

	
  Financial Year ending

  	
   

  	
  Capital
  Expenditure Allowance (£)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2005

  	
   

  	
  315,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2006

  	
   

  	
  330,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2007

  	
   

  	
  310,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2008

  	
   

  	
  300,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2009

  	
   

  	
  295,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2010

  	
   

  	
  290,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2011

  	
   

  	
  285,000,000

  	
   

  

 

(c)           Following an
Integrated Merger Event, the amounts set out in the table in paragraph (b)
above under the column entitled “Capital Expenditure Allowance” shall be
adjusted so that such amounts after an Integrated Merger Event shall bear the
same relation to such amounts prior to the Integrated Merger Event as the
combined TCN Group Consolidated Revenues for the Semi-Annual Period ending on
the most recent Quarter Date for the TCN Group for which quarterly financial
information is available for the TCN Group and Target Group Consolidated
Revenues for the Semi-Annual Period ending on the last Quarter Date for which
quarterly financial information is available for the Target Group bears to the
TCN Group Consolidated Revenues for the Semi-Annual Period ending on the most
recent Quarter Date for the TCN Group immediately prior to the Integrated
Merger Event.

 

17.3        Currency
calculations

 

Where any financial
information with reference to which any of the covenants in Clause 17.1 (Ratios) are tested states amounts in a
currency other than Sterling such amounts shall, for the purposes of testing
such covenants be converted from such currency into Sterling at the rate used
in such financial information for the purpose of converting such amounts from
Sterling into the currency in which they are stated in such financial
information or where no such rate is stated in such financial information at an
appropriate rate selected by TCN, acting reasonably.

 

17.4        Pro Forma
Calculations

 

For the purposes of
testing compliance with the financial covenants set out in Clause 17.1 (Ratios), Clause 19.15 (Telewest UK Covenants) and paragraph (j)
of Clause 19.13 (Acquisitions and
Investments) the calculation of such ratios shall be made on a pro
forma basis giving effect to all material acquisitions and disposals made by
the TCN Group during the relevant period of calculation based on historical
financial results of the items being acquired or disposed of, provided that any
Flextech Disposal shall not give rise to any adjustments.

 

84

 

18.          POSITIVE UNDERTAKINGS

 

18.1        Application
of Advances

 

TCN shall ensure
that the proceeds of each Advance made under this Agreement are applied
exclusively for the applicable purposes specified in Clause 2.2 (Purpose).

 

18.2        Financial
Assistance and Fraudulent Conveyance

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall) ensure that its execution of
the Finance Documents to which it is a party and the performance of its
obligations thereunder does not contravene any applicable local laws and regulations
concerning fraudulent conveyance, financial assistance by a company for the
acquisition of or subscription for its own shares or the shares of its parent
or any other company or concerning the protection of shareholders’ capital.

 

18.3        Necessary
Authorisations

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall):

 

(a)           obtain, comply with
and do all that is necessary to maintain in full force and effect all Necessary
Authorisations, except where a failure to do so could not reasonably be
expected to have a Material Adverse Effect; and

 

(b)           promptly upon request
of the Facility Agent, supply certified copies to the Facility Agent of any
such Necessary Authorisations so requested.

 

18.4        Compliance
with Applicable Laws

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall) comply with all applicable
laws to which it is subject in respect of the conduct of its business and the
ownership of its assets (including, without limitation, all Statutory Requirements),
in each case, where a failure so to comply could reasonably be expected to have
a Material Adverse Effect.

 

18.5        Insurance

 

(a)           Each Obligor shall
(and TCN shall procure that each member of the TCN Group shall) effect and
maintain insurances on and in relation to its business and assets against such
risks and to such extent as is necessary or usual for prudent companies
carrying on a business such as that carried on by such Obligor or member of the
TCN Group with a reputable underwriter or insurance company except to the
extent disclosed in the Group’s public disclosure documents or to the extent
that the failure to so insure could not reasonably be expected to have a
Material Adverse Effect.

 

(b)           TCN shall (upon the
reasonable request of the Facility Agent) supply the Facility Agent with copies
of all such insurance policies or certificates of insurance in respect thereof
or (in the absence of the same) such other evidence of the existence of such
policies as may be reasonably acceptable to the Facility Agent.

 

18.6        Intellectual
Property

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall):

 

(a)           take all necessary
action to safeguard and maintain its rights, present and future, in or relating
to all Intellectual Property Rights owned, used or exploited by it and which
are material to the business of the TCN Group (including, without limitation,
paying all applicable renewal fees,

 

85

 

licence fees and other outgoings) save where
a failure to do so could not reasonably be expected to have a Material Adverse
Effect; and

 

(b)           notify the Facility
Agent promptly of any infringement or suspected infringement or any challenge
to the validity of any of the present or future Intellectual Property Rights
owned, used or exploited by it and which are material to the business of the
TCN Group which may come to its notice and it will supply the Facility Agent
with all information in its possession relating thereto if the same could reasonably
be expected to have a Material Adverse Effect and take all necessary steps
(including, without limitation, the institution of legal proceedings) to
prevent third parties infringing such Intellectual Property Rights to the
extent that failure to do so could reasonably be expected to have a Material
Adverse Effect.

 

18.7        Ranking of Claims

 

Subject to the
Reservations, each Obligor shall ensure that at all times the claims of the
Finance Parties against it under the Finance Documents to which it is a party
rank at least pari passu with the claims of all
its unsecured, unsubordinated creditors save those whose claims are preferred
by any bankruptcy, insolvency, liquidation or similar laws of general
application.

 

18.8        Pay Taxes

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall), file all material tax returns
on time and ensure that at all times, there are no material claims or
liabilities which are asserted against it in respect of tax, save to the extent
the relevant Obligor or in the case of any other member of the TCN Group, TCN (as the case may
be) can demonstrate that the same are being contested in good faith on the
basis of appropriate professional advice and that proper reserves have been
established therefor to the extent required by applicable generally accepted
accounting principles.

 

18.9        Hedging

 

Each Borrower shall:

 

(a)           within 6 months of
the date of this Agreement enter into and maintain Hedging Agreements for the
purpose of limiting the TCN Group’s exposure to adverse movements in interest
rates or foreign exchange in relation to the Senior Facilities and the Facility
(or any Second Lien Refinancing, as applicable) as follows:

 

(i)            interest rate
hedging required to ensure that interest is payable at fixed rates on not less
than 55% of the combined aggregate principal amount outstanding as at the
Closing Date, under the Senior Facilities and the Facility (or any Second Lien
Refinancing, as applicable), for a period commencing on the date on which such
Hedging Agreements are executed and ending on the third anniversary of the
Closing Date; and

 

(ii)           currency rate
hedging in respect of all amounts of principal and interest payable under the B
Facility, the C Facility or the Facility (or any Second Lien Refinancing, as
applicable) in Euro or Dollars for a period commencing on the date on which
such Hedging Agreements are executed and ending on the third anniversary of the
Closing Date;

 

(b)           within 6 months of
the date of any Second Lien Refinancing, enter into and maintain hedging
arrangements for the purpose of limiting the TCN Group’s exposure to adverse
movements in interest rates or foreign exchange in relation to such Second Lien
Refinancing for the relevant remaining period specified in paragraph (a) above
and to the extent that TCN would have

 

86

 

been obliged to enter into hedging
arrangements in respect of such Second Lien Refinancing under paragraph (a)
above if the loan instrument constituting such Second Lien Refinancing had
constituted the Facility;

 

(c)           ensure that the
hedging arrangements required pursuant to paragraphs (a) and (b) in are entered
into in the form of Acceptable Hedging Agreements; and

 

(d)           as soon as reasonably
practicable following request by the Facility Agent provide the Facility Agent
with certified true copies of each such Hedging Agreement entered into,

 

provided that no Borrower shall be in breach
of this Clause 18.9 if such
Borrower fails to enter into the hedging arrangements required
under paragraphs (a) and (b) by the relevant times specified in paragraphs (a)
and (b) and, in the case of paragraph (a), during the time between the date of
this Agreement and the date falling six months thereafter, either:

 

(i)            none
of the Lenders or their Affiliates is willing to enter into Hedging Agreements
to effect the hedging arrangements required by paragraphs (a) or (b), as the
case may be; or

 

(ii)           where
a Lender or its Affiliate is willing to enter into such hedging arrangements,
the terms of such hedging arrangements are, in the reasonable opinion of the
Facility Agent and the Mandated Lead Arrangers and having regard to the
creditworthiness of any
Borrower and current market conditions, considered to be
unreasonable, or where in the opinion of the Facility Agent and the Mandated
Lead Arrangers, acting reasonably, such hedging arrangements would cause
material adverse tax-related implications for any member of the Group.

 

18.10      Pension Plans

 

TCN shall use reasonable
endeavours to ensure that all pension plans maintained and operated by it
generally for the benefit of employees of any member of the TCN Group are
maintained and operated in all material respects in accordance with all
applicable laws from time to time and that the employer contributions are
assessed and paid in all material respects in accordance with the governing
provisions of such schemes and all laws applicable thereto, in each case, save
to the extent that any failure to fund such pension plan on that basis could
not reasonably be expected to have a Material Adverse Effect.

 

18.11      Environmental Matters

 

(a)           Each Obligor shall
(and TCN shall procure that each member of the TCN Group shall):

 

(i)            comply with all
Environmental Laws to which it is subject;

 

(ii)           obtain all Environmental
Licences required or desirable in connection with the business it carries on;
and

 

(iii)         comply with the
terms of all such Environmental Licences,

 

in each case where failure to do so could reasonably
be expected to have a Material Adverse Effect.

 

(b)           Each Obligor shall
(and TCN shall procure that each member of the TCN Group shall) promptly notify
the Facility Agent of any Environmental Claim (to the best of such Obligor’s or
member of the TCN Group’s knowledge and belief) pending or threatened against
it which, if substantiated, could reasonably be expected to have a Material
Adverse Effect.

 

87

 

(c)           No Obligor shall (and
TCN shall procure that no member of the TCN Group shall) permit or allow to occur
any discharge, release, leak, migration or other escape of any Hazardous
Substance into the Environment on, under or from any property owned, leased,
occupied or controlled by it, where such discharge, release, leak, migration or
escape could reasonably be expected to have a Material Adverse Effect.

 

18.12      Further Assurance

 

(a)           Each Obligor shall
(and TCN shall procure that each member of the TCN Group shall) at its own
expense, promptly take all such reasonable action as the Facility Agent or the
Security Trustee may require for the purpose of complying with the provisions
of paragraph (b) and for the registration or filing of any Security Documents
delivered pursuant thereto with all appropriate authorities to the extent
necessary for the purposes of perfecting the Security created thereunder.

 

(b)           TCN shall:

 

(i)            subject to the
proviso below and except as otherwise provided in this Clause 18.12, procure
that the 95% Security Test is satisfied, on each Quarter Date during the term
of the Facility where such percentage is calculated by reference to the
quarterly financial information relating to the TCN Group most recently
delivered pursuant to Clause 16.1 (Financial
Statements) and certified in the relevant Compliance Certificate
accompanying the same;

 

(ii)           procure that in
relation to any member of the TCN Group which becomes an Obligor for the
purposes of ensuring compliance with sub-paragraph (i) above, each intermediate
Holding Company of such member of the TCN Group within the TCN Group shall also
become an Obligor hereunder; and

 

(iii)         procure that each
Obligor which is or becomes a party to this Agreement in such capacity under
sub-paragraph (i) above shall have delivered to the Security Trustee, one or
more Security Documents granting security over all or substantially all of its
assets other than any shares in, receivables owed by or any other interest in
any Excluded Subsidiary or Project Company or any other asset which is of a
type excluded from existing corresponding Security Documents or has been
excluded for the reasons provided in paragraph (c) of Merger Event Conditions,
or which the Security Trustee agrees may be excluded from the Security granted
under the Security Documents (provided that the Security Trustee shall not
agree to exclude any asset of an Obligor from the Security where the net book
value of such asset exceeds £3,000,000 (or its equivalent in other currencies)
without the prior consent of an Instructing Group (not to be unreasonably
withheld or delayed)),

 

provided that it shall not constitute a breach of
this paragraph (b) if any Obligor is prevented by any legal or contractual
restriction from complying with the provisions of sub-paragraphs (i) and (iii)
and provided further that in no event shall the Obligors represent less than
90% of the Consolidated Annualised TCN Group Net Operating Cash Flow.

 

(c)           A breach of
sub-paragraph (b) shall not constitute a Default if:

 

(i)            one or more
members of the TCN Group become Obligors in accordance with Clause 20.1 (Acceding Guarantors) within 5 Business
Days of the delivery of a Compliance Certificate by TCN demonstrating that the
95% Security Test is not satisfied; and

 

(ii)           the Facility
Agent (acting reasonably) is satisfied that the 95% Security Test would have
been satisfied on the relevant Quarter Date if such Compliance Certificate had

 

88

 

been prepared on the basis
that such members of the TCN Group had been Obligors as at that Quarter Date.

 

(d)           In relation to any
provision of this Agreement or after an Integrated Merger Event, any other
applicable intercreditor agreement which requires the Obligors or any member of
the TCN Group to deliver a Security Document for the purposes of granting any
guarantee or Security for the benefit of the Finance Parties, the Security
Trustee agrees to execute as soon as reasonably practicable, any such guarantee
or Security Document which is presented to it for execution.

 

(e)           Each of the Finance
Parties hereby agrees that it will, upon the request of TCN made following
delivery of the written notice referred to in Clause 18.19 (Notice of Integrated Merger Event), and/or
in anticipation of the incurrence of any Target Group Refinancing Indebtedness
or Post Merger Target Group Refinancing after the occurrence of an Integrated
Merger Event execute such other intercreditor arrangements or other
documentation as may reasonably be necessary to give effect to such Integrated
Merger Event, provided that the provisions affecting the priority, ranking,
permitted payments and permitted enforcement by the Finance Parties shall be on
substantially equivalent terms to those of the Principal Intercreditor Deed, it
being understood that the Target Group Senior Indebtedness (as defined in the
Principal Intercreditor Deed) shall rank pari passu with all other Senior
Indebtedness (as defined in the Principal Intercreditor Deed).

 

(f)            Each of the Finance
Parties hereby agrees that it will, upon the request of TCN made upon
reasonable notice prior to the proposed effective date of any Second Lien
Refinancing, accept an accession deed by which parties will accede to the
Principal Intercreditor Deed in relation to such Second Lien Refinancing.  To the extent that any amendments are requested
by any person party to such agreement, each Finance Party agrees to negotiate
such amendments in good faith

 

(g)           At any time after an
Event of Default has occurred and whilst such Event of Default is continuing,
each Obligor shall, at its own expense, take any and all action as the Security
Trustee may deem necessary for the purposes of perfecting or otherwise
protecting the Lenders’ interests in the Security constituted by the Security
Documents.

 

18.13      Assets

 

Each Obligor shall
(and TCN shall
procure that each member of the TCN Group shall) maintain and preserve all of
its assets that are necessary in the conduct of its business as it is conducted
from time to time, in good working order and condition subject to ordinary wear
and tear where any failure to do so would be reasonably likely to have a
Material Adverse Effect.

 

18.14      Centre of Main Interests

 

No Obligor
incorporated or otherwise existing under the laws of England shall (and TCN shall procure that
no other member of the TCN Group incorporated or otherwise existing under the
laws of England shall), without the prior written consent of an Instructing
Group, cause or allow its Centre of Main Interests to change to a country other
than England.

 

18.15      Group Structure Chart

 

If there is a
material change or inaccuracy in the corporate structure of the TCN Group or
any Holding Companies of TCN from that set out in the Group Structure Chart most
recently delivered to the Facility Agent, TCN shall deliver or procure that
there is delivered to the Facility Agent, as soon as practicable upon becoming
available, an updated Group Structure Chart containing information

 

89

 

sufficient to
evidence the matters set out in paragraphs (b) and (c) of Clause 15.18 (Structure) and showing such change or correcting such
inaccuracy.

 

18.16      Contributions
to the TCN Group

 

Telewest UK shall
procure that any monies which are at any time contributed by any member of the
Group to any member of the TCN Group shall be contributed by way of
Subordinated Funding, by way of an investment through capital contribution or a
subscription of securities or convertible unsecured loan stock in the relevant
member of the TCN Group.

 

18.17      “Know your
client” checks

 

(a)           Each Obligor shall
promptly upon the request of the Facility Agent or any Lender and each Lender
shall promptly upon the request of the Facility Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by
the Facility Agent (for itself or on behalf of any Lender) or any Lender (for
itself or on behalf of any prospective Transferee in order for the Facility
Agent, such Lender or any prospective Transferee to carry out and be satisfied
with the results of all necessary “know your client” or other applicable
anti-money laundering checks in relation to the identity of any person that it
is required to carry out in relation to the transactions contemplated in the
Finance Documents.

 

(b)           TCN shall, by not
less than 3 Business Days written notice to the Facility Agent, notify
the Facility Agent (which shall promptly notify the Lenders) of its intention
to request that one of its wholly-owned Subsidiaries becomes an Acceding
Guarantor pursuant to Clause 20.1 (Acceding Guarantors).

 

(c)           Following the giving
of any notice pursuant to paragraph (b) above, TCN shall promptly upon the
request of the Facility Agent or any Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the
Facility Agent (for itself or on behalf of any Lender) or any Lender (for
itself or on behalf of any prospective Transferee to carry out and be satisfied
with the results of all necessary “know your client” or other applicable
anti-money laundering checks in relation to the identity of any person that it
is required to carry out in relation to the accession of such Acceding
Guarantor to this Agreement.

 

18.18      Change in Auditors

 

The Obligors shall
ensure that its auditors are (and in the case of TCN, the TCN Group’s auditors
are) any one of the Permitted
Auditors provided that in the event of any change in such auditors, the
relevant Obligor (or TCN, in
the case of any change to the TCN Group’s auditors) shall promptly notify the
Facility Agent of such change.

 

18.19      Notice
of Integrated Merger
Event

 

TCN may designate an Integrated
Merger Event by providing not less than 30 days’ written notice before the
proposed effective date thereof to the Facility Agent.  Such notice shall specify the following
matters as projected by TCN in
its reasonable judgment, as at the date of such notice:

 

(a)           the proposed
provisional effective date of the Integrated Merger Event;

 

(b)           which members of the
Target Group shall become Target Group Obligors and which other members of the
Target Group are being designated as members of the TCN Group at the date of
the Integrated Merger Event for the purposes of sub-paragraph (b) of the
definition of “TCN Group”; and

 

(c)           what (if any)
corporate reorganisations will be implemented in connection with the Integrated

 

90

 

Merger Event; for the avoidance of doubt, any
reorganisation involving the Target Group (including without limitation, the
acquisition of one or more members of the Target Group by TCN or one or more
Subsidiaries of TCN) for the purposes of an Integrated Merger Event shall
constitute a permitted acquisition for the purposes of paragraph (a) of Clause
19.13 (Acquisitions and Investments),

 

provided that, upon
reasonable request of the Facility Agent following delivery of the notice
referred to above and from time to time, TCN shall keep the Facility Agent
appraised of all material developments with respect to the Integrated Merger
Event and provided further that no less than 3 Business Days before the
effective date of the Integrated Merger Event, TCN shall provide written
confirmation of the matters referred to in paragraphs (a) to (c) to the
Facility Agent.

 

18.20      ERISA

 

(a)           As soon as possible
and, in any event, within 20 days after Telewest UK or any Obligor knows or has
reason to know of the occurrence of any of the events specified in paragraph
(b) of this Clause 18.20, Telewest UK or such Obligor will deliver to the Agent
in sufficient copies for each Lender a certificate of the chief financial
officer of Telewest UK or such Obligor setting out full details as to such
occurrence and the action, if any, that the relevant member of the Group or
ERISA Affiliate is required or proposes to take, together with any notices
required or proposed to be given or filed by such member of the Group, the Plan
administrator or such ERISA Affiliate to or with the PBGC or any other
government agency, or a Plan or Multiemployer Plan participant and any notices
received by such member of the Group or ERISA Affiliate from the PBGC or any
other government agency, or a Plan or Multiemployer Plan participant with
respect to it.

 

(b)           the events referred
to in paragraph (a) of this Clause 18.20 are:

 

(i)            a Reportable
Event occurs (except to the extent that the relevant member of the Group has
previously delivered to the Agent a certificate and notices (if any) concerning
such event pursuant to the next clause of this Agreement);

 

(ii)           a contributing
sponsor (as defined in section 4001(a)(13) of ERISA) of a Plan subject to
Title IV of ERISA is subject to the advance reporting requirement of PBGC
Regulation section 4043.61 (without regard to subparagraph (b)(1) of it),
and an event described in subsection .62, .63, .64, .65, .66, .67 or .68
of PBGC Regulation section 4043 is reasonably expected to occur with respect
to such Plan within the following 30 days;

 

(iii)         an accumulated
funding deficiency, within the meaning of section 412 of the Code or section 302
of ERISA, is incurred or an application is or may be made for a waiver or
modification of the minimum funding standard (including any required instalment
payments) or an extension of any amortisation period under section 412 of
the Code or section 303 or 304 of ERISA with respect to a Plan or
Multiemployer Plan;

 

(iv)          any contribution
required to be made with respect to a Multiemployer Plan, Plan or Foreign
Pension Plan is not made before or within 30 days following the time limit
therefor;

 

(v)            a Plan or
Multiemployer Plan is or may be terminated, reorganised, partitioned or
declared insolvent under Title IV of ERISA;

 

(vi)          a Plan has an
Unfunded Current Liability which, when added to the aggregate amount of
Unfunded Current Liabilities with respect to all other Plans, exceeds the
aggregate amount of such Unfunded Current Liabilities that existed on the date
of this

 

91

 

Agreement by $10,000,000;

 

(vii)         proceedings are
or may be instituted to terminate or appoint a trustee to administer a Plan
which is subject to Title IV of ERISA;

 

(viii)        proceedings are
instituted pursuant to section 515 of ERISA to collect a delinquent
contribution to a Plan;

 

(ix)          any member of the
Group or any ERISA Affiliate incurs or is reasonably expected to incur any
liability to or on account of the termination of or withdrawal from a Plan or
Multiemployer Plan under section 4062, 4063, 4064, 4069, 4201, 4204 or
4212 of ERISA or with respect to such a Plan under section 401(a)(29),
4971, 4975 or 4980 of the Code or section 409, 502(i) or 502(l) of ERISA
or with respect to a group health plan (as defined in section 607(1) of
ERISA or section 4980B(g)(2) of the Code) maintained by Telewest UK or any
member of the Group under section 4980B of the Code; and

 

(x)           any member of the
Group incurs or may incur a liability that exceeds $10,000,000 pursuant to any
employee welfare benefit plan (as defined in section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by section 601 of ERISA) or any Plan or any Foreign Pension Plan
maintained by it.

 

(c)           The Parent shall
procure that each member of the Group will deliver to the Agent in sufficient
copies for each of the Lenders:

 

(i)            copies of any
records, documents or other information that must be furnished to the PBGC with
respect to any Plan pursuant to Section 4010 of ERISA;

 

(ii)           a complete copy
of the annual report (on Internal Revenue Service Form 5500-series (including,
to the extent required, the related financial and actuarial statements and
opinions and other supporting statements, certifications, schedules and
information)) of each Plan or Multiemployer Plan (if available to any member of
the Group or an ERISA Affiliate) required to be filed with the Internal Revenue
Service;

 

(iii)         copies of annual
reports and any records, documents or other information required to be
furnished by such member of the Group or any ERISA Affiliate to the PBGC or any
other government agency; and

 

(iv)          any material
notices received by a member of the Group or any ERISA Affiliate with respect
to any Plan, Multiemployer Plan or Foreign Pension Plan, in the case of each of
(i), (ii), (iii) and (iv), no later than 30 days (or 10 days in the case of
this paragraph (iv)) after the date such annual report has been filed with the
Internal Revenue Service or such records, documents and/or information has been
furnished to the PBGC or such other government agency or such notice has been
received by such member of the Group or ERISA Affiliate, as applicable.

 

(d)           The Parent shall
procure that each member of the Group shall ensure that all Foreign Pension
Plans administered by them or into which they make payments, obtain or retain
(as applicable) registered status under and as required by applicable law and
are administered in a timely manner in all respects in compliance with all
applicable laws except where the failure to do any of the foregoing will not
have a Material Adverse Effect.

 

92

 

18.21      Telewest UK

 

Telewest UK shall
promptly upon becoming aware of the same notify the Facility Agent of any
material claim made, issued or threatened in writing against Telewest UK under
the Transfer Agreement.

 

19.          NEGATIVE UNDERTAKINGS

 

19.1        Undertakings
with respect to
the Flextech Group

 

Any action
undertaken, or any transaction entered into, by any member of the TCN Group and
any circumstances arising in connection with or as a result of a Flextech
Disposal shall not be restricted by (nor be deemed to constitute a utilisation
of any of the permitted exceptions to) any of the provisions of this Clause 19
(and any such action, transaction or circumstance shall not constitute a breach
of any of the Finance Documents, an Event of Default or an event which would
trigger a mandatory prepayment under Clause 7 (Mandatory
Prepayment and Cancellation)) to the extent such action, transaction
or circumstance has been undertaken or entered into for the purposes of or in
connection with effecting a Flextech Disposal.

 

19.2        Negative Pledge

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall), create or permit to subsist any
Encumbrance over all or any of its present or future revenues or assets to
secure or prefer any present or future Financial Indebtedness of any Person
other than an Encumbrance:

 

(a)           which is an Existing
Encumbrance set out in:

 

(i)            Part 1A of Schedule 10
(Existing Encumbrances) provided
that such Encumbrance is released within 10 days following the Closing Date; or

 

(ii)           Part 1B of Schedule 10
(Existing Encumbrances) provided that the
principal amount secured thereby may not be increased unless any Encumbrance in
respect of such increased amount would be permitted under another paragraph of
this Clause 19.2;

 

(b)           which arises (i) by
operation of Law or (ii) under a contract having a similar effect, or an escrow
arrangement required by a trading counterparty of any member of the TCN Group,
in each case entered into the ordinary course of business of the relevant
member of the TCN Group;

 

(c)           which is created
pursuant to any of the Finance Documents or the Senior Finance Documents;

 

(d)           arising from any
Finance Leases, sale and leaseback arrangements or Vendor Financing
Arrangements permitted to be incurred pursuant to Clause 19.4 (Financial Indebtedness)

 

(e)           which arises in
respect of any right of set-off, netting arrangement, title transfer or title
retention arrangements which:

 

(i)            arises in the
ordinary course of business and/or by operation of Law;

 

(ii)           is entered into
by any member of the TCN Group in the normal course of its banking arrangements
for the purpose of netting debit and credit balances on bank accounts of
members of the TCN Group operated on a net balance basis;

 

93

 

(iii)         arises in respect
of netting or set off arrangements contained in any Hedging Agreement or other
contract permitted under Clause 19.12 (Limitations
on Hedging) or required pursuant to
any other provision of this Agreement;

 

(iv)          which is a
retention of title arrangement with respect to customer premises equipment in
favour of a supplier (or its Affiliate) in respect of Financial Indebtedness
referred to in paragraph (f) of Clause 19.4 (Financial
Indebtedness); provided that the title is only retained to
individual items of customer premises equipment in respect of which the
purchase price has not been paid in full; or

 

(v)            is entered into
by any member of the TCN Group on terms which are generally no worse than the
counterparty’s standard or usual terms and entered into in the ordinary course
of business of the relevant member of the TCN Group;

 

(f)            which arises in
respect of any judgment, award or order or any tax liability for which an
appeal or proceedings for review are being diligently pursued in good faith,
provided that the affected member of the TCN Group shall have or will establish
such reserves as may be required under applicable generally accepted accounting
principles in respect of such judgment, award, order or tax liability;

 

(g)           which is created by
any member of the TCN Group in substitution for any Existing Encumbrance
referred to in paragraph (a)(ii) above of this Clause 19.2, provided that the
principal amount secured thereby may not be increased unless any Encumbrance in
respect of such increased amount would be permitted under another paragraph of
this Clause 19.2;

 

(h)           over or affecting any
asset acquired by any member of the TCN Group after the date of this Agreement
and subject to which such asset is acquired, if:

 

(i)            such Encumbrance
was not created in contemplation of the acquisition of such asset by a member
of the TCN Group; and

 

(ii)           the Financial
Indebtedness secured thereby is Financial Indebtedness of, or is assumed by,
the relevant acquiring members of the TCN Group, is Financial Indebtedness
which at all times falls within paragraph (j) or (m) of Clause 19.4 (Financial Indebtedness) and the amount of Financial
Indebtedness so secured is not increased at any time;

 

(i)            over or affecting any
asset of any company which becomes a member of the TCN Group after the date of
this Agreement, where such Encumbrance is created prior to the date on which
such company becomes a member of the TCN Group, if:

 

(i)            such Encumbrance
was not created in contemplation of the acquisition of such company; and

 

(ii)           to the extent not
repaid by close of business on the date upon which such company became a member
of the TCN Group, the Financial Indebtedness secured by such Encumbrance at all
times falls within paragraph (j) or (m) of Clause 19.4 (Financial
Indebtedness);

 

(j)            constituted by a rent
deposit deed entered into on arm’s length commercial terms and in the ordinary
course of business securing the obligations of a member of the TCN Group in
relation to property leased to a member of the TCN Group;

 

(k)           constituted by an
arrangement referred to in paragraphs (d) or (f) of the definition of Financial
Indebtedness;

 

94

 

(l)            which is granted by a
member of the TCN Group over the shares of, Financial Indebtedness owed by or
other interests it holds in, or over the assets (including, without limitation,
present or future revenues) attributable to, a Project Company, an Excluded
Subsidiary or a Joint Venture;

 

(m)          over cash deposited
as security for the obligations of a member of the TCN Group in respect of a
performance bond, guarantee, standby letter of credit or similar facility
entered into in the ordinary course of business of the TCN Group;

 

(n)           over the assets and
undertakings of any members of the TCN Group which secures Target Group
Financial Indebtedness and/or Target Group Refinancing Indebtedness as at close
of business on the effective date of the Integrated Merger Event up to an
aggregate principal amount of £2,425,000,000 (or its equivalent in other
currencies) or which secures Financial Indebtedness constituting a Post Merger
Target Group Refinancing and, in each case, the priority of which is pari passu
with the Senior Facilities;

 

(o)           securing any Second
Lien Refinancing; or

 

(p)           securing Financial
Indebtedness the principal amount of which (when aggregated with the principal
amount of any other Financial Indebtedness which has the benefit of an
Encumbrance other than as permitted pursuant to paragraphs (a) to (o) above)
does not exceed £125,000,000 (or its equivalent in other currencies), which may
be secured:

 

(i)            on assets not
subject to the Security; and/or

 

(ii)           over assets
subject to the Security on a basis ranking pari passu with or junior to the
Security, provided that such security shall be granted on terms no more
favourable taken as a whole to the beneficiaries thereof than that granted
under this Agreement or where the rights of the relevant mortgagee, chargee or
other beneficiary of such security in respect of any payment will be pari passu
with or subordinated to the rights of the Finance Parties under the Principal
Intercreditor Deed, any TGD Intercreditor Agreement or any other intercreditor
arrangement which is either:

 

(A)          on terms
satisfactory to the Finance Parties; or

 

(B)          in the case of
subordinated security arrangements, on terms where the relevant mortgagee,
chargee or other beneficiary of such security shall not be entitled to exercise
any voting rights (or shall transfer any voting rights to which it may be
entitled (whether such voting rights are granted by contract or applicable law)
to the Security Trustee), shall agree to turnover any monies it receives in
respect of such security, shall not enforce any rights to which it may be
entitled in respect of the Financial Indebtedness secured by such security,
dispose of, enforce any Encumbrance over, and shall not appoint any receiver,
manager, attorney or any similar officer over, or otherwise exercise any rights
in respect of, all or any part of the assets subject to such security until
such time that all amounts outstanding under the Finance Documents have been
repaid and discharged in full,

 

provided that in either case, each of the Finance
Parties agrees to execute such intercreditor deed as soon as practicable
following request from TCN, and
provided further that any Encumbrances securing Target Group Financial
Indebtedness, Target Group Refinancing Indebtedness and/or Post Merger Target
Group Refinancing Indebtedness shall be limited as provided in paragraph (n) of
this Clause 19.2.

 

95

 

19.3        Loans and Guarantees

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) grant any loan or credit or give
any guarantee in any such case in respect of Financial Indebtedness, other
than:

 

(a)           any extension of
trade credit or guarantees, bonds or indemnities granted in the ordinary course
of business on usual and customary terms;

 

(b)           any credit given by a
member of the TCN Group to another member of the TCN Group which arises by
reason of cash-pooling, set-off or other cash management arrangements of the
TCN Group;

 

(c)           the Existing Loans,
provided that the aggregate principal amount outstanding thereunder may not be
increased from that existing at the date of this Agreement in reliance on this
paragraph (c), (except with respect to the accrual or capitalisation of
interest);

 

(d)           any loans or credit
granted:

 

(i)            by a member of
the TCN Group which is not an Obligor to an Obligor by way of Subordinated
Funding;

 

(ii)           by one Obligor to
another Obligor; or

 

(iii)         by a member of
the TCN Group which is not an Obligor to any other member of the TCN Group
which is not an Obligor;

 

(iv)          by a member of
the TCN Group to one or more members of the Flextech Group; provided that the
aggregate principal amount of all loans or credit at any time outstanding and
granted after the Closing Date pursuant to this Clause (d)(iv) shall not exceed
the sum of £15,000,000 plus that amount which, when taken together with the
aggregate amount of any loans, distributions or other payments to, or
guarantees for the Financial Indebtedness of, or acquisitions of interests or
investments in Joint Ventures during the then current financial year, does not
exceed 3.5% of TCN Group Consolidated Revenues for the preceding financial year
calculated by reference to the annual financial information for the TCN Group
delivered in respect of the preceding financial year of the TCN Group pursuant
to Clause 16.1 (Financial Statements),
and provided further that any such loans or credit shall be repaid on or before
any Flextech Disposal that results in the relevant member of the Flextech Group
ceasing to be a member of the Group;

 

(v)            by a member of
the TCN Group to the relevant member of the Flextech Group for the purposes of
funding drawings available under the undrawn portion of any Existing Loan Stock
of up to £50,000,000 in aggregate, provided that any such loans or credit
granted after the date of this Agreement shall be repaid on or before any
Flextech Disposal that results in the relevant member of the Flextech Group
ceasing to be a member of the Group;

 

(vi)          in accordance
with Clause 19.9 (Joint Ventures);

 

(vii)         by the US
Borrower pursuant to the TCN Notes;

 

(e)           any loans made by any
member of the TCN Group to its employees either:

 

(i)            in the ordinary
course of its employees’ employment; or

 

96

(ii)           to fund the
exercise of share options or other purchase of capital stock by its employees,

 

provided that the aggregate principal amount of all
such loans shall not at any time exceed £2,500,000 (or its equivalent in other
currencies);

 

(f)            any loan granted as a result of a
Subscriber being allowed terms, in the ordinary course of trade, whereby it
does not have to pay for the services provided to it for a period after the
provision of such services;

 

(g)           any loan made by a member of the TCN
Group to a member of the Group, where the proceeds of such loan are, or are to
be (whether directly or indirectly) used;

 

(i)            provided that no
Event of Default has occurred and is continuing or is likely to occur as a
result thereof, to fund Permitted Payments; or

 

(ii)           at any time after
the occurrence of an Event of Default, to fund Permitted Payments (A) under
paragraph (a)(ii) of the definition thereof to the extent made to Telewest UK
or the Ultimate Parent (and provided that documentation detailing the same is provided
to the Facility Agent in advance of making any such loan) or (B) otherwise to
the extent permitted by the Principal Intercreditor Deed or any applicable TGD
Intercreditor Agreement;

 

(h)           trade credit granted on arms’ length
terms by any member of the TCN Group to a member of the Flextech Group in
connection with Intra-Group Services, provided that any settlement of any such
trade credit may occur by way of set-off and further provided that any
overpayment or underpayment arising as a result of the settlement of all such
trade credit may be returned to the overpaying party or paid to the underpaying
party (and any credit or Financial Indebtedness arising as a result of such
overpayment or underpayment pending repayment to the overpaying party or payment
to the underpaying party is hereby permitted);

 

(i)            following an Integrated Merger Event,
any guarantee given by a member of the Target Group or the TCN Group in respect
of Financial Indebtedness permitted under paragraph (d) of Clause 19.4 (Financial Indebtedness);

 

(j)            any guarantees arising under the
Finance Documents or the Senior Finance Documents;

 

(k)           any guarantee given in respect of
membership interests in any company limited by guarantee where the acquisition
of such membership interest is permitted under Clause 19.13 (Acquisitions and Investments);

 

(l)            any guarantee included within or given
by a member of the TCN Group in respect of or constituted by any Financial
Indebtedness permitted under Clause 19.4 (Financial Indebtedness)
or Clause 19.10 (Transactions with
Affiliates);

 

(m)          any customary title guarantee given in
connection with the assignment of leases where such assignment is permitted
under Clause 19.6 (Disposals);

 

(n)           any loan or credit made to any Person
(other than a member of the TCN Group) from Flextech Assets; or

 

(o)           loans made, credit granted or guarantees given by any member of the TCN
Group not falling within paragraphs (a) to (n) above, in an aggregate amount
not exceeding £20,000,000 (or its equivalent in other currencies).

 

97

 

19.4        Financial
Indebtedness

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) incur, create or permit to
subsist or have outstanding any Financial Indebtedness or enter into any
agreement or arrangement whereby it is entitled to incur, create or permit to
subsist any Financial Indebtedness other than in either case:

 

(a)           Financial Indebtedness arising under or
pursuant to the Finance Documents or the Senior Finance Documents;

 

(b)           Existing Financial Indebtedness,
provided that all Existing Financial Indebtedness described in Section A
of Part 3 of Schedule 10 (Existing
Financial Indebtedness) shall be repaid immediately upon the making
of the first Advance under this Agreement;

 

(c)           in relation to an Integrated Merger
Event:

 

(i)            any Target Group
Financial Indebtedness existing as at the effective date of the Integrated
Merger Event;

 

(ii)           any Target Group
Refinancing Indebtedness existing as at or immediately following the effective
date of the Integrated Merger Event; and

 

(iii)         any Post Merger
Target Group Refinancing;

 

(d)           Financial Indebtedness of any member of
the TCN Group falling within, and permitted by Clause 19.3 (Loans and Guarantees);

 

(e)           Financial Indebtedness arising under
any Hedging Agreements permitted under Clause 19.12 (Limitations on Hedging);

 

(f)            Financial Indebtedness arising in
respect of any guarantee given by TCN or any other member of the TCN Group in
respect of the relevant borrower’s obligations under any Second Lien
Refinancing or any other Telewest Global Debt, provided that, except at the
option of TCN in the case of a Second Lien Refinancing, any such guarantee is
given on a subordinated unsecured basis and is subject to the terms of a TGD
Intercreditor Agreement, and provided further that if and to the extent
required by Clause 7.5 (Repayment from Debt
Proceeds), the Net Proceeds of such Telewest Global Debt are applied
in the prepayment of the Outstandings;

 

(g)           Financial Indebtedness (i) arising
under Finance Leases or (ii) provided or arranged by a supplier (or its
Affiliates) of assets (including equipment) and/or related services to the TCN
Group (the “Vendor
Financing Arrangements”),
to the extent that such Finance Leases and/or Vendor Financing Arrangements (x)
comprise Finance Leases and/or Vendor Financing Arrangements which were
outstanding on the Closing Date, details of which are set out in Schedule 12
(Vendor Financing Arrangements)
or any refinancing or rollover thereof, or (y) comprise Finance Leases and/or
Vendor Financing Arrangements entered into after the Closing Date, in the case
of clause (x) and (y) in an aggregate principal amount which, together with the
aggregate principal amount of all outstanding Financial Indebtedness incurred
under paragraph (m) below, does not at any time exceed £125,000,000 plus the
principal amount of such Finance Leases and Vendor Financing Arrangements
outstanding on the Closing Date; provided in each case that the relevant lessor
or provider of Vendor Financing Arrangements does not have the benefit of any
Encumbrance other than over the assets the subject of such Vendor Financing
Arrangements and/or Finance Leases;

 

98

 

(h)           Financial Indebtedness relating to
deferral of PAYE taxes with the agreement of the Inland Revenue by any member
of the TCN Group;

 

(i)            Financial Indebtedness arising in
respect of Existing Performance Bonds or any performance bond, guarantee,
standby letter of credit or similar facility entered into by any member of the
TCN Group to the extent that cash is deposited as security for the obligations
of such member of the TCN Group thereunder;

 

(j)            other than in connection with the
Integrated Merger Event, Financial Indebtedness of any company which became or
becomes a member of the TCN Group after the date of this Agreement, where such
Financial Indebtedness arose prior to the date on which such company became or
becomes a member of the TCN Group; if:

 

(i)            such Financial Indebtedness
was not created in contemplation of the acquisition of such company; and

 

(ii)           the aggregate
principal amount of all Financial Indebtedness falling within this paragraph
(j) either (A) does not exceed £12,000,000
(or its equivalent in other currencies) outstanding at any time or (B)
to the extent such Financial Indebtedness does exceed £12,000,000, an amount
equal to such excess is repaid immediately upon such company becoming a member
of the TCN Group;

 

(k)           Financial Indebtedness which constitutes
Subordinated Funding provided that each member of the TCN Group that is a
debtor in respect of Subordinated Funding shall procure that the relevant
creditor of such Subordinated Funding, to the extent not already a party at the
relevant time, accedes to the Principal Intercreditor Deed or any applicable
TGD Intercreditor Agreement, as appropriate and in such capacity, upon the
granting of such Subordinated Funding;

 

(l)            the TCN Notes, any Senior Debt
Refinancing and any Second Lien Refinancing; or

 

(m)          Financial Indebtedness not falling
within paragraphs (a) to (l) above, of any member of the TCN Group provided
that the aggregate
amount of such Financial Indebtedness outstanding at any time, when taken
together with the aggregate outstanding amount in respect of Finance Leases and
Vendor Financing Arrangements in excess of the aggregate amount thereof
outstanding as at the Closing Date, does not exceed £125,000,000 (or its
equivalent in other currencies) and the aggregate amount of any Financial
Indebtedness, the proceeds of which are not required to be applied in
prepayment of outstanding amounts pursuant to paragraph (a) of Clause 7.5 (Repayment from Debt Proceeds) by virtue of
the exception in paragraph (b)(viii) of such Clause; and further provided that
in the case of any Financial Indebtedness constituted by an overdraft facility
which operates on a gross/net basis, only the net amount of such facility shall
count towards such aggregate amount.

 

19.5        Dividends,
Distributions and Share Capital

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall):

 

(a)           declare, make or pay any dividend (or interest on any unpaid
dividend), charge, fee or other distribution (whether in cash or in kind) on or
in respect of any of its shares;

 

(b)           redeem, repurchase, defease, retire or repay any of its
share capital, or resolve to do so;

 

(c)           repay or distribute any share premium
account; or

 

(d)           repay or otherwise discharge or
purchase any amount of principal of (or capitalised interest on) or pay any
amount of interest in respect of Subordinated Funding,

 

99

 

other than:

 

(i)            to the extent the
share capital of such TCN Group Obligor is held by one or more other TCN Group
Obligors or to the extent the share capital of any member of the TCN Group
which is not an Obligor is held by one or more other members of the TCN Group;

 

(ii)           to the extent
discharged in consideration of a transfer of any non-cash asset the disposal of
which is not otherwise prohibited by this Agreement, by the waiver of any
payment where no cash consideration is given in respect of such waiver or by
way of conversion into any securities (including convertible unsecured loan
stock), (or vice versa), which do not involve any cash payments or by way of
capital contribution to the debtor in respect of such Subordinated Funding;

 

(iii)         provided that no
Event of Default has occurred and is continuing or is likely to occur as a
result thereof, to the extent required to fund Permitted Payments;

 

(iv)          at any time after
the occurrence of an Event of Default, to the extent required to fund Permitted
Payments (A) under paragraph (a)(ii) of the definition thereof to the extent
made to Telewest UK or the Ultimate Parent (and provided that documentation
detailing the same is provided to the Facility Agent in advance of making any
such loan) or (B) otherwise to the extent not prohibited by the Principal
Intercreditor Deed or any applicable TGD Intercreditor Agreement; or

 

(v)            to the extent such
redemption, repurchase, defeasance, retirement or repayment is in respect of a
nominal amount.

 

19.6        Disposals

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall), either in a single transaction
or in a series of related transactions, engage in any Disposal other than:

 

(a)           any payment required to be made under
the Finance Documents;

 

(b)           the Disposal of obsolete or surplus
assets no longer required for the efficient operation of the core business of
the TCN Group, on arms’ length commercial terms;

 

(c)           Disposals of cash, the lending or
repayment of cash or the Disposal of Cash Equivalent Investments or Marketable
Securities, on arms’ length commercial terms where the same is not otherwise
restricted by the terms of the Finance Documents;

 

(d)           Disposals by a TCN Group Obligor to
another TCN Group Obligor, provided that if the relevant assets are subject to existing Security they
remain so or will be made subject to Security (in form and substance
substantially similar to the existing Security or otherwise in such form and
substance as may reasonably be required by the Facility Agent) within 10
Business Days of such Disposal;

 

(e)           Disposals by a member of the TCN Group
which is not an Obligor to another member of the Group;

 

(f)            Disposals on arm’s length commercial
terms where the cash proceeds of such Disposals are reinvested within 12 months
of the date of the relevant Disposal in the purchase of replacement assets of
similar nature and to be used in the same jurisdiction as the assets which it
replaces and the business of the TCN Group, such reinvestment to be on no worse
than arms’ length commercial terms by a member of the TCN Group, provided that
where the

 

100

 

party
making such Disposal is a TCN Group Obligor, such replacement assets are either
subject to existing Security granted by the member of the TCN Group that has
acquired the replacement assets, or will be made subject to Security by such
member of the TCN Group (in form and substance substantially similar to the
existing Security or otherwise in such form and substance as may reasonably be
required by the Facility Agent) within 10 Business Days of the acquisition of
such replacement assets;

 

(g)           Disposals of any accounts receivable on
arms’ length commercial terms pursuant to an asset securitisation programme or
one or more receivables factoring transactions provided that:

 

(i)            such disposal is
conducted on a non-recourse basis;

 

(ii)           the aggregate
principal amount of all such securitisations or factoring transactions
conducted in reliance on this paragraph (g) does not exceed £100,000,000 (or
its equivalent in other currencies) at any time; and

 

(iii)         the availability
of the Revolving Facility shall be reduced by the Sterling equivalent of the
aggregate principal amount of any such securitisation programme;

 

(h)           Disposals of any shares or other
interests in any Project Company, an Excluded Subsidiary or Joint Venture or
the assignment of any Financial Indebtedness owed to a member of the TCN Group
by a Project Company, Excluded Subsidiary or Joint Venture;

 

(i)            Disposals of assets, revenues or rights
of any member of the TCN Group arising from an amalgamation, consolidation or
merger of such member of the TCN Group with any other person which is permitted
by Clause 19.8 (Mergers);

 

(j)            Disposals of accounts receivable which
have remained due and owing from a third party for a period of more than 90
days and in respect of which the relevant member of the TCN Group has
diligently pursued payment in the normal course of its business and where such
disposal is on non-recourse terms to such member of the TCN Group;

 

(k)           Disposals of assets subject to finance
or capital leases pursuant to the exercise of an option by the lessee under
such finance or capital leases;

 

(l)            Disposals of assets in exchange for the
receipt of assets of a similar or comparable value provided that the assets
received by any member of the TCN Group following such exchange are located in
the United Kingdom or Ireland, and provided further that:

 

(i)            to the extent that the assets being disposed of
are subject to existing Security, the assets received following such exchange
will be subject to the existing Security Documents, or will be made subject to Security
(in form and substance substantially similar to the existing Security or
otherwise in such form and substance as may reasonably be required by the
Facility Agent) within 10 Business Days of such Disposal; and

 

(ii)           where the
aggregate net book value of all assets being exchanged in reliance on this
paragraph (l) exceeds £2,000,000 (or its equivalent in other currencies) in any
Financial Quarter, there is delivered to the Facility Agent, within 30 days
from the end of such Financial Quarter of the TCN Group, a certificate signed
by two authorised officers of TCN (given without personal liability) certifying
that the assets received by such member of the TCN Group in reliance on this
paragraph (l) during such Financial Quarter are of a similar or comparable
value to the assets disposed of

 

101

 

by such member of the TCN
Group;

 

(m)          Disposals of tax losses by any member
of the TCN Group to any person, provided that, if the acquiring person is not a
member of the TCN Group, the disposing company receives fair market value for
such tax losses from the recipient and provided further that where the
acquiring person is not a member of the TCN Group and the fair market value to
the recipient of any tax losses so disposed of exceeds £5,000,000 (or its
equivalent in other currencies), no later than 30 days after the proposed sale,
transfer, surrender or other Disposal, there is delivered to the Facility Agent
a certificate signed by two authorised signatories of TCN (given without
personal liability) giving brief details of the relevant transaction and
certifying:

 

(i)            the fair market value received by the
transferring company in respect of such tax losses, as determined by TCN in its
reasonable opinion, after taking account of advice from its external tax
advisers; and

 

(ii)           that, taking into account the aggregate
amount of tax losses disposed of by members of the TCN Group (whether in
reliance on this paragraph (m) or otherwise) and assuming that the financial
performance of the TCN Group is in accordance with the projections set out in
the Long Range Plan), there is no reasonable expectation that any member of the
TCN Group will become a tax payer prior to the Final Maturity Date as a result
of such disposal of tax losses;

 

(n)           Disposals of assets to any person who
is providing services the provision of which has been or is to be outsourced to
that person by any member of the TCN Group provided that:

 

(i)            the assets being
disposed of in reliance on this paragraph (n) shall be assets which relate to
the services which are the subject of such outsourcing;

 

(ii)           the projected
cash cost to the TCN Group of such outsourcing shall be less than the projected
cash cost to the TCN Group of carrying out such outsourced activities at the
levels of service to be provided by the service provider within the TCN Group;

 

(iii)         the economic
benefits derived from any such outsourcing contract shall be received by the
TCN Group during the term of such contract;

 

(iv)          the aggregate
fair market value of the assets disposed of shall not exceed in any financial
year £75,000,000 (or its equivalent in other currencies); and

 

(v)            no later than 30
days after the date of such outsourcing where the consideration payable in
respect of the assets subject to such Disposal exceeds £1,000,000 (or its
equivalent in other currencies), a duly authorised officer of TCN shall have
provided to the Facility Agent, a certificate (without personal liability)
verifying each of the matters set out in sub-paragraphs (i) to (iii) above and
certifying that as at the date of such certificate, the aggregate fair market
value of all assets disposed of in reliance on this paragraph (n) during such
financial year, does not exceed the threshold specified in sub-paragraph (iv)
above;

 

(o)           Disposals of assets pursuant to sale
and leaseback transactions not constituting Financial Indebtedness where the
aggregate fair market value of any assets disposed of in reliance on this
paragraph (o) does not exceed £50,000,000 (or its equivalent in other
currencies) in any financial year of TCN and any Disposals of assets pursuant
to sale and leaseback transactions constituting Financial Indebtedness to the
extent such Financial Indebtedness is permitted under this Agreement;

 

102

 

(p)           Disposals of any Hedging Agreements no
longer required for the purpose for which it was originally entered into;

 

(q)           Disposals of non-core assets acquired
in connection with a transaction permitted under Clause 19.13 (Acquisitions and Investments);

 

(r)           any Flextech Disposal; and

 

(s)           Disposals not otherwise permitted under
this Clause 19.6, provided that the aggregate fair market value of the assets
disposed of in reliance on this paragraph (s) does not exceed £50,000,000
during any given financial year or £250,000,000 from and after the Closing
Date,

 

provided that in respect of any Disposal permitted
under paragraphs (g), (k), (m) (other than Disposals to a member of the TCN
Group), (o) or (s) above:

 

(A)          (other than in
respect of Disposals under paragraphs (k) or (m) above) such Disposal shall be
on arm’s length commercial terms;

 

(B)          at least 75% of the
consideration for such Disposal shall be comprised of cash, Cash Equivalent
Investments or Marketable Securities, provided that the aggregate amount of
consideration received by way of Marketable Securities shall not (valued as at
the relevant time of receipt of any Marketable Securities) at any time exceed
£25,000,000 (or its equivalent in other currencies) and provided further that
any Cash Equivalent Investments and/or Marketable Securities acquired pursuant
to any such Disposal are monetised within 3 months of the expiry of any lock-up
arrangement entered into by the relevant member of the TCN Group making such
Disposal with any third party (where such lock-up arrangement has a term not
exceeding 12 months); and

 

(C)          in respect of any
Disposal the fair market value of which exceeds £5,000,000 (or its equivalent
in other currencies) no later than 30 days after the date of such Disposal,
there shall have been delivered to the Facility Agent, a certificate signed by
two authorised officers of TCN providing brief details of the transaction and
certifying (in each case, to the extent applicable) (1) (other than in respect
of Disposals under paragraphs (k) or (m) above) such Disposal shall be on arm’s
length commercial terms or (in the case of paragraph (m) such Disposals are for
fair market value from the perspective of the transferring company), (2) that
not less than 75% of the consideration for such Disposal shall be in cash, Cash
Equivalent Investments or Marketable Securities, and (3) to the extent any of
the consideration will include Marketable Securities, the name, amount and
other brief details of such Marketable Securities.

 

19.7        Change of Business

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall), save as otherwise permitted by
the terms of this Agreement make any change in the nature of its business as
carried on immediately prior to the date of this Agreement, which would give
rise to a substantial change in the business of the TCN Group taken as a whole,
provided that this Clause 19.7 shall not be breached by any member of the TCN
Group making a Disposal permitted by Clause 19.6 (Disposals),  an acquisition or investment permitted by
Clause 19.13 (Acquisitions and Investments) or
as a result of any Flextech Disposal.

 

103

 

19.8        Mergers

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) amalgamate, consolidate or merge
with any other person unless:

 

(a)           such amalgamation, consolidation or
merger constitutes an Integrated Merger Event or an Unintegrated Merger Event;

 

(b)           such amalgamation, consolidation or
merger is between two TCN Group Obligors or a TCN Group Obligor and another
member of the Group where the TCN Group Obligor will be the surviving entity;

 

(c)           such amalgamation, consolidation or
merger is between two members of the TCN Group which are not Obligors;

 

(d)           any member of the TCN Group liquidates
or dissolves in either case on a solvent basis and in connection therewith all
of its assets are transferred to one or more TCN Group Obligors or, if such
member is not itself a TCN Group Obligor to one or more members of the TCN
Group;

 

(e)           such amalgamation, consolidation or
merger is by a TCN Group Obligor (excluding TCN) (the “Original Entity”) into one or more entities (each a “Merged Entity”); provided that:

 

(i)            such Merged Entity is a TCN Group
Obligor and is liable for the obligations of the relevant Original Entity under
this Agreement and the Security which remain unaffected thereby and entitled to
the benefit of all the rights of such Original Entity;

 

(ii)           if required by the Facility Agent, such
Merged Entity has entered into Security which provide security over the same
assets of at least an equivalent nature and ranking to the security provided by
the relevant Original Entity pursuant to any Security entered into by them and
any possibility of the Security referred to in this paragraph or paragraph
(iii) below being challenged or set aside is not greater than any such
possibility in relation to the Security entered into by or in respect of the
share capital of any relevant Original Entity; and

 

(iii)         (if all or any part of the share
capital of the relevant Original Entity was charged pursuant to the Security)
the equivalent part of the issued share capital of such Merged Entity is
charged pursuant to Security on terms of at least an equivalent nature and
ranking as the Security relating to the shares in the relevant Original Entity;
and

 

(iv)          the Facility Agent is satisfied (acting
reasonably) that all the property and other assets of the relevant Original
Entity are vested in the Merged Entity and that the Merged Entity has assumed
all the rights and obligations of the relevant Original Entity under all
material Necessary Authorisations,

 

provided that in
the case of paragraphs (b), (c), (d) and (e) above, no later than 10 Business
Days prior to the proposed amalgamation, consolidation or merger a duly
authorised officer of TCN shall
have delivered to the Facility Agent (in form and substance satisfactory to the
Facility Agent, acting reasonably) a certificate verifying compliance with the
relevant matters set out in such paragraph and to the extent deemed necessary,
the Facility Agent shall have received appropriate advice from counsel in any
relevant jurisdiction that such amalgamation, consolidation or merger (i) will not
result in the breach of any applicable law or regulation in any material
respect and (ii) in the case of an amalgamation, consolidation or merger
involving a TCN Group Obligor, will not have a materially adverse impact upon
any of the obligations owed by such TCN Group Obligor to the Finance Parties or
upon the Security granted by such TCN Group Obligor under any Security
Document.

 

104

 

19.9        Joint Ventures

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) enter into, make any loans,
distributions or other payments to, give any guarantees for the Financial
Indebtedness of, or acquire any interest or otherwise invest in, any Joint
Venture other than such
loans, distributions, payments, guarantees or consideration for acquisitions or
investments may be made, paid or given by TCN Group Obligors in an aggregate
amount during any financial year of the TCN Group, which taken together with
the aggregate principal amount of loans or credit granted to any member of the
Flextech Group during such financial year which are then outstanding in excess
of £15 million under paragraph (d)(iv) of Clause 19.3 (Loans and Guarantees), do not exceed 3.5%
of TCN Group Consolidated Revenues for the preceding financial year, calculated
by reference to the annual financial information for the TCN Group delivered in
respect of the preceding financial year of the TCN Group pursuant to Clause
21.1 (Financial Statements).

 

19.10      Transactions
with Affiliates

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) enter into any arrangement,
contract or transaction with any other member of the Group which is not a TCN
Group Obligor, other than:

 

(a)           transactions expressly permitted by the
Finance Documents;

 

(b)           transactions between a member of the
TCN Group which is not an Obligor and any other member of the TCN Group which
is not an Obligor;

 

(c)           transactions in the ordinary course of
business and either on no worse than arm’s length terms or, where there is no
available market by which to assess whether such a transaction is on no worse
than arm’s length terms, on terms such that the transaction is financially fair
to the relevant TCN Group Obligor or, as the case may be, other members of the
TCN Group;

 

(d)           transactions with any member of the
Group in relation to management services conducted at not less than Cost on
behalf of such member of the Group;

 

(e)           transactions relating to the provision
of Intra-Group Services;

 

(f)            transactions either on terms and
conditions (including, without limitation, as to any reasonable fees payable in
connection with such transactions) not substantially less favourable to the
relevant TCN Group Obligor or, as the case may be, other members of the TCN
Group than would be obtainable at such time in comparable arm’s length
transactions with an entity which is not an Affiliate or, where there is no
comparable arm’s length transaction by which to assess whether such a
transaction is on terms and conditions not substantially less favourable to the
relevant TCN Group Obligor or, as the case may be, other members of the TCN
Group, on such terms and conditions (including, without limitation, as to any
fees payable in connection with such transaction) that the transaction is
financially fair to the relevant TCN Group Obligor or, as the case may be,
other members of the TCN Group;

 

(g)           any transaction to which one or more TCN Group Obligors and
one or more members of the Group who are not TCN Group Obligors are party where
the sole purpose of such transaction is for such TCN Group Obligors and members
of the Group to effect a transaction with a person who is not a member of the
Group;

 

(h)           transactions relating to capital
contributions between TCN Group Obligors or the amendment of the terms of any
loans made by or any convertible unsecured loan stock or other securities
issued by any TCN Group Obligors to any other member of the Group (whether by
way of conversion of loans to convertible unsecured loan stock or vice versa or
otherwise) or the 

 

105

 

capitalisation
of, or the waiver of or the repayment of, loans made by or any convertible
unsecured loan stock issued by any TCN Group Obligors to any other TCN Group
Obligor;

 

(i)            transactions required to
implement an Integrated Merger Event;

 

(j)            transactions constituting Subordinated
Funding;

 

(k)           transactions constituting Permitted
Payments;

 

(l)            tax sharing agreements or arrangements
to surrender tax losses and payments made pursuant thereto, to the extent such
transactions are not prohibited by this Agreement;

 

(m)          any arrangements entered into in
connection with any guarantee of any Telewest Global Debt permitted under
Clause 19.3 (Loans and Guarantees)
and/or Clause 19.4 (Financial Indebtedness);
and

 

(n)           any other transaction or arrangement
permitted under Clause 19.3 (Loans and
Guarantees), Clause 19.4 (Financial
Indebtedness), Clause 19.5 (Dividends,
Distributions and Share Capital), Clause 19.6 (Disposals), Clause 19.8 (Mergers), Clause 19.9 (Joint Ventures) or Clause 19.13 (Acquisitions and Investments).

 

19.11      Change in
Financial Year

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall), without the prior consent of
the Facility Agent, change the end of its financial year from 31 December.

 

19.12      Limitations
on Hedging

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) enter into any Hedging Agreement
other than:

 

(a)           the Hedging Agreements identified in Schedule 11(Hedging Agreements);

 

(b)           any Hedging Agreements specifically
required under Clause 18.9 (Hedging); or

 

(c)           any Hedging Agreement entered into in
connection with the business or any Financial Indebtedness of the TCN Group, in
each case which is not entered into for investment or speculative purposes and,
for the avoidance of doubt (subject to the provisions of Clause 19.10 (Transactions with Affiliates)), any such
Hedging Agreement may be entered into with another member of the Group.

 

19.13      Acquisitions
and Investments

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) purchase, subscribe for or
otherwise acquire or invest in any shares (or other securities or any interest
in it) in, or incorporate, any company or acquire (by subscription or
otherwise) all or any substantial part of the assets, property or business
(including Content, save to the extent envisaged in the Long Range Plan) of any
other person or any assets that constitute a division or operating unit of the
business of any other person, other than:

 

(a)           any acquisition, incorporation or
investment relating to an Integrated Merger Event;

 

(b)           the purchase of or investment in Cash
Equivalent Investments or Marketable Securities (including without limitation
by way of consideration in respect of any Disposal as

 

106

 

contemplated
in the proviso to Clause 19.6 (Disposals)
and subject to the conditions set out therein);

 

(c)           the incorporation of a company or the
acquisition of an “off-the-shelf” company which is or becomes a member of the
TCN Group;

 

(d)           any acquisition by any member of the
TCN Group in connection with a Disposal permitted by the provisions of Clause
19.6 (Disposals) and any acquisition or
subscription by a TCN Group Obligor of shares issued by another TCN Group
Obligor or, after an Integrated Merger Event, a Subsidiary of the holding
company of the Target Group which is a member of the TCN Group which will, after
the acquisition of such shares, become a wholly-owned direct or indirect
Subsidiary of TCN or by any other member of the Group (not being a TCN Group
Obligor) of shares issued by any member of the Group other than a TCN Group
Obligor; provided in each case that if the other shares of such TCN Group
Obligor or other member of the Group are subject to existing Security, either
(i) such newly issued shares shall also be subject to Security (in form and
substance substantially similar to any existing Security or otherwise in such
form and substance as may be reasonably required by the Facility Agent) upon
their issue or (ii) such shares shall be made subject to Security (in form and
substance substantially similar to any existing Security or otherwise in such
form and substance as may be reasonably required by the Facility Agent) within
10 Business Days of their issue;

 

(e)           any acquisition by any member of the
TCN Group of any loan receivable, security or other asset by way of capital
contribution or in consideration of the issue of any securities or of
Subordinated Funding;

 

(f)            any acquisition of shares, assets,
revenues or rights arising from an amalgamation, consolidation or merger of a
member of the TCN Group with any other person which is permitted by Clause 19.8
(Mergers);

 

(g)           the acquisition of any leasehold
interest in any assets which are the subject of a sale and leaseback permitted
by the provisions of paragraph (o) of Clause 19.6 (Disposals);

 

(h)           any purchase or acquisition of assets
or revenues by a member of the TCN Group from a member of the TCN Group
provided that the Disposal of such assets or revenues by the relevant member of
the TCN Group is permitted under Clause 19.6 (Disposals);

 

(i)            acquisitions not falling within
paragraphs (a) to (h) above of up to an amount of £40,000,000; or

 

(j)            acquisitions not falling within
paragraphs (a) to (i) above, provided that TCN can demonstrate by reference to
the quarterly information most recently delivered pursuant to Clause 16.1 (Financial Statements) that the ratio of
Consolidated Net Borrowings (as at the date of such financial statements,
calculated on a pro forma basis giving effect to any Financial Indebtedness
incurred by any member of the TCN Group in connection with such acquisition and
any Financial Indebtedness raised by any member of the TCN Group since the date
of such quarterly information and on a pro forma basis giving effect to the
acquisition) to Consolidated Annualised TCN Group Net Operating Cash Flow for
the Semi-Annual Period then ended is not more than 3.0 to 1.0 and provided
further that the aggregate value of acquisitions permitted in any financial
year of the TCN Group by this paragraph (j) shall not exceed the aggregate of
3% of TCN Group Consolidated Revenues for the preceding financial year of the
TCN Group, calculated by reference to the annual financial information for the
TCN Group delivered in respect of the preceding financial year of the TCN Group
pursuant to Clause 16.1 (Financial
Statements) plus any amount permitted to be used during such
financial year for investments in Joint Ventures in accordance with Clause 19.9
(Joint Ventures) which has not
been so used.

 

107

 

19.14      No
Restrictions on Payments

 

No TCN Group
Obligor shall (and TCN shall
procure that no member of the TCN Group shall) enter into any agreement,
transaction or other arrangement which restricts or attempts to restrict such
TCN Group Obligor from making any payments or other distributions in cash to
any other TCN Group Obligor, if any such restriction affects the ability of the
TCN Group Obligors as a whole to comply with the payment obligations under the
Finance Documents or is reasonably likely to result in the incurrence of
significant costs, or any significant increase in, any costs and expenses
payable by or any taxes in any material amount owing by the TCN Group Obligors
as a whole, other than pursuant to or as contemplated by the Finance Documents
and/or the Senior Finance Documents.

 

19.15      Telewest UK Covenants

 

(a)           Telewest UK shall not:

 

(i)            carry on trade;

 

(ii)           create or permit
to subsist any Encumbrance over its shares in TCN or over its rights, title and
interest in any Subordinated Funding owed to it by TCN, other than:

 

(A)          pursuant to the
Security;

 

(B)          after an Integrated Merger
Event, for the purposes of securing Target Group Financial Indebtedness, any
Target Group Refinancing Indebtedness and any Post Merger Target Group
Refinancing to the extent not otherwise prohibited by this Agreement; or

 

(C)          as contemplated by any
applicable TGD Intercreditor Agreement or the Principal Intercreditor Deed;

 

(iii)         dispose of any or
all of its interests in the shares of TCN or any of its rights, title and
interest in any Subordinated Funding owed to it by TCN, other than pursuant to
or as contemplated by the Security Documents or as contemplated by any
applicable TGD Intercreditor Agreement or the Principal Intercreditor Deed; or

 

(iv)          amalgamate,
consolidate or merge with any other person unless such amalgamation, merger or
consolidation constitutes an Integrated Merger Event or an Unintegrated Merger
Event.

 

(b)           Prior to the occurrence of a Merger
Event, Telewest UK shall not, and shall procure that the Ultimate Parent does
not, incur, create or permit to subsist or have outstanding any Financial
Indebtedness or enter into any agreement or arrangement whereby it is entitled
to incur, create or permit to subsist any Financial Indebtedness unless
Telewest UK can demonstrate by reference to the quarterly information for the
Group most recently delivered pursuant to Clause 16.1 (Financial Statements) that Consolidated
Group Net Borrowings (adjusted to take account of the Financial Indebtedness in
question and any other Financial Indebtedness raised by the Ultimate Parent,
Telewest UK or any member of the TCN Group since the date of such quarterly
information) is not more than 4.25 times Consolidated Group Net Operating Cash
Flow for the period of four consecutive financial quarters ended on the last
day of the financial quarter in respect of which such quarterly information was
delivered, provided that the foregoing limitations shall not apply to:

 

(i)            any Financial
Indebtedness arising under or pursuant to the Finance Documents or the Transfer
Agreement;

 

(ii)           any Financial
Indebtedness incurred by the Ultimate Parent or Telewest UK to refinance all or
any part of any outstanding Financial Indebtedness of the Ultimate

 

108

 

Parent, Telewest UK or any
member of the TCN Group, including any Financial Indebtedness incurred for the
purpose of the payment of all principal, interest, fees, expenses, commissions,
make-whole and any other contractual premium payable in respect thereof, in
respect of such outstanding Financial Indebtedness and any fees, costs and
expenses incurred in connection with such refinancing;

 

(iii)         any Financial
Indebtedness incurred (including any such Financial Indebtedness existing as at
the date of this Agreement) by the Ultimate Parent or Telewest UK and owed to
the Ultimate Parent, Telewest UK or any member of the Group;

 

(iv)          any Financial
Indebtedness incurred by the Ultimate Parent or Telewest UK which, if it had
been incurred by TCN at such time, would be permitted to be incurred pursuant
to paragraph (g) and/or (m) of Clause 19.4 (Financial
Indebtedness);

 

(v)            the Senior
Facilities, any Senior Debt Refinancing and any Second Lien Refinancing; or

 

(vi)          any Financial
Indebtedness of the type referred to in paragraph (e), (h) and (i) of Clause 19.4
(Financial Indebtedness).

 

For the avoidance
of doubt, it is understood and agreed that nothing in this Agreement shall
limit or prohibit the incurrence of Financial Indebtedness by any member of the
Group other than the Ultimate Parent, Telewest UK and the members of the TCN
Group, and no Financial Indebtedness of any member of the Group other than the
Ultimate Parent, Telewest UK and the members of the TCN Group shall be taken
into consideration in the calculation of Consolidated Group Net Borrowings for
purposes of this paragraph (b). Upon the effectiveness of a Merger Event,
paragraph (b) of this Clause 19.15 shall cease to be effective.

 

19.16      Following
Integrated Merger Event

 

Following an
Integrated Merger Event

 

(a)           the baskets set out
in paragraph (p) of Clause 19.2 (Negative
Pledge), paragraphs (e) and (n) of Clause 19.3 (Loans and Guarantees), paragraphs (g), (j)
and (m) of Clause 19.4 (Financial
Indebtedness) and paragraphs (n), (o) and (r) of Clause 19.6 (Disposals) shall be adjusted so that the
baskets after such Integrated Merger Event shall bear the same relation to the
baskets prior to the Integrated Merger Event, as the combined Consolidated
Annualised TCN Group Net Operating Cash Flow for the Semi-Annual Period ending
on the most recent Quarter Date of the TCN Group prior to the effective date of
the Integrated Merger Event for which quarterly financial information is
available for the TCN Group and Target Group Net Operating Cash Flow for the
Semi-Annual Period ending on the most recent Quarter Date prior to the
effective date of the Integrated Merger Event for which quarterly financial
information is available for the Target Group, bears to the Consolidated
Annualised TCN Group Net Operating Cash Flow for the Semi-Annual Period ending on
the most recent Quarter Date for the TCN Group prior to the effective date of
the Integrated Merger Event; and

 

(b)           notwithstanding any
contrary provision of this Agreement, no transaction engaged in by any member
of the Target Group which transaction is permitted pursuant to the terms of any
then applicable Target Group Financial Indebtedness and/or Target Group
Refinancing Indebtedness shall, or shall be deemed to, violate any undertaking
set forth in this Clause 19 or any other provision of this Agreement or any
other Finance Document, provided that if any such transaction is entered into
(i) after the Integrated Merger Event but prior to the date that is six months
after the date of the Integrated Merger Event (the “Long Stop Date”), then if such transaction does not comply
with this Clause 19 as at the Long Stop Date, such

 

109

 

transaction will constitute a breach of this Clause 19
on the Long Stop Date and (ii) after the Long Stop Date, then if it does not
comply with this Clause 19 as at the date it is entered into it will constitute
a breach of this Clause 19 as at such date. 
For the avoidance of doubt, no transaction referred to in (i) of this
paragraph (b) shall constitute or be deemed to constitute a Default or an Event
of Default prior to the Long Stop Date.

 

19.17      US Borrower

 

The US Borrower shall not:

 

(a)           carry on trade or business other than
as may be necessary in connection with the acquisition and ownership of the TCN
Notes or with its voluntary winding-up;

 

(b)           create or permit to subsist any
Encumbrance over its rights under or title and interest in the TCN Notes, other
than:

 

(A)          pursuant to the Security;

 

(B)          after an Integrated Merger Event, for the
purposes of securing Target Group Financial Indebtedness, any Target Group
Refinancing Indebtedness and any Post Merger Target Group Refinancing to the
extent not otherwise prohibited by this Agreement; or

 

(C)          as contemplated by any applicable TGD
Intercreditor Agreement or the Principal Intercreditor Deed;

 

(c)           dispose of any or all of its rights,
title and interest in the TCN Notes other than pursuant to or as contemplated
by the Security Documents or as contemplated by any applicable TGD
Intercreditor Agreement or the Principal Intercreditor Deed; or

 

(d)           amalgamate, consolidate or merge with
any other person unless such amalgamation, merger or consolidation constitutes
an Integrated Merger Event or an Unintegrated Merger Event.

 

20.          ACCESSION; US BORROWER; ACCEDING GUARANTORS

 

20.1        The US Borrower

 

                No later than the date of
Utilisation under this Agreement, TCN shall procure that there is delivered to
the Facility Agent an Accession Notice duly executed by itself and Telewest
Global Finance LLC together with the documents set out in Part 2 of Schedule 7
(Accession Documents) in relation
to Telewest Global Finance LLC and the US Borrower Security Documents, all in
form and substance satisfactory to the Facility Agent, acting reasonably.

 

20.2        Acceding
Guarantors

 

(a)           TCN may, upon not less than 3 Business
Days’ prior written notice to the Facility Agent, request that any member of
the TCN Group (or, immediately prior to the effective date of the Integrated
Merger Event, any member of the Target Group) becomes an Acceding Guarantor
under this Agreement.

 

(b)           TCN shall procure that there is
delivered, for the purposes of paragraph (a) above, an Accession Notice duly
executed by itself and the relevant member of the TCN Group or the Target Group
together with the documents set out in Part 2 of Schedule 7 (Accession Documents) and such other documents (including any
new Security Documents) as the

 

110

 

Facility
Agent may reasonably require, in relation to such member of the TCN Group or
the Target Group all in form and substance satisfactory to the Facility Agent,
acting reasonably.

 

20.3        Assumption
of Rights and Obligations

 

Upon satisfactory delivery of a
duly executed Accession Notice to the Facility Agent, together with the other
documents required to be delivered under Clause 20.1 (The US
Borrower), or paragraph (b) of Clause 20.2 (Acceding Guarantors) the US Borrower or
the relevant member of the TCN Group (as the case may be), the Obligors and the
Finance Parties, will assume such obligations towards one another and/or
acquire such rights against each other as they would each have assumed or
acquired had US Borrower or the such member of the TCN Group been an original
party to this Agreement as a Borrower and/or an Original Guarantor (as the case
may be), and the US Borrower or such member of the TCN Group shall become a
party to this Agreement as a Borrower and/or an Acceding Guarantor (as the case
may be).

 

21.          EVENTS OF DEFAULT

 

21.1        Events of Default

 

Each of
Clauses 21.2 (Non-Payment) to
Clause 21.16 (Material Proceedings) describes
the circumstances which constitute an Event of Default for the purposes of this
Agreement.

 

21.2        Non-Payment

 

Any Obligor fails
to pay any sum due from it under any Finance Document at the time, in the
currency and in the manner specified in such Finance Document within (a) 1
Business Day of the due date, in the case of payments of principal where
failure to pay was due solely to technical or administrative error in the
transmission of funds, (b) 3 Business Days of the due date, in the case of
payments of interest, or (c) 5 Business Days of the due date, in respect of
payments of any other amounts.

 

21.3        Covenants

 

(a)           Any TCN Group Obligor fails duly to
perform or comply with any obligation expressed to be assumed by it in Clause
18.1 (Application of Advances),
Clause 19.2 (Negative Pledge), Clause 19.3 (Loans and Guarantees), Clause 19.4 (Financial
Indebtedness), Clause 19.5 (Dividends, Distributions
and Share Capital), Clause 19.8 (Mergers),
Clause 19.9 (Joint Ventures) or Clause 19.13 (Acquisitions and Investments).

 

(b)           Telewest UK fails to duly perform or
comply with any obligation expressed to be assumed by it in Clause 19.15 (Telewest UK Covenants).

 

(c)           Any Obligor fails duly to perform or
comply with any obligation expressed to be assumed by it in Clause 16 (Financial Information), Clause 18.12 (Further Assurance) or Clause 18.9 (Hedging), and such failure, if capable of
remedy is not so remedied within 10 Business Days of the earlier of such
Obligor becoming aware of such failure to perform or comply and the Facility
Agent having given notice of such failure to TCN.

 

(d)           There is any breach of Clause 17.1 (Ratios) or Clause 17.2 (Permitted
Capital Expenditure).

 

(e)           There is any breach of Clause 19.6 (Disposals), provided that where the failure to comply with
any obligation under Clause 19.6 (Disposals)
relates to the obligation to deliver a certificate within a specified time
period, no Event of Default shall be deemed to have occurred unless TCN shall
have failed to deliver the required certificate within such time period and
upon request by the Facility Agent for a description of the transactions
relating to

 

111

 

such
certificate which was not delivered, TCN fails to provide such details within
10 Business Days after such request.

 

21.4        Other Obligations

 

Any member of the
Group fails duly to perform or comply with any of the obligations expressed to
be assumed by it in any of the Finance Documents (other than any of those
referred to in Clauses 21.2 (Non-Payment)
and 21.3 (Covenants)) and such failure, if capable
of remedy, is not so remedied within 30
days of the earlier of such Obligor becoming aware of such failure to
perform or comply and the Facility Agent having given notice of such failure to
TCN.

 

21.5        Misrepresentation

 

Any representation
or statement made or repeated by any member of the Group (or, prior to its
accession hereto, Telewest Global Finance LLC) in any Finance Document or in
any notice or other document or certificate delivered by it pursuant to a
Finance Document is or proves to have been incorrect or misleading in any
material respect when made or repeated where the circumstances giving rise to
such inaccuracy, if capable of remedy or change are not remedied or do not
change within 30 days of the
earlier of the relevant Obligor becoming aware of such circumstances and the
Facility Agent having notified TCN of such misrepresentation
having occurred.

 

21.6        Cross Default

 

(a)           any Financial Indebtedness of any
member of the TCN Group is not paid at its specified maturity or becomes due
and payable prior to the date when it would otherwise have become due;

 

(b)           any Financial Indebtedness of any
member of the TCN Group is declared (or becomes capable of being declared) to
be or otherwise becomes due and payable prior to its specified maturity as a
result of an event of default (however described), after taking into account
any applicable grace period;

 

(c)           any commitment for any Financial
Indebtedness of any member of the TCN Group is cancelled or suspended by a
creditor of any member of the TCN Group as a result of an event of default
(however defined); or

 

(d)           there occurs under any Hedging
Agreement (other than a Hedging Agreement the obligations under which
constitute Financial Indebtedness), an Early Termination Date (as defined in
such Hedging Agreement) resulting from (i) any event of default under such
Hedging Agreement as to which any member of the TCN Group is the Defaulting
Party (as defined in such Hedging Agreement) or (ii) any Termination Event (as
so defined) as to which any member of the TCN Group is an Affected Party (as so
defined);

 

provided that no
Event of Default will occur under this Clause 21.6:

 

(i)            if the aggregate
amount of Financial Indebtedness, commitment for Financial Indebtedness and/or
Derivatives Termination Value owed by a member of the TCN Group falling within
paragraphs (a) to (d) above is less than £35,000,000 (or its equivalent in other currencies);

 

(ii)           if the relevant
Financial Indebtedness or Derivatives Termination Value is cash-collateralised
and such cash is available for application in satisfaction of such Financial
Indebtedness or Derivatives Termination Value; or

 

112

 

(iii)         if such Financial
Indebtedness or Derivatives Termination Value is owed by a member of the TCN
Group to Telewest UK or another member of the TCN Group.

 

21.7        Insolvency

 

(a)           The Ultimate Parent, Telewest UK, TCN
or any other TCN Group Obligor that is a Material Subsidiary is unable to pay
its debts as they fall due, ceases or suspends generally the payment of its
debts or announces an intention to do so, or makes a general assignment for the
benefit of or a composition with its creditors generally or a general
moratorium is declared in respect of the Financial Indebtedness of the Ultimate
Parent, Telewest UK, TCN or such other TCN Group Obligor.

 

(b)           At any time, one or more TCN Group
Obligors whose contributions to Consolidated Annualised TCN Group Net Operating
Cash Flow in aggregate represent 5% or more of the Consolidated Annualised TCN
Group Net Operating Cash Flow are unable to pay their debts as they fall due,
cease or suspend generally the payment of their debts or announce an intention to
do so, or make a general assignment for the benefit of or a composition with
their creditors generally or a general moratorium is declared in respect of
their Financial Indebtedness.

 

21.8        Winding-up

 

After the date of
this Agreement, the Ultimate Parent, Telewest UK, TCN, or any other TCN Group
Obligor that is a Material Subsidiary, takes any corporate action or formal
legal proceedings are started and served (not being actions or proceedings
which can be demonstrated to the satisfaction of the Facility Agent by
providing an opinion of a leading firm of London solicitors (within 30 days of
any such action or proceedings having commenced) to that effect, as frivolous,
vexatious or an abuse of the process of the court or related to a claim to
which such Person has a good defence and which is being vigorously contested by
such body) for its winding-up, dissolution, administration or reorganisation or
for the appointment of a liquidator, receiver, administrator, administrative
receiver, conservator, custodian, trustee or similar officer of it or of any or
all of its revenues and assets other than where any such legal proceedings in
respect of the Ultimate Parent, Telewest UK, TCN or other TCN Group Obligor
which is a Material Subsidiary (a)(i) do not relate to the appointment of an
administrator and (ii) are stayed or discharged within 30 days from their
commencement or (b) relate to a solvent liquidation or dissolution permitted
under paragraph (d) of Clause 19.8 (Mergers).

 

21.9        Execution or
Distress

 

Any execution,
distress or diligence is levied against, or an encumbrancer takes possession
of, the whole or any part of, the property, undertaking or assets having an
aggregate value of more than £1,000,000
(or its equivalent in other currencies) of Telewest UK or any TCN Group Obligor
which is a Material Subsidiary and the same is not discharged within 30 days.

 

21.10      Similar Events

 

Any event occurs
which, under the laws of any jurisdiction, has a similar or analogous effect to
any of those events mentioned in Clause 21.7 (Insolvency),
21.8 (Winding-up) or Clause 21.9 (Execution or Distress).

 

21.11      Repudiation

 

Any member of the
Group repudiates any of the Finance Documents to which it is party.

 

113

 

21.12      Illegality

 

Save as provided in
the Reservations, at any time it is or becomes unlawful for any member of the
Group to perform or comply with any or all of its obligations under any of the
Finance Documents to which it is party or any of the obligations of any member
of the Group under any of the Finance Documents to which it is party are not or
cease to be legal, valid and binding except as contemplated by the Reservations
and, if capable of remedy, is not remedied within 10 Business Days of the
earlier of such member of the Group becoming aware of the relevant illegality
and the Facility Agent having given notice of the same to TCN.

 

21.13      Intercreditor Default

 

Any member of the
Group which is party to the Principal Intercreditor Deed, any applicable TGD
Intercreditor Agreement or any other applicable intercreditor agreement fails
to comply with its obligations under it and such failure, if capable of remedy,
is not remedied within 30 days of the earlier of such member of the Group
becoming aware of the relevant failure to comply and the Facility Agent having
given notice of the same to TCN.

 

21.14      Revocation
of Necessary Authorisations

 

Any Necessary
Authorisation is revoked and where such revocation is reasonably likely to have
a Material Adverse Effect, is not replaced within 10 Business Days.

 

21.15      Material
Adverse Effect

 

Any event or
circumstance occurs which would have a Material Adverse Effect.

 

21.16      Resignation
of Auditors

 

The auditors resign
their appointment as auditors of the Group or the TCN Group as a result of the
investigation detailed in the Supplement under circumstances which, in the
opinion of the Facility Agent, acting on the instructions of an Instructing
Group are materially adverse to the credit of the Obligors (taken as a whole).

 

21.17      Material Proceedings

 

Any litigation,
arbitration or administrative proceeding of or before any court, arbitral body,
or agency is commenced against any member of the Group, which is reasonably
likely to be adversely determined and which, if adversely determined, is
reasonably likely to have a Material Adverse Effect.

 

21.18      Acceleration

 

Upon the occurrence
of an Event of Default and while the same is continuing at any time thereafter,
the Facility Agent may (and, if so instructed by an Instructing Group, shall)
by written notice to TCN:

 

(a)           declare all or any part of the
Outstandings to be immediately due and payable (whereupon the same shall become
so payable together with accrued interest thereon and any other sums then owed
by any Obligor under the Finance Documents) or declare all or any part of the
Outstandings to be due and payable on demand of the Facility Agent; and/or

 

(b)           declare that any unutilised portion of
the Facility shall be cancelled, whereupon the same shall be cancelled and the
corresponding Commitments of each Lender shall be reduced to zero; and/or

 

114

 

(c)           exercise or direct the Security Trustee
to exercise any rights and remedies (including any right to demand cash
collateral by deposit in such interest-bearing account as the Facility Agent
may specify) to which the Facility Agent, the Security Trustee or the Lenders
may be entitled.

 

21.19      Repayment on Demand

 

If, pursuant to
paragraph (a) of Clause 21.18 (Acceleration),
the Facility Agent declares all or any part of the Outstandings to be due and
payable on demand of the Facility Agent, then, and at any time thereafter, the
Facility Agent may (and, if so instructed by an Instructing Group, shall) by
written notice to the relevant Borrowers:

 

(a)           require repayment of all or the
relevant part of the Outstandings on such date as it may specify in such notice
(whereupon the same shall become due and payable on such date together with
accrued interest thereon and any other sums then owed by any Obligor under the
Finance Documents) or withdraw its declaration with effect from such date as it
may specify in such notice; and/or

 

(b)           select as the duration of any Interest
Period which begins whilst such declaration remains in effect a period of 6
months or less.

 

22.          DEFAULT INTEREST

 

22.1        Consequences
of Non-Payment

 

If any sum due and
payable by any Obligor under this Agreement is not paid on the due date
therefor in accordance with the provisions of Clause 27 (Payments)
or if any sum due and payable by an Obligor pursuant to a judgment of any court
in connection with this Agreement is not paid on the date of such judgment, the
period beginning on such due date or, as the case may be, the date of such
judgment and ending on the Business Day on which the obligation of such Obligor
to pay the Unpaid Sum is discharged shall be divided into successive periods,
each of which (other than the first) shall start on the last day of the
preceding such period (which shall be a Business Day) and the duration of each
of which shall (except as otherwise provided in this Clause 22) be selected by
the Facility Agent.

 

22.2        Default Rate

 

During each such
period relating thereto as is mentioned in Clause 22.1 (Consequences
of Non-Payment) an Unpaid Sum shall bear interest at the rate
per annum which is the sum from time to time of 1%, the Margin, the Associated
Costs Rate at such time and LIBOR on the Quotation Date, provided that:

 

(a)           if, for any such period, LIBOR cannot
be determined, the rate of interest applicable to each Lender’s portion of such
Unpaid Sum shall be the rate per annum which is the sum of 1%, the Margin, (as
aforesaid), and the Associated Costs Rate at such time and the rate per annum
that shall be notified to the Facility Agent by such Lender as soon as
practicable after the beginning of such period as being that which expresses as
a percentage rate per annum the cost to such Lender of funding from whatever
sources it may reasonably select its portion of such Unpaid Sum during such
period; and

 

(b)           if such Unpaid Sum is all or part of an
Advance which became due and payable on a day other than the last day of an
Interest Period relating thereto, the first Interest Period applicable to it
shall be of a duration equal to the unexpired portion of that Interest Period
and the rate of interest applicable thereto from time to time during such
Interest Period shall be that which exceeds by 1% the rate which would have
been applicable to it had it not so fallen due.

 

115

 

22.3        Maturity
of Default Interest

 

Any interest which
shall have accrued under Clause 22.2 (Default Rate)
in respect of an Unpaid Sum shall be due and payable and shall be paid by the
Obligor owing such sum at the end of the period by reference to which it is
calculated or on such other dates as the Facility Agent may specify by written
notice to such Obligor.

 

22.4        Construction
of Unpaid Sum

 

Any Unpaid Sum
shall (for the purposes of this Clause 22 (Default Interest),
Clause 12 (Increased Costs), Clause 25 (TCN’s Indemnities)
and Schedule 6 (Associated Costs Rate))
be treated as an advance and accordingly in those provisions the term “Advance”
includes any Unpaid Sum and the term “Interest Period”, in relation to an
Unpaid Sum, includes each such period relating thereto as is mentioned in
Clause 22.1 (Consequences of Non-Payment).

 

23.          GUARANTEE AND INDEMNITY

 

23.1        Guarantee

 

With effect from
the Closing Date or if later, the date on which it accedes to this Agreement in
such capacity, each Guarantor irrevocably and unconditionally guarantees,
jointly and severally, to each of the Finance Parties the due and punctual
payment by each of
the Borrowers of all sums payable by each of them under each of the
Finance Documents and agrees that promptly on demand it will pay to the
Facility Agent each and every sum of money which either of the Borrowers is at
any time liable to pay to any Finance Party under or pursuant to any Finance
Document and which has become due and payable but has not been paid at the time
such demand is made.

 

23.2        Indemnity

 

With effect from
the Closing Date, or if later, the date upon which it accedes to this Agreement
in such capacity, each Guarantor irrevocably and unconditionally agrees,
jointly and severally, as primary obligor and not only as surety, to indemnify
and hold harmless each Finance Party on demand by the Facility Agent from and
against any loss incurred by such Finance Party as a result of any of the
obligations of the Borrowers or either of them under or pursuant to any Finance
Document being or becoming void, voidable, unenforceable or ineffective as
against the Borrowers for any reason whatsoever (whether or not known to that
Finance Party or any other person) the amount of such loss being the amount
which the Finance Party suffering it would otherwise have been entitled to
recover from the Borrowers or either of them.

 

23.3        Continuing
and Independent Obligations

 

The obligations of
each Guarantor under this Agreement shall constitute and be continuing
obligations which shall not be released or discharged by any intermediate
payment or settlement of all or any of the obligations of the Borrowers under
the Finance Documents, shall continue in full force and effect until the
unconditional and irrevocable payment and discharge in full of all amounts
owing by the Borrowers and either of them under each of the Finance Documents
and are in addition to and independent of, and shall not prejudice or merge
with, any other security (or right of set-off) which any Finance Party may at
any time hold in respect of such obligations or any of them.

 

23.4        Avoidance of
Payments

 

Where any release,
discharge or other arrangement in respect of any obligation of either Borrower,
or any Security held by any Finance Party therefor, is given or made in
reliance on any payment or other disposition which is avoided or must be repaid
(whether in whole or in part) in an insolvency, liquidation or otherwise and
whether or not any Finance Party has conceded or compromised any 

 

116

 

claim that any such
payment or other disposition will or should be avoided or repaid (in whole or
in part), the provisions of this Clause 23 shall continue as if such release,
discharge or other arrangement had not been given or made.

 

23.5        Immediate Recourse

 

None of the Finance
Parties shall be obliged, before exercising or enforcing any of the rights
conferred upon them in respect of the Guarantors by this Agreement or by Law,
to seek to recover amounts due from either Borrower or to exercise or enforce
any other rights or Security any of them may have or hold in respect of any of
the obligations of the Borrowers or either of them under any of the Finance
Documents.

 

23.6        Waiver of Defences

 

Neither the
obligations of the Guarantors contained in this Agreement nor the rights,
powers and remedies conferred on the Finance Parties in respect of the
Guarantors by this Agreement or by Law shall be discharged, impaired or
otherwise affected by:

 

(a)           the winding-up, dissolution,
administration or reorganisation of either Borrower or any other person or any
change in the status, function, control or ownership of any Borrower or any
such person;

 

(b)           any of the obligations of either
Borrower or any other person under any Finance Document or any Security held by
any Finance Party therefor being or becoming illegal, invalid, unenforceable or
ineffective in any respect;

 

(c)           any time or other indulgence being
granted to or agreed (i) to or with either Borrower or any other person in respect
of its obligations or (ii) in respect of any security granted under any Finance
Documents;

 

(d)           unless otherwise agreed, any amendment
to, or any variation, waiver or release of, any obligation of, or any Security
granted by, either Borrower or any other person under any Finance Document;

 

(e)           any total or partial failure to take,
or perfect, any Security proposed to be taken in respect of the obligations of
the Borrowers or either of them or any other person under the Finance
Documents;

 

(f)            any total or partial failure to realise
the value of, or any release, discharge, exchange or substitution of, any
security held by any Finance Party in respect of any obligation of a Borrower
under any Finance Document; or

 

(g)           any other act, event or omission which
might operate to discharge, impair or otherwise affect any of the obligations
of any of the Guarantors under this Agreement or any of the rights, powers or
remedies conferred upon the Finance Parties or any of them by this Agreement or
by Law.

 

23.7        No Competition

 

Until all amounts
which may become payable by the Borrowers and either of them under or in
connection with the Finance Documents have been paid in full, any rights which
any Guarantor may at any time have by way of contribution or indemnity in
relation to any of the obligations of the Borrowers or either of them under any
of the Finance Documents or to claim or prove as a creditor of the Borrowers or
either of them or any other person or its estate in competition with the
Finance Parties or any of them, shall be exercised by such Guarantor only if
and to the extent that the Facility

 

117

 

Agent so requires
and in such manner and upon such terms as the Facility Agent may specify and
each Guarantor shall hold any moneys, rights or security held or received by it
as a result of the exercise of any such rights on trust for the Facility Agent
for application in or towards payment of any sums at any time owed by the
Borrowers or either of them under any of the Finance Documents as if such
moneys, rights or security were held or received by the Facility Agent under
this Agreement.

 

23.8        Appropriation

 

To the extent any
Finance Party receives any sum from any Guarantor in respect of the obligations
of any other Obligor under any of the Finance Documents which is insufficient
to discharge all sums which are then due and payable in respect of such
obligations of such other Obligor, such Finance Party shall not be obliged to
apply any such sum in or towards payment of amounts owing by such other Obligor
under any of the Finance Documents, and any such sum may, in the relevant
Finance Party’s discretion, be credited to a suspense or impersonal account and
held in such account pending the application from time to time (as the relevant
Finance Party may think fit) of such sums in or towards the discharge of such
liabilities owed to it by such other Obligor under the Finance Documents as
such Finance Party may select provided that such Finance Party shall promptly make
such application upon receiving sums sufficient to discharge all sums then due
and payable to it by such other Obligor under the Finance Documents.

 

23.9        Limitation
of Liabilities of United States Guarantors

 

Each Guarantor
organised or established in the United States of America (a “US Guarantor”) and each of the Finance
Parties (by its acceptance of the benefits of the guarantee under this Clause
23) hereby confirms its intention that this guarantee should not constitute a
fraudulent transfer or conveyance for the purposes of any bankruptcy,
insolvency or similar law, the United States Uniform Fraudulent Conveyance Act
or any similar Federal, state or foreign law. 
To effectuate the foregoing intention, each US Guarantor and each of the
Finance Parties (by its acceptance of the benefits of the guarantee under this
Clause 23) hereby irrevocably agrees that its obligations under this Clause 23
shall be limited to the maximum amount as will, after giving effect to such
maximum amount and all other (contingent or otherwise) liabilities of such US
Guarantor that are relevant under such laws, and after giving effect to any
rights to contribution pursuant to any agreement providing for an equitable
contribution among such US Guarantor and the other Guarantors, result in the
obligations of such US Guarantor in respect of such maximum amount not
constituting a fraudulent transfer or conveyance.

 

23.10      Droit
de Discussion / Droit de Division

 

(a)           Any right which at any time any
Guarantor may have under the existing or future laws of Jersey whether by
virtue of the droit de discussion or otherwise to require that recourse be had
to the assets of any other person before any claim is enforced against such
Guarantor in respect of the obligations assumed by such Guarantor under or in
connection with any Finance Document is hereby waived.

 

(b)           Any right which at any time any
Guarantor may have under the existing or future laws of Jersey whether by
virtue of the droit de division or otherwise to require that any liability under
any guarantee or indemnity given in or in connection with any Finance Document
be divided or apportioned with any other person or reduced in any manner
whatsoever is hereby waived.

 

24.          AGENTS

 

24.1        Appointment
of the Agents

 

Each of the other
Finance Parties appoints the Facility Agent and the US Paying Agent to act as
its agent under and in connection with the Finance Documents and authorises the
Facility Agent and the US Paying Agent to exercise the rights, powers,
authorities and discretions specifically delegated to it

 

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under or in
connection with the Finance Documents together with any other incidental
rights, powers, authorities and discretions.

 

24.2        Duties
of the Facility Agent/US Paying Agent

 

(a)           The Facility Agent and/or the US Paying
Agent, as applicable, shall promptly inform each Lender of the contents of any
notice or document received by it in its capacity as Agent from any of the
Obligors under the Finance Documents.

 

(b)           The Facility Agent shall promptly
notify the Lenders of the occurrence of any Event of Default or any default by
an Obligor in the due performance of or compliance with its obligations under
any Finance Document upon becoming aware of the same.

 

(c)           If so instructed by an Instructing
Group, the Facility Agent shall refrain from exercising any power or discretion
vested in it as agent under any Finance Document.

 

(d)           The duties of the Facility Agent and
the US Paying Agent, as the case may be, under the Finance Documents are, save
to the extent otherwise expressly provided, solely mechanical and
administrative in nature.

 

24.3        Role
of the Mandated Lead Arrangers

 

Except as
specifically provided in the Finance Documents, the Mandated Lead Arrangers
shall not have any obligations of any kind to any other party under or in
connection with any Finance Document.

 

24.4        No Fiduciary Duties

 

(a)           Nothing in the Finance Documents
constitutes the Facility Agent, the US Paying Agent or any of the Mandated Lead
Arrangers as a trustee or fiduciary of any other person.

 

(b)           None of the Facility Agent, the US
Paying Agent or any of the Mandated Lead Arrangers shall be bound to account to
any Lender for any sum or the profit element of any sum received by it for its
own account.

 

24.5        Business with
the Group

 

Any of the Facility
Agent, the US Paying Agent and the Mandated Lead Arrangers may accept deposits
from, lend money to and generally engage in any kind of banking or other
business with any member of the Group.

 

24.6        Discretion
of the Facility Agent/US Paying
Agent

 

(a)           The Facility Agent, or the US Paying
Agent (as the case may be), may rely on:

 

(i)            any
representation, notice or document believed by it to be genuine, correct and
appropriately authorised; and

 

(ii)           any statement
made by a director, authorised signatory or employee of any person regarding
any matters which may reasonably be assumed to be within his knowledge or
within his power to verify.

 

(b)           The Facility Agent, or the US Paying
Agent (as the case may be), may assume, unless it has received notice to the
contrary in its capacity as agent for the Lenders, that:

 

(i)            no Default has
occurred;

 

119

 

(ii)           any right, power,
authority or discretion vested in this Agreement upon any party, the Lenders or
an Instructing Group has not been exercised; and

 

(iii)         any notice or
request made by the Obligors’ Agent is made on behalf of and with the consent
and knowledge of all the Obligors.

 

(c)           Each of the Facility Agent and the US
Paying Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.

 

(d)           Each of the Facility Agent and the US
Paying Agent may act in relation to the Finance Documents through its personnel
and agents.

 

24.7        Instructing
Group’s Instructions

 

(a)           Unless a contrary indication appears in
a Finance Document, the Facility Agent (or the US Paying Agent, as applicable)
shall (i) act in accordance with any instructions given to it by an
Instructing Group (or, if so instructed by an Instructing Group, refrain from
acting or exercising any right, power, authority or discretion vested in it as
Agent) and (ii) shall not be liable to any Finance Party for any act (or
omission) if it acts (or refrains from taking any action) in accordance with
such an instruction of an Instructing Group.

 

(b)           Unless a contrary indication appears in
a Finance Document, any instructions given by an Instructing Group will be
binding on all the Finance Parties.

 

(c)           The Facility Agent may refrain from
acting in accordance with the instructions of an Instructing Group (or, if
appropriate, the Lenders) until it has received such security or collateral as
it may require for any cost, loss or liability which it may incur in complying
with such instructions.

 

(d)           In the absence of instructions from an
Instructing Group (or, if appropriate, the Lenders), the Facility Agent may act
(or refrain from taking action) as it considers to be in the best interest of
the Lenders.

 

(e)           Neither the Facility Agent nor the US
Paying Agent shall be authorised to act on behalf of a Lender in any legal or
arbitration proceedings relating to any Finance Document without first
obtaining the Lender’s consent to do so.

 

24.8        No Responsibility

 

None of the
Facility Agent, the US Paying Agent or any of the Mandated Lead Arrangers shall
be:

 

(a)           responsible for the adequacy, accuracy
and/or completeness of any information (whether oral or written) supplied by
any Finance Party or an Obligor or any other person in or in connection with
any Finance Document, including the Information Memorandum, the Long Range Plan
and any Budget; or

 

(b)           responsible for the legality, validity,
effectiveness, adequacy or enforceability of any Finance Document or any other
agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with any Finance Document.

 

24.9        Exclusion of
Liability

 

(a)           Without limiting paragraph (b) of this
Clause, neither the Facility Agent nor the US Paying Agent will be liable to any
Finance Party for any action taken by it under or in connection

 

120

 

with
any Finance Document, unless directly caused by its gross negligence or wilful
misconduct.

 

(b)           Each of the Lenders agrees that it will
not take any proceedings, or assert or seek to assert any claim, against any
officer, employee or agent of the Facility Agent, or of the US Paying Agent (as
applicable), in respect of any claim it might have against it or in respect of
any act or omission of any kind by that officer, employee or agent in relation
to any Finance Document and agrees that any officer, employee or agent of the
Facility Agent, or of the US Paying Agent (as applicable), may enforce this
provision.

 

(c)           Neither the Facility Agent nor US
Paying Agent will be liable for any failure to notify any person of any matter
referred to in Clause 8.5 (Notification)
or any delay (or any related consequences) in crediting an account with an
amount required under the Finance Documents to be paid by it if it has taken
all reasonable steps to comply with Clause 8.5 (Notification) and taken all necessary steps as soon as
reasonably practicable to comply with the regulations or operating procedures
of any recognised clearing or settlement system used by it for that purpose.

 

24.10      Lender’s Indemnity

 

Each Lender shall
(in its relevant Proportion (as determined at all times for these purposes in
accordance with paragraph (c) of the definition of “Proportion”) indemnify each
of the Facility Agent and the US Paying Agent (as applicable) from time to time
on demand by the relevant Agent against any cost, loss or liability incurred by
the relevant Agent (otherwise than by reason of its gross negligence or wilful
misconduct) in acting as an Agent under the Finance Documents (unless it has
been reimbursed therefor by an Obligor pursuant to the terms of the Finance
Documents).

 

24.11      Resignation

 

(a)           The Facility Agent or the US Paying
Agent may resign and appoint one of its respective Affiliates acting through an
office in the United Kingdom (or, in the case of the US Paying Agent, acting
through an office in the State of New York) as successor Agent by giving notice
to the Lenders and TCN.

 

(b)           The Facility Agent or the US Paying
Agent may resign without having designated a successor as agent under paragraph
(a) above (and shall do so if so required by an Instructing Group) by giving
notice to the Lenders and TCN, in which case an Instructing Group may appoint a
successor Facility Agent (acting through an office in the United Kingdom), or a
successor US Paying Agent (acting through an office in the State of New York)
approved by TCN, acting reasonably.  If
an Instructing Group has not appointed a successor Agent in accordance with
this paragraph (b) within 30 days after notice of resignation was given, the
Facility Agent may appoint a successor Facility Agent (acting through an office
in the United Kingdom) and the US Paying Agent may appoint a successor US
Paying Agent (acting through an office in the State of New York) approved by
TCN, acting reasonably.

 

(c)           The retiring Agent shall, at TCN’s
cost, make available to its successor such documents and records and provide
such assistance as its successor may reasonably request for the purposes of
performing its functions as Agent under the Finance Documents.

 

(d)           The resignation notice of the Facility
Agent or the US Paying Agent shall only take effect upon the appointment of a
relevant successor Agent.

 

(e)           Upon the appointment of a successor,
the retiring Agent shall be discharged from any further obligation in respect
of the Finance Documents but shall remain entitled to the benefit of this
Clause 24.  The Agent’s successor and
each of the other parties to this Agreement shall have

 

121

the same
rights and obligations amongst themselves as they would have had if such
successor Agent had been an original party as Facility Agent or as US Paying
Agent, as the case may be.

 

24.12      Confidentiality

 

(a)           The Facility Agent and the US Paying Agent (in acting as
agent for the Finance Parties) shall be regarded as acting through its agency
division which shall be treated as a separate entity from any other of its
divisions or departments.

 

(b)           If information is received by another division or department
of any Agent, it may be treated as confidential to that division or department
and the relevant Agent shall not be deemed to have notice of it.

 

(c)           Notwithstanding any other provision of any Finance Document
to the contrary, the Finance Parties are not obliged to disclose to any other
person (i) any confidential information or (ii) any other information if the
disclosure would, or might in its reasonable opinion, constitute a breach of
any Law.

 

(d)           Notwithstanding any other provision of any Finance Document,
the parties (and each employee, representative or other agent of the parties)
may disclose to any and all persons, without limitation of any kind, the tax
treatment and any facts that may be relevant to the tax structure of the
transaction, provided, however, that no party (and no employee, representative,
or other agent thereof) shall disclose any other information that is not
relevant to understanding the tax treatment and tax structure of the
transaction (including the identity of any party and any information that could
lead another to determine the identity of any party), or any other information
to the extent that such disclosure could reasonably result in a violation of
any applicable securities law.

 

24.13      Facility Office

 

The Facility Agent and/or
the US Paying Agent, as applicable, may treat each Lender as a Lender, entitled
to payments under this Agreement and acting through its Facility Office unless
it has received not less than 5 Business Days’ prior notice from that Lender to
the contrary in accordance with the terms of this Agreement.

 

24.14      Lenders’
Associated Costs Details

 

To the extent
applicable, each Lender shall supply the Facility Agent and/or the US Paying
Agent, as applicable, with any information required by such Agent in order to
calculate the Associated Costs Rate in accordance with Schedule 6 (Associated Costs Rate).

 

24.15      Credit
Appraisal by the Lenders

 

Without affecting
the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Lender confirms to the
Facility Agent, the US Paying Agent and the Mandated Lead Arrangers that it has
been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in
connection with any Finance Document including but not limited to:

 

(a)           the financial condition, status and nature of each member of
the Group;

 

(b)           the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document;

 

122

 

(c)           whether that Lender has recourse, and the nature and extent
of that recourse, against any party or any of its respective assets under or in
connection with any Finance Document, the transactions contemplated by the
Finance Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, under or in connection with any Finance
Document; and

 

(d)           the adequacy, accuracy and/or completeness of the
Information Memorandum, the Long Range Plan and each Budget and any other
information provided by the Facility Agent the Mandated Lead Arrangers or by
any other person under or in connection with any Finance Document, the
transactions contemplated by the Finance Documents or any other agreement,
arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document.

 

24.16      Deduction
from Amounts Payable by the Agents

 

If any amount is
due and payable by any party to the Facility Agent or the US Paying Agent under
any Finance Document the Facility Agent or the US Paying Agent may, after
giving notice to that party, deduct an amount not exceeding that amount from
any payment to that party which the Facility Agent or the US Paying Agent would
otherwise be obliged to make under the Finance Documents and apply the amount deducted
in or towards satisfaction of the amount owed. 
For the purposes of the Finance Documents that party shall be regarded
as having received such payment without any such deduction.

 

24.17      Obligors’ Agent

 

(a)           Each Obligor (other than TCN) irrevocably authorises TCN to
act on its behalf as its agent in relation to the Finance Documents and
irrevocably authorises:

 

(i)            TCN on its behalf
to supply all information concerning itself, its financial condition and
otherwise to the relevant persons contemplated under this Agreement and to give
all notices and instructions to execute on its behalf any Finance Document and
to enter into any agreement in connection with the Finance Documents
notwithstanding that the same may affect such Obligor, without further reference
to or the consent of such Obligor; and

 

(ii)           each Finance
Party to give any notice, demand or other communication to be given to or
served on such Obligor pursuant to the Finance Documents to TCN on its behalf,

 

and in each such case such Obligor will be bound
thereby as though such Obligor itself had supplied such information, given such
notice and instructions, executed such Finance Document and agreement or
received any such notice, demand or other communication.

 

(b)           Every act, omission, agreement, undertaking, settlement,
waiver, notice or other communication given or made by the Obligors’ Agent
under any Finance Document, or in connection with this Agreement (whether or
not known to any other Obligor, as the case may be, and whether occurring before
or after such person became party to this Agreement), shall be binding for all
purposes on all other Obligors as if the other Obligors had expressly made,
given or concurred with the same.  In the
event of any conflict between any notices or other communications of the
Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall
prevail.

 

24.18      Co-operation
with the Facility Agent/US Paying Agent

 

Each Lender and
each Obligor will co-operate with the Facility Agent and/or the US Paying Agent,
as applicable, to complete any legal requirements imposed on the Facility Agent
or the US Paying Agent

 

123

 

in connection with
the performance of its duties under this Agreement and shall supply any information
requested by the relevant Agent in connection with the proper performance of
those duties provided that no Obligor shall be under any obligation to provide
any information the supply of which would be contrary to any confidentiality
obligation binding on any member of the Group or prejudice the retention of
legal privilege in such information and provided further that no Obligor shall
(and TCN shall
procure that no member of the TCN Group shall) be able to deny the Facility
Agent any such information by reason of it having entered into a
confidentiality undertaking which would prevent it from disclosing, or be able
to claim any legal privilege in respect of, any financial information relating
to itself or the Group.

 

24.19      “Know your
client” checks

 

Nothing in this
Agreement shall oblige the Facility Agent or the Mandated Lead Arrangers to
carry out any “know your client” or other applicable anti-money laundering
checks in relation to the identity of any person on behalf of any Lender and
each Lender confirms to the Facility Agent and the Mandated Lead Arrangers that
it is solely responsible for any such checks it is required to carry out and
that it may not rely on any statement in relation to such checks made by any
other person.

 

24.20      Agent’s Management
Time

 

Any amount payable to the Facility Agent under Clause
32 (Costs and Expenses) and
Clause 24.10 (Lender’s Indemnity)
shall include the reasonable cost of utilising the Facility Agent’s management
time or other resources and will be calculated on the basis of such reasonable
daily or hourly rates as the Facility Agent may notify to TCN and the Lenders
and is in addition to any fee paid or payable to the Facility Agent under
Clause 10 (Commissions and Fees).

 

25.          TCN’S INDEMNITIES

 

25.1        General Indemnities

 

With effect from
the Closing Date, TCN
undertakes to indemnify:

 

(a)           each of the Finance Parties against any out of pocket cost,
claim, loss, expense (including legal fees) or liability, which any of them may
sustain or incur as a consequence of the occurrence of any Default; and

 

(b)           each Lender against any out of pocket loss it may suffer or
incur as a result of its funding or making arrangements to fund its portion of
an Advance requested by any Borrower (or, prior to its accession hereto, Telewest
Global Finance LLC) under this Agreement but not made by reason of the
operation of any one or more of the provisions of this Agreement (save as a
result of such Lender’s own gross negligence or wilful default).

 

25.2        Break Costs

 

(a)           Each Borrower shall, within 3 Business Days of demand by a
Finance Party, pay to that Finance Party its Break Costs attributable to all or
any part of any Advance or Unpaid Sum being paid by that Borrower on a day
other than the last day of an Interest Period for that Advance or Unpaid Sum.

 

(b)           Each Lender shall, as soon as reasonably practicable after a
demand by the Facility Agent, provide a certificate confirming the amount of
its Break Costs for any Interest Period in which they accrue.

 

124

 

26.          CURRENCY OF ACCOUNT

 

26.1        Currency

 

Sterling is the
currency of account and payment for each and every sum at any time due from any
Obligor under this Agreement provided that:

 

(a)           each repayment of any Outstandings or Unpaid Sum (or part of
it) shall be made in the currency in which those Outstandings or Unpaid Sum are
denominated on their due date;

 

(b)           interest shall be payable in the currency in which the sum
in respect of which such interest is payable was denominated when that interest
accrued;

 

(c)           each payment in respect of costs and expenses shall be made
in the currency in which the same were incurred; and

 

(d)           each payment pursuant to Clause 11.2 (Tax
Indemnity) or Clause 12.1 (Increased Costs)
shall be made in the currency specified by the Finance Party claiming under it,
acting reasonably.

 

26.2        Currency Indemnity

 

If any sum due from
any Obligor under this Agreement or any order or judgment given or made in
relation to this Agreement has to be converted from the currency (the “first currency”) in which the same is
payable under this Agreement or under such order or judgment into another
currency (the “second currency”)
for the purpose of (a) making or filing a claim or proof against such
Obligor, (b) obtaining an order or judgment in any court or other tribunal
or (c) enforcing any order or judgment given or made in relation to this
Agreement, each Borrower agrees, with effect from the Closing Date, to
indemnify and hold harmless each of the persons to whom such sum is due from
and against any loss suffered or incurred as a result of any discrepancy
between (x) the rate of exchange used for such purpose to convert the sum
in question from the first currency into the second currency and (y) the
rate or rates of exchange at which such person may in the ordinary course of
business purchase the first currency with the second currency at the time of
receipt of the sum paid to it in satisfaction, in whole or in part, of any such
order, judgment, claim or proof.

 

27.          PAYMENTS

 

27.1        Payment
to the Facility Agent and the US Paying Agent

 

On each date on
which this Agreement requires an amount to be paid by any Obligor or any of the
Lenders under this Agreement, such Obligor or, as the case may be, such Lender
shall make the same available to the Facility Agent or, in the case of payments
by the US Borrower, the US Paying Agent by payment in same day funds (or such
other funds as may for the time being be customary for the settlement of
transactions in the relevant currency) to such account or bank as the Facility
Agent or US Paying Agent, as applicable, (acting reasonably) may have specified
for this purpose and any such payment which is made for the account of another
person shall be made in time to enable the Facility Agent or US Paying Agent,
as applicable, to make available such person’s portion of it to such other
person in accordance with Clause 27.2 (Same Day Funds).

 

27.2        Same Day Funds

 

Save as otherwise
provided in this Agreement, each payment received by the Facility Agent or US
Paying Agent, as applicable, for the account of another person shall be made
available by the Facility Agent to such other person (in the case of a Lender,
for the account of its Facility Office) for value the same day by transfer to
such account of such person with such bank in a Participating Member State

 

125

 

or London as such
person shall have previously notified to the Facility Agent or US Paying Agent,
as applicable, for this purpose.

 

27.3        Clear Payments

 

Any payment
required to be made by any Obligor under this Agreement shall be calculated
without reference to any set-off or counterclaim and shall be made free and
clear of, and without any deduction for or on account of, any set-off or
counterclaim.

 

27.4        Partial Payments

 

If the Facility
Agent or US Paying Agent, as applicable, receives a payment that is
insufficient to discharge all the amounts then due and payable by any Obligor
under this Agreement, the Facility Agent or US Paying Agent, as applicable,
shall, unless otherwise instructed by an Instructing Group, apply that payment
towards the obligations of that Obligor under this Agreement in the following
order:

 

(a)           first, in payment in or towards payment pro rata
of any unpaid fees, costs and expenses incurred by the Facility Agent or US
Paying Agent, as applicable, under this Agreement;

 

(b)           secondly, in or towards payment pro rata
of any accrued interest or commission due but unpaid under this Agreement;

 

(c)           thirdly, in or towards payment pro rata of
any principal due but unpaid under this Agreement; and

 

(d)           fourthly, in or towards payment pro rata
of any other sum due but unpaid under this Agreement,

 

and such
application shall override any appropriation made by an Obligor.

 

27.5        Indemnity

 

Where a sum is to
be paid under the Finance Documents to the Facility Agent or the US Paying
Agent, as applicable, for the account of another person, the Facility Agent or
the US Paying Agent, as applicable, shall not be obliged to make the same
available to that other person (or to enter into or perform any exchange
contract in connection therewith) until it has been able to establish to its
satisfaction that it has actually received such sum, but if it does so and it
proves to be the case that it had not actually received such sum, then the
person to whom such sum (or the proceeds of such exchange contract) was (or
were) so made available shall on request refund the same to the Facility Agent
or the US Paying Agent, as applicable, together with an amount sufficient to
indemnify and hold harmless the Facility Agent or the US Paying Agent, as
applicable, from and against any cost or loss it may have suffered or incurred
by reason of its having paid out such sum (or the proceeds of such exchange
contract) prior to its having received such sum.  This indemnity shall only apply to the
Obligors with effect from the Closing Date.

 

27.6        Notification
of Payment

 

Without prejudice
to the liability of each party to this Agreement to pay each amount owing by it
under this Agreement on the due date therefor, whenever a payment is expected
to be made by any of the Finance Parties, the Facility Agent or the US Paying
Agent, as applicable, shall give notice prior to the expected date for such
payment, notify all such Finance Parties of the amount, currency and timing of
such payment.

 

126

 

27.7        Business Days

 

(a)           Any payment which is due to be made on a day that is not a
Business Day shall be made on the immediately succeeding Business Day in the
same calendar month (if there is one) or the immediately preceding Business Day
(if there is not).

 

(b)           During any extension of the due date for payment of any
principal or an Unpaid Sum under this Agreement, interest is payable on such
amount at the rate payable on the original due date.

 

28.          SET-OFF

 

28.1        Right to Set-off

 

With effect from
the Closing Date, each of the Obligors authorises each Lender to apply any
credit balance to which such Obligor is entitled on any account of such Obligor
with that Lender in satisfaction of any sum due and payable from such Obligor
to such Lender under this Agreement but unpaid; for this purpose, each Lender
is authorised to purchase with the moneys standing to the credit of any such
account such other currencies as may be necessary to effect such application.

 

28.2        No Obligation

 

No Lender shall be
obliged to exercise any right given to it by Clause 28.1 (Right to
Set-Off).

 

29.          SHARING AMONG THE FINANCE PARTIES

 

29.1        Payments
to Finance Parties

 

If a Finance Party
(a “Recovering Finance Party”)
receives or recovers any amount from any Obligor other than in accordance with
Clause 27 (Payments) and applies that amount to a
payment due under the Finance Documents then:

 

(a)           the Recovering Finance Party shall, within 3 Business Days,
notify details of the receipt or recovery to the Facility Agent;

 

(b)           the Facility Agent shall determine whether the receipt or
recovery is in excess of the amount the Recovering Finance Party would have
been paid had the receipt or recovery been received or made by the Facility
Agent and distributed in accordance with Clause 27.4 (Partial
Payments), without taking account of any tax which would be imposed
on the Facility Agent in relation to the receipt, recovery or distribution; and

 

(c)           the Recovering Finance Party shall, within 3 Business Days
of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Facility Agent determines may be retained by
the Recovering Finance Party as its share of any payment to be made, in
accordance with Clause 27.4 (Partial Payments).

 

29.2        Redistribution
of Payments

 

The Facility Agent
shall treat the Sharing Payment as if it had been paid by the relevant Obligor
and shall distribute it between the Finance Parties (other than the Recovering
Finance Party) in accordance with Clause 27.4 (Partial
Payments).

 

127

 

29.3        Recovering
Finance Party’s Rights

 

(a)           On a distribution by the Facility Agent under Clause 29.2 (Redistribution of Payments), the Recovering Finance Party
will be subrogated to the rights of the Finance Parties which have shared in
the redistribution.

 

(b)           If and to the extent that the Recovering Finance Party is
not able to rely on its rights under paragraph (a) above, the relevant Obligor
shall be liable to the Recovering Finance Party for a debt equal to the Sharing
Payment which is immediately due and payable.

 

29.4        Reversal
of Redistribution

 

If any part of the
Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

 

(a)           each Finance Party which has received a share of the
relevant Sharing Payment pursuant to Clause 29.2 (Redistribution
of Payments) shall, upon
the request of the Facility Agent, pay to the Facility Agent for account of
that Recovering Finance Party an amount equal to its share of the Sharing
Payment (together with an amount as is necessary to reimburse that Recovering
Finance Party for its share of any interest on the Sharing Payment which that
Recovering Finance Party is required to pay); and

 

(b)           that Recovering Finance Party’s rights of subrogation in
respect of any reimbursement shall be cancelled and the relevant Obligor will
be liable to the reimbursing Finance Party for the amount so reimbursed.

 

29.5        Exceptions

 

(a)           This Clause 29 shall not apply to the extent that the
Recovering Finance Party would not, after making any payment pursuant to this
Clause, have a valid and enforceable claim against the relevant Obligor.

 

(b)           A Recovering Finance Party is not obliged to share with any
other Finance Party under this Clause 29, any amount which the Recovering
Finance Party has received or recovered as a result of taking legal or
arbitration proceedings, if:

 

(i)            it notified such
other Finance Party of the legal or arbitration proceedings; and

 

(ii)           such other
Finance Party had an opportunity to participate in those legal or arbitration
proceedings but did not do so as soon as reasonably practicable having received
notice of it or did not take separate legal or arbitration proceedings.

 

30.          CALCULATIONS AND ACCOUNTS

 

30.1        Day Count
Convention

 

Interest and
commitment commission shall accrue from day to day and shall be calculated on
the basis of a year of 365 days and the actual number of days elapsed.

 

30.2        Reference Banks

 

Save as otherwise
provided in this Agreement, on any occasion a Reference Bank or Lender fails to
supply the Facility Agent with an interest rate quotation required of it under
the foregoing provisions of this Agreement, the rate for which such quotation
was required shall be determined from those quotations which are supplied to
the Facility Agent.

 

128

 

30.3        Maintain Accounts

 

Each Lender shall
maintain in accordance with its usual practice accounts evidencing the amounts
from time to time lent by and owing to it under this Agreement.

 

30.4        Control Accounts

 

The Facility Agent
shall maintain on its books a control account or accounts in which shall be
recorded:

 

(a)           the amount of any Advance or Unpaid Sum and each Lender’s
share in it;

 

(b)           the amount of all principal, interest and other sums due or
to become due from each of the Obligors to any of the Lenders under the Finance
Documents and each Lender’s share in it; and

 

(c)           the amount of any sum received or recovered by the Facility
Agent under this Agreement and each Lender’s share in it.

 

30.5        Prima Facie
Evidence

 

In any legal action
or proceeding arising out of or in connection with this Agreement, the entries
made in the accounts maintained pursuant to Clause 30.4 (Maintain
Accounts) and Clause 30.5 (Control Accounts)
shall, in the absence of manifest error, be prima  facie evidence of the existence and amounts of the specified
obligations of the Obligors.

 

30.6        Certificate
of Finance Party

 

A certificate of a
Finance Party as to the amount for the time being required to indemnify it
against any Tax Liability pursuant to Clause 11.2 (Tax
Indemnity) or any Increased Cost pursuant to Clause 12.1 (Increased Costs) shall, in the absence of manifest error, be
prima facie evidence of the existence
and amounts of the specified obligations of any Borrower.

 

30.7        Certificate
of the Facility Agent

 

A certificate of
the Facility Agent as to the amount at any time due from any Borrower under
this Agreement (or the amount which, but for any of the obligations of any
Borrower under this Agreement being or becoming void, unenforceable or ineffective,
at any time, would have been due from such Borrower under this Agreement)
shall, in the absence of manifest error, be prima facie evidence
for the purposes of Clause 23 (Guarantee and Indemnity).

 

31.          ASSIGNMENTS AND TRANSFERS

 

31.1        Successors
and Assignees

 

This Agreement
shall be binding upon and enure to the benefit of each party to this Agreement
and its or any subsequent successors, permitted assignees and Transferees.

 

31.2        Assignment
or Transfers by Obligors

 

None of the rights,
benefits and obligations of an Obligor under this Agreement shall be capable of
being assigned or transferred and each Obligor undertakes not to seek to assign
or transfer any of its rights, benefits and obligations under this Agreement.

 

129

 

31.3        Assignments
or Transfers by Lenders

 

(a)           Any Lender may, at any time, assign all or any of its rights
and benefits under the Finance Documents in accordance with Clause 31.4 (Assignments) or transfer all or any of its rights, benefits
and obligations under the Finance Documents in accordance with Clause 31.5 (Transfer Deed) provided that:

 

(i)            the prior
consultation of TCN shall be required in respect of any assignment or transfer
arising prior to the achievement of Successful Syndication;

 

(ii)           the prior consent
of TCN shall be required in respect of any assignment or transfer which becomes
effective after the achievement of Successful Syndication (such consent not to
be unreasonably withheld or delayed) except where such assignment or transfer
is to an Affiliate of the relevant Lender which is a Qualifying Lender provided
that such consent shall be deemed to have been given if not declined, in
writing, within 10 Business Days of a request by any Lender for such consent;
and

 

(iii)         if the proposed
Transferee purports to be a UK Non-Bank Lender, it provides TCN with the
information required under paragraph 9 of the Transfer Deed.

 

(b)           No Lender shall be entitled to:

 

(i)            effect any
assignment or transfer which would result in it or the proposed assignee or
transferee holding an aggregate participation of more than zero but less than
£5,000,000 in the Facility, save that an assignment or transfer may be made to
or by a trust, fund or other non-bank entity which customarily participates in
the institutional market which would result in such entity holding an aggregate
participation of at least £1,000,000 in the Facility; or

 

(ii)           in relation to any sub-participation of its rights and obligations
under the Facility, relinquish some or all of
its voting rights in respect of the Facility to any person in respect of any
such sub-participation other than
voting rights in respect of the matters referred to in paragraphs (b), (c), (d)
or (e) of Clause 37.2 (Consent).

 

(c)           If:

 

(i)            any sum payable
to any Lender by an Obligor is required to be increased under Clause 11.1 (Tax Gross-up);

 

(ii)           a Lender claims
indemnification from either Borrower under the provisions of Clause 11.2 (Tax Indemnity) or Clause 12.1 (Increased Costs); or

 

(iii)         in relation to
any event or matter requiring unanimous consent of the Lenders under Clause 37
(Amendments), Lenders representing not
less than 85% of the Outstandings consent to such event or matter,

 

TCN may within 90
days of such requirement or position being notified to TCN request that such
Lender assigns or transfers all of its rights and obligations under this
Agreement at par (including any rights and obligations it may have in its
capacity as a Hedge Counterparty) to any person selected by TCN that has agreed
to accept such assignment or transfer, and such Lender shall effect such
assignment or transfer within 10 Business Days of such request.  On the date of such assignment or transfer,
TCN shall pay to the dissenting Lender an amount equal to either (i) the
Applicable Make Whole Premium, if the assignment or transfer occurs on a date
falling during the Non-Call Period or (ii) the applicable Prepayment Premium,
if the assignment or transfer occurs on a date falling after the Non-Call
Period but prior to the Third Anniversary.

 

130

 

31.4        Assignments

 

If any Lender
wishes to assign all or any of its rights and benefits under the Finance
Documents, unless and until the relevant assignee has agreed with the other Finance
Parties that it shall be under the same obligations towards each of them as it
would have been under if it had been an original party to the Finance Documents
as a Lender, such assignment shall not become effective and the other Finance
Parties shall not be obliged to recognise such assignee as having the rights
against each of them which it would have had if it had been such a party to
this Agreement.

 

31.5        Transfer Deed

 

(a)           If any Lender wishes to transfer all or any of its rights,
benefits and/or obligations under the Finance Documents, such transfer may be
effected by novation through the delivery to the Facility Agent of a duly
completed and duly executed Transfer Deed.

 

(b)           The Facility Agent shall only be obliged to execute a
Transfer Deed delivered to it pursuant to paragraph (a) above, upon its
satisfaction with the results of all “know your client” or other applicable
anti-money laundering checks relating to the identity of any person that it is
required to carry out in relation to such Transferee.

 

(c)           Upon its execution of the Transfer Deed pursuant to
paragraph (b) above on the later of the Transfer Date specified in such
Transfer Deed and the fifth Business Day after (or such earlier Business Day
endorsed by the Facility Agent on such Transfer Deed falling on or after) the
date of execution of such Transfer Deed by the Facility Agent:

 

(i)            to the extent
that in such Transfer Deed the Lender party to it seeks to transfer its rights,
benefits and obligations under the Finance Documents, each of the Obligors and
such Lender shall be released from further obligations towards one another
under the Finance Documents to that extent and their respective rights against
one another shall be cancelled to that extent (such rights and obligations
being referred to in this Clause 31.5 as “discharged
rights and obligations”);

 

(ii)           each of the
Obligors and the Transferee party to it shall assume obligations towards one
another and/or acquire rights against one another which differ from the
discharged rights and obligations only insofar as such Obligor and such
Transferee have assumed and/or acquired the same in place of such Obligor and
such Lender;

 

(iii)         the other Finance
Parties and the Transferee shall acquire the same rights and benefits and
assume the same obligations between themselves as they would have acquired and
assumed had such Transferee been an original party to the Finance Documents as
a Lender with the rights, benefits and obligations acquired or assumed by it as
a result of such transfer; and

 

(d)           such Transferee shall become a party to this Agreement as a
Lender.

 

31.6        Transfer Fee

 

On the date upon
which a transfer takes effect pursuant to Clause 31.5 (Transfer Deed) the Transferee in respect of such transfer
shall pay to the Facility Agent for its own account a transfer fee of £1,500
provided that this fee shall not be payable by any Lender party to this
Agreement on the date of this Agreement in respect of transfers made by such
Lender prior to the earlier of the Syndication Date and the date that is three
months after the date of launch of primary syndication.

 

131

 

31.7        Disclosure
of Information

 

(a)           Each of the Facility Agent, the US Paying Agent, the
Security Trustee, the Mandated Lead Arrangers and the Lenders agrees to
maintain the confidentiality of all information received from the Ultimate
Parent or any member of the Group relating to the Ultimate Parent or any member
of the Group or its business other than any such information that:

 

(i)            is or becomes
public knowledge other than as a direct result of any breach of this Clause; or

 

(ii)           is available to
the Facility Agent, the US Paying Agent, the Security Trustee, the Mandated
Lead Arrangers and the Lenders on a non-confidential basis prior to receipt
thereof from the relevant member of the Group; or

 

(iii)         is lawfully
obtained by any of Facility Agent, the US Paying Agent, the Security Trustee,
the Mandated Lead Arrangers and the Lenders after that date of receipt other
than from a source which is connected with the Group and which, as far as the
relevant recipient thereof is aware, has not been obtained in violation of, and
is not otherwise subject to, any obligation of confidentiality.

 

(b)           Notwithstanding paragraph (a) of this Clause 31.7, any
Lender may disclose to any of its Affiliates, to any actual or potential
assignee, Transferee or sub participant, to any person who may otherwise enter
into contractual relations with such Lender in relation to credit derivatives
transactions in relation to this Agreement or any person to whom, and to the
extent that, information is required to be disclosed by any applicable Law,
such information about the Ultimate Parent, all or any of the Obligors or the
Group as a whole as such Lender shall consider appropriate provided that any
such Affiliate or actual or potential assignee, Transferee or sub participant
or other person who may otherwise enter into contractual relations in relation
to credit derivatives transactions in relation to this Agreement shall first
have entered into a confidentiality undertaking on substantially the same terms
as this Clause 31.7.

 

31.8        No
Increased Obligations

 

If:

 

(a)           a Lender assigns or transfers any of its rights or
obligations under the Finance Documents or changes its Facility Office; and

 

(b)           as a result of circumstances existing at the date of the
assignment, transfer or change of Facility Office, an Obligor would be obliged
to make a payment to the assignee, Transferee or the Lender acting through its
new Facility Office under Clause 11.1 (Tax Gross-Up),
11.2 (Tax Indemnity) or Clause 11 (Increased Costs),

 

then the assignee,
Transferee or the Lender acting through its new Facility Office shall only be
entitled to receive payment under those Clauses to the same extent as the
assignor, transferor or the Lender acting through its previous Facility Office
would have been if the assignment, transfer or change had not occurred.

 

31.9        Notification

 

The Facility Agent
shall, within 10 Business Days of receiving a Transfer Deed or a notice
relating to an assignment pursuant to Clause 31.4 (Assignments),
notify TCN of
any such assignment or transfer.

 

132

 

32.          COSTS AND EXPENSES

 

32.1        Transaction Costs

 

TCN shall, from time to time no
later than 10 Business Days after demand from the Facility Agent (unless the
relevant cost or expense is being queried by TCN in good faith), reimburse the
Facility Agent, the Security Trustee and each of the Mandated Lead Arrangers
for all reasonable out of pocket costs and expenses (including reasonable third
party costs and expenses, legal fees and disbursements of legal counsel, and
all travel and other reasonable out-of-pocket expenses) incurred by them in
connection with the negotiation, preparation, execution, printing and
distribution of the Finance Documents and the completion of the transactions
therein contemplated and the syndication of the Facility prior to the
Syndication Date (including publicity expenses) up to the levels agreed with TCN.

 

32.2        Preservation
and Enforcement Costs

 

TCN shall, from time to time on
demand of the Facility Agent, reimburse each Finance Party for all third party
costs and expenses (including legal fees) incurred in or in connection with the
preservation and/or enforcement of any of the rights of such Finance Party
under the Finance Documents provided that any such costs and expenses incurred
in connection with the preservation of such rights are reasonable.

 

32.3        Stamp Taxes

 

TCN shall pay all stamp, registration,
documentary and other taxes (including any penalties, additions, fines,
surcharges or interest relating thereto) to which any of the Finance Documents
(other than any Transfer Deed) or any judgment given in connection therewith is
or at any time may be subject and shall with effect from the Closing Date and
from time to time thereafter within 10 Business Days of demand from the
Facility Agent, indemnify the Finance Parties against any liabilities, costs,
claims and expenses resulting from any failure to pay or any delay in paying
those taxes.  The Facility Agent shall be
entitled (but not obliged) to pay those taxes (whether or not they are its
primary responsibility) and to the extent that it does so claim under this
Clause 32.3.

 

32.4        Amendments, Consents and Waivers

 

If an Obligor
requests any amendment, consent or waiver in accordance with Clause 37 (Amendments), the relevant Obligor shall, on demand of the
Facility Agent, reimburse the Finance Parties for all third party costs and
expenses (including legal fees) incurred by any of the Finance Parties in
responding to or complying with such request.

 

32.5        Lenders’ Indemnity

 

If any Obligor
fails to perform any of its obligations under this Clause 32, each Lender shall
indemnify and hold harmless the Facility Agent, the Mandated Lead Arrangers
and/or the Security Trustee from and against its Proportion (as determined at
all times for these purposes in accordance with paragraph (c) of the definition
of “Proportion”) of any loss incurred by any of them as a result of such
failure and the relevant Obligor shall forthwith reimburse each Lender for any
payment made by it pursuant to this Clause 32.

 

32.6        Value Added Tax

 

(a)           All amounts expressed to be payable under any Finance
Document by any Obligor to a Finance Party shall be exclusive of any VAT.  If VAT is chargeable on any supply made by a
Finance Party to any Obligor under any Finance Document (whether that supply is
taxable pursuant to the exercise of an option or otherwise), the relevant
Finance Party shall provide a 

 

133

 

VAT invoice
to the Obligor and that Obligor shall pay to that Finance Party (in addition to
and at the same time as paying that consideration) the VAT as further
consideration.

 

(b)           No payment or other consideration to be made or furnished to
any Obligor pursuant to or in connection with any Finance Document may be
increased or added to by reference to (or as a result of any increase in the
rate of) any VAT which shall be or may become chargeable in respect of any
taxable supply.

 

(c)           Where a Finance Document requires any party to reimburse a
Finance Party for any costs or expenses, that party shall also pay any amount
of those costs or expenses incurred referable to VAT chargeable thereon.

 

33.          REMEDIES AND WAIVERS

 

No failure to
exercise, nor any delay in exercising, on the part of the Finance Parties or
any of them, any right or remedy under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy
prevent any further or other exercise thereof or the exercise of any other
right or remedy.  The rights and remedies
provided in this Agreement are cumulative and not exclusive of any rights or remedies
provided by Law.

 

34.          NOTICES AND DELIVERY OF INFORMATION

 

34.1        Writing

 

Each communication
to be made under this Agreement shall be made in writing and, unless otherwise
stated, shall be made by fax, telex or letter.

 

34.2        Giving of Notice

 

Any communication
or document to be made or delivered by one person to another pursuant to this
Agreement shall in the case of any person other than a Lender (unless that
other person has by 10 Business Days’ written notice to the Facility Agent
specified another address) be made or delivered to that other person at the
address identified with its signature below or, in the case of a Lender, at the
address from time to time designated by it to the Facility Agent for the
purpose of this Agreement (or, in the case of a Transferee at the end of the
Transfer Deed to which it is a party as Transferee) and shall be deemed to have
been made or delivered when despatched (in the case of any communication made
by fax) or (in the case of any communication made by letter) when left at the
address or (as the case may be) 5 Business Days after being deposited in the
post postage prepaid in an envelope addressed to it at that address provided
that any communication or document to be made or delivered to the Facility
Agent shall be effective only when received by the Facility Agent and then only
if the same is expressly marked for the attention of the department or officer
identified with the Facility Agent’ signature below (or such other department
or officer as the relevant Agent shall from time to time specify by not less
than 10 Business Days’ prior written notice to TCN for this purpose).

 

34.3        Use of
Websites/E-mail

 

(a)           An Obligor may (and upon request by the Facility Agent,
shall) satisfy its obligations under this Agreement to deliver any information
in relation to those Lenders (the “Website
Lenders”) who have not objected to the delivery of information
electronically by posting this information onto an electronic website
designated by TCN and the Facility Agent (the “Designated Website”) or by e-mailing such information to the
Facility Agent, if:

 

(i)            the Facility
Agent expressly agrees that it will accept communication and delivery of any
documents required to be delivered pursuant to this Agreement by this method;

 

134

 

(ii)           in the case of
posting to the Designated Website, TCN and the Facility Agent is aware of the
address of, and any relevant password specifications for, the Designated
Website; and

 

(iii)         the information
is in a format previously agreed between TCN and the Facility Agent.

 

(b)           If any Lender (a “Paper Form Lender”)
objects to the delivery of information electronically then the Facility Agent
shall notify TCN accordingly and TCN shall supply the information to the
Facility Agent (in sufficient copies for each Paper Form Lender) in paper form.

 

(c)           The Facility Agent shall supply each Website Lender with the
address of, and any relevant password specifications for, the Designated
Website following designation of that website by TCN and the Facility Agent.

 

(d)           Any Website Lender may request, through the Facility Agent,
one paper copy of any information required to be provided under this Agreement
which is posted onto the Designated Website. 
TCN shall comply with any such request within 10 Business Days.

 

(e)           Subject to the other provisions of this Clause 34.3, any
Obligor may discharge its obligation to supply more than one copy of a document
under this Agreement by posting one copy of such document to the Designated
Website or e-mailing one copy of such document to the Facility Agent.

 

(f)            For the purposes of paragraph (a) above, the Facility Agent
hereby expressly agrees that:

 

(i)            they will accept
delivery of documents required to be delivered under Clause 16 (Financial Information) by the posting of
such documents to the Designated Website or by email delivery to the Facility
Agent; and

 

(ii)           they have agreed
to the format of the information required to be delivered under Clause 16 (Financial Information).

 

34.4        Electronic
Communication

 

(a)           Any communication to be made between the Facility Agent and
any Lender under or in connection with the Finance Documents may be made by
electronic mail or other electronic means, if the relevant Agent and the
relevant Lender:

 

(i)            agree that,
unless and until notified to the contrary, this is to be an accepted form of
communication;

 

(ii)           notify each other
in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and

 

(iii)         notify each other
of any change to their address or any other such information supplied by them.

 

(b)           Any electronic communication made between the Facility Agent
and a Lender will be effective only when actually received in readable form and
in the case of any electronic communication made by a Lender to an Agent only
if it is addressed in such a manner as the Facility Agent shall specify for
this purpose.

 

135

 

34.5        Certificates
of Officers

 

All certificates of
officers of any company hereunder may be given on behalf of the relevant
company and in no event shall personal liability attach to such an officer.

 

35.          ENGLISH LANGUAGE

 

Each communication
and document made or delivered by one party to another pursuant to this
Agreement shall be in the English language or accompanied by a translation of
it into English certified (by an officer of the person making or delivering the
same) as being a true and accurate translation of it.

 

36.          PARTIAL INVALIDITY

 

If, at any time,
any provision of this Agreement is or becomes illegal, invalid or unenforceable
in any respect under the Law of any jurisdiction, such illegality, invalidity
or unenforceability shall not affect:

 

(a)           the legality, validity or enforceability of the remaining
provisions of this Agreement; or

 

(b)           the legality, validity or enforceability of such provision
under the Law of any other jurisdiction.

 

37.          AMENDMENTS

 

37.1        Amendments

 

Subject to the
provisions of the Principal Intercreditor Deed, except as provided in Clauses
37.2 (Consent), 37.3 (Technical
Amendments), 37.4 (Guarantees and Security)
and 37.5 (Release of Guarantees and Security), the
Facility Agent, if it has the prior written consent of an Instructing Group,
and the Obligors affected thereby, may from time to time agree in writing to
amend any Finance Document or to consent to or waive, prospectively or
retrospectively, any of the requirements of any Finance Document and any
amendments, consents or waivers so agreed shall be binding on all the Finance
Parties and the Obligors.  For the
avoidance of doubt, any amendments relating to this Agreement shall only be
made in accordance with the provisions of this Agreement and any amendments
relating to a Hedging Agreement shall only be made in accordance with the
provisions of such Hedging Agreement, in each case notwithstanding any other
provisions of the Finance Documents.

 

37.2        Consent

 

Subject to the
Principal Intercreditor Deed, an amendment, consent or waiver relating to the
following matters shall not be made without the prior written consent of each
Lender affected thereby:

 

(a)           any increase in the Commitment of such Lender;

 

(b)           a reduction in the proportion of any amount received or
recovered (whether by way of set-off, combination of accounts or otherwise) in
respect of any amount due from any Obligor under this Agreement to which such
Lender is entitled;

 

136

 

(c)           a decrease in the Margin for, or the principal amount of,
any Advance or any interest payment, fees or other amounts due under this
Agreement to such Lender from any Obligor or any other party to this Agreement;

 

(d)           any change in the currency of account (other than a change
resulting from the United Kingdom becoming a Participating Member State);

 

(e)           unless otherwise specified, the deferral of the date for
payment of any principal, interest, fee or any other amount due under this
Agreement to such Lender from any Obligor or any other party to this Agreement;

 

(f)            the deferral of the Termination Date;

 

(g)           any reduction to the percentage set forth in the definition
of Instructing Group; or

 

(h)           a change to Clause 37.4 (Guarantees
and Security) or any provision which contemplates the need for the
consent or approval of all the Lenders.

 

37.3        Technical
Amendments

 

Notwithstanding
Clause 37.1 (Amendments), the Facility Agent
may determine administrative matters and make technical amendments arising out
of manifest errors on the face of any Finance Document, where such amendments
would not prejudice or otherwise be adverse to the position of any Lender,
without further reference to the Lenders.

 

37.4        Guarantees
and Security

 

A waiver of
issuance or the release of all or substantially all of the Guarantors from any
of their respective obligations under Clause 23 (Guarantee
and Indemnity) or a release of all or substantially all of the
Security under the Security Documents, in each case, other than in accordance
with the terms of any Finance Document shall require the prior written consent
of affected Lenders whose Available Commitments plus Outstandings (as
appropriate) amount in aggregate to more than 90 per cent. of the Available
Facility or aggregate Outstandings (as appropriate).

 

37.5        Release
of Guarantees and Security

 

(a)           Subject to paragraph (b) below, at the time of completion of
any disposal by any Obligor of any shares, assets or revenues the Security
Trustee shall (and it is hereby authorised by the other Finance Parties to) at
the request of and cost of TCN, execute such documents as may be required to:

 

(i)            release those
shares, assets or revenues from Security constituted by any relevant Security
Document or certify that any floating charge constituted by any relevant
Security Documents over such assets, revenues or rights has not crystallised;
and

 

(ii)           release any
person which as a result of that disposal, ceases to be any Obligor, from any
guarantee, indemnity or Security Document to which it is a party and its other
obligations under any other Finance Document.

 

(b)           The Security Trustee shall only be required under paragraph
(a) above to grant the release of any Security or to deliver a certificate of
non-crystallisation on account of a disposal as described in that paragraph
described in that paragraph if: -

 

(i)            the disposal is permitted
under Clause 19.6 (Disposals) or
otherwise with the consent of an Instructing Group;

 

137

 

(ii)           (to the extent
that any proceeds of that disposal are to be applied in repayment of the
Facility) the Facility Agent has received (or is satisfied, acting reasonably,
that it will receive immediately following the disposal) the appropriate amount
of those proceeds; and

 

(iii)         (to the extent
that the disposal is to be in exchange for replacement assets) the Security
Trustee has either received (or is satisfied, acting reasonably, that it will
receive immediately following the disposal) one or more duly executed Security
Documents granting Security over those replacement assets or is satisfied,
acting reasonably, that the replacement assets will be subject to Security
pursuant to any existing Security Documents.

 

(c)           If at any time, a Compliance Certificate delivered pursuant
to Clause 16.4(a) (Compliance Certificates) shows
that the Obligors under this Agreement at the relevant time represent a
percentage which is greater than that required to satisfy the 95% Security Test
and TCN is able, at such time, to demonstrate to the satisfaction of the
Facility Agent (acting reasonably) that upon the release of one or more
specified Obligors from its obligations under this Agreement the 95% Security
Test would continue to be satisfied, the Security Trustee shall (and it is
hereby authorised by the other Finance Parties to) at the request and cost of
TCN, execute such documents as may be required to release such specified
Obligors from any guarantees, indemnities and Security Documents to which it is
a party and to release it from its other obligations under any Finance
Document.

 

37.6        Amendments
affecting the Facility Agent

 

Notwithstanding any
other provision of this Agreement, the Facility Agent shall not be obliged to
agree to any amendment, consent or waiver if the same would:

 

(a)           amend or waive any provision of Clauses 24 (Agents), Clause 32 (Costs and Expenses)
or this Clause 37; or

 

(b)           otherwise amend or waive any of the Facility Agent’s rights
under this Agreement or subject the Facility Agent to any additional
obligations under this Agreement.

 

37.7        Deemed Consent

 

Where a request for
a waiver of, or an amendment to, any provision of any Finance Document has been
sent by the Facility Agent to the Lenders at the request of an Obligor, each
Lender will be deemed to have consented to such waiver or amendment 30 days
after receipt by it of such request save to the extent such consent is
expressly refused by it prior to such date.

 

38.          THIRD PARTY RIGHTS

 

(a)           A person which is not a party to this Agreement (a “third party”) shall have no right to
enforce any of its provisions except that:

 

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

 

(ii)           each of Clause
24.9 (Exclusion of Liability), Clause 11.2 (Tax Indemnity), Clause 12 (Increased
Costs) and Clause 24.9(b) (Exclusion of Liability)
shall be enforceable by any third party referred to in such clause as if such
third party were a party to this Agreement.

 

138

 

(b)           The parties to this Agreement may without the consent of any
third party vary or rescind this Agreement.

 

39.          COUNTERPARTS

 

This Agreement may
be executed in any number of counterparts and all of such counterparts taken
together shall be deemed to constitute one and the same instrument.

 

40.          GOVERNING LAW

 

40.1        Governing
Law of Agreement

 

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

 

40.2        Governing
Law of Claims Against US Borrower

 

Notwithstanding the provisions of Clause 40.1 (Governing Law of Agreement), any
proceedings in relation to a debt claim against the US Borrower shall be
governed by the internal laws of the state of New York, provided always that no
other Obligor may rely upon, or otherwise challenge any right of any Finance
Party on the basis of this Clause 40.2.

 

41.          JURISDICTION

 

41.1        Courts

 

(a)           The US Borrower and each of the other parties to this
Agreement irrevocably agrees for the benefit of the Finance Parties that the
courts of the State of New York and/or the federal courts of the United States
of America sitting in the State of New York in diversity jurisdiction shall
have exclusive jurisdiction to hear and determine any suit, action or
proceedings, and to settle any disputes which may arise out of or in connection
with the rights or obligations of the US Borrower under the Finance Documents
and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

(b)           Each of the parties to this Agreement irrevocably agrees for
the benefit of each of the Finance Parties that, except as set forth in
paragraph (a) above, the courts of England shall have exclusive jurisdiction to
hear and determine any suit, action or proceedings, and to settle any disputes,
which may arise out of or in connection with this Agreement (respectively “Proceedings”
and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction
of such courts.

 

41.2        Waiver

 

Each of the
Obligors other than the US Borrower irrevocably waives any objection which it
might now or hereafter have to Proceedings being brought or Disputes settled in
the courts of England and agrees not to claim that any such court is an
inconvenient or inappropriate forum.  The
US Borrower and each of the Finance Parties irrevocably waives any objection
which it might now or hereafter have to Proceedings being brought by or against
the US Borrower or Disputes with the US Borrower being settled in the courts of
the State of New York.

 

41.3        Service of Process

 

Each of the
Obligors (other than the US Borrower) which is not incorporated in England
agrees that the process by which any Proceedings are begun may be served on it
by being delivered in connection with any Proceedings in England, to TCN at its
registered office for the time being and TCN, by its signature to this
Agreement, accepts its appointment as such in respect of each such
Obligor.  If the

 

139

 

appointment of the
person mentioned in this Clause ceases to be effective in respect of any of the
Obligors the relevant Obligor shall immediately appoint a further person in
England to accept service of process on its behalf in England and, failing such
appointment within 15 days, the Facility Agent shall be entitled to
appoint such person by notice to the relevant Obligor. Nothing contained in
this Agreement shall affect the right to serve process in any other manner
permitted by Law.

 

41.4        Proceedings
in Other Jurisdictions

 

Nothing in Clause
41.1 (Courts) shall (and shall not be
construed so as to) limit the right of the Finance Parties or any of them to
take Proceedings against any of the Obligors other than the US Borrower in any
other court of competent jurisdiction nor shall the taking of Proceedings in
any one or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction (whether concurrently or not) if and to the extent permitted by
applicable Law.

 

41.5        General Consent

 

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

 

41.6        Waiver of Immunity

 

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

 

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

 

140

 

SCHEDULE 1

 

PART 1 -
LENDERS AND COMMITMENTS

 

	
  Lender

  	
   

  	
  Facility
  Commitment

  	
   

  
	
   

  	
   

  	
  (£)

  	
   

  
	
  Barclays Bank PLC

  	
   

  	
  50,000,000

  	
   

  
	
  BNP Paribas

  	
   

  	
  25,000,000

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  50,000,000

  	
   

  
	
  Credit Suisse First Boston

  	
   

  	
  50,000,000

  	
   

  
	
  Deutsche Bank AG London

  	
   

  	
  50,000,000

  	
   

  
	
  The Royal Bank of Scotland plc

  	
   

  	
  25,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Commitments

  	
   

  	
  250,000,000

  	
   

  

 

PART 2 - UK NON-BANK LENDERS

 

	
  Lender

  	
   

  	
  Paragraph
  (a) or (b) of definition of

  UK Non Bank Lender

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Paragraph [(a)/(b)]

  	
   

  

 

141

 

SCHEDULE 2

 

THE ORIGINAL GUARANTORS

 

	
  English Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Birmingham
  Cable Corporation Limited

  	
   

  	
  2170379

  	
   

  
	
  Birmingham
  Cable Limited

  	
   

  	
  2244565

  	
   

  
	
  Cable Camden
  Limited

  	
   

  	
  01795642

  	
   

  
	
  Cable
  Enfield Limited

  	
   

  	
  02466511

  	
   

  
	
  Cable
  Hackney & Islington Limited

  	
   

  	
  01795641

  	
   

  
	
  Cable
  Haringey Limited

  	
   

  	
  01808589

  	
   

  
	
  Cable London
  Limited

  	
   

  	
  01794264

  	
   

  
	
  Central
  Cable Holdings Limited

  	
   

  	
  3008567

  	
   

  
	
  Crystal
  Palace Radio Limited

  	
   

  	
  01459745

  	
   

  
	
  Filegale
  Limited

  	
   

  	
  2804553

  	
   

  
	
  General
  Cable Group Limited

  	
   

  	
  2872852

  	
   

  
	
  General
  Cable Holdings Limited

  	
   

  	
  2798236

  	
   

  
	
  General
  Cable Limited

  	
   

  	
  2369824

  	
   

  
	
  Imminus
  Limited

  	
   

  	
  1785381

  	
   

  
	
  Middlesex
  Cable Limited

  	
   

  	
  2460325

  	
   

  
	
  Sheffield
  Cable Communications Limited

  	
   

  	
  2465953

  	
   

  
	
  Southwestern
  Bell International Holdings Limited

  	
   

  	
  2378768

  	
   

  
	
  Telewest
  Communications (Central Lancashire) Limited

  	
   

  	
  1737862

  	
   

  
	
  Telewest
  Communications (Cotswolds) Limited

  	
   

  	
  1743081

  	
   

  
	
  Telewest
  Communications (Liverpool) Limited

  	
   

  	
  1615567

  	
   

  
	
  Telewest
  Communications (London South) Limited

  	
   

  	
  1697437

  	
   

  
	
  Telewest
  Communications (Midlands and North West) Limited

  	
   

  	
  2795350

  	
   

  
	
  Telewest
  Communications (Midlands) Limited

  	
   

  	
  1882074

  	
   

  
	
  Telewest
  Communications (North East) Limited

  	
   

  	
  2378214

  	
   

  
	
  Telewest
  Communications (North West) Limited

  	
   

  	
  2321124

  	
   

  
	
  Telewest
  Communications (South East) Limited

  	
   

  	
  2270764

  	
   

  
	
  Telewest
  Communications (South Thames Estuary) Limited

  	
   

  	
  2270763

  	
   

  
	
  Telewest
  Communications (South West) Limited

  	
   

  	
  2271287

  	
   

  
	
  Telewest
  Communications (St. Helens & Knowsley) Limited

  	
   

  	
  2466599

  	
   

  

 

142

 

	
  English Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Telewest
  Communications (Tyneside) Limited

  	
   

  	
  2407676

  	
   

  
	
  Telewest
  Communications (Wigan) Limited

  	
   

  	
  2451112

  	
   

  
	
  Telewest
  Communications Cable Limited

  	
   

  	
  2883742

  	
   

  
	
  Telewest
  Communications Group Limited

  	
   

  	
  2514287

  	
   

  
	
  Telewest
  Communications Holdings Limited

  	
   

  	
  2982404

  	
   

  
	
  Telewest
  Communications (Nominees) Limited

  	
   

  	
  2318746

  	
   

  
	
  Telewest
  Limited

  	
   

  	
  03291383

  	
   

  
	
  Telewest
  Parliamentary Holdings Limited

  	
   

  	
  2514316

  	
   

  
	
  The Cable
  Corporation Limited

  	
   

  	
  2075227

  	
   

  
	
  Theseus No.
  1 Limited

  	
   

  	
  2994027

  	
   

  
	
  Theseus No.
  2 Limited

  	
   

  	
  2994061

  	
   

  
	
  Windsor
  Television Limited

  	
   

  	
  1745542

  	
   

  
	
  Yorkshire
  Cable Communications Limited

  	
   

  	
  2490136

  	
   

  
	
  The
  Yorkshire Cable Group Limited

  	
   

  	
  2782818

  	
   

  
	
  Eurobell
  (Holdings) Limited

  	
   

  	
  29404215

  	
   

  
	
  Eurobell
  (Sussex) Limited

  	
   

  	
  2272340

  	
   

  
	
  Eurobell
  (South West) Limited

  	
   

  	
  1796131

  	
   

  
	
  Eurobell
  (West Kent) Limited

  	
   

  	
  2886001

  	
   

  
	
  Eurobell
  (IDA) Limited

  	
   

  	
  3373001

  	
   

  
	
  Eurobell
  Internet Services Limited

  	
   

  	
  3172207

  	
   

  
	
  Eurobell CPE
  Limited

  	
   

  	
  2742145

  	
   

  
	
  Eurobell
  Limited

  	
   

  	
  2983427

  	
   

  
	
  EMS
  Investments Limited

  	
   

  	
  3373057

  	
   

  
	
  Eurobell
  (No.2) Limited

  	
   

  	
  3405634

  	
   

  
	
  Eurobell
  (No.3) Limited

  	
   

  	
  3006948

  	
   

  
	
  Eurobell
  (No.4) Limited

  	
   

  	
  2983110

  	
   

  

 

	
  Scottish Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Telewest
  Communications (Dundee & Perth) Limited

  	
   

  	
  SC096816

  	
   

  
	
  Telewest
  Communications (Motherwell) Limited

  	
   

  	
  SC121617

  	
   

  
	
  Telewest
  Communications (Scotland Holdings) Limited

  	
   

  	
  SC150058

  	
   

  
	
  Telewest
  Communications (Scotland) Limited

  	
   

  	
  SC80891

  	
   

  

 

143

 

	
  Jersey Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Birmingham
  Cable Finance Limited

  	
   

  	
  60972

  	
   

  

 

	
  Partnership Obligors

  	
   

  	
  Principal Place of Business

  	
   

  
	
  Avon Cable
  Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Avon Cable Limited
  Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Cotswolds
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Edinburgh
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Estuaries
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  London South
  Cable Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  TCI/US WEST
  Cable Communications Group

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (London South) Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (Cotswolds) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (North East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (Scotland) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (South East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Tyneside
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  United Cable
  (London South) Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  

 

144

 

SCHEDULE 3

 

FORM OF DEED OF TRANSFER AND ACCESSION

 

To:          [•] as Facility Agent

 

This Deed is dated [•] and relates to:

 

(a)           the second lien
facility agreement dated [•] (as from
time to time amended, varied, novated or supplemented, the “Second Lien Facility Agreement”) whereby a
term loan facility in a maximum aggregate amount of £250,000,000 was made
available to Telewest Communications Networks Limited and Telewest Global
Finance LLC under the guarantee of the Guarantors, by a group of banks and
other financial institutions on whose behalf [                              ] acts as Facility Agent in connection
therewith;

 

(b)           the Principal
Intercreditor Deed;

 

[(c)          the
TGD Intercreditor Agreement; [;
and]]

 

[(d)          the [                  ] intercreditor agreement dated [               ]
and between
[               ]
(the “[               ]
Intercreditor Agreement”).](1)

 

1.             Terms defined in
the Second Lien Facility Agreement shall, subject to any contrary indication,
have the same meanings in this Deed.  The
terms “Lender”, “Transferee”, “Lender’s Participation” and “Portion Transferred”
are defined in the Schedule to this Deed.

 

2.             The Lender:

 

(a)           confirms that the
details in the Schedule to this Deed are an accurate summary of the Lender’s
Participation in the Second Lien Facility Agreement and the Interest Periods
for existing Advances as at the date of this Deed; and

 

(b)           requests the
Transferee to accept and procure the transfer by novation to the Transferee of
the Portion Transferred by countersigning and delivering this Deed to the
Facility Agent at its address for the service of notices designated to the
Facility Agent in accordance with the Second Lien Facility Agreement.

 

3.             The Transferee
requests the Facility Agent to accept this Deed as being delivered to the
Facility Agent pursuant to and for the purposes of Clause 31.5 (Transfer Deed) of the Second Lien
Facility Agreement so as to take effect in accordance with the terms of it on
the Transfer Date or on such later date as may be determined in accordance with
the terms of it.

 

4.             The Transferee
confirms that it has received a copy of the Second Lien Facility Agreement and
each of the Intercreditor Deeds listed above together with such other
information as it has required in connection with this transaction and that it
has not relied and will not rely on the Lender to check or enquire on its
behalf into the legality, validity, effectiveness, adequacy, accuracy or
completeness of any such information and further agrees that it has not relied
and will not rely on the Lender to assess or keep under review on its behalf
the financial condition, creditworthiness, condition, affairs, status or nature
of any Obligor.

 

5.             The Transferee
undertakes with the Lender and each of the other parties to the Second Lien
Facility Agreement that it will perform in accordance with their terms all
those obligations

 

(1)           Delete or complete as
appropriate.

 

145

 

which by the terms of the Finance Documents will be
assumed by it after delivery of this Deed to the Facility Agent and
satisfaction of the conditions (if any) subject to which this Deed is expressed
to take effect.

 

6.             The Lender makes no
representation or warranty and assumes no responsibility with respect to the
legality, validity, effectiveness, adequacy or enforceability of the Second
Lien Facility Agreement, any other Finance Document or other document relating
to it and assumes no responsibility for the financial condition of any Obligor
or for the performance and observance by any Obligor of any of its obligations
under the Second Lien Facility Agreement, any Finance Document or any other
document relating to it and any and all such conditions and warranties, whether
express or implied by Law or otherwise, are excluded.

 

7.             The Lender gives
notice that nothing in this Deed or in the Second Lien Facility Agreement (or
any Finance Document or other document relating to it) shall oblige the Lender
(a) to accept a re-transfer from the Transferee of the whole or any part of its
rights, benefits and/or obligations under the Finance Documents transferred
pursuant to this Deed or (b) to support any losses directly or indirectly
sustained or incurred by the Transferee for any reason whatsoever (including
the failure by any Obligor or any other party to the Finance Documents (or any
document relating to them) to perform its obligations under any such document)
and the Transferee acknowledges the absence of any such obligation as is
referred to in (a) and (b) above.

 

8.             [The
Transferee is a UK Non-Bank Lender and falls within paragraph [(a)/(b)]* of the
definition thereof.].

 

OR

 

[The Transferee is a UK Bank
Lender.]

 

OR

 

[The Transferee is a UK Treaty
Lender.]

 

9.             [Any
Transferee which is a UK Non-Bank Lender will provide evidence reasonably
satisfactory to TCN that
it is a UK Non-Bank Lender, assuming, for this purpose, that no direction under
section 349C of the Taxes Act will be given by the Inland Revenue in
relation to interest payments on any Advance by that Transferee.]

 

ACCESSION
TO THE PRINCIPAL INTERCREDITOR DEED

 

The Transferee
hereby agrees with each other person who is or becomes party to the Principal
Intercreditor Deed in accordance with the terms thereof that with effect on and
from the date hereof, it will be bound by the Principal Intercreditor Deed as a
Second Lien TCN Group Lender as if it had been an original party thereto in
such capacity.

 

[ACCESSION
TO THE TGD INTERCREDITOR AGREEMENT

 

The Transferee
hereby agrees with each other person who is or becomes party to the TGD Intercreditor
Agreement in accordance with the terms thereof that with effect on and from the
date hereof, it will be bound by the TGD Intercreditor Agreement as a [TGD Creditor] as if it had been an original party thereto in such
capacity.](2)

 

*              Delete
as appropriate.

 

(2)           Delete if inapplicable.

 

146

[ACCESSION
TO THE [OTHER APPLICABLE] INTERCREDITOR
AGREEMENT

 

The Transferee hereby agrees
with each other person who is or becomes party to the [                      ]
Intercreditor Agreement in accordance with the terms thereof that
with effect on and from the date hereof, it will be bound by the [                             ]
Intercreditor Agreement as a TCN Group Lender as if it had been an
original party thereto in such capacity.](3)

 

This Deed and the
rights, benefits and obligations of the parties hereunder shall be governed by
and construed in accordance with English Law.

 

IN
WITNESS WHEREOF this Deed has been executed
as a deed by the parties hereto and is delivered on the date written above.

 

(3)           Delete or complete as
appropriate.

 

147

 

THE
SCHEDULE

 

	
  1.

  	
   

  	
  Lender:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Transferee:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Transfer Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [4.

  	
   

  	
  Lender’s
  Participation in Facility                                         Portion
  Transferred

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Lender’s
  Available Commitment

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  US Borrower

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  TCN

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  or

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [4.

  	
   

  	
  Lender’s
  Participation in Outstandings

  	
   

  	
  Interest
  Period

  	
   

  	
  Portion

  Transferred

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  US Borrower

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  TCN

  	
   

  	
   

  	
   

  	
   

  

 

148

 

	
  The
  Lender

  	
  The Transferee

  
	
   

  	
   

  
	
  EXECUTED
  as a DEED by

  	
  EXECUTED
  as a DEED by

  
	
   

  	
   

  
	
  [•] for
  and on

  	
  [•] for
  and on

  
	
   

  	
   

  
	
  behalf
  of [•]

  	
  behalf
  of [•]

  

 

Administrative
Details of Transferee and its Facility Office

 

Facility Office
Address:

 

Contact Name:

 

Account for
Payments:

 

Fax:

 

Telephone:

 

Email address:

 

Registered address
of the office having the beneficial ownership of the Participation (if
different from the address for the Facility Office):

 

149

 

SCHEDULE 4

 

PART 1 - CONDITIONS
PRECEDENT TO FIRST UTILISATION

 

1.             Corporate Documents

 

In relation to each
Original Obligor:

 

(a)           a copy of its up to
date constitutional documents (including, in the case of those Original
Obligors that are partnerships, the Partnership Agreements), together with a
copy of any written resolution requested by the Facility Agent prior to the
date of this Agreement relating to any amendments to such constitutional
documents;

 

(b)           a copy of a board
resolution or a manager’s or partner’s resolution of such person approving the
execution, delivery and performance of the Finance Documents to which it is
party and the terms and conditions of such Finance Documents and authorising a
person or persons identified by name or office to sign the Finance Documents to
which it is party and any documents to be delivered by such person pursuant to
it;

 

(c)           a duly completed
certificate of a duly authorised officer of such person in the form attached in
Part 2 of Schedule 4 (Form of Certificate of
Obligor); and

 

(d)           copy
resolutions signed by all the holders of the issued shares of the Jersey
Obligor and the Scottish Obligors approving the terms of, and the transactions
contemplated by, the Finance Documents to which each such Obligor is a party.

 

2.             Authorisations and Clearances

 

A copy of each
Necessary Authorisation as is, in the reasonable opinion of counsel to the
Lenders, necessary to render the Finance Documents to which each Original
Obligor is party legal, valid, binding and enforceable, to make the Finance
Documents to which each Original Obligor is party admissible in evidence in
such Original Obligor’s jurisdiction of incorporation and in England and to
enable such Original Obligor to perform its obligations thereunder, save in
each case, for any registration or recording required for the perfection of the
Security Documents and subject to the Reservations (to the extent applicable).

 

3.             Financial Statements

 

A copy of the Original
Financial Statements.

 

4.             Fees

 

Original duly
executed copies of the Fee Letters and evidence that all fees and expenses
(excluding legal fees) due and payable under this Agreement or in connection
with this Agreement as at the date of Utilisation, the quantum of which have been
notified to TCN in
writing no less than two Business
Days prior to the Closing Date, have been or, simultaneously with the
Utilisation, will be paid.

 

5.             Finance Documents

 

Original duly
executed copies of:

 

(a)           this Agreement;

 

(b)           the Senior Facilities
Agreement;

 

(c)           the Principal
Intercreditor Deed;

 

150

 

(d)           the Initial
Security Documents; and

 

(e)           the
Barclays Intercreditor Agreement.

 

6.             Group Structure Chart

 

A copy of a chart
showing the structure of the TCN Group (including any Joint Ventures) and the
Holding Companies of TCN
evidencing all material ownership interests (including the matters set forth in
paragraphs (b), (c) and (d) of Clause 15.18 (Structure))
thereof as at the Closing Date.

 

7.             Existing Encumbrances and Indebtedness

 

Evidence
satisfactory to the Facility Agent that:

 

(a)           unless otherwise
agreed with the facility agent in respect of the Existing Credit Facility, a
notice of prepayment in full has been delivered by TCN to such facility agent and
that all amounts of principal, interest, fees, commissions and any other
amounts due and outstanding under the Existing Credit Facility and any other
agreements entered into in connection therewith have been or will be repaid in
full and all commitments thereunder have been or will be cancelled and reduced
to zero, in each case, on the Closing Date; and

 

(b)           all Existing
Encumbrances set out in Part 1A of Schedule 10 (Existing
Encumbrances) will within 10 days of the Closing Date be, released or
discharged.

 

8.             Legal Opinions

 

An opinion of:

 

(a)           White & Case,
London, legal advisers to the Facility Agent and the Mandated Lead Arrangers on
matters of English law;

 

(b)           White & Case,
New York, legal advisers to the Facility Agent and the Mandated Lead Arrangers
on matters of New York law

 

(c)           Fried, Frank,
Harris, Shriver & Jacobson (London) LLP, legal advisers to the US Borrower
on matters of New York law;

 

(d)           Dundas
& Wilson CS, legal advisers to the Facility Agent and the Mandated Lead
Arrangers on matters of Scots law;

 

(e)           Mourant
du Feu & Jeune, legal advisers to the Facility Agent and the Mandated Lead
Arrangers on matters of Jersey law; and

 

(f)            Morrison &
Foerster LLP, legal advisers to the Facility Agent and the Mandated Lead
Arrangers on matters of Colorado law,

 

in each case
addressed to the Finance Parties and in substantially the form agreed prior to
the date of this Agreement.

 

9.             Existing Hedging Agreements

 

Copies of each of
the Existing Hedging Agreements.

 

10.          TCN
Short Term Notes

 

A copy of the TCN
Short Term Notes.

 

151

 

PART 2 - FORM OF
CERTIFICATE OF OBLIGOR

 

To:          [                              ] (as Facility Agent)

 

We refer to the
second lien facility agreement dated [•] (as from time
to time amended, varied, novated or supplemented, the “Second Lien Facility Agreement”) and made
between Telewest UK Limited, Telewest Communications Networks Limited, Barclays
Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse First
Boston, Deutsche Bank AG London and The Royal Bank of Scotland plc as Mandated
Lead Arrangers, Barclays Bank PLC as Facility Agent, US Paying Agent and
Security Trustee and the financial and other institutions named in it as
Lenders.  Terms defined in the Second
Lien Facility Agreement shall have the same meanings in this Certificate.

 

I, [name], a Director/Partner/Officer of [name of Obligor] of [address] (the “Company”/the
“Partnership”(1))

 

CERTIFY
without personal liability, that:

 

(a)           attached to this
Certificate marked “A” are true,
correct, complete and up-to-date copies of all documents which contain or
establish or relate to the [constitution
of the Company]/[due formation of the Partnership];

 

(b)           attached to this
Certificate marked “B” is a true,
correct and complete copy of resolutions duly passed [at a meeting of the [Board
of Directors]  [managers] [partners] or the equivalent thereof duly convened
and held on [                   ]
[by a written resolution of the [Company/Partnership] approving the Finance Documents to which
the [Company/Partnership] is a party and authorising their
execution, signature, delivery and performance and such resolutions have not
been amended, modified or revoked and are in full force and effect;

 

(c)           [attached
to this Certificate and marked “C”
is a true, correct and complete copy of all the Necessary Authorisations
referred to in paragraph 2 of Part 1 of Schedule 4 (Conditions
Precedent to Utilisation) / paragraph 3 of Part 2 of Schedule 7
(Accession Documents);](1)

 

(d)           [attached
to this Certificate marked “D” is
a true, complete and correct copy of the acceptance by the agent in England of
its appointment as agent of the [Company/Partnership] for the purpose of accepting service of
process.  I confirm that such agent’s
appointment remains in force as at the date of this Certificate;](2)

 

(e)           the
entry into and performance of the Finance Documents by the [Company/Partnership] will not breach any borrowing or other
Indebtedness limit to which the [Company/Partnership] is subject other than any such limit
imposed by the Existing Credit Facility; and

 

(f)            subject to the
Reservations, the execution, delivery and performance of the Accession Notice
and the performance by the [Company/Partnership] of its obligations under the Finance
Documents and any other agreement or document executed pursuant thereto does
not breach any agreement binding on the [Company/Partnership] in any manner that could reasonably be
expected to have a Material Adverse Effect, and all Necessary Authorisations in
connection therewith have been obtained and are current, except where any
failure to maintain any Necessary Authorisations in full force and effect, any
non compliance or any proceedings or

 

(1)           delete
as appropriate.

 

(2)           To be given by any
Obligor which is not incorporated or established in England.

 

152

 

revocations in respect thereof could not reasonably be
expected to have a Material Adverse Effect.

 

The following
signatures are the true signatures of the persons who have been authorised to
sign the relevant Finance Documents on behalf of the [Company/Partnership]
and to give notices and communications, (including Utilisation Requests), under
or in connection with the Finance Documents on behalf of the [Company/Partnership].

 

153

 

	
  Name

  	
   

  	
  Position

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [•]

  	
   

  	
  [•]

  	
   

  	
  [•]

  

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  Director/Partner/Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  [•]

  	
   

  

 

I, [name], a [Director/Secretary/Partner] of [name of Obligor] (the “Company”/the “Partnership”(1)), certify that the persons whose names and
signatures are set out above are duly appointed [directors/partners/officers]
of the [Company/Partnership] and that the signatures of each of them
above are their respective signatures.

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  [Director/Secretary]/[Partner]

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  [•]

  	
   

  

 

(1)           delete
as appropriate

 

154

 

PART 3 - INITIAL
SECURITY DOCUMENTS

 

1.             Composite Debenture granted by each of the Obligors
incorporated in England and Wales, Scotland and Jersey in favour of the
Security Trustee.

 

2.             Share Charge Agreement granted by Telewest UK in
favour of the Security Trustee in respect of all of its shares in TCN.

 

3.             Assignment of Loans granted by Telewest UK in favour
of the Security Trustee in respect of receivables arising under any Financial
Indebtedness owed to it by members of the TCN Group.

 

4.             US Pledge Agreement granted by the US Borrower in
favour of the Security Trustee in respect of all its rights, title and interest
in and under the TCN Notes.

 

5.             Charge over Bank Account granted by TCN in respect of
the Blocked Account.

 

6.             US Share Pledge Agreement granted by TCN in favour of
the Security Trustee in respect of all of its shares in US Borrower.

 

7.             US Reimbursement and Contribution Agreement between
TCN and each of the Partnership Obligors formed in the State of Colorado.

 

8.             Scottish Bond and Floating Charges entered into by
each Obligor incorporated in Scotland in favour of the Security Trustee.

 

9.             Scottish Share Pledges entered into by each of
Telewest Limited and Telewest Communications (Scotland Holdings) Limited as
pledgors in respect of their rights and interests in the shares in those TCN
Group Obligors incorporated in Scotland.

 

10.           Jersey Share Pledge entered into by Birmingham Cable
Limited in respect of its rights and interests in the shares in Birmingham
Cable Finance Limited, together with (a) original share certificates, (b)
signed, undated transfer forms, (c) signed, undated notices of assignment and
(d) certified copies of the registers of members in respect of Birmingham Cable
Limited.

 

11.           US Pledge and Security Agreements entered into in
favour of the Security Trustee by each of the partners in each of the
Partnership Obligors formed in the State of Colorado.

 

155

 

SCHEDULE 5

 

PART 1 - FORM OF
UTILISATION REQUEST

 

From:      Telewest
Communications Networks Limited (“TCN”)
/Telewest Global Finance LLC (“TGF”)

 

To:          [        ]

as Facility Agent

 

Date:

 

Dear Sirs

 

We refer to the
second lien facility agreement dated [•] (as from
time to time amended, varied, novated or supplemented, the “Second Lien Facility Agreement”) and made
between Telewest UK Limited, Telewest Communications Networks Limited, Barclays
Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse First
Boston, Deutsche Bank AG London and The Royal Bank of Scotland plc as Mandated
Lead Arrangers, Barclays Bank PLC as Facility Agent, US Paying Agent and
Security Trustee and the financial and other institutions named in it as
Lenders.  Terms defined in the Second
Lien Facility Agreement shall have the same meanings in this Utilisation
Request.

 

We, [•] and [•],
being authorised signatories of [TCN/TGF], give you notice that, pursuant to
the Second Lien Facility Agreement, we wish the Lenders to make the Advance to
us on the following terms:

 

(a)           Amount: £[•]

 

(b)           Interest Period: [•] month[s]

 

(c)           Proposed date of
Advance: [•] (or if that day is
not a Business Day, the next Business Day)

 

We hereby inform
you that as of the date of this Utilisation Request no Default is continuing or
would result from the Advance.

 

156

 

The proceeds of
this Utilisation should be credited to [insert account details].

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  for and on behalf of

  Telewest Communications Networks Limited

  	
  Authorised
  Signatory

  for and on behalf of

  Telewest Communications Networks Limited

  

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  for and on behalf of

  Telewest Global Finance LLC

  	
  Authorised
  Signatory

  for and on behalf of

  Telewest Global Finance LLC

  

 

157

 

SCHEDULE 6

 

ASSOCIATED COSTS RATE

 

1.             On the first day of
each Interest Period (or as soon as possible thereafter) the Lender shall
determine the percentage rate per annum for such Interest Period which is the
applicable “Associated Costs Rate”
(as calculated in paragraph 2 or 3 below).

 

2.             The Associated
Costs Rate if the Lender is lending from a Facility Office in a Participating
Member State shall be the percentage certified by the Lender to the Borrowers
as being its reasonable determination of the cost (expressed as a percentage of
the Lender’s participation in all Advances made from that Facility Office) to
the Lender of complying with the minimum reserve requirements of the European
Central Bank in respect of Advances made from that Facility Office.

 

3.             The Associated
Costs Rate if the Lender is lending from a Facility Office in the United
Kingdom shall be calculated as follows:

 

	
  AB + C(B - D) + E x
  0.01

  	
   

  	
  per cent per annum

  
	
  100 - (A + C)

  	
   

  	
   

  

where:

 

A             is the percentage
of Eligible Liabilities (assuming these to be in excess of any stated minimum)
which the Lender is from time to time required to maintain as an interest free
cash ratio deposit with the Bank of England to comply with cash ratio
requirements.

 

B             is the percentage
rate of interest (excluding the Margin and the Associated Costs Rate and, if
the relevant amount is an Unpaid Sum, the additional rate of interest specified
in Clause 22.2 (Default Rate)),
payable for the relevant Interest Period in respect of the relevant Advance.

 

C             is the percentage
(if any) of Eligible Liabilities which the Lender is required from time to time
to maintain as interest bearing Special Deposits with the Bank of England.

 

D             is the percentage
rate per annum payable by the Bank of England to the Lender on interest bearing
Special Deposits.

 

E              is designed to
compensate the Lender in relation to the rate of charge payable by the Lender
to the Financial Services Authority pursuant to the Fees Rules and expressed in
pounds per £1,000,000 of the Tariff Base of the Lender.

 

4.             For the purposes of
paragraph 3 of this Schedule:

 

(a)           “Eligible Liabilities” and “Special Deposits” have the meanings given
to them from time to time under or pursuant to the Bank of England Act 1998 or
(as may be appropriate) by the Bank of England; and

 

(b)           “Fees Rules” means the rules on periodic
fees contained in the FSA Supervision Manual or such other law or regulation as
may be in force from time to time in respect of the payment of fees for the
acceptance of deposits.

 

5.             In application of
the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5% will be included in the formula as 5 and not as
0.05).  A negative result obtained by
subtracting D from B shall be taken as zero. 
The resulting figures shall be rounded to 4 decimal places.

 

158

 

6.             For the purposes of
paragraph 3 of this Schedule:

 

(a)           “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under the activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules
but taking into account any applicable discount rate); and

 

(b)           “Tariff Base” has the meaning given to it,
and will be calculated in accordance with, the Fees Rules.

 

7.             Any determination
by the Lender pursuant to this Schedule in relation to a formula, an
Associated Costs Rate or any amount payable to the Lender shall, in the absence
of manifest error, be conclusive and binding on the Borrowers and the Lender.

 

8.             The Lender may from
time to time, after consultation with the Borrowers specify any amendments
which are required to be made to this Schedule in order to comply with any
change in Law, regulation or any requirements from time to time imposed by the
Bank of England, the Financial Services Authority or the European Central Bank
(or, in any case, any other authority which replaces all or any of its
functions) and any such determination shall, in the absence of manifest error,
be conclusive and binding on all the parties to this Agreement.

 

159

 

SCHEDULE 7

 

PART 1 - FORM OF ACCESSION NOTICE

 

THIS
ACCESSION NOTICE is entered into on [•] by [insert name of
Subsidiary/Partnership] (the “Proposed Guarantor”) and Telewest
Communications Networks Limited by way of a deed in favour of the Facility
Agent, the Mandated Lead Arrangers and the Lenders (each as defined in the
Second Lien Facility Agreement referred to below).

 

BACKGROUND

 

A             By a second lien
facility agreement dated [•] (as
from time to time amended, varied, novated or supplemented, the “Second Lien Facility Agreement”) and made between Telewest
UK Limited as Parent, Telewest Communications Networks Limited as Borrower,
Barclays Capital, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse
First Boston, Deutsche Bank AG London and The Royal Bank of Scotland plc as
Mandated Lead Arrangers, Barclays Bank PLC as Facility Agent, US Paying Agent
and Security Trustee and the financial and other institutions named in it as
Lenders, the Lenders agreed to make a term facility available to the Borrowers.

 

[B            Telewest
LLC is required to accede to the Facilities Agreement as a Borrower and
Guarantor pursuant to Clause 20.1 (The US
Borrower) of the Facilities Agreement.]

 

or

 

[B            TCN
has requested that the Proposed Guarantor become an Acceding Guarantor pursuant
to Clause 20.2 (Acceding Guarantors) of the
Facilities Agreement.]

 

NOW
THIS DEED WITNESS AS FOLLOWS:

 

1.             Terms defined in
the Second Lien
Facility Agreement have the same meanings in this Accession
Notice.

 

2.             The Proposed
Guarantor is a company [or specify other type of entity] duly
incorporated, established or organised under the laws of [insert relevant jurisdiction].

 

3.             [Telewest LLC/The
Proposed Guarantor] confirms that it has received from TCN a true and
up-to-date copy of the Second
Lien Facility Agreement and the other Finance Documents.

 

4.             [Telewest LLC/The
Proposed Guarantor] undertakes, upon its becoming a party to the Second Lien Facility
Agreement, to perform all the obligations expressed to be undertaken under the Second Lien Facility
Agreement and the other Finance Documents by a [Borrower and a] Guarantor and agrees that it shall be bound
by the Second Lien
Facility Agreement and the other Finance Documents in all
respects as if it had been an original party to them as [the US Borrower and]
an Original Guarantor.

 

5.             TCN:

 

(a)           repeats the
Repeating Representations identified as being made by it under Clause 15
(Representations and Warranties) upon the date [Telewest LLC/the Proposed
Guarantor] accedes to the Second Lien Facility Agreement; and

 

(b)           confirms that no
Default [(other than any Default
which will be remedied by the accession of the Acceding Guarantor and each
other person acceding as a Guarantor on or about the date of this Accession
Notice)] is continuing or will
occur as a result

 

160

 

of [Telewest LLC/the Proposed Guarantor] becoming [a
Borrower and] an Acceding Guarantor.

 

6.             [Telewest LLC/The
Proposed Guarantor] makes, in relation to itself, the representations and
warranties expressed to be made by [the US Borrower/a Guarantor] in Clause 15 (Representations and Warranties) of the Second Lien Facility
Agreement.]

 

7.             [Telewest LLC/the
Proposed Guarantor] confirms that it has appointed (and TCN confirms by its
signature below its acceptance of such appointment) Telewest Communications
Networks Limited to be its process agent for the purposes of accepting service
of Proceedings on it.](4)

 

8.             The Proposed Guarantor’s administrative details for the
purposes of the Second
Lien Facility Agreement are as follows:

 

Address:

 

Contact:

 

Telephone No:

 

Fax No:

 

9.             This Accession
Notice and the rights, benefits and obligations of the parties under this
Accession Notice shall be governed by and construed in accordance with English
Law.

 

This Accession
Notice has been executed as a Deed by TCN and [Telewest LLC/the
Proposed Guarantor] and signed by the Facility Agent on the date written at the
beginning of this Accession Notice.

 

 

PROPOSED
GUARANTOR

 

EXECUTED as a DEED by

[Telewest
Global Finance LLC/Name of Proposed Guarantor]

 

acting by

 

	
  Director

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director]

  
	
   

  	
   

  	
   

  
	
  Director/Secretary

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director/secretary]]

  

 

TCN

 

(4)           Non-English entities only

 

161

 

EXECUTED as a DEED by

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

acting by

 

	
  Director

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director]

  
	
   

  	
   

  	
   

  
	
  Director/Secretary

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name of director/secretary]

  

 

 

THE
FACILITY AGENT

 

[                                         ]

 

By:

 

162

 

PART 2 - ACCESSION DOCUMENTS

 

1.             Corporate Documents

 

(a)           A copy of its
up-to-date constitutional documents.

 

(b)           A board resolution
or a manager’s resolution or a partner’s resolution of such person approving
the execution and delivery of the relevant Accession Notice, its accession to
the Second Lien
Facility Agreement as the US Borrower and/or an Acceding
Guarantor and the performance of its obligations under the Finance Documents
and authorising a person or persons identified by name or office to sign such
Accession Notice and any other documents to be delivered by it pursuant
thereto.

 

(c)           To the extent
legally necessary, a copy of a shareholders’ resolution of all the shareholders
of such person approving the execution, delivery and performance of the Finance
Documents to which it is a party and the terms and conditions to it.

 

(d)           A duly completed
certificate, of a duly authorised officer of such person in the form of Part 2
of Schedule 4 (Form of Certificate of
Obligor).

 

2.             Legal Opinions

 

Such legal opinions
as the Facility Agent may reasonably require of such legal advisers as may be
acceptable to the Facility Agent, as to:

 

(a)           the due
incorporation, capacity and authorisation of Telewest LLC or the relevant
Acceding Guarantor; and

 

(b)           the
relevant obligations to be assumed by Telewest LLC or Acceding Guarantor under
the Finance Documents to which it is a party being legal, valid, binding and
enforceable against it,

 

in each case, under
the relevant laws of the jurisdiction of organisation or establishment of
Telewest LLC or such Acceding Guarantor.

 

3.             Necessary Authorisations

 

A copy of any
Necessary Authorisation as is in, the reasonable opinion of counsel to the
Lenders necessary to render the Finance Documents to which Telewest LLC or the
Acceding Guarantor, is or is to be party legal, valid, binding and enforceable
to make the Finance Documents to which Telewest LLC or the Acceding Guarantor
is or is to be party admissible in evidence in Telewest LLC or such Acceding
Guarantor’s jurisdiction of incorporation and (if different) in England and to
enable Telewest LLC or such Acceding Guarantor to perform its obligations
thereunder, as a matter of law save, in the case of Telewest LLC or any
Acceding Guarantor, for any registrations or recordings required for the
perfection of the Security Documents and subject to the Reservations (to the
extent applicable).

 

4.             Security Documents

 

At least 2 original
copies of the US Borrower Security Documents in the case of Telewest LLC and in
the case of a proposed Acceding Guarantor any Security Documents required by
the Facility Agent, acting reasonably in accordance with the terms of this
Agreement in each case, duly executed by Telewest LLC or the proposed Acceding
Guarantor together with all documents required to be delivered pursuant to such
Security Documents provided the Acceding Guarantor shall be under no

 

163

 

obligation to
procure the granting of Security over any shares, in receivables owed by, or
any other interest in any Excluded Subsidiary or Project Company.

 

164

 

SCHEDULE 8

 

PART 1 - FORM OF QUARTERLY
COMPLIANCE CERTIFICATE

 

To:          [      ]

 

[Date]

 

Dear Sirs

 

Certificate
in respect of the [insert details of
relevant testing period] ended [insert
relevant Quarter Date] (the “Certification Date”)

 

We refer to the second lien facility agreement
dated [•] (as from time to time amended,
varied, novated or supplemented, the “Second Lien Facility Agreement”) and made between Telewest
UK Limited, Telewest Communications Networks Limited, Barclays Capital, BNP
Paribas, Citigroup Global Markets Limited, Credit Suisse First Boston, Deutsche
Bank AG London and The Royal Bank of Scotland plc as Mandated Lead Arrangers,
Barclays Bank PLC as Facility Agent, US Paying Agent and Security Trustee and
the financial and other institutions named in it as Lenders.  Terms defined in the Second Lien Facility
Agreement shall have the same meanings in this Compliance Certificate.

 

1.             This Compliance
Certificate is provided in accordance with paragraph (a) of Clause 16.4 (Compliance Certificates) of the Second Lien Facility Agreement.

 

2.             We, [•] and  [•](1), being duly authorised signatories
of TCN as at the date
of this Compliance Certificate, confirm that the financial covenants contained
in Clause 17 (Financial Condition) of the Second
Lien Facility Agreement have
been complied with as at the Certification Date.  This confirmation is based on the following
(applying the rules for calculation set out in Clause 17 (Financial Condition)):

 

(a)           The ratio of
Consolidated Net Borrowings to Consolidated Annualised TCN Group Net Operating
Cash Flow for the period ending on the Certification Date was [•].

 

(b)           The ratio of
Consolidated Annualised TCN Group Net Operating Cash Flow to Total Interest Charges for the period
ending on the Certification Date was [•].

 

(c)           The ratio of
Consolidated TCN Group Cash Flow to Consolidated
Debt Service for the period ending on the Certification Date was [•].

 

(d)           The amount of
Capital Expenditure of the TCN Group during the period to which this Compliance
Certificate relates was £[•].

 

3.             The
information contained in the Attached Working Paper has been prepared on the
basis of the same information and methodology used to prepare the appropriate
financial information.

 

4.             [The Obligors party to the
Agreement as at the Certification Date represent not less than 95% of the
Consolidated Annualised TCN Group Net Operating Cash Flow calculated as at the
Certification Date and accordingly the 95% Security Test was
satisfied as at that date.]

 

OR

 

(1)           At
least one of whom shall be a Financial Officer

 

165

 

[The Obligors party
to the Agreement as at the Certification Date represent not less than 90% of
the Consolidated Annualised TCN Group Net Operating Cash Flow calculated as at
the Certification Date and TCN is unable to procure that additional members of the
TCN Group accede to the Agreement as Obligors by reason of one or more legal
restrictions preventing such member of the TCN Group from becoming an Obligor.]

 

5.             We further confirm
that no Default is continuing as at the Certification Date.

 

6.             This Compliance
Certificate is given by the authorised signatories of TCN named below and is
given without personal liability.

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  for and on behalf of

  

  Telewest Communications Networks Limited

  	
  Authorised
  Signatory

  for and on behalf of

  

  Telewest Communications Networks Limited

  

 

166

 

PART 2 - FORM OF COMPLIANCE
CERTIFICATE FOLLOWING INTEGRATED MERGER EVENT

 

To:          [       ]

 

[Date]

 

Dear Sirs

 

Certificate
in respect of an Integrated Merger Event

 

We refer to the second lien facility agreement
dated [•] (as from time to time amended,
varied, novated or supplemented, the “Second Lien Facility Agreement”) and made between Telewest
UK Limited, Telewest Communications Networks Limited, Barclays Capital, BNP
Paribas, Citigroup Global Markets Limited, Credit Suisse First Boston Deutsche
Bank AG London and The Royal Bank of Scotland plc as Mandated Lead Arrangers,
Barclays Bank PLC as Facility Agent, US Paying Agent and Security Trustee and
the financial and other institutions named in it as Lenders.  Terms defined in the Second Lien Facility
Agreement shall have the same meanings in this Compliance Certificate.

 

1.             This Compliance
Certificate is provided in accordance with paragraph (b) of Clause 16.4 (Compliance Certificates) of the Second Lien Facility Agreement.

 

2.             We, [•] and [•](5), being authorised signatories of TCN confirm that:

 

(a)           the Integrated
Merger Event became effective on [•] (the “Effective Date”);

 

(b)           such members of the
Target Group as are necessary to ensure that paragraph (b) of the Merger Event
Conditions is satisfied have acceded to the Second Lien Facility Agreement as
Acceding Guarantors pursuant to Clause 20.1 (Acceding
Guarantors) of the Second Lien Facility Agreement;

 

(c)           the Integrated
Merger Senior Leverage Ratio as at the Effective Date did not exceed 2.95:1;

 

(d)           the
Integrated Merger Trailing Debt Coverage Ratio, calculated in accordance with
paragraph (d)(i) of the definition of “Merger Event Integration Tests” was not
less than [•];

 

(e)           the
Integrated Merger Projected Debt Coverage Ratio as at (i) the Quarter Date
ending on the first full Financial Quarter after the Effective Date is
projected in the combined business plan of the TCN Group and Target Group to be
not less than [•] and (ii) as at the end of each
subsequent Financial Quarter is projected in the enclosed combined business
plan of the TCN Group and Target Group to be not less than each of the ratios
set out in paragraph (d)(ii) of the definition of “Merger Event Integration
Tests”), in each case, calculated in accordance with paragraph (d)(ii) of the
definition of “Merger Event Integration Tests”;

 

(f)            [the ratio of projected
Consolidated Net Borrowings and Pro Forma Target Group Debt to Consolidated
Annualised TCN Group Net Operating Cash Flow and Target Group Net Operating
Cash Flow, calculated in accordance with paragraph (e) of the

 

(5)           At
least one of whom shall be a Financial Officer

 

167

 

definition of “Merger Event Integration Tests”, as at
the most recent Quarter Date prior to the Effective Date, was not less than [•];]

 

OR

 

[pursuant to our
written notice to you dated [•], we have
designated Target Group Acquisition Indebtedness in an aggregate principal
amount of £[•] as Serviceable Non-TCN Group
Debt and accordingly, we confirm that the ratio of projected Consolidated Net
Borrowings (calculated on a pro forma basis to include such Target Group
Acquisition Indebtedness) plus Pro Forma Target Group Debt to Consolidated
Annualised TCN Group Net Operating Cash Flow plus Target Group Net Operating
Cash Flow, calculated in accordance with paragraph (f) of the definition of “Merger
Event Integration Tests”, as at the most recent Quarter Date prior to the
Effective Date, was not less than [•];][and/or]

 

AND/OR

 

[(A) the amount of
Target Group Interim Indebtedness plus Target Group Financial Indebtedness
included for the purposes of the Merger Event Integration Tests exceeds the
amount of Target Group Financial Indebtedness as of the date of the
Unintegrated Merger Event; and (B) during the period between the effective date
of the Unintegrated Merger Event and the proposed effective date of the
Integrated Merger Event, the Target Group entered into or made acquisitions of businesses
or investments in joint ventures outside the ordinary course of business (in
each case excluding businesses or joint ventures acquired from or entered into
with other members of the Group and excluding acquisitions of assets made in
exchange for similar assets) or paid any dividends or distributions to any
member of the Group other than to another member of the Target Group or to a
member of the TCN Group where the consideration paid, the investments
contractually committed and the dividends or distributions paid in aggregate
exceeded £250,000,000 (or its equivalent in other currencies)] [and]

 

(g)           the
ratio of Consolidated Annualised TCN Group Net Operating Cash Flow plus Target
Group Net Operating Cash Flow to Total Interest Charges plus Pro Forma Target
Group Total Interest Charges, calculated in accordance with paragraph (g) of
the definition of “Merger Event Integration Tests”, as at the most recent
Quarter Date prior to the Effective Date, was not less than [•].

 

[Set
out confirmations of each element required to determine each ratio]

 

4.             This Compliance
Certificate is given by the authorised signatories of TCN named below and is
given without personal liability.

 

Yours faithfully,

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  for and on behalf of

  

  Telewest Communications Networks Limited

  	
  Authorised
  Signatory

  for and on behalf of

  

  Telewest Communications Networks Limited

  

 

168

 

SCHEDULE 9

 

PART 1 - MEMBERS
OF THE TCN GROUP

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  	
   

  
	
  Avon Cable
  Investments Limited

  	
   

  	
  ENG

  	
   

  	
  02487110

  	
   

  
	
  Avon Cable Joint Venture

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  
	
  Avon Cable
  Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Barnsley
  Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2466594

  	
   

  
	
  Birmingham
  Cable Corporation Limited

  	
   

  	
  ENG

  	
   

  	
  2170379

  	
   

  
	
  Birmingham
  Cable Finance Limited

  	
   

  	
  JERSEY

  	
   

  	
  60972

  	
   

  
	
  Birmingham
  Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2244565

  	
   

  
	
  Blue Yonder
  Workwise Limited

  	
   

  	
  ENG

  	
   

  	
  4055742

  	
   

  
	
  Bradford
  Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2664803

  	
   

  
	
  Cable Adnet
  Limited

  	
   

  	
  ENG

  	
   

  	
  3283202

  	
   

  
	
  Cable Camden
  Limited

  	
   

  	
  ENG

  	
   

  	
  01795642

  	
   

  
	
  Cable
  Communications (Telecom) Limited

  	
   

  	
  ENG

  	
   

  	
  02423585

  	
   

  
	
  Cable
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  01860121

  	
   

  
	
  Cable
  Enfield Limited

  	
   

  	
  ENG

  	
   

  	
  02466511

  	
   

  
	
  Cable
  Finance Limited

  	
   

  	
  JERSEY

  	
   

  	
  FC61656

  	
   

  
	
  Cable Guide
  Limited

  	
   

  	
  ENG

  	
   

  	
  2025654

  	
   

  
	
  Cable
  Hackney & Islington Limited

  	
   

  	
  ENG

  	
   

  	
  01795641

  	
   

  
	
  Cable
  Haringey Limited

  	
   

  	
  ENG

  	
   

  	
  01808589

  	
   

  
	
  Cable
  Interactive Limited

  	
   

  	
  ENG

  	
   

  	
  03006851

  	
   

  
	
  Cable
  Internet Limited

  	
   

  	
  ENG

  	
   

  	
  3085918

  	
   

  
	
  Cable London
  Limited

  	
   

  	
  ENG

  	
   

  	
  01794264

  	
   

  
	
  Cable on
  Demand Limited

  	
   

  	
  ENG

  	
   

  	
  03039816

  	
   

  
	
  Capital City
  Cablevision Limited

  	
   

  	
  ENG

  	
   

  	
  SC80665

  	
   

  
	
  Central
  Cable Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  3008567

  	
   

  
	
  Central
  Cable Limited

  	
   

  	
  ENG

  	
   

  	
  3008681

  	
   

  
	
  Central
  Cable Sales Limited

  	
   

  	
  ENG

  	
   

  	
  2985669

  	
   

  
	
  Chariot
  Collection Services Limited (dormant)

  	
   

  	
  ENG

  	
   

  	
  3155349

  	
   

  
	
  Cobweb
  Business Solutions Limited

  	
   

  	
  ENG

  	
   

  	
  04523555

  	
   

  
	
  Cotswolds
  Cable Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Crystal
  Palace Radio Limited

  	
   

  	
  ENG

  	
   

  	
  01459745

  	
   

  
	
  Crystalvision
  Productions Limited

  	
   

  	
  ENG

  	
   

  	
  01947225

  	
   

  

 

169

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  	
   

  
	
  Doncaster Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2407940

  	
   

  
	
  Dundee Cable
  & Satellite

  	
   

  	
  ENG

  	
   

  	
  SC093114

  	
   

  
	
  Edinburgh
  Cable Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Edinburgh
  Cablevision Limited

  	
   

  	
  ENG

  	
   

  	
  SC078895

  	
   

  
	
  EMS
  Investments Limited

  	
   

  	
  ENG

  	
   

  	
  3373057

  	
   

  
	
  Estuaries
  Cable Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Eurobell
  (Holdings) Limited

  	
   

  	
  ENG

  	
   

  	
  2904215

  	
   

  
	
  Eurobell
  (IDA) Limited

  	
   

  	
  ENG

  	
   

  	
  3373001

  	
   

  
	
  Eurobell
  (No.2) Limited

  	
   

  	
  ENG

  	
   

  	
  3405634

  	
   

  
	
  Eurobell
  (No.3) Limited

  	
   

  	
  ENG

  	
   

  	
  3006948

  	
   

  
	
  Eurobell
  (No.4) Limited

  	
   

  	
  ENG

  	
   

  	
  2983110

  	
   

  
	
  Eurobell
  (South West) Limited

  	
   

  	
  ENG

  	
   

  	
  1796131

  	
   

  
	
  Eurobell
  (Sussex) Limited

  	
   

  	
  ENG

  	
   

  	
  2272340

  	
   

  
	
  Eurobell
  (West Kent) Limited

  	
   

  	
  ENG

  	
   

  	
  2886001

  	
   

  
	
  Eurobell CPE
  Limited

  	
   

  	
  ENG

  	
   

  	
  2742145

  	
   

  
	
  Eurobell
  Internet Services Limited

  	
   

  	
  ENG

  	
   

  	
  3172207

  	
   

  
	
  Eurobell
  Limited

  	
   

  	
  ENG

  	
   

  	
  2983427

  	
   

  
	
  European
  Business Network Limited (dormant)

  	
   

  	
  ENG

  	
   

  	
  2146363

  	
   

  
	
  Fastrak
  Limited

  	
   

  	
  ENG

  	
   

  	
  1804294

  	
   

  
	
  Filegale
  Limited

  	
   

  	
  ENG

  	
   

  	
  2804553

  	
   

  
	
  Front Row
  Television Limited

  	
   

  	
  ENG

  	
   

  	
  3261331

  	
   

  
	
  General
  Cable Group Limited

  	
   

  	
  ENG

  	
   

  	
  2872852

  	
   

  
	
  General
  Cable Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2798236

  	
   

  
	
  General
  Cable Investments Limited

  	
   

  	
  ENG

  	
   

  	
  2885920

  	
   

  
	
  General
  Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2369824

  	
   

  
	
  General
  Cable Programming Limited

  	
   

  	
  ENG

  	
   

  	
  2906200

  	
   

  
	
  Halifax Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2459173

  	
   

  
	
  Hieronymous Limited

  	
   

  	
  ENG

  	
   

  	
  SC80135

  	
   

  
	
  Imminus (Ireland) Limited

  	
   

  	
  ENG

  	
   

  	
  267096

  	
   

  
	
  Imminus
  Limited

  	
   

  	
  ENG

  	
   

  	
  1785381

  	
   

  
	
  Lewis Reed
  Debt Recovery Limited

  	
   

  	
  ENG

  	
   

  	
  3008683

  	
   

  
	
  London South
  Cable Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Matchco
  Directors Limited

  	
   

  	
  ENG

  	
   

  	
  3840851

  	
   

  
	
  MatchCo
  Limited

  	
   

  	
  ENG

  	
   

  	
  3405630

  	
   

  

 

170

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  	
   

  
	
  Matchco
  Secretaries Limited

  	
   

  	
  ENG

  	
   

  	
  4038220

  	
   

  
	
  Mayfair Way
  Management Limited

  	
   

  	
  ENG

  	
   

  	
  2681702

  	
   

  
	
  Middlesex
  Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2460325

  	
   

  
	
  Northern
  Credit Limited

  	
   

  	
  ENG

  	
   

  	
  2743896

  	
   

  
	
  Perth Cable
  Television Limited

  	
   

  	
  ENG

  	
   

  	
  SC032627

  	
   

  
	
  Rapture TV
  Limited Joint Venture (in liquidation)

  	
   

  	
  ENG

  	
   

  	
  3196831

  	
   

  
	
  Rotherham
  Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2455726

  	
   

  
	
  Sheffield
  Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2465953

  	
   

  
	
  Silverlink
  Business Management Limited

  	
   

  	
  ENG

  	
   

  	
  03535390

  	
   

  
	
  Southwestern
  Bell International Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2378768

  	
   

  
	
  TCI US West
  Cable Communications Group

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Telewest
  Carrier Services Limited

  	
   

  	
  ENG

  	
   

  	
  2475098

  	
   

  
	
  Telewest
  Communications (Central Lancashire) Limited

  	
   

  	
  ENG

  	
   

  	
  1737862

  	
   

  
	
  Telewest
  Communications (Cotswold) Limited

  	
   

  	
  ENG

  	
   

  	
  1743081

  	
   

  
	
  Telewest
  Communications (Cotwolds) Venture

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  
	
  Telewest
  Communications (Cumbenauld) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121614

  	
   

  
	
  Telewest
  Communications (Dumbarton) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121700

  	
   

  
	
  Telewest
  Communications (Dundee and Perth) Limited

  	
   

  	
  ENG

  	
   

  	
  SC096816

  	
   

  
	
  Telewest
  Communications (East Lothian and Fife) Limited

  	
   

  	
  ENG

  	
   

  	
  SC150057

  	
   

  
	
  Telewest
  Communications (Falkirk) Limited

  	
   

  	
  ENG

  	
   

  	
  SC122481

  	
   

  
	
  Telewest
  Communications (Fylde & Wyre) Limited

  	
   

  	
  ENG

  	
   

  	
  02935056

  	
   

  
	
  Telewest
  Communications (Glenrothes) Limited

  	
   

  	
  ENG

  	
   

  	
  SC119523

  	
   

  
	
  Telewest
  Communications (Internet) Limited

  	
   

  	
  ENG

  	
   

  	
  03141035

  	
   

  
	
  Telewest
  Communications (Liverpool) Limited

  	
   

  	
  ENG

  	
   

  	
  1615567

  	
   

  
	
  Telewest
  Communications (London South) Joint Venture

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  
	
  Telewest
  Communications (London South) Limited

  	
   

  	
  ENG

  	
   

  	
  1697437

  	
   

  
	
  Telewest
  Communications (Midlands & North West) Limited

  	
   

  	
  ENG

  	
   

  	
  2795350

  	
   

  
	
  Telewest
  Communications (Midlands) Limited

  	
   

  	
  ENG

  	
   

  	
  1882074

  	
   

  
	
  Telewest
  Communications (Motherwell) Limited

  	
   

  	
  ENG

  	
   

  	
  SC121617

  	
   

  
	
  Telewest
  Communications (Nominees) Limited

  	
   

  	
  ENG

  	
   

  	
  2318746

  	
   

  
	
  Telewest
  Communications (North East) Limited

  	
   

  	
  ENG

  	
   

  	
  2378214

  	
   

  
	
  Telewest
  Communications (North East) Partnership

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  

 

171

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  	
   

  
	
  Telewest Communications (North West) Limited

  	
   

  	
  ENG

  	
   

  	
  2321124

  	
   

  
	
  Telewest Communications (Publications) Limited

  	
   

  	
  ENG

  	
   

  	
  03860829

  	
   

  
	
  Telewest Communications (Scotland) Limited

  	
   

  	
  ENG

  	
   

  	
  SC80891

  	
   

  
	
  Telewest Communications (Scotland Holdings) Limited

  	
   

  	
  ENG

  	
   

  	
  SC150058

  	
   

  
	
  Telewest Communications (Scotland) Venture

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  
	
  Telewest Communications (South East) Limited

  	
   

  	
  ENG

  	
   

  	
  2270764

  	
   

  
	
  Telewest Communications (South East) Partnership

  	
   

  	
  ENG

  	
   

  	
  -

  	
   

  
	
  Telewest Communications (South Thames Estuary)
  Limited

  	
   

  	
  ENG

  	
   

  	
  2270763

  	
   

  
	
  Telewest Communications (South West) Limited

  	
   

  	
  ENG

  	
   

  	
  2271287

  	
   

  
	
  Telewest Communications (Southport) Limited

  	
   

  	
  ENG

  	
   

  	
  03085912

  	
   

  
	
  Telewest Communications (St Helens & Knowsley)
  Limited

  	
   

  	
  ENG

  	
   

  	
  2466599

  	
   

  
	
  Telewest Communications (Taunton & Bridgewater)
  Limited

  	
   

  	
  ENG

  	
   

  	
  3184760

  	
   

  
	
  Telewest Communications (Telford) Limited

  	
   

  	
  ENG

  	
   

  	
  2389377

  	
   

  
	
  Telewest Communications (Tyneside) Limited

  	
   

  	
  ENG

  	
   

  	
  2407676

  	
   

  
	
  Telewest Communications (Wigan) Limited

  	
   

  	
  ENG

  	
   

  	
  2451112

  	
   

  
	
  Telewest Communications Cable Limited

  	
   

  	
  ENG

  	
   

  	
  2883742

  	
   

  
	
  Telewest Communications Group Limited

  	
   

  	
  ENG

  	
   

  	
  2514287

  	
   

  
	
  Telewest Communications Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2982404

  	
   

  
	
  Telewest Communications Networks Limited

  	
   

  	
  ENG

  	
   

  	
  3071086

  	
   

  
	
  Telewest Communications Services Limited

  	
   

  	
  ENG

  	
   

  	
  2415291

  	
   

  
	
  Telewest Health Trustees Limited

  	
   

  	
  ENG

  	
   

  	
  3936764

  	
   

  
	
  Telewest Limited

  	
   

  	
  ENG

  	
   

  	
  03291383

  	
   

  
	
  Telewest Parliamentary Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2514316

  	
   

  
	
  Telewest Share Trust Limited

  	
   

  	
  ENG

  	
   

  	
  02472760

  	
   

  
	
  Telewest Trustees Limited

  	
   

  	
  ENG

  	
   

  	
  03071066

  	
   

  
	
  Telewest Workwise Limited

  	
   

  	
  ENG

  	
   

  	
  4055744

  	
   

  
	
  The Cable Corporation Equipment Limited

  	
   

  	
  ENG

  	
   

  	
  2116958

  	
   

  
	
  The Cable Corporation Limited

  	
   

  	
  ENG

  	
   

  	
  2075227

  	
   

  
	
  The Cable Equipment Store Limited

  	
   

  	
  ENG

  	
   

  	
  2693805

  	
   

  
	
  The North London Channel Limited

  	
   

  	
  ENG

  	
   

  	
  02527764

  	
   

  
	
  The Yorkshire Cable Group Limited

  	
   

  	
  ENG

  	
   

  	
  2782818

  	
   

  
	
  Theseus No.1 Limited

  	
   

  	
  ENG

  	
   

  	
  02994027

  	
   

  

 

172

 

	
  Name

  	
   

  	
  Jurisdiction of

  Incorporation/

  Organization

  	
   

  	
  Company number

  (if applicable)

  	
   

  
	
  Theseus No.2 Limited

  	
   

  	
  ENG

  	
   

  	
  02994061

  	
   

  
	
  Tyneside Cable Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  United Cable (London South) Limited Partnership

  	
   

  	
  US

  	
   

  	
  -

  	
   

  
	
  Wakefield Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2400909

  	
   

  
	
  West Midlands Credit Limited

  	
   

  	
  ENG

  	
   

  	
  2989858

  	
   

  
	
  Windsor Television Limited

  	
   

  	
  ENG

  	
   

  	
  1745542

  	
   

  
	
  Yorkshire Cable Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2490136

  	
   

  
	
  Yorkshire Cable Finance Limited

  	
   

  	
  ENG

  	
   

  	
  2993376

  	
   

  
	
  Yorkshire Cable Limited

  	
   

  	
  ENG

  	
   

  	
  02792601

  	
   

  
	
  Yorkshire Cable Properties Limited

  	
   

  	
  ENG

  	
   

  	
  02951884

  	
   

  
	
  Yorkshire Cable Telecom Limited

  	
   

  	
  ENG

  	
   

  	
  2743897

  	
   

  

 

173

 

PART 2 - MEMBERS OF THE
FLEXTECH GROUP

 

	
  Name

  	
   

  	
  Jurisdiction
  of

  Incorporation

  	
   

  	
  Company

  number (if

  applicable)

  	
   

  
	
  Flextech
  Broadcasting Limited

  	
   

  	
  ENG

  	
   

  	
  04125325

  	
   

  
	
  UK Living Limited

  	
   

  	
  ENG

  	
   

  	
  02802598

  	
   

  
	
  Starstream
  Limited

  	
   

  	
  ENG

  	
   

  	
  01733724

  	
   

  
	
  Maidstone
  Broadcasting

  	
   

  	
  ENG

  	
   

  	
  02721189

  	
   

  
	
  Bravo TV Limited

  	
   

  	
  ENG

  	
   

  	
  02342064

  	
   

  
	
  Ed Stone Limited

  	
   

  	
  ENG

  	
   

  	
  4170969

  	
   

  
	
  Flextech
  Broadband Limited

  	
   

  	
  ENG

  	
   

  	
  04125315

  	
   

  
	
  UKTV Interactive
  Limited

  	
   

  	
  ENG

  	
   

  	
  3950210

  	
   

  
	
  UKTV New Ventures
  Limited

  	
   

  	
  ENG

  	
   

  	
  04266373

  	
   

  
	
  UKTV New Ventures
  Joint Venture

  	
   

  	
  ENG

  	
   

  	
  partnership

  	
   

  
	
  United Artists
  Investments Limited

  	
   

  	
  ENG

  	
   

  	
  2761569

  	
   

  
	
  Flextech Business
  News Limited

  	
   

  	
  ENG

  	
   

  	
  02954531

  	
   

  
	
  Continental Shelf
  16 Limited

  	
   

  	
  ENG

  	
   

  	
  03005499

  	
   

  
	
  UK Channel
  Management Limited

  	
   

  	
  ENG

  	
   

  	
  3322468

  	
   

  
	
  UK Gold Holdings
  Limited

  	
   

  	
  ENG

  	
   

  	
  3298738

  	
   

  
	
  TVS
  Television Limited

  	
   

  	
  ENG

  	
   

  	
  591652

  	
   

  
	
  TVS Pension
  Fund Trustees Limited

  	
   

  	
  ENG

  	
   

  	
  1539051

  	
   

  
	
  Telso
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2067186

  	
   

  
	
  Screenshop Limited

  	
   

  	
  ENG

  	
   

  	
  3529106

  	
   

  
	
  Flextech
  Rights Limited

  	
   

  	
  ENG

  	
   

  	
  2981104

  	
   

  
	
  Minotaur
  International Limited

  	
   

  	
  ENG

  	
   

  	
  3059563

  	
   

  
	
  Flextech
  Television Limited

  	
   

  	
  ENG

  	
   

  	
  2294553

  	
   

  
	
  Vis ITV Limited (Joint
  Venture of FTL)

  	
   

  	
  ENG

  	
   

  	
  4000147

  	
   

  
	
  Flextech
  Interactive Limited

  	
   

  	
  ENG

  	
   

  	
  3184754

  	
   

  
	
  Interactive
  Digital Sales Limited

  	
   

  	
  ENG

  	
   

  	
  4257717

  	
   

  
	
  Flextech Satellite Investments Limited

  	
   

  	
  ENG

  	
   

  	
  2710978

  	
   

  
	
  UK Gold Services
  Limited

  	
   

  	
  ENG

  	
   

  	
  2702737

  	
   

  
	
  UK Gold
  Television Limited

  	
   

  	
  ENG

  	
   

  	
  2702652

  	
   

  
	
  UK Gold
  Broadcasting Limited

  	
   

  	
  ENG

  	
   

  	
  2702650

  	
   

  
	
  IVS Cable
  Holdings Limited

  	
   

  	
  JER

  	
   

  	
  41688

  	
   

  
	
  Flextech
  Music Publishing Limited

  	
   

  	
  ENG

  	
   

  	
  3673917

  	
   

  
	
  Flextech
  (1992) Limited

  	
   

  	
  ENG

  	
   

  	
  1190025

  	
   

  

 

174

 

	
  Flextech
  Media Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  2678886

  	
   

  
	
  Flextech
  (Kindernet Investment) Limited

  	
   

  	
  ENG

  	
   

  	
  1260228

  	
   

  
	
  Flextech-Flexinvest
  Limited

  	
   

  	
  ENG

  	
   

  	
  1192945

  	
   

  
	
  Flextech IVS
  Limited

  	
   

  	
  ENG

  	
   

  	
  2678882

  	
   

  
	
  Flextech
  Family Channel Limited

  	
   

  	
  ENG

  	
   

  	
  2856303

  	
   

  
	
  Flextech
  Distribution Limited

  	
   

  	
  ENG

  	
   

  	
  2678883

  	
   

  
	
  Flextech
  Childrens Channel Limited

  	
   

  	
  ENG

  	
   

  	
  2678881

  	
   

  
	
  Flextech
  Communications Limited

  	
   

  	
  ENG

  	
   

  	
  2588902

  	
   

  
	
  Flextech
  (Travel Channel) Limited

  	
   

  	
  ENG

  	
   

  	
  3427763

  	
   

  
	
  Flextech
  Digital Broadcasting Limited

  	
   

  	
  ENG

  	
   

  	
  3298737

  	
   

  
	
  Flextech Living Health Limited

  	
   

  	
  ENG

  	
   

  	
  3673915

  	
   

  
	
  Flextech
  Video Games Limited

  	
   

  	
  ENG

  	
   

  	
  2670829

  	
   

  
	
  Action
  Stations (2000) Limited

  	
   

  	
  ENG

  	
   

  	
  2851455

  	
   

  
	
  Action
  Stations (Lakeside) Limited

  	
   

  	
  ENG

  	
   

  	
  2870844

  	
   

  
	
  Action
  Stations (Millennium) Limited

  	
   

  	
  ENG

  	
   

  	
  3450308

  	
   

  
	
  Supporthaven
  Plc

  	
   

  	
  ENG

  	
   

  	
  2792466

  	
   

  
	
  Flextech
  Limited

  	
   

  	
  ENG

  	
   

  	
  2688411

  	
   

  
	
  Flexmedia
  Limited

  	
   

  	
  ENG

  	
   

  	
  5217460

  	
   

  
	
  Flextech
  Investments (Jersey) Limited

  	
   

  	
  JER

  	
   

  	
  66951

  	
   

  
	
  Flextech
  Broadband Holdings Limited

  	
   

  	
  ENG

  	
   

  	
  4197227

  	
   

  
	
  Flextech
  Homeshopping Limited

  	
   

  	
  ENG

  	
   

  	
  3156792

  	
   

  
	
  Multimedia
  Mapping Limited

  	
   

  	
  ENG

  	
   

  	
  3059563

  	
   

  
	
  Recommend
  Limited

  	
   

  	
  ENG

  	
   

  	
  3692064

  	
   

  
	
  Sit-up
  Limited

  	
   

  	
  ENG

  	
   

  	
  3877786

  	
   

  
	
  UK Programme
  Distribution Limited

  	
   

  	
  ENG

  	
   

  	
  3323782

  	
   

  
	
  Xrefer.com
  Limited

  	
   

  	
  ENG

  	
   

  	
  3840990

  	
   

  

 

PART 3 - EXCLUDED
SUBSIDIARIES

 

	
  Name*

  	
   

  	
  Jurisdiction
  of

  Incorporation

  	
   

  	
  Company

  number (if

  applicable)

  	
   

  
	
  Telewest Finance
  Corporation

  	
   

  	
  Delaware

  	
   

  	
   

  	
   

  

 

*      Telwest to provide list/details.

 

175

 

SCHEDULE 10

 

PART 1 - EXISTING
ENCUMBRANCES

 

A:
Existing Encumbrances to be discharged in full within 10 days of the Closing
Date:

 

	
  I.

  	
   

  	
  July 2004
  Documents

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  New Composite
  Guarantee and Debenture dated 14 July 2004 granted by TCN and certain of
  its subsidiaries and associated partnerships in favour of CIBC World Markets PLC as security
  trustee to the extent representing the obligations of those
  chargors that are not Original Guarantors.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Composite
  Guarantee and Debenture dated 14 July 2004 granted by Flextech Limited,
  Fleximedia Limited and Telewest Communications Holdco Limited in favour of
  CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Security Account
  Charge dated 14 July 2004 granted by TCN in in favour of CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Charge Over
  Shares dated 14 July 2004 granted by Telewest Global, Inc. in favour of
  CIBC World Markets PLC as security trustee in respect of the shares of
  Telewest UK.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  New Charge Over
  Shares dated 14 July 2004 granted by Telewest Communications plc in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Assignment of
  Loans dated 14 July 2004 granted by Telewest Global, Inc. in favour of
  CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  New Assignment of
  Loans dated 14 July 2004 granted by Telewest Communications plc in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Security
  Agreement dated 14 July 2004 granted by Birmingham Cable Limited in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Security
  Agreement (Jersey) dated 14 July 2004 granted by Birmingham Cable
  Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Security
  Agreement (Jersey) dated 14 July 2004 granted by Flextech Broadband
  Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Security
  Agreement (Jersey) dated 14 July 2004 granted by Flextech (1992) Limited
  in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Share Pledge
  (Scotland) dated 14 July 2004 granted by Telewest Limited in favour of
  CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Share Pledge
  (Scotland) dated 14 July 2004 granted by Telewest Communications
  (Scotland Holdings) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Deed of
  Subordination dated 14 July 2004 between Telewest Global Inc. and CIBC
  World Markets PLC as security trustee.

  

 

176

 

	
  15.

  	
   

  	
  Deed of
  Subordination dated 14 July 2004 between Telewest UK and CIBC World
  Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Deed of
  Subordination dated 14 July 2004 between Flextech Limited, Fleximedia
  Limited and Telewest Communications Holdco Limited and CIBC World Markets PLC
  as security trustee.

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  New Deed of
  Subordination dated 14 July 2004 between Telewest Communications plc and
  CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  March 2001
  Documents

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Composite
  Guarantee and Debenture dated 16 March 2001 granted by TCN, Telewest
  Finance Corporation and certain Subsidiaries and associated partnerships of
  TCN in favour of CIBC World Markets PLC as security trustee, to the extent
  representing the obligations of those chargors that are not Original
  Guarantors.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignment of
  Loans dated 16 March 2001 granted by Telewest Communications Plc in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Share Charge
  dated 16 March 2001 granted by Telewest Communications Plc in favour of
  CIBC World Markets PLC as security trustee in relation to its shares in TCN.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Share Pledge
  (Scotland) dated 16 March 2001granted by Telewest Limited in favour of
  CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Share Pledge
  (Scotland) dated 16 March 2001 granted by Telewest Communications
  (Scotland Holdings) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Security Agreement
  (Jersey) dated 16 March 2001 granted by Birmingham Cable Limited in
  favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Security
  Agreement (Jersey) dated 16 March 2001 granted by Flextech Broadband
  Limited (formerly Cheltrading 283 Limited) in favour of CIBC World Markets
  PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Security
  Agreement (Jersey) dated 16 March 2001 granted by Flextech (1992)
  Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Charge over
  Deposit Account dated 27 September 2002 granted by TCN in favour of CIBC
  World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Deed of
  Subordination dated 16 March 2001 between Telewest Communications plc
  and CIBC World Markets PLC as security trustee.

  

 

177

 

B:
Existing Encumbrances

 

	
  I.

  	
   

  	
  July 2004
  Documents

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  New Composite
  Guarantee and Debenture dated 14 July 2004 granted by TCN and certain
  Subsidiaries and associated partnerships of TCN in favour of CIBC World
  Markets PLC as security trustee to the extent representing the obligations of
  those chargors that are Original Guarantors

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 14 July 2004 granted by Telewest Communications
  (Scotland Holdings) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 14 July 2004 granted by Telewest Communications
  (Scotland) Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 14 July 2004 granted by Telewest Communications
  (Dundee & Perth) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 14 July 2004 granted by Telewest Communications
  (Motherwell) Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Avon Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Cotswolds Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Edinburgh Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Estuaries Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Pledge and Security
  Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Tyneside Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in United Cable (London South) Limited
  Partnership.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by Theseus No.1 and
  Theseus No.2 in favour of CIBC World Markets PLC as security trustee
  regarding interests in TCI/US West Cable Communications Group.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 14 July 2004 granted by United Cable
  (London South) Limited Partnership and Crystal Palace Radio Limited in favour
  of CIBC World

  

 

178

 

	
   

  	
   

  	
  Markets PLC as
  security trustee regarding interests in London South Cable Partnership.

  
	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Amended and
  Restated Reimbursement and Contribution Agreement dated 14 July 2004 and
  made between TCN, Avon Cable Limited Partnership, Cotswolds Cable Limited
  Partnership, Edinburgh Cable Limited Partnership, Estuaries Cable Limited
  Partnership, TCI/US West Cable Communications Group, Tyneside Cable Limited
  Partnership, United Cable (London South) Limited Partnership and London South
  Cable Partnership.

  
	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  March 2001
  Documents

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Composite
  Guarantee and Debenture dated 16 March 2001 granted by TCN, Telewest
  Finance Corporation and certain Subsidiaries and associated partnerships of
  TCN in favour of CIBC World Markets PLC as security trustee, to the extent
  representing the obligations of those chargors that are Original Guarantors.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Avon Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Cotswolds Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Edinburgh Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable Communications
  Group and others in favour of CIBC World Markets PLC as security trustee
  regarding interests in Estuaries Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in Tyneside Cable Limited Partnership.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by TCI/US West Cable
  Communications Group and others in favour of CIBC World Markets PLC as
  security trustee regarding interests in United Cable (London South) Limited
  Partnership.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001 granted by Theseus No.1 and
  Theseus No.2 in favour of CIBC World Markets PLC as security trustee
  regarding interests in TCI/US West Cable Communications Group.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Pledge and
  Security Agreement (US) dated 16 March 2001, as amended by a first
  amendment dated 14 July 2001, granted by United Cable (London South)
  Limited Partnership and Crystal Palace Radio Limited in favour of CIBC World
  Markets PLC as security trustee regarding interests in London South Cable
  Partnership.

  

 

179

 

	
  10.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 16 March 2001 granted by Telewest Communications
  (Scotland Holdings) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 16 March 2001 granted by Telewest Communications
  (Scotland) Limited in favour of CIBC World Markets PLC as security trustee.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 16 March 2001 granted by Telewest Communications
  (Dundee & Perth) Limited in favour of CIBC World Markets PLC as security
  trustee.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Bond and Floating
  Charge (Scotland) dated 16 March 2001 granted by Telewest Communications
  (Motherwell) Limited in favour of CIBC World Markets PLC as security trustee.

  

 

III.             Other

 

	
  Charge

  	
   

  	
  Chargor

  	
   

  	
  Details of Encumbrance

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lloyds (Nimrod) Specialist Finance Limited

  	
   

  	
  Cable
  Corporation Limited (The)

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lloyds (Nimrod) Specialist Finance Limited created 18/05/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with any of the Lease documents

  

  SHORT PARTICULARS: The Assignor assigns and agrees to assign the Lessor
  Collateral Account and the deposit (the deposit being all sums standing to
  the credit of the Collateral Account)

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  27/07/1990

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Television House, Clarendon Road, Turnpike Lane L/B
  Haringey T/N: NGL L29756

  	
   

  	
  27/07/90

  

 

180

 

	
  3.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  22/10/1992

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Land at rear of 60/70 Clarendon Road, Hornsey, Haringey,
  London, and known as Car Park No 2

  	
   

  	
  22/10/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  22/10/1992

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Site 14, Clarendon Road Estate, Clarendon Road, Haringey,
  London T/N: NGL 361617

  	
   

  	
  22/10/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Cable London Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  03/01/1995

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Car Park No 1 & No 2 60/70 (inclusive) Clarendon Road,
  L/B of Haringey

  	
   

  	
  03/01/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Deposit Agreement to Secure own Liabilities in
  favour of Lloyds TSB Bank plc

  	
   

  	
  Eurobell (Holdings) Limited

  	
   

  	
  Deposit Agreement to Secure own Liabilities in
  favour of Lloyds TSB Bank Plc created 01/11/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: The deposit (debts on account 7955640 and interest due)

  	
   

  	
  01/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Deposit
  Agreement to Secure own Liabilities in favour of Lloyds Bank plc

  	
   

  	
  Eurobell (South
  West) Limited

  	
   

  	
  Deposit
  Agreement to Secure own Liabilities in favour of Lloyds TSB Bank Plc created
  29/05/1997

  

  AMOUNT SECURED: All monies due or to become due from the

  	
   

  	
  29/05/97

  

 

181

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Company to the
  Chargee under or in connection with the Indemnity

  

  SHORT PARTICULARS: All such rights to the repayment of the deposit

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Deposit Agreement to secure own liabilities in
  favour of Lloyds Bank plc

  	
   

  	
  Eurobell
  (Sussex) Limited

  	
   

  	
  Deposit Agreement to secure own liabilities in
  favour of Lloyds Bank plc created 29/05/1997

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with the Indemnity

  

  SHORT PARTICULARS: All such rights to the repayment of the deposit as the
  Company then had under the terms upon which the deposit was made and the
  provisions contained in the Agreement

  	
   

  	
  29/05/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Deposit Agreement to secure own liabilities in
  favour of Lloyds Bank plc

  	
   

  	
  Eurobell
  (West Kent) Limited

  	
   

  	
  Deposit Agreement to secure own liabilities in
  favour of Lloyds Bank plc created 29/05/1997

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: All such rights to the repayment of the deposit

  	
   

  	
  29/05/97

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Charge on cash deposit in favour of Crosby Sterling
  Limited

  	
   

  	
  General
  Cable Limited

  	
   

  	
  Charge on cash deposit in favour of Crosby Sterling
  Limited created 25/05/1995

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under the terms of the Option Agreement or Charge

  

  SHORT PARTICULARS: The Chargor charges the deposit by way of first fixed
  charge in favour of the Chargee.

  	
   

  	
  25/05/95

  

 

182

 

	
  11.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Sheffield
  Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  24/12/1996

  

  AMOUNT SECURED: All monies due or to become due from the Company to the Chargee
  on any account

  

  SHORT PARTICULARS: L/H property K/A, 1 Chippingham Street, Sheffield

  	
   

  	
  24/12/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Sheffield
  Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  12/11/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: L/Hold property known as 1.62 acres of land at Sheffield
  Technology Park, Chippenham Street, Sheffield

  	
   

  	
  12/11/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Deed of Charge over Credit Balances in favour of
  Barclays Bank PLC

  	
   

  	
  TCN

  	
   

  	
  Deed of Charge over Credit Balances in favour of
  Barclays Bank PLC created 15/10/2004

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Fixed charge over all the specified deposits together with
  all interest accruing on such deposits. Assignment by the Chargor for the
  purposes of and to give effect to the security over the right of the Chargor
  to require repayment of such deposits and interest thereon

  	
   

  	
  15/10/04

  

 

183

 

	
  14.

  	
   

  	
  Deed of Charge in favour of The Toronto Dominion
  Bank

  	
   

  	
  Telewest
  Communications (London South) Limited

  	
   

  	
  Deed of Charge in favour of The Toronto Dominion Bank
  created 12/11/1985

  

  AMOUNT SECURED: All monies due or to become due from the Company and/or
  Crystal Palace Radio Limited and/or Colourvision UK Limited Partnership under
  the terms of the Loan and Guarantee Facility Agreement

  

  SHORT PARTICULARS: First fixed charge over all its rights, title and interest
  in and to all monies whatsoever from time to time or payable or from time to
  time accruing from the borrowers to the Chargee etc.

  	
   

  	
  12/11/85

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Supplemental Deed in favour of The Toronto Dominion
  Bank (and its successors and permitted assigns)

  	
   

  	
  Telewest
  Communications (London South) Limited

  	
   

  	
  Supplemental Deed in favour of The Toronto Dominion
  Bank (and its successors and permitted assigns) created 13/09/1989

  

  AMOUNT SECURED: All monies due or to become due from the Company and/or any
  of the other companies named therein to the Chargee under the terms of this
  Charge and the Agreements defined therein 

  

  SHORT PARTICULARS: First fixed charge on all or any of the Charged Assets

  	
   

  	
  13/09/89

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Mortgage of Deposited Monies in favour of
  Electricity Supply Nominees Limited

  	
   

  	
  Telewest Communications (South East) Limited

  	
   

  	
  Mortgage of Deposited Monies in favour of
  Electricity Supply Nominees Limited created 21/01/1994

  

  AMOUNT SECURED: The obligations covenants and liabilities of the Company to
  the Chargee under the provision of two leases

  

  SHORT PARTICULARS: A book debt in the sum of £160,000 standing to the credit
  of the company’s account

  	
   

  	
  21/01/94

  

 

184

 

	
  17.

  	
   

  	
  Deed of Variation and Further Charge in favour of
  Electricity Supply Nominees Limited

  	
   

  	
  Telewest Communications (South East) Limited

  	
   

  	
  Deed of Variation and Further Charge in favour of
  Electricity Supply Nominees Limited created 26/06/1995

  

  AMOUNT SECURED: The obligations covenants and liabilities of the Company to
  the Chargee under a lease dated 21 January 1995 as varied by a
  supplemental lease

  

  SHORT PARTICULARS: The book debts in the sum of £160,000 owing by Midland
  Bank Plc to the Company

  	
   

  	
  26/06/95

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Collateral Account Security Assignment in favour of
  Robert Fleming Leasing (Number 4) Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of
  Robert Fleming Leasing (Number 4) Limited created 18/05/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with any of the Lease Documents

  

  SHORT PARTICULARS: The Assignor assigns and agrees to assign the Lessor
  Collateral Account and the deposit

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Collateral Account Security Assignment in favour of
  Robert Fleming Leasing (Number 4) Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of
  Robert Fleming Leasing (Number 4) Limited created 16/03/2001

  

  AMOUNT SECURED: All monies, debts, obligations and liabilities due or to
  become due from the Company to the Chargee under or in connection with any of
  the Lease Agreements to which the Company is a party

  

  SHORT PARTICULARS: All the right, title, benefit and interest of the Company
  in the Lessor Collateral Account and the deposit

  	
   

  	
  16/03/01

  

 

185

 

	
  20.

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lloyds (Nimrod) Specialist Finance Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lloyds (Nimrod) Specialist Finance Limited created 18/05/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with any of the Lease documents

  

  SHORT PARTICULARS: The Assignor assigns and agrees the assign the Lessor
  Collateral Account and the deposit

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lombard Commercial Limited

  	
   

  	
  The Yorkshire Cable Group Limited

  	
   

  	
  Collateral Account Security Assignment in favour of
  Lombard Commercial Limited created 18/05/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee under or in connection with any of the Lease documents

  

  SHORT PARTICULARS: The Assignor assigns and agrees to assign the Lessor
  Collateral Account and the deposit

  	
   

  	
  18/05/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Deed as to Deposit Monies in favour of Langley Quay
  Investments Limited

  	
   

  	
  Windsor Television Limited

  	
   

  	
  Deed as to Deposit Monies in favour of Langley Quay
  Investments Limited created 09/07/1999

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: £44,000 and, in addition, all interest and other accruals
  from time to time standing to the credit of the account opened by the
  Landlord

  	
   

  	
  09/07/99

  

 

186

 

	
  23.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Properties Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  24/12/1996

  

  AMOUNT SECURED: All monies due or to become due from the Company and/or The
  Yorkshire Cable Group Limited to the Chargee on any account

  

  SHORT PARTICULARS: F/H Property K/A Units 8 & 9 &10 & adjoining
  land Mayfair Business Park, Broad Lane, Bradford, West Yorkshire T/N:
  WYK510647

  	
   

  	
  24/12/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  16/06/1992

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: Units 8, 9, 10 and adjoining land, Mayfair Business Park,
  Sticker Lane, Bradford, West Yorkshire T/N:WYK452168

  	
   

  	
  16/06/92

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  24/12/1996

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: F/H Property K/A Units 4 & 5 Mayfair Business Park,
  Broad Lane, Bradford, West Yorkshire

  	
   

  	
  24/12/96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  24/12/1996

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: L/H Property K/A Units 8 & 9 & 10 & adjoining
  land Mayfair Business Park, Broad Lane, Bradford

  	
   

  	
  24/12/96

  

 

187

 

	
  27.

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC

  	
   

  	
  Yorkshire Cable Communications Limited

  	
   

  	
  Legal Charge in favour of Barclays Bank PLC created
  24/12/1996

  

  AMOUNT SECURED: All monies due or to become due from the Company to the
  Chargee on any account

  

  SHORT PARTICULARS: F/H Property K/A Units 6 & 7 Mayfair Business Park,
  Broad Lane, Bradford, West Yorkshire T/N: WYK535713

  	
   

  	
  24/12/96

  

 

188

 

PART 2 - EXISTING LOANS

 

	
  Closing balance in GBP

  	
   

  	
  31 October 04

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (UK GAAP)

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Flextech 1992 Limited owing to Yorkshire
  Cable Communications Ltd.

  	
   

  	
  2,475,596

  	
   

  
	
  Flextech Digital Broadcasting Limited owing
  to Telewest Communications Group Ltd

  	
   

  	
  500

  	
   

  
	
  Flextech Interactive Limited owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  2,636,998

  	
   

  
	
  Flextech Rights Limited owing to Yorkshire
  Cable Communications Ltd

  	
   

  	
  125,438,385

  	
   

  
	
  Flextech Television Limited owing to
  Telewest Communications Networks Ltd

  	
   

  	
  193,125,916

  	
   

  
	
  Flextech Television Limited owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  63,860,409

  	
   

  
	
  HSN Direct International Limited owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  12,280

  	
   

  
	
  Interactive Digital Sales Limited owing to
  Telewest Communications Group Ltd

  	
   

  	
  862,805

  	
   

  
	
  Minotaur International Limited owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  3,390

  	
   

  
	
  Screenshop Limited owing to Yorkshire Cable
  Communications Ltd

  	
   

  	
  12,751

  	
   

  
	
  Smashedatom Limited owing to Yorkshire
  Cable Communications Ltd

  	
   

  	
  50

  	
   

  
	
  Telewest Communications Holdco Ltd owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  1,545,208

  	
   

  
	
  Telewest UK Ltd owing to Yorkshire Cable
  Communications Ltd

  	
   

  	
  2,108,121

  	
   

  
	
  Telewest Global Inc owing to Telewest
  Communications Networks Ltd

  	
   

  	
  545,108

  	
   

  
	
  Network Gaming Consultancy owing to
  Yorkshire Cable Communications Ltd

  	
   

  	
  67,521

  	
   

  
	
  TVS Television Limited owing to Telewest
  Communications Group Ltd

  	
   

  	
  3,000

  	
   

  
	
  TVS Television Limited owing to Yorkshire
  Cable Communications Ltd

  	
   

  	
  765,497

  	
   

  
	
  Blue Yonder Workwise owing to Avon Cable
  Joint Venture

  	
   

  	
  469,198

  	
   

  
	
  Blue Yonder Workwise owing to Telewest
  Communications Group Ltd

  	
   

  	
  219,406

  	
   

  
	
  Blue Yonder Workwise owing to Yorkshire
  Cable Communications

  	
   

  	
  1,379132

  	
   

  
	
  Cable Adnet Ltd owing to Telewest
  Communications Group Ltd

  	
   

  	
  3,755,437

  	
   

  
	
  Cable Finance Ltd owing to Telewest
  Communications Group Ltd

  	
   

  	
  369

  	
   

  
	
  Cable Guide Ltd owing to Cable London Ltd

  	
   

  	
  394

  	
   

  
	
  General Cable Programming owing to
  Yorkshire Cable Communications

  	
   

  	
  23

  	
   

  
	
  Imminus (Ireland) Ltd owing to Telewest
  Communications Group Ltd

  	
   

  	
  98

  	
   

  
	
  General Cable Programming Ltd owing to
  Telewest Communications Networks Ltd

  	
   

  	
  23,400

  	
   

  
	
  General Cable Programming Ltd. owing to
  General Cable Ltd.

  	
   

  	
  160,001

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  399,470,993

  	
   

  

 

189

 

PART 3 - EXISTING FINANCIAL
INDEBTEDNESS

 

	
  Closing balance in GBP

  	
   

  	
  31 October 04

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (UK GAAP)

  
	
   

  	
   

  	
   

  
	
  A: Existing Financial Indebtedness to be repaid in full on the
  Closing Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Financial Indebtedness under the Existing
  Credit Facility

  	
   

  	
  1,840,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  B: Existing Financial Indebtedness:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property mortgages

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable Communications Ltd Treasury
  Loan with Barclays Bank

  	
   

  	
  802,549

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sheffield Cable Communications Ltd Treasury
  Loan with Barclays Bank

  	
   

  	
  3,075,268

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sheffield Cable Communications Ltd Treasury
  Loan with Barclays Bank

  	
   

  	
  1,058,466

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Yorkshire Cable Communications Ltd
  Commercial Mortgage with Barclays Bank

  	
   

  	
  528,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cable London Ltd Medium Term Loan with
  Barclays Bank

  	
   

  	
  515,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Teleinvest loan

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Finance lease creditors (details set out in
  Schedule 15)

  	
   

  	
  127,506,116

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Flextech loan stock

  	
   

  	
  28,000

  	
   

  

 

190

 

	
  Intercompany Indebtedness

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Bravo TV Limited

  	
   

  	
  176,193

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Bravo TV Limited

  	
   

  	
  30,102,631

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Continental Shelf 16 Limited

  	
   

  	
  860,153

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Ed Stone Limited

  	
   

  	
  4,319

  	
   

  
	
  Telewest Communications Networks Limited
  owing to Flextech (Travel Channel) Limited

  	
   

  	
  19,500,000

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Flextech 1992 Limited

  	
   

  	
  1,013,798

  	
   

  
	
  Telewest Communications Networks Limited
  owing to Flextech Communications Limited

  	
   

  	
  147,330,000

  	
   

  
	
  Telewest Communications Networks Limited
  owing to Flextech Digital Broadcasting Limited

  	
   

  	
  363,400,000

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Flextech Digital Broadcasting Limited

  	
   

  	
  6,671,719

  	
   

  
	
  Telewest Communications Networks Limited
  owing to Flextech Family Channel Limited

  	
   

  	
  197,000,000

  	
   

  
	
  Telewest Communications Group Limited owing
  to Flextech Interactive Limited

  	
   

  	
  673,721

  	
   

  
	
  Telewest Communications Group Limited owing
  to Flextech Living Health Limited

  	
   

  	
  8,983

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Flextech Living Health Limited

  	
   

  	
  1,225,556

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Flextech Rights Limited

  	
   

  	
  4,000,000

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Flextech Television Limited

  	
   

  	
  29,118,569

  	
   

  
	
  Telewest Communications Networks Limited
  owing to Flextech Video Games Limited

  	
   

  	
  261,800,000

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Interactive Digital Sales Limited

  	
   

  	
  114,768,672

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Maidstone Broadcasting

  	
   

  	
  70,673

  	
   

  
	
  Yorkshire Communications Group Ltd owing to
  Maidstone Broadcasting

  	
   

  	
  23,754,374

  	
   

  
	
  Telewest Communications Group Ltd owing to
  Starstream Limited

  	
   

  	
  63,077

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  Starstream Limited

  	
   

  	
  25,621,749

  	
   

  
	
  Telewest Communications Group Ltd owing to
  UK Living Limited

  	
   

  	
  6,051,381

  	
   

  
	
  Yorkshire Cable Communications Ltd owing to
  UK Living Limited

  	
   

  	
  68,003,152

  	
   

  
	
  Telewest Communications Networks Limited
  owing to United Artists Investments Limited

  	
   

  	
  856,830,000

  	
   

  
	
  Telewest Workwise Limited owing to Telewest
  Communications Holdco Ltd

  	
   

  	
  2,694,000

  	
   

  
	
   

  	
   

  	
  4,134,756,219

  	
   

  

 

191

 

PART 4 - EXISTING PERFORMANCE
BONDS

 

	
  Beneficiary/

  Customer

  	
   

  	
  Date

  Issued

  	
   

  	
  Expiry

  Date

  	
   

  	
  Amount

  (in GBP)

  	
   

  	
  Bank

  	
   

  	
  Secured

  with cash

  deposit

  	
   

  
	
  ACE
  Insurance S.A. – N.V.

  	
   

  	
  29/09/2004

  	
   

  	
  29/09/2005

  	
   

  	
  700,000.00

  	
   

  	
  Barclays

  	
   

  	
  Yes in full

  	
   

  
	
  Basildon
  Council + others

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Birmingham
  City Council

  	
   

  	
  30/11/2000

  	
   

  	
   

  	
   

  	
  75,000.00

  	
   

  	
  The Royal Bank of Scotland

  	
   

  	
  No

  	
   

  
	
  Blackpool
  Borough Council

  	
   

  	
  04/03/1998

  	
   

  	
   

  	
   

  	
  112,406.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Borough of
  Croydon

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Borough of
  Kingston & Richmond

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Boroughs of
  Merton & Sutton

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Carmock
  Council & Others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Cheltenham
  Borough Council

  	
   

  	
  26/06/1997

  	
   

  	
  25/06/2001

  	
   

  	
  225,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Council + 5

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  104,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Dudley
  Council & Others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Edinburgh +
  Lothian Councils

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Essex County
  Council

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  103,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Fife Council
  + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Fylde
  Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Gloucestershire
  County Council

  	
   

  	
  17/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  HM Customs
  and Excise

  	
   

  	
  13/11/2000

  	
   

  	
  continuous

  	
   

  	
  20,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Islington
  Council

  	
   

  	
  27/10/2000

  	
   

  	
  30/04/2004

  	
   

  	
  50,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Liverpool
  & Sefton Councils

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  

 

192

 

	
  Beneficiary/

  Customer

  	
   

  	
  Date

  Issued

  	
   

  	
  Expiry

  Date

  	
   

  	
  Amount

  (in GBP)

  	
   

  	
  Bank

  	
   

  	
  Secured

  with cash

  deposit

  	
   

  
	
  Liverpool
  City Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Local
  authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  154,498.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  	
   

  
	
  Local
  authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  194,643.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  	
   

  
	
  Local
  authority

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  143,549.00

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  	
   

  
	
  Lothian
  Council + others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Rent
  guarantee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  103,483.10

  	
   

  	
  Lloyds

  	
   

  	
  Yes in full

  	
   

  
	
  Sefton
  Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Slough
  Borough Council

  	
   

  	
  05/07/2002

  	
   

  	
  July-05

  	
   

  	
  35,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  South Glous
  + North Somerset Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  St Helens
  & Knowsley Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  102,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Staffordshire
  Council & Others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Strathclyde
  Council + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Strathclyde
  Council + others (#4)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  100,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Tayside
  Council + others (#1)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Tayside
  Council + others (#2)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  The
  appropriate authorities – Telecoms Act 84/ Licence

  	
   

  	
  01/06/2002

  	
   

  	
  25/07/2005

  	
   

  	
  1,500,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  W. Dunbartonshire
  Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  West Lancs
  Council & others (#3)

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  West
  Midlands Police Authority

  	
   

  	
  31/08/2001

  	
   

  	
  30/09/2005

  	
   

  	
  250,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  
	
  Wigan
  Council

  	
   

  	
  02/04/1997

  	
   

  	
  01/04/2001

  	
   

  	
  101,000.00

  	
   

  	
  Barclays

  	
   

  	
  No

  	
   

  

 

193

 

PART 5 - EXISTING
LOAN STOCK

 

1.             The variable rate
unsecured loan stock in a principal amount of £97,000,000 issued to Flextech
Digital Broadcasting Limited by the BBC Joint Venture (UK Channel Management
Limited).

 

2.             The floating rate
redeemable unsecured loan stock issued by UK Gold in a principal amount of
£12,517,000 to Cox Programming Limited ((now Flextech Satellite Investments Limited)
and transferred to Flextech IVS Limited and then subsequently transferred to
United Artists Investments Limited) and in a principal amount of £8,942,653 to
United Artists Investments Limited.

 

3.             The floating rate
redeemable unsecured loan stock issued by UK Living in a principal amount of
£8,271,047 to United Artists Investments Limited and in a principal amount of
£11,579,556.00 to Cox Programming Limited ((now Flextech Satellite Investments
Limited) and transferred to Flextech IVS Limited and then subsequently
transferred to United Artists Investments Limited).

 

4.             The non-interest
bearing unsecured loan stock in a principal amount of £18,000,000 issued by the
UK Gold Joint Venture (UK Gold Holdings Limited) to Flextech Limited (formerly
Flextech plc) (and transferred to United Artists Investments Limited).

 

5.             The variable rate
first call option unsecured loan stock in a principal amount of £32,208,000 and
the split rate second call option unsecured loan stock in a principal amount of
£20,300,000 in each case issued by the UK Gold Joint Venture (UK Gold Holdings
Limited) to Flextech Limited (formerly Flextech plc) (and, in each case,
transferred to United Artists Investments Limited).

 

6.             The variable rate
unsecured loan stock of a principal amount of £36,000,000 issued by the UK Gold
Joint Venture (UK Gold Holdings Limited) to Flextech Limited (formerly Flextech
plc) (and transferred to United Artists Investments Limited).

 

7.             The variable rate
unsecured loan stock issued, or to be issued, to United Artists Investments
Limited by the UK Gold Joint Venture (UK Gold Holdings Limited) in connection
with the funding from time to time of the UK Gold Joint Venture.

 

8.             The £50 million
unsecured variable rate loan stock to be issued to Flextech Broadband Limited
pursuant to the loan stock instrument constituted in respect of UKTV New
Ventures dated 15 July 2004.

 

9.             The £21 million
loan stock contemplated by the 15 July 2004 letter agreement between
Flextech Broadband Limited and BBC Worldwide Limited to be issued to Flextech
Broadband Limited by UKTV Interactive Limited.

 

10.           £20 million
Cumulative and £13.75 million non-cumulative, non-voting preference shares
issued by UK Gold Holdings Limited.

 

194

 

SCHEDULE 11

 

HEDGING AGREEMENTS

 

	
  Existing Hedge
  Counterparty/Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank

  125 London Wall

  London EC2Y 5AJ

   

  Tel:                         +44(0)207
  777 3250

  Fax:                         +44(0)207
  777 3459

  Attention:              Mike Wharrad

  	
   

  	
  •      ISDA Master
  Agreement dated 15 July 2004 made between JP Morgan Chase Bank and TCN.

  •      Confirmation with
  trade date 20 July 2004 relating to a fixed for floating rate swap with
  a notional amount of £256 million.

  
	
   

  	
   

  	
   

  
	
  Calyon

  Broadwalk House

  5 Appold Street

  London EC2A 2DA

   

  Tel:                         +44(0)207
  214 7009

  Fax:                         +44(0)207 214
  7159

  Attention:              Steve
  Tubb

  	
   

  	
  •      ISDA Master
  Agreement dated 15 July 2004 made between Calyon and TCN

  •      Confirmation with
  trade date 21 July 2004 relating to a fixed for floating rate swap with
  a notional amount of £322 million.

  
	
   

  	
   

  	
   

  
	
  The Royal Bank of
  Scotland plc

  Corporate Restructuring Unit

  Specialised Lending Services

  10th Floor

  280 Bishopsgate

  London EC2M 4RB

   

  Tel:                         0207
  672 0269/0207 672 1827

  Fax:                         0207
  672 0324

  Attention:              Neil
  Wright / Mike Birch

  	
   

  	
  •      ISDA Master
  Agreement dated 15 July 2004 made between The Royal Bank of Scotland plc
  and TCN.

  •      Confirmation with
  trade date 19 July 2004 relating to a fixed for floating rate swap with
  a notional amount of £355 million.

  •      Confirmation with
  trade date 7 March 2002 relating to a fixed for floating rate swap with
  a notional amount of £100 million.

  
	
   

  	
   

  	
   

  
	
  The Bank of New
  York

  One Canada Square

  Canary Wharf

  London E14 5AL

   

  Tel:                         +44(0)207
  570 0892

  Fax:                         +44(0)207 964
  6034

  Attention:              Stuart
  Pitfieldand:

   

  Tel:                         +44(0)207
  964 6533

  Fax:                         +44(0)207
  964 6193

  Attention:              Jason
  Garwood

   

  With copy to:

  The Bank of New York

  Derivatives Desk

  Global Markets Division

  32 Old Slip

  15th Floor

  New York

  	
   

  	
  •      ISDA Master
  Agreement dated 15 July 2004 made between The Bank of New York and TCN.

  •      Confirmation with
  trade date 19 July 2004 relating to a fixed for floating rate swap with
  a notional amount of £66 million.

  

 

195

 

	
  Tel:                         +1
  (212) 804 2137

  Fax:                         +1
  (212) 495 1015

  Attention:              James
  G. McAuliffe

   

  The Bank of New York

  Legal Department

  One Wall Street

  10th FloorNY 10286

   

  Tel:                         +1
  (212) 635 1688

  Fax:                         +1
  (212) 635 1958

  Attention:              General
  Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bayerische
  Landesbank Girozentrale

  acting through its London branch

  Bavaria House13/14

  Appold Street

  London EC2A 2NB

   

  Tel:                         +44
  (0)207 955 5173

  Fax:                         +44
  (0)207 247 0056

  Attention:              Loans Administration

  	
   

  	
  •      ISDA Master
  Agreement dated June 11, 2001 made between Bayerische Landesbank
  Girozentrale and TCN.

  •      Confirmation with
  trade date 11 June 2001 relating to a fixed for floating rate swap with
  a notional amount of £150 million.

  
	
   

  	
   

  	
   

  
	
  Barclays Bank PLC

  Murray Bouse

  1 Royal Mint Court

  London EC3N 4HH

   

  Tel:                         +44
  (0)171 696 2700

  Fax:                         +44
  (0) 171 696 3228

  Attention:              Operations
  BZW Debt Capital Markets

  	
   

  	
  •      ISDA Master
  Agreement dated September 3, 1996 made between Barclays Bank PLC and
  TCN.

  •      Confirmation with
  trade date 11 June 2001 relating to a fixed for floating rate swap with
  a notional amount of £50 million.

  •      Confirmation with
  trade date 11 June 2001 relating to a fixed for floating rate swap with
  a notional amount of £100 million.

  

 

196

 

SCHEDULE 12

 

VENDOR FINANCING ARRANGEMENTS

 

	
  Lessor

  	
   

  	
  Type of

  Vendor Financing

  	
   

  	
  Closing Balance in GBP

  October 31,
  2004

  (UK GAAP)

  	
   

  
	
  HBOS – Bank of
  Scotland

  	
   

  	
  Switches

  	
   

  	
  (1,975,941

  	
  )

  
	
  Capital
  Asset Finance

  	
   

  	
  Vehicles

  	
   

  	
  (5,739

  	
  )

  
	
  Cisco

  	
   

  	
  Network
  Hardware

  	
   

  	
  (7,457,515

  	
  )

  
	
  GE Capital

  	
   

  	
  IT

  	
   

  	
  (1,190,623

  	
  )

  
	
  Hewlett Packard

  	
   

  	
  IT

  	
   

  	
  (42,718

  	
  )

  
	
  IBM

  	
   

  	
  Switches

  	
   

  	
  (4,230,611

  	
  )

  
	
  IBM

  	
   

  	
  IT

  	
   

  	
  (295,671

  	
  )

  
	
  Ing Car
  Lease

  	
   

  	
  Vehicles

  	
   

  	
  (937,341

  	
  )

  
	
  Interleasing

  	
   

  	
  Vehicles

  	
   

  	
  2,587

  	
   

  
	
  Lombard

  	
   

  	
  Vehicles

  	
   

  	
  (970,404

  	
  )

  
	
  Marshall

  	
   

  	
  Vehicles

  	
   

  	
  (10,433

  	
  )

  
	
  RBC-Royal
  Bank

  	
   

  	
  Switches

  	
   

  	
  (42,306,051

  	
  )

  
	
  The Royal
  Bank of Scotland

  	
   

  	
  Switches

  	
   

  	
  (28,286,706

  	
  )

  
	
  Capital Bank

  	
   

  	
  Vehicles

  	
   

  	
  (2,344,695

  	
  )

  
	
  Societe Europeenne des Satellites

  	
   

  	
  Transponders

  	
   

  	
  (21,068,814

  	
  )

  
	
  Crown Castle
  UK Limited

  	
   

  	
  Spectrum

  	
   

  	
  (16,385,440

  	
  )

  

 

197

 

SIGNATORIES

 

 

	
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  COMMUNICATIONS NETWORKS LIMITED

  
	
   

  	
   

  	
   

  
	
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  Address:

  	
  160 Great
  Portland Street

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  W1W 5QA

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299
  6400

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
  Group General
  Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299
  5495

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  PARENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TELEWEST
  UK LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  160 Great
  Portland Street

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  W1W 5QA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  020 7299 6400

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
  Group General
  Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  020 7299 5495

  	
   

  

 

198

 

	
  THE
  MANDATED LEAD ARRANGERS

  	
   

  
	
   

  	
   

  	
   

  
	
  BARCLAYS
  CAPITAL

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  5 The North
  Colonnade

  	
   

  
	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
  London E14 4BB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Neil McKenzie

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773 1840

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BNP
  PARIBAS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ François Artignan  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  10 Harewood
  Avenue

  	
   

  
	
   

  	
  London NW1 6AA

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Louis Kenna /
  Claire Guglielmi

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7595
  5019

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7595 2475 / 7595 4381

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CITIGROUP
  GLOBAL MARKETS LIMITED

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Citigroup Centre

  	
   

  
	
   

  	
  33 Canada Square

  	
   

  
	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
  London E14 5LF

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Michael Llewelyn
  - Jones

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7986
  2331

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7986 5855

  	
   

  

 

199

 

	
  CREDIT
  SUISSE FIRST BOSTON

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  1 Cabot Square

  	
   

  
	
   

  	
  London E14 4QJ

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Kamlesh Vara
  (kamlesh.vara@csfb.com)

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7888
  4155

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7888
  8316

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DEUTSCHE
  BANK AG LONDON

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Winchester House

  	
   

  
	
   

  	
  1 Great
  Winchester Street

  	
   

  
	
   

  	
  London EC2N 2DB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Paul Gaines

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7545
  4638

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7545
  7191

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  ROYAL BANK OF SCOTLAND PLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  135 Bishopsgate

  	
   

  
	
   

  	
  London EC2M 3UR

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mike Cunningham

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7375
  8549

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44(0)20 7375
  8941

  	
   

  

 

200

 

	
  THE
  FACILITY AGENT AND SECURITY TRUSTEE

  
	
   

  	
   

  	
   

  
	
  BARCLAYS
  BANK PLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  5 The North
  Colonnade

  	
   

  
	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
  London E14 4BB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Frank Rogers

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773
  4893

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  US PAYING AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  BARCLAYS
  BANK PLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  5 The North
  Colonnade

  	
   

  
	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
  London E14 4BB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Frank Rogers

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773
  4893

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  LENDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  BARCLAYS
  BANK PLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  5 The North
  Colonnade

  	
   

  
	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
  London E14 4BB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  John Atkinson

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7773
  1840

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
   

  	
   

  

 

201

 

	
  BNP
  PARIBAS

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ François Artignan  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  10 Harewood
  Avenue

  	
   

  
	
   

  	
  London NW1 6AA

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Louis Kenna / Claire
  Guglielmi

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7595
  5019

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7595 2475 / 7595 4381

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CITIBANK,
  N.A.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Citigroup Centre

  	
   

  
	
   

  	
  33 Canada Square

  	
   

  
	
   

  	
  London E14 5LB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Jillian Hanley

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7942
  7512

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7500
  1093

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT
  SUISSE FIRST BOSTON

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/                     
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  1 Cabot Square

  	
   

  
	
   

  	
  London E14 4QJ

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Kamlesh Vara
  (kamlesh.vara@csfb.com)

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7888
  4155

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7888
  8316

  	
   

  
				

 

202

 

	
  DEUTSCHE
  BANK AG LONDON

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  Winchester House

  	
   

  
	
   

  	
  1 Great
  Winchester Street

  	
   

  
	
   

  	
  London EC2N 2DB

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Paul Gaines

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44 (0)20 7545
  4638

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44 (0)20 7545
  7191

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  ROYAL BANK OF SCOTLAND PLC

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  135 Bishopsgate

  	
   

  
	
   

  	
  London EC2M 3UR

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mike Cunningham

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  +44(0)20 7375
  8549

  	
   

  
	
   

  	
   

  	
   

  
	
  Tel:

  	
  +44(0)20 7375
  8941

  	
   

  

 

203

 

	
  THE
  ORIGINAL GUARANTORS

  
	
   

  	
   

  	
   

  
	
  TELEWEST
  COMMUNICATIONS NETWORKS LIMITED

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  160 Great
  Portland Street

  	
   

  
	
   

  	
  London

  	
   

  
	
   

  	
  W1W 5QA

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299
  6400

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
  Group Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
  Group General
  Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  Telefax:

  	
  +44(0)20 7299
  5495

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
   

  

 

For an on behalf of

 

BIRMINGHAM
CABLE CORPORATION LIMITED

BIRMINGHAM
CABLE FINANCE LIMITED

BIRMINGHAM
CABLE LIMITED

CABLE CAMDEN
LIMITED

CABLE ENFIELD
LIMITED

CABLE HACKNEY
& ISLINGTON LIMITED

CABLE
HARINGEY LIMITED

CABLE LONDON
LIMITED

CENTRAL CABLE
HOLDINGS LIMITED

CRYSTAL
PALACE RADIO LIMITED

FILEGALE
LIMITED

GENERAL CABLE
GROUP LIMITED

GENERAL CABLE
HOLDINGS LIMITED

GENERAL CABLE
LIMITED

IMMINUS
LIMITED

MIDDLESEX
CABLE LIMITED

SHEFFIELD
CABLE COMMUNICATIONS LIMITED

SOUTHWESTERN
BELL INTERNATIONAL HOLDINGS LIMITED

TELEWEST
COMMUNICATIONS (CENTRAL LANCASHIRE) LIMITED

TELEWEST
COMMUNICATIONS (COTSWOLDS) LIMITED

TELEWEST
COMMUNICATIONS (DUNDEE & PERTH) LIMITED

TELEWEST
COMMUNICATIONS (LIVERPOOL) LIMITED

TELEWEST
COMMUNICATIONS (LONDON SOUTH) LIMITED

TELEWEST
COMMUNICATIONS (MIDLANDS AND NORTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (MIDLANDS) LIMITED

TELEWEST
COMMUNICATIONS (MOTHERWELL) LIMITED

 

204

 

TELEWEST
COMMUNICATIONS (NORTH EAST) LIMITED

TELEWEST
COMMUNICATIONS (NORTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

TELEWEST
COMMUNICATIONS (SCOTLAND) LIMITED

TELEWEST
COMMUNICATIONS (SOUTH EAST) LIMITED

TELEWEST
COMMUNICATIONS (SOUTH THAMES ESTUARY) LIMITED

TELEWEST
COMMUNICATIONS (SOUTH WEST) LIMITED

TELEWEST
COMMUNICATIONS (ST. HELENS & KNOWSLEY) LIMITED

TELEWEST
COMMUNICATIONS (TYNESIDE) LIMITED

TELEWEST COMMUNICATIONS
(WIGAN) LIMITED

TELEWEST
COMMUNICATIONS CABLE LIMITED

TELEWEST
COMMUNICATIONS GROUP LIMITED

TELEWEST
COMMUNICATIONS HOLDINGS LIMITED

TELEWEST
COMMUNICATIONS (NOMINEES) LIMITED

TELEWEST
LIMITED

TELEWEST
PARLIAMENTARY HOLDINGS LIMITED

THE CABLE CORPORATION
LIMITED

THESEUS
NO. 1 LIMITED

THESEUS
NO. 2 LIMITED

WINDSOR
TELEVISION LIMITED

YORKSHIRE
CABLE COMMUNICATIONS LIMITED

THE YORKSHIRE
CABLE GROUP LIMITED

EUROBELL
(HOLDINGS) LIMITED

EUROBELL
(SUSSEX) LIMITED

EUROBELL
(SOUTH WEST) LIMITED

EUROBELL (WEST
KENT) LIMITED

EUROBELL
(IDA) LIMITED

EUROBELL
INTERNET SERVICES LIMITED

EUROBELL CPE
LIMITED

EUROBELL
LIMITED

EMS
INVESTMENTS LIMITED

EUROBELL
(NO.2) LIMITED

EUROBELL
(NO.3) LIMITED

EUROBELL
(NO.4) LIMITED

 

205

 

	
  The Colorado Limited Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  AVON CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  COTSWOLDS CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  EDINBURGH CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  ESTUARIES CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

206

 

	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  UNITED CABLE (LONDON

  	
  )

  	
  /s/

  	
   

  
	
  SOUTH) LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

207

 

	
  Colorado General Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  LONDON SOUTH CABLE

  	
  )

  	
  /s/

  	
   

  
	
  PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its managing partner

  	
  )

  	
   

  	
   

  
	
  UNITED CABLE (LONDON SOUTH)

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  CRYSTAL
  PALACE RADIO LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  TCI/US WEST CABLE

  	
  )

  	
   

  	
   

  
	
  COMMUNICATIONS GROUP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
  /s/

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  English Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Avon Cable Joint Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  AVON CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS
  NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

208

 

	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH
  WEST) LIMITED

  	
  )

  
	
   

  	
   

  
	
  The Partners of Telewest Communications

  	
   

  
	
  (London South) Joint Venture

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  LONDON SOUTH CABLE

  	
  )

  
	
  PARTNERSHIP

  	
  )

  
	
  by its managing partner

  	
  )

  
	
  UNITED CABLE (LONDON

  	
  )

  
	
  SOUTH) LIMITED PARTNERSHIP

  	
  )

  
	
  by its general partner

  	
  )

  
	
  THESEUS NO.1 LIMITED

  	
  )

  
	
   

  	
   

  
	
  and by its general partner

  	
  )

  
	
  THESEUS NO.2 LIMITED

  	
  )

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  
	
  by

  	
  )

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (LONDON SOUTH) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  The Partners of Telewest Communications
  (Scotland)

  Venture

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  EDINBURGH CABLE

  	
  )

  
	
  LIMITED PARTNERSHIP

  	
  )

  
	
  by its general partner

  	
  )

  
	
  THESEUS NO.1 LIMITED

  	
  )

  
	
   

  	
   

  
	
  and by its general partner

  	
  )

  
	
  THESEUS NO.2 LIMITED

  	
  )

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  
	
  by

  	
  )

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SCOTLAND)
  LIMITED

  	
  )

  	
  /s/

  	
   

  
						

 

209

 

	
  The Partners of Telewest Communications
  (Cotswolds)

  Venture

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  COTSWOLDS CABLE

  	
  )

  
	
  LIMITED PARTNERSHIP

  	
  )

  
	
  by its general partner

  	
  )

  
	
  THESEUS NO.1 LIMITED

  	
  )

  
	
   

  	
   

  
	
  and by its general partner

  	
  )

  
	
  THESEUS NO.2 LIMITED

  	
  )

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  
	
  by

  	
  )

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (COTSWOLDS)
  LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  The Partners of Telewest Communications

  	
   

  
	
  (South East) Partnership

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  ESTUARIES CABLE

  	
  )

  
	
  LIMITED PARTNERSHIP

  	
  )

  
	
  by its general partner

  	
  )

  
	
  THESEUS NO.1 LIMITED

  	
  )

  
	
   

  	
   

  
	
  and by its general partner

  	
  )

  
	
  THESEUS NO.2 LIMITED

  	
  )

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  
	
  by

  	
  )

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH
  EAST) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  
	
  by

  	
  )

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH
  THAMES ESTUARY) LIMITED

  	
  )

  	
  /s/

  	
   

  
					

 

210

 

	
  The Partners of Telewest Communications

  	
   

  	
   

  	
   

  
	
  (North East) Partnership

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (NORTH
  EAST) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (TYNESIDE)
  LIMITED

  	
  )

  	
  /s/

  	
   

  

 

211Exhibit
10.3

 

EXECUTION
VERSION

 

Dated
    21     December 2004 

 

TELEWEST
COMMUNICATIONS NETWORKS LIMITED

 

TELEWEST UK
LIMITED

 

Upon its
accession

TELEWEST GLOBAL FINANCE LLC

 

THE
ORIGINAL GUARANTORS

 

BARCLAYS
BANK PLC

Security Trustee

 

CERTAIN
INSTITUTIONS

as Mandated Lead Arrangers

 

BARCLAYS
BANK PLC

as Senior Facility Agent

 

BARCLAYS
BANK PLC

as Second Lien Facility Agent

 

CERTAIN
INSTITUTIONS

as Senior TCN Group Lenders and Second Lien Lenders

 

LLOYDS
(NIMROD) SPECIALIST FINANCE LIMITED, LECKHAMPTON 

FINANCE LIMITED (formerly
known as Robert Fleming Leasing (Number 4) Limited)

 

and LOMBARD
COMMERCIAL LIMITED

as Lessors

 

THE CABLE
CORPORATION LIMITED

THE YORKSHIRE CABLE GROUP LIMITED

as Lessees

 

CERTAIN
INSTITUTIONS

as Hedge Counterparties

 

LLOYDS TSB
LEASING LIMITED

as Lessors’ Agent

 

INTERGROUP
DEBTORS

 

and

 

INTERGROUP
CREDITORS

 

PRINCIPAL
INTERCREDITOR DEED

 

5
Old Broad Street

London EC2N

 

 

Table
Contents

 

	
  1.

  	
  Definitions and
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Undertakings of the
  Chargors

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Undertakings of the
  Creditors

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Suspension of
  Permitted Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Turnover of
  Non-permitted Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Subordination on Insolvency

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Priority of Security

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Enforcement

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Proceeds of
  Enforcement of Security

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Enforcement
  of Security by Security Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Lease Security

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Warranty

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Consents

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Information

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Protection of Subordination

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Preservation of Debt

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Power of Attorney

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Instructing Party

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Powers of the Security
  Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  General duties
  of the Security Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Declaration
  of trust; supplementary provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Enforcement
  of and other action under the Security Documents

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Application of proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Restrictions
  and limitations on and exclusions of the duties and responsibilities of the
  Security Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  No
  restriction on or liability to account for other transactions

  	
   

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Common Agent and
  Security Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Changes to the Parties

  	
   

  
	
   

  	
   

  	
   

  
	
  30.

  	
  Effect of
  this Deed as regards the Chargors

  	
   

  
	
   

  	
   

  	
   

  
	
  31.

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  32.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  33.

  	
  Governing Law and
  jurisdiction

  	
   

  

 

 

	
  SCHEDULE 1 The Original Guarantors

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 2 The Mandated Lead
  Arrangers

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 3 The Senior TCN Group
  Lenders

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 4 The Second Lien Lenders

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5 The Existing Hedge
  Counterparties and Existing Hedge Agreements

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 6 Agent’s Deed of
  Accession

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 7 Hedge Counterparties’
  Deed of Accession

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 8
  Intergroup Party’s Deed of Accession

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 9
  Security Trustee’s Deed of Accession

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 10
  Intergroup Creditors

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 11
  Intergroup Debtors

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 12
  Form of Default Notice

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 13
  Existing Security Documents

  	
   

  

 

 

THIS DEED is dated   21  December 2004 and made BETWEEN:

 

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

 

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

 

(3)           THE ORIGINAL GUARANTORS listed in Schedule 1 (The Original Guarantors) (the “Original Guarantors”);

 

(4)           BARCLAYS BANK PLC in its capacity as security trustee for the
Beneficiaries (the “Security Trustee”);

 

(5)           THE INSTITUTIONS whose names and addresses are set out in Schedule 2
(The Mandated Lead Arrangers) as
Mandated Lead Arrangers;

 

(6)           BARCLAYS BANK PLC in its capacity as agent and US paying agent
under the Senior Facilities Agreement (the “Senior
Facility Agent”);

 

(7)           BARCLAYS BANK PLC in its capacity as agent and US paying agent
under the Second Lien Facility Agreement (the “Second Lien Facility Agent”);

 

(8)           THE INSTITUTIONS whose names and addresses are set out in Schedule 3
(The Senior TCN Group Lenders) in
their respective capacities as Senior TCN Group Lenders, together with each
other institution which hereafter becomes a “Lender” under and as defined in
the Senior Facilities Agreement (the “Senior
TCN Group Lenders”);

 

(9)           THE INSTITUTIONS whose names and addresses are set out in Schedule 4
(The Second Lien Lenders) in
their respective capacities as Second Lien Lenders, together with each other
institution which hereafter becomes a “Lender” under and as defined in the
Second Lien Facility Agreement (the “Second
Lien Lenders”);

 

(10)         LLOYDS (NIMROD) SPECIALIST
FINANCE LIMITED (Company
number 2353803), LECKHAMPTON FINANCE LIMITED (formerly
known as Robert Fleming Leasing (Number 4) Limited) (Company number 2676609)
and LOMBARD COMMERCIAL LIMITED (Company
number 1568608) (each a “Lessor”);

 

(11)         THE CABLE CORPORATION
LIMITED (Company number
2075227) and THE YORKSHIRE CABLE GROUP
LIMITED (Company number 2782818) (the “Lessees”);

 

(12)         THE INSTITUTIONS whose names and addresses are set out in Schedule 5
(The Existing Hedge Counterparties and
Existing Hedge Agreements) (each in its capacity as an Existing
Hedge Counterparty, an “Existing Hedge
Counterparty”, together with each other institution which hereafter
becomes a New Hedge Counterparty in accordance with the provisions of this
Deed, the “Hedge Counterparties”);

 

(13)         LLOYDS TSB LEASING LIMITED (Company number 1004792) in its capacity as
agent for the Lessors;

 

1

 

(14)         THE INTERGROUP DEBTORS (as defined below); and

 

(15)         THE INTERGROUP CREDITORS (as defined below).

 

1.             Definitions and
Interpretation

 

1.1           Definitions

 

In this Deed, unless the context otherwise requires:

 

“Affiliate”
means, in respect of any person, any person which is a subsidiary or holding
company of that person or a subsidiary of a holding company of that person;

 

“Agency and
Co-ordination Agreement” means the agency and co-ordination
agreement dated 24th December 1996 and made between (1) YCG, (2) the
companies whose names and registered numbers are specified in Schedule 1
thereto, (3) NatWest Specialist Finance Limited, Robert Fleming Leasing (Number
4) Limited and Lombard Commercial Limited and (4) NatWest Leasing and Asset
Finance Limited as amended by a First Amendment and Restatement Agreement dated
30th June 1997, a Second Amendment and Restatement Agreement dated on or
about 31st December 1997, a Deed of Accession dated 31st December 1997,
a Third Amendment Agreement dated 8 April 1998 and a Consent and Amendment
Agreement dated 25th August 1998;

 

“Agents”
means the Senior Facility Agent, the Second Lien Facility Agent and, if
applicable from and after the occurrence of an Integrated Merger Event, the
Target Facility Agent, and “Agent”
shall mean any of them;

 

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

 

“Agreements”
means the Senior Facilities Agreement, the Second Lien Facility Agreement and,
from and after the occurrence of an Integrated Merger Event, any Target
Facility Agreement;

 

“Agreement to
Acquire” has the meaning given to it in the Leases;

 

“Barclays”
means Barclays Bank PLC;

 

“Barclays
Intercreditor Agreement” means that intercreditor agreement dated on
or about the date of this Deed and made between Yorkshire Cable Communications
Limited, Sheffield Cable Communications Limited, Yorkshire Cable Properties
Limited, Cable London Limited, Barclays and the Security Trustee;

 

“Barclays
Liabilities” has the meaning given to it in the Barclays
Intercreditor Agreement;

 

“Barclays Security”
has the meaning given to it in the Barclays Intercreditor Agreement;

 

“Beneficiaries”
means the First Beneficiary, the Second Beneficiaries, the Third Beneficiaries
and the Fourth Beneficiaries;

 

2

 

“Chargors”
means Telewest UK, TCN, the US Borrower, each of the Original Guarantors and
any other person who is required to grant Security in accordance with the terms
of the Agreements;

 

“Collateral
Account Agreement” means in relation to any Lease (other than any
RF4 Lease), the agreement so entitled between (1) the Lessee as depositor, (2)
the Lessor and (3) the account bank referred to therein dated 18 May 1999 and
in relation to the RF4 Lease the agreement so entitled between (1) YCG as depositor
(2) RF4 and (3) the account bank referred to therein dated on or about 16
March, 2001;

 

“Collateral
Account Security Assignments” mean the agreement so entitled between
TCC and Lloyds (Nimrod) Specialist Finance Limited (formerly NatWest Specialist
Finance Limited) and the two agreements so entitled between YCG and each Lessor
(other than RF4) respectively dated 18 May 1999 and the agreement so entitled
between YCG and RF4 dated on or about 16 March, 2001;

 

“Creditors”
means the Beneficiaries and the Intergroup Creditors;

 

“Deed of Accession”
means an Agent’s Deed of Accession, a Hedge Counterparty’s Deed of Accession,
an Intergroup Party’s Deed of Accession and a Security Trustee’s Deed of
Accession;

 

“Default”
means an Event of Default, a Hedging Default or a Second Lien Default, as the
context may require;

 

“Default Notice”
means a written notice substantially in the form set out in Schedule 12 (Form of Default Notice);

 

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

 

“Enforcement
Action” has the meaning given to it in Clause 10.4 (Authorisation to Security Trustee in relation to
Enforcement Action);

 

“Enforcement Date”
means:

 

(a)           at any time before the Senior Discharge Date,
the date on which the Senior Facility Agent has delivered a notice of
acceleration under Clause 26.17 (Acceleration)
of the Senior Facilities Agreement or, if applicable from and after the
occurrence of an Integrated Merger Event, the Target Facility Agent delivers a
similar notice under any similar provision of any Target Facility Agreement;

 

(b)           at any time after the Senior Discharge Date
but before the later of the Hedge Discharge Date and the Lessor Pari Passu
Discharge Date, the date on which the Security Trustee notifies TCN or a
Chargor that an event of default or termination event (however described) has
occurred and is continuing under

 

3

 

any Hedge Agreement or a sum has not been paid within three Business
Days of the due date and remains outstanding in respect of the Lessor Pari
Passu Debt;

 

(c)           at any time on or after the Senior Discharge
Date, the Hedge Discharge Date and the Lessor Pari Passu Discharge Date but
before the Second Lien Discharge Date, the date on which the Second Lien
Facility Agent has delivered a notice of acceleration under Clause 21.17 (Acceleration) of the Second Lien Facility
Agreement; or

 

(d)           at any time after the Second Lien Discharge
Date but before the Lessor Junior Discharge Date, the date on which the
Security Trustee notifies TCN or a Chargor that a sum has not been paid within
three Business Days of the due date and remains outstanding in respect of the
Lessor Junior Debt;

 

“Event of Default”
means an Event of Default as defined in the Senior Facilities Agreement or any
equivalent provision of the Target Facility Agreement;

 

“Existing Hedge
Agreement” means an interest rate swap or other hedging arrangement
entered into between TCN and an Existing Hedge Counterparty on or prior to the
date hereof;

 

“Existing Hedge
Counterparty Discharge Date” means in relation to each Existing
Hedge Counterparty, the date on which such Existing Hedge Counterparty has
notified the Security Trustee that it is satisfied that its Existing Hedge
Counterparty Indebtedness has been fully and finally satisfied and no further
Existing Hedge Counterparty Indebtedness can arise under or in respect of any
Existing Hedge Agreement to which it is a party;

 

“Existing Hedge
Counterparty Indebtedness” means all Indebtedness and other
obligations due from all or any of the Chargors to the Existing Hedge
Counterparties under the Existing Hedge Agreements;

 

“Existing Intercreditor
Deed” means an intercreditor deed dated 16 March 2001 (as
amended pursuant to a supplemental deed dated 14 July 2004) between among
others, TCN, CIBC World Markets PLC as security trustee, CIBC World Markets PLC
as agent, the banks and financial institutions named therein as lenders, the
Lessors, the Lessees, the Lessors’ Agent, Crosby Sterling Limited and the
Existing Hedge Counterparties;

 

“Existing Security
Documents” means the security documents listed in Schedule 13 (Existing Security Documents);

 

“Finance Parties” means the Senior Finance
Parties and the Second Lien Finance Parties, collectively;

 

“First Beneficiary”
means the Security Trustee to the extent only of the amounts payable to it in
its capacity as such (for its own account) pursuant to the Agreements or any of
the Security Documents;

 

“Fourth
Beneficiaries” means the Lessors
in respect of the Lessor Junior Debt;

 

4

 

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

 

“General Cable”
means General Cable Limited (No. 2369824);

 

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

 

“Hedge Agreements”
means (a) each Existing Hedge Agreement and (b) any New Hedge Agreement (as the
context may require);

 

“Hedge
Arrangements” means any interest rate or currency protection
arrangements (whether by way of interest rate or cross currency swap, cap,
collar or otherwise) from time to time entered into by any Chargor which
arrangements hedge the interest rate or currency exposure of the Borrowers (or
either of them) under the Agreements and which are documented by one or more
Hedge Agreements;

 

“Hedge
Counterparty’s Deed of Accession” means a deed of accession
substantially in the form set out in Schedule 7 (Hedge Counterparties’ Deed of Accession);

 

“Hedge
Counterparty Indebtedness” means the Existing Hedge Counterparty
Indebtedness and the New Hedge Counterparty Indebtedness;

 

“Hedging Default”
means an Event of Default (as defined in the relevant Hedging Agreement);

 

“Hedge Discharge Date”
means the date on which each Hedge Counterparty has notified the Security
Trustee that it is satisfied that its Hedge Counterparty Indebtedness has been
fully and finally satisfied and no further Hedge Counterparty Indebtedness can
arise under or in respect of any Hedge Agreement entered into by such Hedge
Counterparty;

 

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

 

“Insolvency Event”  means
any event whereby:

 

(a)           a Chargor makes a general assignment for the
benefit of or a composition with its creditors generally or a general
moratorium is declared in respect of the Indebtedness of such Chargor;

 

(b)           an order is made for the winding-up,
dissolution or administration of a Chargor or for the appointment of a
liquidator, receiver, administrator, administrative receiver, conservator,
custodian, trustee or similar officer of it or of any or all of its revenues
and assets; or

 

5

 

(c)           any event occurs which, under the laws of any
jurisdiction, has a similar or analogous effect to any of those events
mentioned in paragraphs (a) and (b) above;

 

“Instructing Party”
means:

 

(a)           at any time prior to the Senior Discharge
Date, an “Instructing Group” as defined in the Senior Facilities Agreement or,
from and after the occurrence of an Integrated Merger Event, such Finance
Parties as may be required from time to time to exercise equivalent voting
rights pursuant to the terms of any applicable intercreditor agreement;

 

(b)           at any time from (and including) the Senior
Discharge Date until the Hedge Discharge Date, all the Hedge Counterparties;

 

(c)           at any time from (and including) the later of
the Senior Discharge Date and the Hedge Discharge Date until the Lessor Pari
Passu Discharge Date, all the Lessors;

 

(d)           at any time from (and including) the later of
the Senior Discharge Date, the Hedge Discharge Date and the Lessor Pari Passu
Discharge Date until the Second Lien Discharge Date, an “Instructing Group” as
defined in the Second Lien Facility Agreement; and

 

(e)           at any time from (and including) the Second
Lien Discharge Date until the Lessor Junior Discharge Date, all the Lessors;

 

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

 

“Intergroup Creditor” means

 

(a)           as at the date of
this Deed, each of the parties listed in Schedule 10 (Intergroup Creditors); and

 

(b)           at any time hereafter,
each person who becomes a creditor in respect of any Intergroup Liabilities and
who accedes to this Deed in the capacity of an Intergroup Creditor by its
execution and delivery of an Intergroup Party Deed of Accession;

 

“Intergroup Debtor” means:

 

(a)           as at the date of
this Deed, each of the parties listed in Schedule 11 (Intergroup Debtors); and

 

(b)           at any time
hereafter, each person who becomes a debtor in respect of any Intergroup
Liabilities and who accedes to this Deed in the capacity of an

 

6

 

Intergroup
Debtor by its execution and delivery of an Intergroup Party Deed of Accession;

 

“Intergroup Liabilities” means all present
and future obligations constituted by Financial Indebtedness owed by any member
of the TCN Group to any member of the Group (other than another member of the
TCN Group) together with all costs, charges and expenses incurred by such
member of the Group in connection with the protection, preservation or
enforcement of its rights in respect of such amounts;

 

“Intergroup Party’s Deed of Accession” means
a deed of accession substantially in the form set out in Schedule 7 (Hedge Counterparties’ Deed of Accession);

 

“Lease Documents”
means:

 

(a)           the Leases;

 

(b)           the Agency and Co-ordination Agreement;

 

(c)           the Collateral Account Agreements;

 

(d)           the Collateral Account Security Assignments;

 

(e)           the Lease Security Agreements;

 

(f)            each Agreement to Acquire;

 

(g)           Example Cash Flow Letter dated 24 December 1996
between NatWest Specialist Finance Limited and YCG (as amended);

 

(h)           Tax Consultation Letter dated 24 December 1996
between NatWest Specialist Finance Limited and YCG (as amended);

 

(i)            Apportionment of Overheads and Accounting
Side Letter (“Valuation of Equipment”) dated 23 December 1996 between YCG,
NatWest Specialist Finance Limited, Lombard Commercial Limited and Robert
Fleming Leasing (Number 4) Limited (as amended);

 

(j)            Section 53 Capital Allowances Act 1990
Election Side Letter dated 24 December 1996 between NatWest Specialist Finance
Limited and YCG (as amended);

 

(k)           Agency Fees Letter dated 23 December 1996
between NatWest Leasing and Asset Finance Limited and YCG (as amended);

 

(l)            Example Cash Flow Letter dated 26 February 1996
between NatWest Specialist Finance Limited and TCC (as amended);

 

(m)          Tax Consultation Letter dated 26 February 1996
between NatWest Specialist Finance Limited and TCC (as amended);

 

7

 

(n)           Apportionment of Overheads and Accounting
Side Letter (“Valuation of Equipment”) dated 26 February 1996 between TCC
and NatWest Specialist Finance Limited (as amended);

 

(o)           Section 53 Capital Allowances Act 1990
Election Side Letter dated 24 December 1996 between NatWest Specialist
Finance Limited and TCC (as amended);

 

(p)           Example Cash Flow Letter dated 24 December 1996
between Robert Fleming Leasing (Number 4) Limited and YCG;

 

(q)           Tax Consultation Letter dated 24 December 1996
between Robert Fleming Leasing (Number 4) Limited and YCG;

 

(r)            Section 53 Capital Allowances Act 1990
Election Side Letter dated 24 December 1996 between Robert Fleming Leasing
(Number 4) Limited and YCG;

 

(s)           Example Cash Flow Letter dated 24 December 1996
between Lombard Commercial Limited and YCG;

 

(t)            Tax Consultation Letter dated 24 December 1996
between Lombard Commercial Limited and YCG; and

 

(u)           Section 53 Capital Allowances Act 1990
Election Side Letter dated 24 December 1996 between Lombard Commercial
Limited and YCG;

 

“Lease Security
Agreements” means the agreement so entitled dated 24 December 1996
between NatWest Specialist Finance Limited and YCG, the agreement so entitled
dated 26 February 1996 between NatWest Specialist Finance Limited and TCC,
the agreement so entitled dated 24 December 1996 between Robert Fleming
Leasing (Number 4) Limited and YCG and the agreement so entitled dated 24 December 1996
between Lombard Commercial Limited and YCG;

 

“Leases”
means each Ten Year Lease and each Twelve Year Lease;

 

“Lenders”
means the Senior TCN Group Lenders, the Second Lien Lenders and, from and after
the occurrence of an Integrated Merger Event, the Target Group Lenders,
collectively;

 

“Lessor Collateral
Account” in relation to any Lease has the meaning given to such
expression in the relevant Collateral Account Agreement;

 

“Lessor Debt”
means all Indebtedness of the Lessees to the Lessors (or any of them) under the
Lease Documents;

 

“Lessor Junior
Debt” means such amount as results from deducting the amount of the
Lessor Pari Passu Debt from the amount of the Lessor Debt;

 

“Lessor Junior
Discharge Date” means the date on which the Lessors’ Agent notifies
the Security Trustee that it is satisfied that all of the Lessor Debt has been
fully and finally satisfied;

 

8

 

“Lessor Pari Passu
Debt” means an amount of the Lessor Debt less the amount standing to
the credit of the Lessor Collateral Accounts (up to a maximum aggregate amount
of £30,000,000);

 

“Lessor Pari Passu
Discharge Date” means the date on which the Lessors’ Agent notifies
the Security Trustee that it is satisfied that the Lessor Pari Passu Debt has
been fully and finally satisfied;

 

“Lessor Security”
means:

 

(a)           the security created by the Collateral
Account Security Assignments (including, for the avoidance of doubt, any moneys
credited or to be credited to any Lessor Collateral Account) in favour of the
Lessors (or any of them); and

 

(b)           without prejudice to Clauses 2 (Undertakings of the Chargors) and 3 (Undertakings of the Creditors), any
security granted under any covenant for further assurance in any Collateral
Account Security Assignment;

 

“Lessors’ Agent”
means Lloyds Leasing Limited (Company Number 1004792) or, as the case may be,
any successor Lessors’ Agent appointed pursuant to Clause 4 of the Agency
and Co-ordination Agreement;

 

“Lessor’s Liens”
has the meaning given to such expression in the relevant Lease;

 

“Liabilities”
means the Senior Indebtedness, the Second Lien Indebtedness, the Hedge
Counterparty Indebtedness, the Lessor Debt and the Intergroup Liabilities,
collectively.

 

“Merger Event” means:

 

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

 

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

 

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

 

and which TCN
designates by written notice to the Senior Facility Agent and the Second Lien
Facility Agent as the “Merger Event” for the purposes of the Senior Facilities
Agreement and the Second Lien Facility Agreement;

 

9

 

“New Hedge
Agreement” means any agreement entered into after the date hereof
between a Chargor and a New Hedge Counterparty in connection with Hedge
Arrangements;

 

“New Hedge Counterparty” means each party to
a New Hedge Agreement which:

 

(a)              was a Senior TCN
Group Lender or a Second Lien Lender (or in each case, an Affiliate thereof) on
the date such New Hedge Agreement was entered into or was another bank or
financial institution acceptable to TCN and the Senior Facility Agent and/or
the Second Lien Facility Agents on the date such New Hedge Agreement was
entered into; or

 

(b)              to the extent
applicable, after the occurrence of an Integrated Merger Event, is a Target Group
Hedge Counterparty,

 

and, who, in each
case has acceded to this Deed in accordance with the provisions of
Clause 29.7 (Assignment and/or transfer
by the Hedge Counterparties), until any such person has ceased to be
a party to this Deed in such capacity in accordance with the terms hereof and “New Hedge Counterparties” means all such
parties;

 

“New Hedge
Counterparty Indebtedness” means all Indebtedness and other
obligations due from all or any of the Chargors to the New Hedge Counterparties
under the New Hedge Agreements;

 

“New Security
Documents” means the Security Documents (as defined in the Senior
Facilities Agreement);

 

“New Senior
Liabilities” means:

 

(a)           credit facilities or other financial
accommodation provided by any Senior Finance Party or any Target Finance Party
under the Senior Documents to the Borrowers (or either of them) after the date
of this Deed in accordance with Clause 3.7 (New Senior Liabilities) which in the case of the Senior
Finance Parties, exceeds the total Commitments (as defined in the Senior
Facilities Agreement) as at the date of this Deed or in the case of the Target
Finance Parties, exceeds the total commitments of such Target Finance Parties
under the Target Facility Agreement as at the date of the Integrated Merger Event
(in each case, excluding, for the avoidance of doubt, any credit exposure of
any such Senior Finance Party or Target Finance Party in its capacity as a
Hedge Counterparty); and/or

 

(b)           credit facilities or other financial
accommodation provided on a senior secured basis by any other person to any
member of the TCN Group,

 

provided that:

 

(i)            in the case of paragraph (b) above, the
relevant persons providing such credit facilities or financial accommodation
shall enter into an intercreditor agreement with each of the parties to this
Deed on substantially similar terms to this Deed (or otherwise in a form
satisfactory to the Instructing Party); and

 

10

 

(ii)           the aggregate of all New Senior Liabilities
incurred by the TCN Group in reliance on this definition shall in no event
exceed £200 million at any time outstanding;

 

“Notice of
Acceleration” means:

 

(a)           a notice from the Senior Facility Agent to
TCN pursuant to Clause 26.17 (Acceleration)
of the Senior Facilities Agreement declaring that all outstandings and all
interest and commitment commission accrued and all other sums payable under the
Senior Facilities Agreement have become immediately due and payable or due and
payable on demand, or if applicable from and after the occurrence of an
Integrated Merger Event, a notice from the Target Facility Agent to TCN
pursuant to any similar provision of any Target Facility Agreement declaring
that all outstandings and all interest and commitment commission accrued and all
other sums payable under such Target Facility Agreement have become due and
payable on demand; or

 

(b)           where a notice has been served by the Senior
Facility Agent on TCN pursuant to Clause 26.18 (Repayment on Demand) of the Senior Facilities Agreement or
the Target Facility Agreement pursuant to any similar provision of a Target
Facility Agreement as contemplated above, declaring that all outstandings and
the other amounts referred to in paragraph (a) to be due and payable on
demand, such demand made by the relevant Agent on TCN;

 

“Operative
Documents” has the meaning given to such expression in each Twelve
Year Lease;

 

“Permitted Hedging
Payments” means, subject to Clauses 4 (Suspension of Permitted Payments), 5 (Turnover of Non-permitted Payments) and 6
(Subordination on Insolvency),
any payments, receipts and set-offs in respect of Hedge Counterparty
Indebtedness, but only to the extent that any such payment has fallen due under
or in connection with the terms of the relevant Hedge Agreement;

 

“Permitted
Intergroup Payment” means:

 

(a)           provided that no Default has occurred or is
continuing or is likely to occur as a result thereof, any payment of principal
or interest not prohibited by the Senior Facilities Agreement or the Second
Lien Facility Agreement; or

 

(b)           at any time after the occurrence of a Default
which is continuing, any payment to the extent permitted to be paid at such
time under the terms of the Senior Facilities Agreement and the Second Lien
Facility Agreement;

 

“Permitted Lease
Payments” means, subject to Clauses 4 (Suspension of Permitted Payments), 5 (Turnover of Non-permitted Payments) and 6
(Subordination on Insolvency),
any payments, receipts and set-offs in respect of the Lessor Debt, but only to
the extent that any such payment either:

 

(a)           has fallen due under or in connection with
the terms of the Lease Documents to which such Lessor is a party; or

 

11

 

(b)           is made on terms reasonably considered by the
board of directors of the relevant Chargor to be on a commercial basis and on
arm’s length terms and provided that any such payment (i) when aggregated
together with all other payments made to the Lessors in reliance on this
definition, does not exceed £30,000,000 and (ii) is made in full and final
settlement of the Lessor Pari Passu Debt whereupon the Lessor Pari Passu
Discharge Date (and if the Lessor so agrees, the Lessor Junior Discharge Date)
is deemed to have occurred;

 

“Prohibited
Actions” means:

 

(a) in relation to any Second Lien Indebtedness:

 

(i)            the payment, repayment or the purchase by or
on behalf of any member of the TCN Group, of any such Indebtedness (or any part
thereof);

 

(ii)           the discharge by way of set-off, combination
of accounts or other similar action with respect to such Indebtedness (or any
part thereof) unless effected pursuant to any mandatory requirement of
applicable Law;

 

(iii)          the creation of or (to the extent required by
the Senior Facility Agent) failure to remove or extinguish, any Encumbrance in
respect of such Indebtedness (or any part thereof) over any or all of the
assets or revenues of any Chargor;

 

(iv)          the taking of any guarantee or other
assurance against financial loss in respect of any such Indebtedness (or any
part thereof) from any member of the Group;

 

(v)           the amendment, variation, waiver or release
of any term of any agreement under which or whereby any such Indebtedness (or
any part thereof) is outstanding, subordinated, evidenced, secured or
guaranteed, in each case save for amendments of an immaterial or technical
nature or which correct a manifest error, amendments which, taken as a whole,
do not prejudice the interests of the Senior Lenders, the Hedge Counterparties
or the Lessors in a material respect or as permitted by this Deed or under the
Senior Facilities Agreement;

 

(vi)          any action whereby the priority as to payment
of such Indebtedness (or any part thereof) under this Deed is altered or any
failure to take any action which would prevent any such alteration; or

 

(vii)         any action prohibited under Clause 8.3 (Restrictions on enforcement by Second Lien Finance Parties); or

 

(b)           in relation to an Intergroup Liability:

 

(i)            the payment, repayment or purchase of such
Intergroup Liability or any part thereof;

 

12

 

(ii)           the discharge by way of set-off, combination
of accounts or other similar action with respect to such Intergroup Liability
or any part thereof unless effected pursuant to any mandatory requirement of
applicable law;

 

(iii)          the creation of any Encumbrance over any or
all of the assets or revenues of any Intergroup Debtor in respect of such
Intergroup Liability;

 

(iv)          the taking of a guarantee or other assurance
against financial loss in respect of such Intergroup Liability;

 

(v)           any action whereby the priority as to payment
of such Intergroup Liability under this Deed is altered; or

 

(vi)          any action prohibited under Clause 8.4 (Restrictions on enforcement by the Intergroup
Creditors);

 

“Receiver”
means any one or more receivers, managers, administrative receivers or
administrators appointed by the Security Trustee pursuant to any Security
Document in respect of all or any of the Chargors or over all or any of the
Secured Assets;

 

“Relevant
Communication” means any notice, request, demand or other
communication under this Deed or any document (including, without limitation,
financial information) required to be delivered under this Deed;

 

“RF4”
means Leckhampton Finance Limited (formerly known as Robert Fleming Leasing
(Number 4) Limited);

 

“RF4 Lease”
means any Lease entered into between RF4 and YCG;

 

“Second
Beneficiaries” means the Lessors (in respect of the Lessor Pari
Passu Debt), the Agents, the Senior TCN Group Lenders, the Hedge
Counterparties, the Mandated Lead Arrangers and, from and after the occurrence
of an Integrated Merger Event, the Target Group Lenders;

 

“Second Lien
Default” means any Event of Default (as defined in the Second Lien
Facility Agreement);

 

“Second Lien Discharge Date” means the date
on which the Second Lien Facility Agent has notified the Security Trustee that
it is satisfied that the Second Lien Indebtedness has been fully and finally
satisfied and no further Second Lien Indebtedness can arise under the Second
Lien Documents;

 

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

 

“Second Lien Facility Agreement” means the
second lien facility agreement dated on or about the date hereof between, inter alios, Telewest UK Limited, TCN, the
Mandated Lead Arrangers (as defined therein), the Second Lien Facility Agent,
the Security Trustee and the Second Lien Lenders;

 

13

 

“Second Lien Finance Parties” means the
Second Lien Facility Agent, the Mandated Lead Arrangers (as defined in the
Second Lien Facility Agreement), the Security Trustee and the Second Lien
Lenders, collectively;

 

“Second Lien Indebtedness” means all
Indebtedness covenanted to be paid or discharged by all or any of the Chargors
to all or any of the Second Lien Finance Parties under the Second Lien
Documents;

 

“Second Lien Instructing Group” means an
Instructing Group (as defined in the Second Lien Facility Agreement);

 

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

 

“Secured
Obligations” means the Security Trustee Indebtedness, the Senior
Indebtedness, the Hedge Counterparty Indebtedness, the Lessor Debt and the Second
Lien Indebtedness;

 

“Security
Documents” means the Existing Security Documents listed in Part 1 of
Schedule 13 (Existing Security
Documents) and the New Security Documents;

 

“Security Trustee’s
Deed of Accession” means a deed of accession substantially in the
form set out in Schedule 9 (Security
Trustee’s Deed of Accession);

 

“Security Trustee
Indebtedness” means the amounts payable to the Security Trustee
referred to in the definition of First Beneficiary;

 

“Security”
means the security granted by the Chargors pursuant to the Security Documents;

 

“Senior Agent” means the Senior Facility Agent and, if
applicable from and after the occurrence of an Integrated Merger Event, the
Target Facility Agent;

 

“Senior Discharge
Date” means the date on which each of the Senior Agents has notified
the Security Trustee that it is satisfied that the Senior Indebtedness has been
fully and finally satisfied and no further Senior Indebtedness can arise under
or in respect of the Senior Documents;

 

“Senior Documents”
means the Finance Documents (as defined in the Senior
Facilities Agreement) and, if applicable from and after the occurrence of an
Integrated Merger Event, any Target Finance Documents, in each case other than
the Hedge Agreements referred to therein;

 

“Senior Facilities Agreement” means the
senior facilities agreement dated on or about the date hereof between inter alios, Telewest UK Limited, TCN, the
Mandated Lead Arrangers (as defined therein), the Senior Facility Agent, the
Security Trustee and the Senior TCN Group Lenders;

 

“Senior Finance Parties” means the Senior
Facility Agent, the Mandated Lead Arrangers (as defined in the Senior
Facilities Agreement), the Administrative Agent (as defined in the Senior
Facilities Agreement), the Security Trustee, the Senior TCN 

 

14

 

Group Lenders and, if
applicable from an after the occurrence of an Integrated Merger Event, the
Target Finance Parties, collectively;

 

“Senior
Indebtedness” means all indebtedness covenanted to be paid or
discharged by all or any of the Chargors to all or any of the Senior Finance
Parties under the Senior Documents;

 

“Senior Lenders” means the Senior TCN Group
Lenders and, if applicable from and after the occurrence of an Integrated
Merger Event, the Target Group Lenders;

 

“Senior TCN Group Instructing Group” means
an Instructing Group (as defined in the Senior Facilities Agreement);

 

“Standstill Period” has the meaning given to
it in Clause 8.6 (Permitted Enforcement of
Second Lien Indebtedness and New Hedge Counterparty Indebtedness);

 

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

 

“Target Facility Agent” means the agent or
representative for the Target Group Finance Parties under and pursuant to the
Target Finance Documents;

 

“Target Facility Agreement” means any
credit, loan or other facility agreement governing any senior secured Target
Group Senior Indebtedness;

 

“Target Finance Documents” means any Target
Facility Agreement and other document or instrument evidencing, governing or
providing security therefor;

 

“Target Finance Parties” means the Target
Facility Agent or Agents, the Target Group Lenders and any other finance
parties party from time to time as such to any Target Finance Documents,
collectively;

 

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

 

“Target Group Hedge Agreement” means each
hedging agreement required to be entered into under any Target Facility
Agreement and in respect of which the obligations assumed by the relevant
member of the Target Group party thereto are the subject of security;

 

“Target Group Hedge Counterparty” means each
party to a Target Group Hedging Agreement other than a member of the Target
Group, and “Target Group  Hedge Counterparties” means all such
parties;

 

“Target Group
Hedge Counterparty Indebtedness”
means the all indebtedness and obligations covenanted to be paid or discharged
by all or any of the members of the Target Group to Target Group Hedge
Counterparties under the Target Group Hedge Agreements;

 

15

 

“Target Group Instructing Group” means an
instructing group of Target Group Finance Parties under the Target Group
Finance Documents;

 

“Target Group Lenders” means any lender in
respect of Target Group Senior Indebtedness;

 

“Target Group Senior Indebtedness” means all
senior ranking indebtedness covenanted to be paid or discharged by all or any
of the Chargors to all or any of the Target Finance Parties under the Target
Finance Documents;

 

“Tax Sign Off Date”
means in relation to a Lessor the date on which the Inland Revenue has signed
off on the tax computations of such Lessor in so far as they relate to the
transactions contemplated by the relevant Lease in respect of the accounting
period during which the final piece of Equipment (as defined in the relevant
Lease) which was the subject of the relevant Lease was sold by such Lessor;

 

“TCC”
means The Cable Corporation Limited (registered number 2075227);

 

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

 

“Ten Year Leases”
means the three agreements so entitled dated 24 December 1996 between YCG
and each Lessor and the agreement so entitled dated 26 February 1996
between TCC and NatWest Specialist Finance Limited (as amended prior to the
date of this Deed);

 

“Third
Beneficiaries” means the Second Lien Lenders;

 

“Total Commitments”
means at any time, the aggregate amount of the Commitments (as defined in the
Senior Facilities Agreement) of all of the Senior TCN Group Lenders under the
Senior Facilities Agreement and, if applicable from and after the occurrence of
an Integrated Merger Agreement, the aggregate amount of the commitments of all
Target Group Lenders under any Target Facility Agreement;

 

“Transaction
Documents” means the Senior Documents, the Lease Documents, the
Hedge Agreements and the Second Lien Documents;

 

“Transfer Deed” means a Transfer Deed as
defined in the Senior Facilities Agreement and/or if applicable any equivalent
deed or agreement under the Target Group Facility Agreement and/or a Transfer
Deed as defined in the Second Lien Facility Agreement, (as the context may
require);

 

“Trust Property”
means, collectively, (i) the security, powers, rights, titles, benefits and
interests (both present and future) constituted by and conferred on the
Security 

 

16

 

Trustee under or pursuant to the Security Documents
(including, without limitation, the benefit of all covenants given in the
Security Documents) (ii) all moneys, property and other assets paid or
transferred to or vested in the Security Trustee (or any agent of the Security
Trustee) or received or recovered by the Security Trustee (or any agent of the
Security Trustee) pursuant to, or in connection with, any of the Security
Documents whether from any Chargor or any other person and (iii) all rights,
benefits, interests, money, investments, property and other assets at any time
representing or deriving from any of the foregoing, including all interest,
income and other sums at any time received or receivable by the Security Trustee
(or any agent of the Security Trustee) in respect of the same (or any part
thereof);

 

“Twelve Year
Leases” means the three agreements so entitled dated 24 December 1996
between YCG and each Lessor and the agreement so entitled dated 26 February 1996
between TCC and NatWest Specialist Finance Limited (as amended prior to the
date of this Deed);

 

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

 

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

 

“US Borrower” means Telewest Global Finance
LLC in its capacity as a borrower under each of the Senior Facilities Agreement
and the Second Lien Facility Agreement; and

 

“YCG”
means The Yorkshire Cable Group Limited (registered number 2782818).

 

1.2           Successors and assigns

 

The expressions “Agent”, “Beneficiaries”, “Borrower”,
“Chargor”, “Existing Hedge Counterparties”, “First Beneficiary”, “Fourth
Beneficiaries”, “Hedge Counterparties”, “Lenders”, “Lessor”, “Mandated Lead
Arrangers”, “Original Guarantor”, “Second Beneficiaries”, “Security Trustee”, “TCN”
and “Third Beneficiaries”, include, where the context admits, their respective
successors, permitted assigns and, in the case of the Lenders, their
Transferees and, in the case of the Security Trustee, such other person as may
from time to time be appointed as Security Trustee for the Beneficiaries
pursuant to the provisions of this Deed, in the case of the Senior Agents, such
other person as may be appointed as Senior Facility Agent pursuant to
Clause 29.1 (Appointment of the Agents)
of the Senior Facilities Agreement, or as Target Facility Agent under any
equivalent provision of the Target Facility Agreement and in the case of the
Second Lien Facility Agent, such other person as may be appointed as Second
Lien Facility Agent pursuant to Clause 24.1 (Appointment of the Agents) of the Second Lien Facility
Agreement.

 

17

 

1.3           Agreement definitions

 

1.3.1        Capitalised words and expressions used in
this Deed (including its recitals) shall, unless the context otherwise requires
or unless otherwise defined in this Deed, have the meanings given to them in
the Senior Facilities Agreement.

 

1.4           Headings

 

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

 

1.5           Construction of certain
terms

 

In this Deed, unless the context otherwise requires:

 

1.5.1        references to Clauses and the
schedules are to be construed as references to the Clauses of, and
the schedules to, this Deed and references to this Deed include its
schedules;

 

1.5.2        reference to (or to any specified provision
of) this Deed or any other document shall be construed as references to this
Deed, that provision or that document as in force for the time being and as
amended in accordance with the terms thereof or, as the case may be, with the
agreement of the relevant parties and (where such consent is, by the terms of
this Deed or the relevant document or otherwise, required to be obtained as a condition
to such amendment being permitted) the prior written consent of the relevant
Agent, the Security Trustee, all of the Lenders, the Instructing Party or all
or any of the other Beneficiaries (as the case may be);

 

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

 

1.5.4        words importing the plural shall include the
singular and vice versa;

 

1.5.5        references to a time of day are to London
time;

 

1.5.6        references to a person shall be construed as
including references to an individual, firm, company, corporation,
unincorporated body of persons or any State or any agency thereof;

 

1.5.7        reference to a document “in the agreed form”
means in the form of a draft of such document initialled by way of
identification by each of the Agents and TCN or by their respective lawyers on
their behalf or, where no such draft is so initialled, in the form to be agreed
between TCN and each of the Agents and all such parties hereby agree to
negotiate in good faith to agree such form;

 

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

 

18

 

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

 

1.5.10      unless expressly provided to the contrary in
this Deed, a person who is not a party to this Deed may not enforce any of its
terms under the Contracts (Rights of Third Parties) Act 1999.

 

1.6           Effect as a deed

 

This Deed is intended to take effect as a deed
notwithstanding that all or any of the Beneficiaries may have executed it under
hand only.

 

1.7           Security Trustee’s opinion

 

Where any Security Document provides for the
Security Trustee’s opinion to determine whether any matter would or is
reasonably likely to have a material adverse effect, the Security Trustee shall
act in accordance with the instructions of the Instructing Party (acting
reasonably) in making such determination.

 

1.8           Specific capacity of parties

 

References in this Deed to the obligations or
liabilities of any of the Agents, the Lenders, the Beneficiaries, the Mandated
Lead Arrangers, the Lessors, TCN, the Hedge Counterparties, the Chargors, the
Intergroup Debtors, the Intergroup Creditors or the Security Trustee shall be
strictly construed as references to obligations or liabilities of any such
person solely in its capacity as such.

 

1.9           Instructing Parties

 

Where this Deed or any other Security Document
provides for any matter to be determined by reference to the opinion of an
Instructing Party, or to be subject to the consent or request of an Instructing
Party, or for any action to be taken on the instructions of an Instructing
Party, such opinion, consent, request or instructions shall (as between the
relevant Beneficiaries) only be regarded as having been validly given or issued
by an Instructing Party if all of the relevant Beneficiaries shall have
received appropriate prior notice of the matter on which such opinion, consent,
request or instructions are required to be obtained and the relevant group of
Beneficiaries shall have given or issued (or, by the terms of the relevant
governing agreement, be deemed to have done so) such opinion, consent, request
or instructions but each Chargor and each Beneficiary (other than the
Beneficiaries forming part of the Instructing Party) shall be entitled (and
bound) to assume that such notice shall have been duly received by each
relevant Beneficiary and that the relevant consent shall have been obtained to
constitute an Instructing Party whether or not this is in fact the case.

 

1.10         References to Lessors

 

Unless and to the extent the context does not
permit, where a Lessor is a party to more than one Ten Year Lease and more than
one Twelve Year Lease with a different Lessee, that Lessor shall be treated,
and this Deed construed, as if there were two separate Lessors each with its
Ten Year Lease and Twelve Year Lease with the Lessee a party thereto and
references in this Deed to that Lessor being “a party to”

 

19

 

any particular Lease Document or to any “relevant”
Lease Document or other agreement or to any “relevant” Lessor Collateral
Account or any other account and similar expressions shall be construed
accordingly.

 

2.             Undertakings of the Chargors

 

2.1           Lessor Debt

 

Until the last to occur of the Senior Discharge Date
and the Hedge Discharge Date, each Chargor undertakes to the Security Trustee
and to each of the other Beneficiaries that it will not without the prior
consent of the Security Trustee (acting on the instructions of an Instructing Party):

 

2.1.1        pay, prepay or repay, or make any
distribution in respect of, or purchase or acquire, any of the Lessor Debt in
cash or in kind except for Permitted Lease Payments;

 

2.1.2        exercise any set-off against any of the
Lessor Debt, except for Permitted Lease Payments;

 

2.1.3        create or permit to subsist any security over
any of its assets for any of the Lessor Debt except for:

 

(a)           any guarantee or Encumbrance granted or
permitted to subsist under the Security Documents or the Collateral Account
Security Assignments (including, for the avoidance of doubt, any moneys
credited or to be credited to any Lessor Collateral Account); and

 

(b)           any Encumbrance granted in favour of a Lessor
under any covenant for further assurance under the relevant Collateral Account
Security Assignment, provided that any such Encumbrance is expressed to be
subject to this Deed and is in the same form as the relevant Collateral Account
Security Assignment in force at the date of this Deed or, if later, the date of
its creation in accordance with the terms of this Deed or imposes no greater
obligation on the relevant Chargor and gives no greater rights to the Lessor
that is a party to that Collateral Account Security Assignment; or

 

2.1.4        take or omit to take any action whereby the
subordination of the Lessor Debt contemplated by this Deed would be or would be
reasonably likely to be impaired.

 

2.2           Hedging

 

Until the last to occur of the Senior Discharge Date
and the Lessor Pari Passu Discharge Date, each Chargor undertakes to the
Security Trustee and to each of the other Beneficiaries that it will not,
without the prior consent of the Security Trustee (acting on the instructions
of the Instructing Party):

 

2.2.1        pay, prepay or repay, or make any
distribution in respect of, or purchase or acquire any of the Hedge
Counterparty Indebtedness in cash or in kind except for Permitted Hedging
Payments;

 

2.2.2        exercise any set-off against any of the Hedge
Counterparty Indebtedness except for Permitted Hedging Payments; or

 

20

 

2.2.3        create or permit to subsist any security over
any of its assets for any of the Hedge Counterparty Indebtedness except for any
guarantee or Encumbrance granted or permitted to subsist under the Security
Documents.

 

2.3           Second Lien

 

Until the last to occur of the Senior Discharge
Date, the Hedge Discharge Date and the Lessor Pari Passu Discharge Date, and
subject to Clause 4.4 (Suspension of
Permitted Payments  relating to
Second Lien Indebtedness) below, no Chargor may without the prior
consent of the Security Trustee (acting on the instructions of the Instructing
Party) take, nor permit any Second Lien Finance Party nor cooperate with any
Second Lien Finance Party to take, any Prohibited Action with respect to any
Second Lien Indebtedness other than:

 

(a)           any scheduled payments of interest (including
gross up amounts) or principal received from any Chargor in respect of any
Second Lien Liability then due and owing;

 

(b)           subject to the following provisions of this
Clause 2.3, any voluntary prepayments made in accordance with the provisions of
Clause 6 (Voluntary Prepayment)
of the Second Lien Facility Agreement;

 

(c)           subject to the following provisions of this
Clause 2.3, any mandatory prepayments made in accordance with the provisions of
Clause 7 (Mandatory Prepayment and
Cancellation) of the Second Lien Facility Agreement; and

 

(d)           reasonable fees paid in accordance with
market practice;

 

in the case of (a), (b) and (c), as in effect on the
original execution date of this Deed or as amended with the prior consent of
the Instructing Party, provided that, subject to the provisions of any
applicable intercreditor agreement upon and following an Integrated Merger
Event, notwithstanding the provision of Clause 10.3 (Application of Repayments) of the Senior Facilities
Agreement and Clause 6.3 (Application of
Repayments) of the Second Lien Facility Agreement:

 

(i)            voluntary prepayments made from the proceeds
of any Flextech Disposal or any Second Lien Refinancing may be applied, at the
option of TCN, in or towards repayment of the Second Lien Indebtedness;

 

(ii)           voluntary prepayments made from cash funds of
the Target Group upon a Merger Event may be applied, at the option of TCN in or
towards prepayment of the Second Lien Indebtedness;

 

(iii)          voluntary prepayments made at any time when
the ratio of Consolidated Group Net Borrowings (after taking account of the
repayment in question) to Consolidated Group Net Operating Cash Flow is less
than or equal to 2.85:1, may, at the option of TCN, be applied equally in
amount (and not pro rata) in or towards repayment of the Senior Indebtedness on
the one hand and the Second Lien Indebtedness on the other hand; and

 

21

 

(iv)          mandatory prepayments made from Equity
Proceeds or from Net Proceeds of Financial Indebtedness which is junior to the
Facilities shall, at the option of TCN, be applied equally in amount (and not
pro rata) in or towards repayment of the Senior Indebtedness on the one hand
and the Second Lien Indebtedness on the other hand.

 

2.4           Intergroup Debtors

 

Each Intergroup Debtor undertakes to the Security
Trustee and each of the other Beneficiaries that it shall not take, nor permit
any Intergroup Creditor nor cooperate with any Intergroup Creditor to take the
benefit of, any Prohibited Action in relation to any Intergroup Liability
except Permitted Intergroup Payments.

 

3.             Undertakings of the
Creditors

 

3.1           Lessors

 

Until the last to occur of the Senior Discharge Date
and the Hedge Discharge Date (but without prejudice to Clause 8.1 (Restrictions on enforcement by the Lessors)),
each Lessor undertakes to the Security Trustee, each of the other Beneficiaries
and each of the other Lessors that it will not, without the consent of the
Security Trustee (acting on the instructions of the Instructing Party) and the
other Lessors:

 

3.1.1        demand or receive payment, prepayment or
repayment of, or any distribution in respect of (or on account of), any of the
Lessor Debt owing to it in cash or in kind or apply any money or property in
discharge of any Lessor Debt owing to it, except for:

 

(a)           Permitted Lease Payments; and/or

 

(b)           any proceeds received and applied in the
order permitted by Clause 9 (Proceeds
of Enforcement of Security); and/or

 

(c)           the proceeds of the relevant Collateral
Account Security Assignments;

 

3.1.2        exercise any set-off against any Lessor Debt
owing to it, except for Permitted Lease Payments and in respect of monies
standing to the credit of the Lessor Collateral Accounts pursuant to an enforcement
of the Lessor Security;

 

3.1.3        permit to subsist or receive any Encumbrance
or receive any guarantee or other assurance against financial loss for, or in
respect of, any of the Lessor Debt owing to it other than any Encumbrance or
guarantee permitted pursuant to Clause 2.1.3 and including receiving and
requiring the receipt of monies into the relevant Lessor Collateral Account; or

 

3.1.4        amend any of the Lease Documents to which it
is a party in a manner which imposes a greater obligation on the relevant
Chargor or amend Clause 18.1 or 18.2 (or any equivalent provision) of any
Lease.

 

3.2           Hedge Counterparties

 

3.2.1        Until the last to occur of the Senior
Discharge Date and the Lessor Pari Passu Discharge Date, (but without prejudice
to Clause 8.2 (Restrictions on enforcement
by

 

22

 

New Hedge Counterparties) and Clause 8.6 (Permitted Enforcement of Second Lien Indebtedness and New Hedge
Counterparty Indebtedness)), each Hedge Counterparty undertakes to
the Security Trustee and to each of the other Beneficiaries that it will not,
without the prior consent of the Security Trustee (acting on the instructions
of the Instructing Party) and the Lessors:

 

(a)           demand or receive payment, prepayment or
repayment of, or any distribution in respect of (or on account of), any of the
Hedge Counterparty Indebtedness in cash or in kind or apply any money or
property in discharge of any Hedge Counterparty Indebtedness except for:

 

(i)            Permitted Hedging Payments; and/or

 

(ii)           any proceeds received and applied in the
order permitted by Clause 9 (Proceeds
of Enforcement of Security); and/or

 

(iii)          the proceeds of the Security;

 

(b)           exercise any set-off against any of the
Hedge Counterparty Indebtedness, except for Permitted Hedging Payments; or

 

(c)           permit or require to subsist or receive
the benefit of any Encumbrance or any guarantee or other assurance against
financial loss for, or in respect of, any of the Hedge Counterparty
Indebtedness other than the Security.

 

3.2.2        Until the last to occur of the Senior
Discharge Date and the Lessor Pari Passu Discharge Date, each Hedge
Counterparty undertakes to the Security Trustee and to each of the other
Beneficiaries that:

 

(a)           any Hedge Agreements to which it is a
party governing the terms of a hedging transaction will provide for “two way
payments” in the event of a termination of the relevant Hedge Arrangements
entered into under such Hedge Agreements howsoever caused, meaning that the
defaulting party under those Hedge Arrangements will be entitled to receive
payment under the relevant termination provisions if the net replacement value
of all terminated transactions effected under the relevant Hedge Arrangements
is in its favour, and netting will be permitted only between Hedge Arrangements
and will not be permitted between any Hedge Arrangements and any other interest
rate or currency hedging arrangements or derivative transactions which do not
constitute Hedge Arrangements (and, for the avoidance of doubt, to the extent
that any such Hedge Arrangements do not so provide, they will be deemed to so
provide);

 

(b)           it will not terminate any of the Hedge
Arrangements to which it is a party except:

 

(i)            as a result of non-payment of any Hedge
Counterparty Indebtedness under such Hedge Arrangements which non-payment
continues for 3 Business Days after notice of such non-payment has been
given by such Hedge Counterparty to the Security Trustee (provided that if such
Hedge Counterparty and the Security Trustee are the same entity it will

 

23

 

not be necessary
for there to be any formal notice of such non-payment to be given by such Hedge
Counterparty to the Security Trustee); or

 

(ii)           upon the earliest of (1) the last day on
which a payment of principal is due to be made under the Senior Facilities
Agreement or, as applicable, the Target Facility Agreement, (2) an acceleration
of the principal amount outstanding under the Senior Facilities Agreement or,
as applicable, the Target Facility Agreement following consultation with (but
without being required to obtain the consent of) the Security Trustee and (3)
the date on which the Senior TCN Group Lenders or as applicable the Target
Group Lenders have been repaid (or prepaid) in full and the Total Commitments
have been reduced to zero; or

 

(iii)          following the repudiation of any such
Hedge Arrangements by the relevant Chargor; or

 

(iv)          upon:

 

(A)         it becoming contrary to any law or regulation for the
relevant Chargor or such Hedge Counterparty to perform the payment obligations
expressed to be assumed by it in respect of such Hedge Arrangements or such
obligations becoming invalid or unenforceable against the relevant Chargor; or

 

(B)           any provision of such Hedge Arrangements relating to
the termination thereof (including, without limitation, the calculation of or
obligation to pay amounts upon such termination) becoming invalid or
unenforceable against the relevant Chargor; or

 

(v)           an Insolvency Event occurring in relation
to the relevant Chargor; or

 

(vi)          with the prior written consent of the
Security Trustee (acting on the instructions of an Instructing Party);

 

(c)           to the extent that the relevant Hedge
Counterparty would not otherwise be entitled to terminate the relevant Hedge
Arrangement in such circumstances it shall be deemed to be entitled to
terminate the relevant Hedge Arrangement in the following circumstances:

 

(i)            if upon the termination of any Hedge
Arrangement in accordance with the terms of this Deed and following the
application of any netting pursuant to the terms thereof an amount falls due
from a Hedge Counterparty to a Chargor, at any time on or after the Enforcement
Date, in which case, that amount shall be paid by the relevant Hedge
Counterparty, to the extent that it is lawfully possible, to the Security
Trustee (which payment shall be deemed to be in full discharge of its
obligations to the relevant Chargor, to the extent of the amount so paid) and
shall be treated to the extent that the Security Trustee is entitled to do so,
as the proceeds of enforcement of the Security

 

24

 

Documents and
shall be applied in accordance with Clause 9 (Proceeds of Enforcement of Security); and

 

(ii)           promptly after the operation of
Clause 26.17 (Acceleration)
of the Senior Facilities Agreement (or, if applicable from and after the
occurrence of an Integrated Merger Event, any comparable provision of any
Target Facility Agreement) or the Senior Facilities Agent taking any action as
is referred to in Clause 26.18 (Repayment
on Demand) of the Senior Facilities Agreement (or, if applicable
from and after the occurrence of an Integrated Merger Event, the Target
Facility Agent taking any similar action under any comparable provision of any
Target Facility Agreement) or the non-payment of any amount due under the
Senior Facilities Agreement (or, if applicable from and after the occurrence of
an Integrated Merger Event, any Target Facility Agreement) or on the last day
on which a payment of principal is due under the Senior Facilities Agreement
(or, if applicable from and after the occurrence of an Integrated Merger Event,
any Target Facility Agreement) in which case, each Hedge Counterparty:

 

(A)         shall exercise any and all rights it may have to
terminate and close out all Hedge Arrangements to which it is a party, unless
the Senior Facility Agent and/or, if applicable from and after the occurrence
of an Integrated Merger Event, the Target Facility Agent (in any case acting on
the instructions of the Instructing Party) otherwise agrees;

 

(B)          shall not enter into any new Hedge Arrangements without
the consent of the Senior Facility Agent and/or, if applicable from and after
the occurrence of an Integrated Merger Event, the Target Facility Agent (in
each case acting on the instructions of the Instructing Party);

 

(C)          will provide the Security Trustee with a copy of any
notice of the termination of any Hedge Arrangement; and

 

(d)           it will promptly following the written
request of the Security Trustee, which may only be given if the Enforcement
Date has occurred, provide the Security Trustee with a copy of each Hedge
Agreement to which it is a party and each amendment, supplement or variation to
it.

 

3.3           Second Lien Finance
Parties

 

Until the later to occur of the Senior Discharge
Date, the Hedge Discharge Date and the Lessor Pari Passu Discharge Date, except
as the Instructing Party shall previously have consented in writing, no Second
Lien Finance Party will agree to, or take the benefit of, any Prohibited Action
in relation to any Second Lien Indebtedness except:

 

(a)           to the extent contemplated by Clause 2.4
(Second Lien);

 

(b)           pursuant to any Second Lien Document as
in effect at the date hereof or otherwise by way of taking, accepting,
receiving or perfecting the benefit of

 

25

 

any additional
Encumbrances or guarantees in circumstances where such Encumbrance or guarantee
is granted in accordance with the Senior Facilities Agreement;

 

(c)           subject to the provisions of Clause 8.6 (Permitted Enforcement of Second Lien Indebtedness or
New Hedge Counterparty Indebtedness), to enforce any Encumbrance
granted to it or to preserve, or protect any Encumbrance granted to it; or

 

(d)           the receipt of monies distributed by the
Security Trustee in accordance with Clause 9 (Proceeds of Enforcement of Security).

 

3.4           Intergroup Creditors

 

Until the last to occur of the Senior Discharge
Date, the Hedge Discharge Date, the Lessor Junior Discharge Date and the Second
Lien Discharge Date, each Intergroup Creditor undertakes to the Security
Trustee and each of the other Beneficiaries that it shall not agree to, or take
the benefit of, any Prohibited Action in relation to any Intergroup Liability
except Permitted Intergroup Payments.

 

3.5           Permitted Capitalisation
of Intergroup Liabilities

 

Notwithstanding any other term of this Deed, the
Intergroup Liabilities may be:

 

(a)           reduced or cancelled in consideration of
the issue of one or more shares or other securities by an Intergroup Debtor to
any Intergroup Creditor or by any waiver of any such Intergroup Liabilities or
by the making of any capital contribution by an Intergroup Creditor to any
Intergroup Creditor; or

 

(b)           converted into loan stock or convertible
unsecured loan stock or, if so converted, may be converted back into debt,

 

provided that in each case (i) any such action is
not prohibited by the terms of the Senior Documents, the Second Lien Documents
or the Lease Documents and (ii) where an Intergroup Creditor has granted
security to the Security Trustee pursuant to any Security Document over its
right, title and benefit to the relevant Intergroup Liabilities, any action
referred to in sub-paragraphs (a) and (b) above shall only be permitted to the
extent that the relevant asset into which such Intergroup Liabilities are
converted, or in consideration for which they are discharged (if any), is
subject to Security in favour of the Security Trustee (in form and substance
substantially similar to the existing Security in favour of the Security
Trustee or will within 10 Business Days of such conversion or exchange, be made
subject to Security in favour of the Security Trustee (in form and substance
similar to the existing Security in favour of the Security Trustee or otherwise
in form and substance as may be reasonably required by the Security Trustee).

 

3.6           Amendments to Senior
Finance Documents

 

Subject to Clause 3.7 (New Senior Liabilities), no Chargor nor any Senior Finance
Party will, prior to the Second Lien Discharge Date, without the prior written
consent of the Second Lien Facility Agent (acting on instructions of a Second
Lien Instructing Group):

 

26

 

(a)           increase the rate of interest payable under
any Senior Document or otherwise increase the cost to the Chargors of the
Senior Indebtedness by more than 75 basis points per annum other than as
contemplated by the terms of the Senior Documents as at the original execution
date of this Deed;

 

(b)           increase the rate of interest payable under
any Target Finance Document or otherwise increase the cost to the Chargors or
the Target Group Senior Indebtedness by more than 75 basis points per annum
other than as contemplated by the terms of the Target Finance Documents as at
the date of the Integrated Merger Event;

 

(c)           change the basis on which interest or any
other amount (including, without limitation, fees) is calculated under any
Senior Document as at the date of its original execution, other than as a
result of procedural or administrative changes arising in the ordinary course
of the administration of the Senior Indebtedness which are not materially
prejudicial to the interests of the Second Lien Finance Parties;

 

(d)           agree to take any action which would make any
scheduled principal, any interest or any other amount payable under any Senior
Document on a date later than that provided in the relevant Senior Document as
at the date of its original execution, other than arising from the extension of
the final maturities in respect of any one or more of the Facilities or any
facility in respect of any Target Group Senior Indebtedness in each case, by up
to 6 months; or

 

(e)           agree to or take any action to amend any
Senior Document which would prohibit, or create a default or event of default
thereunder with respect to, any action or event that is expressly permitted
under this Deed.

 

3.7           New Senior Liabilities

 

Prior to the Second Lien Discharge Date, the Senior
Lenders may make available New Senior Liabilities (which will be treated as
Senior Indebtedness for the purposes of this Deed) provided that the final
maturity date of such new Senior Indebtedness is not later than the original
maturity date of the C Facility under the Senior Facilities Agreement or, if
later, the maturity date of the longest facility in respect of any Target Group
Senior Indebtedness.

 

3.8           Existing Security Documents

 

Each of the Existing Hedge Counterparties and the
Lessors hereby agree that it will, promptly upon the execution of this Deed
give irrevocable and unconditional instructions to CIBC World Markets PLC, in
its capacity as security trustee under each of the Existing Security Documents:

 

3.8.1        to appoint the Security Trustee as
co-trustee under the Existing Intercreditor Deed and in relation to each of the
Existing Security Documents listed in Part 1 of Schedule 13 (Existing Security Documents);

 

27

 

3.8.2        to irrevocably and unconditionally
release the security granted in its favour under each of the Existing Security
Documents listed in Part 2 of Schedule 13 (Existing Security Documents);

 

3.8.3        to irrevocably and unconditionally
release the security granted in its favour under each of the Existing Security
Documents listed in Part 1 of Schedule 13 (Existing Security Documents) to the extent that such
security is granted by or over the shares or other equity interests in, or loan
stock issued by, any member of the Flextech Group or any other member of the
Group (excluding Telewest UK) who is not a member of the TCN Group; and

 

3.8.4        to execute such notices, instruments or
other documents, in each case, as may be necessary to give effect to the
transactions contemplated in Clauses 3.8.1, 3.8.2 and 3.8.3 above,

 

following which CIBC World Markets PLC shall resign
as security trustee under the Existing Intercreditor Deed, provided that for
the avoidance of doubt, nothing in this Clause 3.8 shall require the Lessors to
take any action with respect to the Lessor Security.

 

4.             Suspension of Permitted Payments

 

4.1           Suspension of Permitted
Lease Payments

 

Subject to Clause 6 (Subordination on Insolvency) and Clause 8.1 (Restrictions on enforcement by Lessors),
no Chargor shall make and no Lessor shall receive any Permitted Lease Payments
if:

 

4.1.1        an Event of Default has occurred and is
continuing 20 Business Days after its occurrence and/or the Enforcement Date
has occurred; or

 

4.1.2        an Event of Default has occurred and a
notice is served on the relevant Chargor and such Lessor by the Security
Trustee stating that such Event of Default has occurred and is continuing and
that no Permitted Lease Payments can be made.

 

Any payment in respect of Lessor Debt made after
Clause 4.1.1 has become applicable or after a notice is served pursuant to
Clause 4.1.2 shall not constitute Permitted Lease Payments. If the Senior
Facility Agent, or (if applicable) the Target Facility Agent is satisfied that
the circumstances or the relevant breach which gave rise to the Event of
Default referred to in Clause 4.1.1 or 4.1.2 above no longer apply or has been
cured (as the case may be), it may, by notice to TCN, state that payments may
be made in respect of Lessor Debt so as to constitute Permitted Lease Payments.

 

4.2           Suspension of Permitted
Hedging Payments

 

Subject to Clause 6 (Subordination on Insolvency), no Chargor shall make and no
Hedge Counterparty shall receive any Permitted Hedging Payments if:

 

4.2.1        an Event of Default (other than a default
in respect of any Hedge Arrangement) has occurred and is continuing 20 Business
Days after its occurrence and/or the Enforcement Date has occurred; or

 

28

 

4.2.2        an Event of Default (other than a default
in respect of any Hedge Arrangement) has occurred and a notice is served on the
relevant Chargor and such Hedge Counterparty by the Security Trustee stating
that such Event of Default has occurred and is continuing and that no Permitted
Hedging Payments can be made.

 

Any payments in respect of Hedge Counterparty
Indebtedness made after Clause 4.2.1 has become applicable or after a
notice is served in accordance with Clause 4.2.2 shall not constitute Permitted
Hedging Payments.  In the event of any
suspension of Permitted Hedging Payments pursuant to Clauses 4.2.1 or 4.2.2,
any Hedge Counterparty may suspend any payments due from it to any Chargor
under any Hedge Arrangement to which it is a party.  If the Senior Facility Agent, or (if
applicable) the Target Facility Agent is satisfied that the circumstances or
the relevant breach which gave rise to the Event of Default referred to in
Clause 4.2.1 or 4.2.2 above no longer apply or has been cured (as the case may
be), it may, by notice to TCN and the Hedge Counterparties state that payments
may be made in respect of Hedge Counterparty Indebtedness so as to constitute
Permitted Hedging Payments.  Upon receipt
of such notice, any Hedge Counterparties that has suspended payments to any
Chargor under any Hedge Arrangement shall promptly recommence such payments.

 

4.3           Suspension of Permitted
Payments relating to Second Lien Indebtedness

 

Except with the prior consent in writing of the
Instructing Party at any time prior to the Senior Discharge Date, no Chargor
may on any date make any payments, which would otherwise be permitted by Clause
2.3 (Second Lien) if:

 

(a)           any of the Senior Indebtedness due and
payable on or prior to such date is unpaid; or

 

(b)           following the occurrence of an Event of
Default and where the same is continuing, either of the Senior Agents acting on
the instructions of the Instructing Party) serves a Default Notice on the
Second Lien Facility Agent until the earliest date on which:

 

(i)            paragraph (a) does not apply; and

 

(ii)           one of the following applies:

 

(A)         150 days have elapsed since the service of such
Default Notice or, if earlier, where a Standstill Period is in effect any time
during that 150 day period, the date on which that Standstill Period expires;

 

(B)          in the case of an Event of Default (other than a
cross-default under the Senior Facilities Agreement on account of a default
under the Target Facility Agreement or a cross-default under the Target
Facility Agreement on account of a default under the Senior Facilities
Agreement) the relevant Agent (acting on the instructions of a Senior TCN Group
Instructing Group or a Target Group Instructing Group, as applicable) has
confirmed in writing to TCN, the Second Lien Facility Agent and the other
Senior Agent that the relevant Event of Default has been

 

29

 

remedied or waived
in writing by a Senior TCN Group Instructing Group or a Target Group
Instructing Group, as applicable, or such Event of Default is no longer
continuing;

 

(C)          whichever of the Senior Agents has served the Default
Notice cancels such Default Notice by notice in writing to the other Agents and
TCN; or

 

(D)         the Senior Discharge Date occurs,

 

provided that, unless otherwise agreed by the Second
Lien Facility Agent (acting on the instructions of the Second Lien Instructing
Group):

 

(iii)          no more than one Default Notice may be
served with respect to the same particular event or circumstances by a Senior
Agent whether in relation to the same Event of Default or not, but without
prejudice to the ability of either Senior Agent to issue a Default Notice in
respect of any other particular event or circumstance and without prejudice to
the ability of the Senior Agent who did not serve the original Default Notice
to serve a Default Notice in respect of the same particular event or
circumstance;

 

(iv)          a Default Notice may not be served by a
Senior Agent in reliance on a particular Event of Default more than 45 days
after the relevant Senior Agent has received notice in writing from any other
party hereto specifying the event or circumstance constituting that Event of
Default and specifying that it constitutes an Event of Default; and

 

(v)           a Default Notice may not be issued by a
Senior Agent less than 360 days after the service of a prior Default Notice by
that Senior Agent relating to an Event of Default which was existing at the
time of such prior Default Notice, unless such Event of Default has been
remedied or is no longer continuing for at least 180 days prior to the service
of the proposed new Default Notice.

 

5.             Turnover of Non-permitted Payments

 

5.1           If at any time prior to the last to occur
of the Senior Discharge Date, the Hedge Discharge Date and the Lessor Pari
Passu Discharge Date:

 

5.1.1        any Hedge Counterparty receives a payment
(including by set-off) or distribution in cash or in kind of, or on account of,
any Hedge Counterparty Indebtedness other than a Permitted Hedging Payment;

 

5.1.2        any Hedge Counterparty receives the
proceeds of any enforcement of any security on account or any Hedge
Counterparty Indebtedness (including by way of set-off or combination of
accounts) unless those proceeds are received pursuant to Clause 9.2 (General Order of Application);

 

30

 

5.1.3        any Second Lien Finance Party receives a
payment (including by set-off) or distribution in cash or in kind of, on
account of, any of the Second Lien Indebtedness unless permitted under Clause
2.3 (Second Lien);

 

5.1.4        any Second Lien Finance Party receives
the proceeds of any enforcement of any security on account of any Second Lien
Indebtedness (including by way of set-off or combination of accounts) or
distribution in cash or in kind unless those proceeds are received pursuant to
Clause 9.2 (General Order of
Application);

 

5.1.5        any Lessor receives a payment (including
by set-off) or distribution in cash or in kind of or on account of, any of the
Lessor Debt, other than a Permitted Lease Payment; or

 

5.1.6        any Lessor receives the proceeds of any
enforcement of security (including by set-off) on account of any of the Lessor
Debt unless those proceeds are received pursuant to the enforcement of the
Collateral Account Security Assignments or pursuant to Clause 9.1 (Application of Proceeds of Enforcement of Certain
Security) or are a payment from the Security Trustee pursuant to
Clause 9.2 (General Order of Application);
or

 

5.1.7        any Intergroup Creditor receives a
payment (including by set-off) or distribution in cash or in kind of or on
account of any Intergroup Liabilities other than in respect of Permitted
Intergroup Liabilities,

 

the relevant
Creditor receiving such payment or proceeds will hold the same for and on
behalf of and to the order of the Security Trustee and pay and distribute it
upon demand to the Security Trustee for application in accordance with
Clause 9 (Proceeds of Enforcement of
Security).

 

5.2           If after the Senior Discharge Date, the
Hedge Discharge Date and the Lessor Pari Passu Discharge Date have occurred but
prior to the last to occur of the Second Lien Discharge Date and the Lessor
Junior Discharge Date:

 

5.2.1        any Lessor receives a payment (including
by set-off) or distribution in cash or in kind of or on account of, any of the
Lessor Junior Debt, other than in respect of a Permitted Lease Payment;

 

5.2.2        any Lessor receives the proceeds of any
enforcement of security (including by set-off) on account of any of the Lessor
Junior Debt unless those proceeds are received pursuant to the enforcement of the
Collateral Account Security Assignments or pursuant to Clause 9.1 (Application of Proceeds of Enforcement of Certain
Security) or are a payment from the Security Trustee pursuant to
Clause 9.2 (General Order of Application);

 

5.2.3        any Intergroup Creditor receives a
payment (including by set-off) or distribution in cash or in kind of or on
account of any Intergroup Liabilities other than in respect of a Permitted
Intergroup Payment,

 

31

 

the relevant
Creditor (as the case may be) receiving such payment or proceeds will hold the
same for and on behalf of and to the order of the Security Trustee and pay and
distribute it upon demand to the Security Trustee for application in accordance
with Clause 9 (Proceeds of Enforcement
of Security).

 

6.             Subordination on Insolvency

 

6.1           Subordination

 

If
an Insolvency Event occurs in relation to any Chargor, subject to Clause 9
(Proceeds of Enforcement of Security):

 

6.1.1        the Intergroup Liabilities will be
subordinate in right of payment to the Lessor Debt, the Senior Indebtedness,
the Hedge Counterparty Indebtedness and the Second Lien Indebtedness;

 

6.1.2        the Lessor Junior Debt will be
subordinate in right of payment to the Senior Indebtedness, the Second Lien
Indebtedness, the Lessor Pari Passu Debt and the Hedge Counterparty
Indebtedness; and

 

6.1.3        the Second Lien Indebtedness will be
subordinate in right of payment to the Senior Indebtedness, the Lessor Pari
Passu Debt and the Hedge Counterparty Indebtedness.

 

6.2           Filing of Claims

 

If an Insolvency Event occurs in relation to any
Chargor, until the last to occur of the Senior Discharge Date, the Second Lien
Discharge Date, the Lessor Junior Discharge Date and the Hedge Discharge Date:

 

6.2.1        the Security Trustee may, and is
irrevocably authorised on behalf of each Finance Party, Lessor, each Hedge
Counterparty, and each Intergroup Creditor to, (i) claim, enforce and prove for
the Senior Indebtedness, the Second Lien Indebtedness, the Lessor Debt (other
than any liabilities satisfied out of any amount subject to the Collateral
Account Security Assignments), the Hedge Counterparty Indebtedness and the
Intergroup Liabilities and (ii) file claims and proofs, give receipts and
take all such proceedings in respect of filing such claim or proof and do all
such things as the Security Trustee reasonably considers necessary to recover
the Senior Indebtedness, the Second Lien Indebtedness, the Lessor Debt (other
than any liabilities satisfied out of any amount subject to the Collateral
Account Security Assignments), the Hedge Counterparty Indebtedness and the
Intergroup Liabilities and (iii) receive all distributions (other than any
amount standing to the credit of the Lessor Collateral Accounts) in respect of
the Senior Indebtedness, the Second Lien Indebtedness, the Lessor Debt, the
Hedge Counterparty Indebtedness and the Intergroup Liabilities for application
in accordance with Clause 9 (Proceeds
of Enforcement of Security); and

 

6.2.2        if and to the extent that the Security
Trustee does not exercise its rights to or is not entitled to claim, enforce,
prove, file claims or proofs, or take proceedings in respect of filing such
claim or proof for the Senior Indebtedness, the Second Lien Indebtedness, the
Lessor Debt (other than any liabilities satisfied out of any amount subject to
the Collateral Account Security Assignments), the Hedge Counterparty
Indebtedness or the Intergroup Liabilities, each Finance Party, Lessor, each
Hedge

 

32

 

Counterparty or
each Intergroup Creditor may do so (and will do so promptly if requested by the
Security Trustee),

 

provided that the above authorisations and
undertakings on the part of the Lessors shall not apply after the Senior
Discharge Date or the Hedge Discharge Date have each occurred.

 

6.3           Distributions

 

If an Insolvency Event occurs in relation to any
Chargor, until the last to occur of the Senior Discharge Date, the Second Lien
Discharge Date, the Lessor Pari Passu Discharge Date and the Hedge Discharge
Date:

 

6.3.1        each Finance Party, Lessor, each Hedge
Counterparty and each Intergroup Creditor will hold all distributions (other
than any amounts standing to the credit of the Lessor Collateral Accounts) in
cash or in kind received or receivable by it in respect of the Senior
Indebtedness, the Second Lien Indebtedness, the Lessor Debt, the Hedge
Counterparty Indebtedness or the Intergroup Liabilities (as the case may be)
for and on behalf of and to the order of the Security Trustee and pay and
distribute it upon demand to the Security Trustee for application in accordance
with Clause 9 (Proceeds of Enforcement
of Security);

 

6.3.2        each Finance Party, each Lessor, each
Hedge Counterparty and each Intergroup Creditor will direct the trustee in
bankruptcy, liquidator, assignee or other person distributing the assets of the
Chargors (or any of them) or their proceeds to pay distributions (other than
any amounts standing to the credit of the Lessor Collateral Accounts) in
respect of Senior Indebtedness, the Second Lien Indebtedness, the Lessor Debt,
the Hedge Counterparty Indebtedness or the Intergroup Liabilities (as the case
may be) owed by any such Chargor direct to the Security Trustee; and

 

6.3.3        each Creditor will give all such notices
and do all such things as the Security Trustee may reasonably request to give
effect to this Clause 6.3, provided that nothing in this Clause 6.3
shall require the Lessors to pay or account to the Security Trustee for any
proceeds or other monies arising from the Lessor Collateral Accounts or the
enforcement of the Collateral Account Security Assignments.

 

6.4           Treatment of non-cash
distributions

 

If any party hereto who is a creditor of any Chargor
receives any distribution from a Chargor otherwise than in cash such party shall
transfer that distribution to the Security Trustee who may realise that
distribution as it sees fit provided that the realisation proceeds are applied
in accordance with Clause 9 (Proceeds
of Enforcement of Security). 
As between the parties hereto, that distribution shall be treated as not
having been made to the party that received the distribution and the recipients
of the realisation proceeds under Clause 9 (Proceeds of Enforcement of Security) shall be treated as
having received such proceeds and the indebtedness of the relevant Chargor to
such recipients shall be reduced accordingly.

 

33

 

6.5           Transfer of
distributions

 

Each Lessor, each Finance Party, each Hedge
Counterparty and each Intergroup Creditor shall at its own expense do all such
things as the Security Trustee may reasonably require to transfer to the
Security Trustee all payments and distributions which must be turned over or
held for and on behalf of and to the order of the Finance Parties, the Lessors,
the Hedge Counterparties and the Intergroup Creditors (including, without
limitation, endorsements and execution of formal transfers) in accordance with
this Deed and will pay all reasonable costs and all stamp duties in connection
with those transfers.

 

6.6           Invalidity of
Arrangements

 

If for any reason the obligations of any Beneficiary
or any Intergroup Creditor to hold property for the Security Trustee, the
Finance Parties, the Hedge Counterparties and the Lessors (or any of them)
under this Deed is invalid or unenforceable, the relevant Lessor, the relevant
Finance Party, the relevant Hedge Counterparties and the Intergroup Creditors
(as the case may be) will pay and deliver to the Security Trustee for
application in accordance with Clause 9 (Proceeds
of Enforcement of Security) an amount equal to the payment, receipt
or recovery in cash or in kind (or its value, if in kind) which the relevant
Lessor, the relevant Finance Party or the relevant Hedge Counterparty or the
relevant Intergroup Creditor (as the case may be) would otherwise have been
bound to hold to the order of the Security Trustee, the Finance Parties, the
Lessor and the Hedge Counterparties.

 

7.             Priority of Security

 

7.1           Ranking of Security

 

7.1.1        Subject to Clause 9 (Proceeds of Enforcement of Security), all
existing and future security conferred by the Security (other than in respect
of assets over which the Lessor Security has priority under Clause 7.2 (Ranking of Lessor Security) will secure
all Senior Indebtedness, the Security Trustee Indebtedness, the Hedge
Counterparty Indebtedness and the Lessor Pari Passu Debt in priority to the
Second Lien Indebtedness and the Lessor Junior Debt regardless of the date on
which the Senior Indebtedness, the Second Lien Indebtedness, the Security
Trustee Indebtedness, the Hedge Counterparty Indebtedness or the Lessor Pari
Passu Debt arises, regardless of whether the Lenders, the Hedge Counterparties
or the Lessors are obliged to advance moneys included in the Senior
Indebtedness, the Second Lien Indebtedness, the Hedge Counterparty Indebtedness
or the Lessor Pari Passu Debt and regardless of any fluctuations in the amount
of the Senior Indebtedness, the Second Lien Indebtedness, the Security Trustee
Indebtedness, the Hedge Counterparty Indebtedness or the Lessor Pari Passu Debt
and the balance of the Lessor Debt outstanding or any intermediate discharge of
the Senior Indebtedness, the Second Lien Indebtedness, the Security Trustee
Indebtedness, the Hedge Counterparty Indebtedness or the Lessor Debt in whole
or in part.

 

7.1.2        Subject to Clause 9 (Proceeds of Enforcement of Security), all
existing and future security conferred by the Security (other than in respect
of assets over which the Lessor Security has priority under Clause 7.2 (Ranking of Lessor Security) will secure
all Second Lien Indebtedness in priority to the Lessor Junior Debt regardless
of the

 

34

 

date on which the
Second Lien Indebtedness arises, regardless of whether the Second Lien Lenders
are obliged to advance moneys included in the Second Lien Indebtedness and
regardless of any fluctuations in the amount of the Second Lien Indebtedness
and the balance of the Lessor Debt outstanding or any intermediate discharge of
the Second Lien Indebtedness or the Lessor Debt in whole or in part.

 

7.1.3        Subject to Clause 9 (Proceeds of Enforcement of Security), all
existing and future security conferred by the Security shall rank pari passu as
if it had been created simultaneously and as a continuing security for, and
shall not be affected by any fluctuations in, the Secured Obligations.  The provisions of this Clause 7.1.3 shall
apply notwithstanding that all or any of the Security is void, set aside or otherwise
invalid.

 

7.2           Ranking of Lessor
Security

 

Subject to Clause 9 (Proceeds of Enforcement of Security), in relation to each
Lessor, all existing and future security conferred in favour of that Lessor by
the Lessor Security over (i) the assets the subject of the Collateral Account
Security Assignment to which that Lessor is a party, and (ii) the relevant
Lessor Collateral Account (but only, in each case, to the extent that the
Lessor is entitled to priority in respect of proceeds of enforcement under
Clause 9 (Proceeds of Enforcement of
Security)) will:

 

7.2.1        rank in all respects prior to existing
and future security conferred by the Security Documents and the Lessor Security
given to or for the benefit of the other Lessors, regardless or order of
registration, notice, execution or otherwise; and

 

7.2.2        secure all Lessor Debt owing to it in
priority to the Senior Indebtedness, the Second Lien Indebtedness, the Hedge
Counterparty Indebtedness and the Intergroup Liabilities, regardless of any
fluctuations in the amount of that Lessor Debt outstanding or an intermediate
discharge of that Lessor Debt in whole or in part.

 

Subject to Clause 9 (Proceeds of Enforcement of Security), all existing and
future security conferred in favour of a Lessor (an “Other Lessor”) by the Lessor Security over the assets referred
to in (i) and (ii) above in respect of which another Lessor has priority as set
out above will:

 

(A)          rank in all respects prior to existing and
future security conferred by the Security regardless of order of registration,
notice, execution or otherwise; and

 

(B)           secure all Lessor Debt owing to it in
priority to the Senior Indebtedness, the Second Lien Indebtedness, the Hedge
Counterparty Indebtedness and the Intergroup Liabilities, regardless of the
date on which that Lessor Debt arises, regardless of whether that Lessor is
obliged to advance moneys included in that Lessor Debt, and regardless of any
fluctuations in the amount of that Lessor Debt outstanding or an intermediate
discharge of that Lessor Debt in whole or in part,

 

and if there is more than one Other Lessor, such
security of each Other Lessor shall rank pari passu.

 

35

 

7.3           Registration and Notice

 

Each Lessor and the Security Trustee will co-operate
with each other with a view to reflecting the priority of the Security and the
Lessor Security in any register or with any filing or registration authority
and in giving notice to insurers, debtors liable for receivables covered by the
security conferred by the Security and the Lessor Security and other relevant
persons.

 

8.             Enforcement

 

8.1           Restrictions on
enforcement by the Lessors

 

Save as permitted by Clause 8.5 (Enforcement by each Lessor), until the
last to occur of the Senior Discharge Date and the Hedge Discharge Date, each
Lessor undertakes to the Security Trustee, each of the other Beneficiaries and
each of the other Lessors that it will not:

 

8.1.1        sue for (except to the extent necessary
or reasonably desirable in order to enforce the Collateral Account Security
Assignments) or (save for any process which is necessary or reasonably
desirable in order to enforce the Collateral Account Security Assignments)
institute any creditor’s process (including a Mareva injunction, garnishment,
execution or levy, whether before or after judgment) against any Chargor in
respect of, any Lessor Debt;

 

8.1.2        petition for (or vote in favour of any
resolution for) or initiate or support or take any steps with a view to any
insolvency, liquidation, reorganisation, administration or dissolution proceedings
or any voluntary arrangement or assignment for the benefit of creditors or
similar proceedings involving any Chargors, whether by petition, convening a
meeting, voting for a resolution or otherwise; or

 

8.1.3        apply for any order for an injunction or
specific performance in respect of any Chargor in relation to any of the Lease
Documents other than the Collateral Account Security Assignments.

 

8.2           Restrictions on
enforcement by New Hedge Counterparties

 

Save as permitted by Clause 8.6 (Permitted Enforcement of Second Lien Indebtedness and
New Hedge Counterparties), until the last to occur of the Senior
Discharge Date, the Lessor Pari Passu Discharge Date and the Existing Hedge
Counterparty Discharge Date, each New Hedge Counterparty undertakes to the Security
Trustee, and each of the other Beneficiaries that it will not:

 

8.2.1        accelerate any of
the New Hedge Counterparty Indebtedness or otherwise declare any of the New
Hedge Counterparty Indebtedness due and payable prior to its stated maturity
whether on an event of default or otherwise;

 

8.2.2        exercise any right
to crystallise, or require the Security Trustee to crystallise, any floating
charge created pursuant to the Security Documents;

 

8.2.3        exercise any right
to enforce, or require the Security Trustee to enforce, any Encumbrance created
pursuant to the Security Documents by sale, possession, appointment of a
receiver or otherwise, or any rights under or pursuant to the

 

36

 

provisions of any guarantee given by any Chargor in
relation to all or any part of the New Hedge Counterparty Indebtedness;

 

8.2.4        petition for (or vote in favour of any
resolution for) or initiate or support or take any steps with a view to any
insolvency, liquidation, reorganisation, administration or dissolution
proceedings or any voluntary arrangement or assignment for the benefit of
creditors or any similar proceedings involving any Chargor; or

 

8.2.5        exercise the remedy of foreclosure in
respect of any asset the subject of an Encumbrance created pursuant to any
Security Document.

 

8.3           Restrictions on
enforcement by Second Lien Finance Parties

 

Save as permitted by Clause 8.6 (Permitted Enforcement of Second Lien Indebtedness and
New Hedge Counterparty Indebtedness), until the last to occur of the
Senior Discharge Date, the Lessor Pari Passu Discharge Date and the Hedge
Discharge Date, each Second Lien Finance Party undertakes to the Security
Trustee, and each of the other Beneficiaries that it will not:

 

8.3.1        accelerate any of
the Second Lien Indebtedness or otherwise declare any of the Second Lien
Indebtedness due and payable prior to their stated maturity whether on an event
of default or otherwise;

 

8.3.2        exercise any right
to crystallise, or require the Security Trustee to crystallise, any floating
charge created pursuant to the Security Documents;

 

8.3.3        exercise any right
to enforce, or require the Security Trustee to enforce, any Encumbrance created
pursuant to the Security Documents by sale, possession, appointment of a receiver
or otherwise, or any rights under or pursuant to the provisions of any
guarantee given by any Chargor in relation to all or any part of the Second
Lien Indebtedness;

 

8.3.4        petition for (or vote in favour of any
resolution for) or initiate or support or take any steps with a view to any
insolvency, liquidation, reorganisation, administration or dissolution
proceedings or any voluntary arrangement or assignment for the benefit of
creditors or any similar proceedings involving any Chargor; or

 

8.3.5        exercise the remedy of foreclosure in
respect of any asset the subject of an Encumbrance created pursuant to any
Security Document.

 

8.4           Restrictions on
enforcement by the Intergroup Creditors

 

Until the last to occur of the Senior Discharge
Date, the Hedge Discharge Date, the Second Lien Discharge Date and the Lessor
Junior Discharge Date, each Intergroup Creditor undertakes to the Security
Trustee, and to each of the Beneficiaries, that it will not:

 

8.4.1        accelerate
any of the Intergroup Liabilities or otherwise declare any of the Intergroup
Liabilities due and payable prior to their stated maturity whether on an event
of default or otherwise;

 

37

 

8.4.2        sue for or institute any creditor’s
process (including a Mareva injunction, garnishment, execution or levy, whether
before or after judgment) against any Chargor in respect of, any Intergroup
Liabilities;

 

8.4.3        petition for (or vote in favour of any
resolution for) or initiate or support or take any steps with a view to any
insolvency, liquidation, reorganisation, administration or dissolution
proceedings or any voluntary arrangement or assignment for the benefit of
creditors or similar proceedings involving any Chargors, whether by petition,
convening a meeting, voting for a resolution or otherwise; or

 

8.4.4        apply for any order for an injunction or
specific performance in respect of any Chargor in relation to any of the
Intergroup Liabilities.

 

8.5           Enforcement by each
Lessor

 

Each Lessor may:

 

8.5.1        enforce (including, but not limited to,
by way of set-off) any security over any Lessor Collateral Account charged to
it provided that the proceeds are applied in accordance with Clause 9.1.1;

 

8.5.2        sue any Chargor for any Lessor Debt owing
to it provided that:

 

(a)           it notifies the Security Trustee and each
of the other Lessors within 10 Business Days’ of such legal action having been
commenced;

 

(b)           it commences and continues legal
proceedings only insofar as the same are necessary or reasonably desirable so
as to enable it to obtain a judgment in respect of that Lessor Debt which
judgment is in each case necessary or reasonably desirable in order for that
Lessor to prove that Lessor Debt in any liquidation, to make a claim under the
Lessor Security provided to or for the benefit of that Lessor or to avoid the
expiry of any limitation period in respect of that Lessor Debt; and

 

(c)           save for any steps necessary or
reasonably desirable to enforce the Collateral Account Security Assignments it
does not take any steps to enforce such judgment;

 

8.6           Permitted Enforcement of
Second Lien Indebtedness and New Hedge Counterparty Indebtedness

 

Notwithstanding the provisions of Clause 8.2 (Restrictions on enforcement by New Hedge
Counterparties) and Clause 8.3 (Restrictions
on enforcement by Second Lien Finance Parties) or any other Clause
of this Deed, if:

 

(i)            in the case of the Second Lien Finance
Parties, a Second Lien Default; or

 

(ii)           in the case of a New Hedge Counterparty, a
Hedging Default,

 

in each case, other than to the extent arising from
a cross-default by reason of an event of default (howsoever described)
occurring under any other Indebtedness of the TCN Group (in this Clause, a “relevant Default”) has occurred and is
continuing

 

38

 

unremedied and unwaived, the Second Lien Facility
Agent and any New Hedge Counterparty may take any action which it is entitled
to take with respect to such relevant Default in relation to the Second Lien
Indebtedness or the New Hedge Counterparty Indebtedness (as the case may be),
including without limitation as to the acceleration or closing out thereof,
which would otherwise be prohibited by this Deed in each case, if:

 

(a)           an Insolvency Event has occurred;

 

(b)           any Senior Indebtedness has been declared
to be due and payable (x) under Clause 26.17 (Acceleration)
or due or payable on demand under Clause 26.18 (Repayment on Demand) of the Senior Facilities Agreement) or
(y) under any corresponding provisions of the Target Group Finance Documents;
or

 

(c)           the Senior Lenders have commenced or
instructed the Security Trustee to commence any Enforcement Action; or

 

(d)           (i)            the Second Lien Facility Agent or the New
Hedge Counterparty (as the case may be) has served a notice on the relevant
Senior Agent specifying the relevant Default concerned;

 

(ii)           a period (a “Standstill Period”) of:

 

(A)         90 days, in the case of non-payment of any Second Lien
Indebtedness or New Hedge Counterparty Indebtedness (as the case may be); or

 

(B)          120 days, in the case of breach of a covenant
contained in Clause 17 (Financial Condition)
of the Second Lien Facility Agreement; or

 

(C)          150 days, in any other case,

 

has elapsed from the date the relevant Senior Agent
has received the notice relating to the relevant Default; and

 

(iii)          at the end of the Standstill Period, the
relevant Default is continuing unremedied or unwaived,

 

provided always that any amounts received in respect
of Second Lien Indebtedness or New Hedge Counterparty Indebtedness (as the case
may be) as a result of action permitted to be taken under this Clause 8.6
shall promptly upon receipt be paid by the relevant Second Lien Finance Party
or New Hedge Counterparty (as the case may be) to the Security Trustee for the
benefit of the Beneficiaries to hold upon trust for application in accordance
with Clause 9.2 (General Order of
Application) (and pending such payment to the Security Trustee, such
Second Lien Finance Party or the New Hedge Counterparty (as the case may be)
will save as specified otherwise hold the amount received on trust for the
purposes of this Deed).

 

39

 

9.             Proceeds of Enforcement of Security

 

9.1           Application of Proceeds
of Enforcement of Certain Security

 

9.1.1        Without prejudice to Clauses 10.1 (Enforcement by a Lessor) and 10.2 (No Enforcement) and subject to the rights
of any preferential creditor and any other rights arising by operation of law,
the net proceeds of enforcement of the Security and the Lessor Security shall,
insofar as those net proceeds relate to any assets the subject of a Collateral
Account Security Assignment given in favour of a particular Lessor, be applied
in the following order:

 

(a)           FIRST in payment to that Lessor of the Lessor
Debt owing to it;

 

(b)           SECOND in payment to the other Lessors for
application pro rata towards the balance of the Lessor Debt; and

 

(c)           THIRD in payment to the Security Trustee to be
applied in accordance with and in order of the priority set out in
Clause 9.2 (General Order of
Application);

 

9.1.2        Subject to the rights of any preferential
creditor, the net proceeds of enforcement of the Security shall, insofar as
those net proceeds relate to any assets the subject of the Barclays Security,
be applied in the following order:

 

(a)           FIRST in payment to Barclays of the Barclays
Liabilities; and

 

(b)           SECOND in payment to the Security Trustee to be
applied in accordance with and in order of the priority set out in
Clause 9.2 (General Order of
Application).

 

9.2           General Order of
Application

 

Subject to the rights of any preferential creditor
and subject to Clause 9.1 (Application
of Proceeds of Enforcement of Certain Security) the net proceeds of
enforcement of the Security and, without prejudice to Clause 8 (Enforcement), the Lessor Security shall be
paid to the Security Trustee and such amounts, together with any sums paid to
the Security Trustee pursuant to Clauses 5 (Turnover of Non-permitted Payments) and 6 (Subordination on Insolvency) shall,
notwithstanding any other provision of the Transaction Documents, in each case,
be applied in the following order:

 

9.2.1        FIRST as to a sum equivalent to the aggregate
of the Security Trustee Indebtedness, to the First Beneficiary;

 

9.2.2        SECOND as to a sum equivalent to the sum of the
aggregate of (i) the Senior Indebtedness, (ii) the Hedge Counterparty
Indebtedness and (iii) the Lessor Pari Passu Debt, to the Second Beneficiaries
respectively which sum will (if it is insufficient to discharge the same in
full) be paid to such Second Beneficiaries pro rata to the aforesaid amounts
owed to them;

 

9.2.3        THIRD subject to each of the Senior Discharge
Date, the Lessor Pari Passu Discharge Date and the Hedge Discharge Date having
occurred, as to a sum

 

40

 

equivalent to the Second
Lien Indebtedness, to the Third Beneficiaries pro rata to the aforesaid amounts
owed to them;

 

9.2.4        FOURTH subject to each of the Senior Discharge
Date, the Second Lien Discharge Date and the Hedge Discharge Date having
occurred, as to a sum equivalent to the Lessor Junior Debt to the Fourth
Beneficiaries pro rata to the aforesaid amounts owed to them; and

 

9.2.5        FIFTH subject to the Lessor Junior Discharge
Date having occurred, to the Intergroup Creditors pro rata to the amounts owed
to them in respect of Intergroup Liabilities; and

 

9.2.6        SIXTH by way of the payment of the surplus (if
any) to the relevant Chargor or other person entitled thereto.

 

9.3           Good discharge of
Security Trustee

 

9.3.1        Any payment made to and upon and
acknowledgement of receipt signed by:

 

(a)           the Senior Facility Agent on behalf of
the Senior TCN Group Finance Parties;

 

(b)           the Target Group Agent on behalf of the
Target Group Finance Parties;

 

(c)           the Lessors’ Agent on behalf of the
Lessors; or

 

(d)           the Second Lien Facility Agent on behalf
of the Second Lien Finance Parties,

 

shall be a good discharge of the Security Trustee’s
obligations to make any such payment to such Beneficiary.

 

9.3.2        Any amounts which are to be distributed
by the Security Trustee pursuant to this Clause 9 (Proceeds of Enforcement of Security) in
respect of the Lessor Debt shall be paid to the Lessors’ Agent and payment to
the Lessors’ Agent of such amounts shall constitute a good discharge to the
Security Trustee of its obligation to distribute such amounts.

 

9.4           Tax Sign Off Date

 

9.4.1        If at any time that the Security Trustee
applies any monies in accordance with Clause 9.2 (General Order of Application) the Tax Sign
Off Date has not occurred in relation to all the Lessors, the Lessor Pari Passu
Debt shall for the purposes of Clause 9.2 (General Order of Application) be treated as being
£30,000,000 but subject to each Lessor being required to repay to the Security
Trustee any amount in excess of that amount properly due to it pursuant to
Clause 9.4.4.

 

9.4.2        In the event that the Tax Sign Off Date
has not occurred and amounts are distributed by the Security Trustee to the
Lessors’ Agent pursuant to Clause 9.2 (General
Order of Application), they shall be applied by the Lessors’ Agent
first in or towards payment of the actual Lessor Pari Passu Debt then
outstanding and secondly by crediting the balance to the relevant Lessor
Collateral Accounts.

 

41

 

9.4.3        For the avoidance of doubt the aggregate
amount distributed by the Security Trustee to the Lessors’ Agent pursuant to
Clause 9.2.2 shall not in any circumstances exceed £30,000,000.

 

9.4.4        As soon as reasonably practicable
following the Tax Sign Off Date applicable to it, each Lessor shall pay to the
Security Trustee for distribution in accordance with Clause 9.2 (General Order of Application) the amount
(if any) of any amount paid for the credit of its Lessor Collateral Account
pursuant to Clause 9.4.2 which has not been applied towards satisfaction
of the actual Lessor Pari Passu Debt of such Lessor.

 

9.4.5        If at any time on or after the
Enforcement Date and before the last to occur of the Senior Discharge Date, the
Second Lien Discharge Date, the Lessor Junior Discharge Date and the Hedge
Discharge Date, any amounts are, pursuant to the Collateral Account Agreements,
to be released to the relevant Lessee, the parties to this Deed agree that the
same shall be paid to the Security Trustee for application in accordance with
Clause 9.2 (General Order of Application).

 

9.4.6        Each Lessor agrees that any payment to
the Lessors’ Agent by the Security Trustee shall discharge, pro tanto, the
obligation of the Security Trustee to distribute sums to the relevant Lessor
and shall be construed as a payment to that Lessor for the purposes of the
relevant Lease.

 

9.4.7        At any time after the Tax Sign Off Date,
subject to there being no amounts due and payable by the relevant Lessee to the
relevant Lessor under or in connection with any of the Lease Documents which
are unpaid and to the relevant Lessor being satisfied (acting reasonably) that
no material Lessor Debt is likely to fall due at any time after that time
(unless other security arrangements acceptable to the Lessor in its absolute
discretion shall have been put in place in relation to such material Lessor
Debt), TCN may notify the Lessor’s Agent in writing that it requires the Lessor
Security and, if the Senior Discharge Date, the Hedge Discharge Date and the
Second Lien Discharge Date have then occurred, the Security to be
released.  Each Lessor agrees, at the
cost of TCN, as soon as reasonably practicable after receipt of such a request,
to release and discharge the Lessor Security and (if applicable) to instruct
the Security Trustee to release the Security and to that end to execute such
documents as the Lessee may reasonably require to give effect thereto.

 

10.          Enforcement of Security by Security
Trustee

 

10.1         Enforcement by a Lessor

 

Until the Lessor Junior Discharge Date:

 

10.1.1      except with the prior written consent of
the relevant Lessor and the Security Trustee, none of the Lenders, the Hedge
Counterparties or the Security Trustee shall be entitled to take or have
possession of, or maintain a Receiver in possession of, any Lessor Collateral
Account (but without prejudice to the right of the Security Trustee to appoint
an administrative receiver or administrator in respect of all of the assets of
any of the Chargors); and

 

10.1.2      if pursuant to enforcement as permitted
under this Deed any Lessor applies against the Lessor Debt owing to it any
credit balance on the relevant Lessor Collateral Account

 

42

 

of that Lessor,
the Security Trustee and the other Lessors will, on request from that Lessor,
release its security over that credit balance.

 

10.2         No Enforcement

 

Except as provided in Clause 8 (Enforcement) the Security Trustee may, in
accordance with the instructions of the Instructing Party, refrain from
enforcing the security conferred by the Security as long as it sees fit.

 

10.3         Manner of Enforcement

 

If the Security Trustee does enforce the Security it
may do so in such manner as it sees fit and solely having regard to the
interest of the Beneficiaries.  The
Security Trustee shall not be responsible to any Beneficiary for any failure to
enforce or to maximise the proceeds of any enforcement, and may cease any such
enforcement at any time.

 

10.4         Authorisation to
Security Trustee in relation to Enforcement Action

 

10.4.1      Subject to the terms of the Senior
Documents, at any time after a Senior Default has occurred and whilst it is
continuing, the Security Trustee may take such steps as it deems necessary or
advisable:

 

(a)           to perfect or enforce any of
the Security granted in its favour;

 

(b)           to effect any disposal of any asset
under any Security Document or any realisation or enforcement of any of the
Senior Indebtedness (including by any acceleration thereof);

 

(c)           to collect and receive any and
all payments or distributions which may be payable or deliverable in relation
to any of the Senior Indebtedness; or

 

(d)           otherwise to give effect to
the intent of this Deed,

 

(each, an “Enforcement
Action”) provided always that:

 

(i)            the Security Trustee may
refrain from enforcing the Security unless and until instructed to do so by the
Instructing Party; and

 

(ii)           if the Instructing
Party instructs the Security Trustee to enforce the Security, it may do so in
such manner as it deems fit, having regard solely to the interests of the
Beneficiaries.  Neither the Security
Trustee, the Senior Agents nor any other Finance Party or Hedge Counterparty
shall be responsible to any other Creditor for any failure to enforce or to
maximise the proceeds of any enforcement, and may cease any such enforcement at
any time.

 

10.4.2      If in connection with
any Enforcement Action above:

 

(a)           either the Security Trustee
(or any receiver or any administrator) sells or otherwise disposes of (or
proposes to sell or otherwise dispose of) any asset under any Security
Document; or

 

43

 

(b)           a member of the Group sells or
otherwise disposes of (or proposes to sell or otherwise dispose of) any asset
at the request of the Security Trustee (acting on the instructions of the
Instructing Party),

 

the Security Trustee may and is hereby irrevocably
authorised on behalf of each party to this Deed to:

 

(i)            release the Security over the
relevant asset (but not the proceeds from the sale thereof); and

 

(ii)           if the relevant
asset comprises all of the shares in the capital of a member of the Group,
release that member of the Group and any of its Subsidiaries from all of their
respective past, present and future liabilities and/or obligations (both actual
and contingent) as borrowers or guarantors of the whole or any part of any Liabilities
(including any liability to any other member of the Group by way of guarantee)
and release any Security granted by that member of the Group and any of its
Subsidiaries over any of their respective assets (but not the proceeds from the
sale thereof).

 

The net cash proceeds of any such sale or disposal
shall be applied in or towards payment of the Liabilities in accordance with
Clause 9.2 (General Order of
Application).

 

10.4.3      No such release
under Clause 10.4.2 above will affect the obligations and/or liabilities of:

 

(a)            any other member of
the Group to any of the Creditors; or

 

(b)           any Intergroup
Creditor to any of the Beneficiaries.

 

10.5         Releases following
Enforcement or Disposal

 

(a)           If, pursuant to or for the purposes of
any action taken or to be taken by the Security Trustee pursuant hereto, the
Security Trustee requires the release of any guarantees given by any Chargor or
any assets the subject of any security, each relevant party to this Deed shall
promptly upon request, enter into any release and/or other document and take
such other action as the Security Trustee may reasonably require, provided that
such action by the Security Trustee is taken in accordance with the terms of
the Senior Documents prior to the last to occur of the Senior Discharge Date,
the Hedge Discharge Date and the Lessor Pari Passu Discharge Date or the Second
Lien Documents at any time thereafter.

 

(b)           Each of the Finance Parties, the Lessors,
the Hedge Counterparties and the Chargors hereby:

 

(i)            agrees that it shall not at any time
challenge the validity, enforceability, priority or perfection of any security
granted in favour of any of the parties hereto;

 

44

 

(ii)           agrees that it shall not at any time
challenge or take any steps which may prejudice any enforcement action taken by
the Security Trustee; and

 

(iii)          authorises the Security Trustee to take
all necessary action for the purposes giving effect to the releases of
guarantees and/or security required under paragraphs (a) and (b) of this
Clause 10.5.

 

10.6         Disposals

 

Any disposal of any shares or assets which are
subject to the Security or any release thereof from the Security which is or is
to be effected at any time, other than with respect to any enforcement action
by the Security Trustee, shall be effected in accordance with and subject to
the provisions of the Senior Finance Documents and the Second Lien Finance
Documents.

 

11.          Lease Security

 

11.1         Each Lessor hereby acknowledges the
Encumbrances contained in the Security Documents by which each of the Chargors
has granted security to the Security Trustee over all its right, title and
interest in and to all rights and claims to which it is or may become entitled
under and in relation to each of the Lease Documents to which it is a party.

 

11.2         Notwithstanding the Encumbrances
contained in the Security Documents, each Lessee and each Chargor shall remain
liable under the Lease Documents to perform all the obligations assumed by it
thereunder and none of the Security Trustee, any Beneficiary or any receiver or
delegate appointed by the Security Trustee shall be at any time under any
obligation or liability to any Lessor under or in respect of the Lease
Documents, except as expressly provided in this Deed.

 

11.3         Each Lessee shall also remain entitled to
exercise all its rights, powers and discretions under the Lease Documents to
which it is a party and each Lessor shall, except as expressly provided in this
Deed, continue to give notices under such Lease Documents to the relevant
Lessee in accordance with such Lease Documents, unless and until the Security
Trustee gives (following the service of a Notice of Acceleration by the
relevant Agent on the relevant Lessee (with a copy to the relevant Lessor) and
the taking by the Security Trustee of any action to enforce the security
(including any rights of set-off) constituted by the Security Documents) notice
to the relevant Lessor to the contrary, when all such rights, powers and
discretions shall be exercisable by, and notices shall be given to, the
Security Trustee or as is it reasonably directs.

 

11.4         Without prejudice to its obligations
under Clause 23.3 of each of the relevant Leases, no Lessor shall assign
or otherwise dispose of all or any part of its rights and obligations under the
Lease Documents.

 

12.          Information

 

12.1         Each of the Senior Agents undertakes with
the Hedge Counterparties and each Lessor to give notice to the Hedge
Counterparties and such Lessor as soon as reasonably practicable after it
becomes aware of an Event of Default (such notice to give

 

45

 

reasonable details
of the same) or the occurrence of an Enforcement Date.  Unless and until the relevant Agent notifies
a Hedge Counterparty and a Lessor that the Event of Default has ceased to exist
or has been cured or waived, such Hedge Counterparty or Lessor (as the case may
be) may assume that the Event of Default is subsisting.  Each of the Senior Agents agrees to notify
each Hedge Counterparty and each Lessor as soon as reasonably practicable after
it determines that the Event of Default has ceased to exist or has been cured
or waived, as the case may be.

 

12.2         Each of the Agents shall:

 

12.2.1      send to each Hedge Counterparty and each
Lessor upon giving the same any notices given by it to TCN under
Clause 26.17 (Acceleration)
of the Senior Facilities Agreement, any equivalent provision of the Target
Facility Agreement or Clause 21.17 (Acceleration)
of the Second Lien Facility Agreement and shall as soon as reasonably
practicable notify each Hedge Counterparty and each Lessor of any action taken
by the Security Trustee to enforce any of the security constituted by the
Security Documents; and

 

12.2.2      provide the Lessors’ Agent and any Hedge
Counterparty, upon reasonable request from the Lessors’ Agent or such Hedge
Counterparty, such written information received from any Chargor pursuant to
the Transaction Documents as may then be relevant for an assessment of the
financial condition or operations of the Chargors.

 

12.3         Each Lessor undertakes with each of the
Agents to provide to the Agents upon request, any notification of amounts
payable under the Lease Documents to which it is a party (together with
supporting calculations) to the extent that such notification and supporting
calculations have been made available to the relevant Lessee or, at any time
after an Event of Default has occurred which is continuing, to the extent the
relevant Lessee is entitled to request the same, in each case in accordance
with the terms of such Lease Documents, but nothing herein shall oblige any
Lessor to disclose any information regarding its business, tax affairs or tax
computations.

 

12.4         Each Lessor shall, on the same day as it
notifies the relevant Lessee of the same, notify each of the Agents of any
amount payable by the relevant Lessee pursuant to any of the Leases.

 

12.5         Without prejudice to any other provision
of this Clause 12, each Lessor undertakes with each of the Agents to
provide, as soon as reasonably practicable following receipt of a request from
that Agent from time to time, that Agent with such information relating to any
of the Lease Documents to which it is a party and the transactions contemplated
thereby which that Agent may reasonably require in connection with the
Transaction Documents and the transactions contemplated by each of the same and
any internal review or monitoring of the same by that Agent or any Finance
Party but nothing shall oblige any Lessor to disclose any information regarding
its business, tax affairs or tax computations. 
Each Agent agrees to pay to the relevant Lessor, by way of fee on
demand, costs incurred by such Lessor or any director or employee of such
Lessor or any of its Affiliates in management time spent by the relevant Lessor
or any director or employee of such Lessor or any of its Affiliates in
connection with the calculation, preparation and provision of the information
required by that Agent to be provided by such Lessor pursuant to the foregoing
provisions of this Clause 12 save in relation to such management time
spent

 

46

 

in relation to
information also provided to the relevant Lessee under the terms of the
relevant Lease for which no fee shall be payable by any Agent.  For this purpose the cost of the relevant
Lessor’s management time shall be the number of hours for which each director
or employee of such Lessor or any of its Affiliates is involved in the matter
in relation to which such cost is to be calculated, multiplied by the hourly
rate of £100 (as such figure shall be increased on an annual basis by the
percentage increase in the Retail Prices Index (as defined in the Twelve Year
Lease) since 31st December 1995).

 

12.6         In circumstances where an Event of
Default has occurred which is continuing, each Lessor agrees that
Clause 1.2.4 of the relevant Twelve Year Lease shall apply hereto in
relation to any determination of any amount or other matter notified to the
relevant Agents pursuant to any of Clause 12.3 or 12.4 as if such
Clause were set out herein but, with references therein to the Lessee
being replaced by references to the relevant Agent (and excluding, for the
avoidance of doubt, the proviso in Clause 1.2.4(ii) of the relevant Twelve
Year Lease) and the relevant Agent shall pay to the relevant Lessor a fee for
management time spent in relation to the resulting consultation and other steps
taken in accordance with the provisions of Clause 1.2.4 of the relevant
Twelve Year Lease on the same terms as set out at Clause 12.5 save that no
such fee shall be payable if it is established that such determination of any
amount or other matter notified to the relevant Agent by the relevant Lessor
was incorrect (other than to a de minimis
extent).

 

12.7         Each of the Agents and the Security
Trustee acknowledge that each Lessor has entered into the Agency and
Co-ordination Agreement under which, inter alia, each Lessor appoints the
Lessors’ Agent to act as its agent on the terms therein contained.  Accordingly, each of the Agents and the
Security Trustee agree that, notwithstanding the terms of this Deed:

 

12.7.1      without prejudice to each Lessor’s rights
pursuant to Clause 2.8.3 of the Agency and Co-ordination Agreement, it
will receive and accept all notices, statements, cashflows and tables from the
Lessors’ Agent and given or made by the Lessors’ Agent on behalf of any Lessor
as if received direct from the relevant Lessor and such receipt shall
constitute a pro tanto discharge of any obligation on the part of the relevant
Lessor to give or make such notice, statements, cashflow or, as the case may
be, table to any of the Agents under the terms of this Deed; and

 

12.7.2      in the circumstances where the Lessors’
Agent discharges any such obligation the relevant Lessor shall be entitled to be
paid a fee pursuant to Clause 12.5 on behalf of the Lessors’ Agent to the
same extent as the relevant Lessor would have been entitled had such Lessor
directly performed such obligation.

 

13.          Warranty

 

Each Lessor represents and warrants to the Security Trustee
and the Beneficiaries that this Deed, each of the Lease Documents to which it
is a party are its legally binding obligations (subject to general principles
of law regarding bankruptcy, insolvency and analogous proceedings and general
principles of equity), are within its powers, have been duly authorised by it,
and do not conflict with any law or any agreement to which it is a party and
that all consents and authorisations required by it in relation thereto have
been obtained.

 

47

14.          Consents

 

14.1         Further Security

 

If any further security over the assets of
the Chargors is to be conferred on or for the benefit of any of the Lessors
(other than pursuant to Security Documents) pursuant to any covenant for
further assurance contained in any Collateral Account Security Assignment then
the relevant Lessor will notify the Security Trustee and the other Lessors.

 

14.2         Consent of Secured Parties

 

14.2.1      Each
of (a) the Finance Parties (b) the Lessors and (c) the Hedge Counterparties
hereby agree that, notwithstanding anything to the contrary in any other
document or agreement, no consent, waiver or like action shall be required from
any of them for the creation of any security over the assets of any Chargor if
the procedure provided for in Clause 14.1 (Further Security) is followed.

 

14.3         No Liability

 

14.3.1      Without
prejudice to the rights of the Lessors or the Hedge Counterparties with respect
to any breach by the Security Trustee or a Finance Party of its obligations
under this Deed, none of the Security Trustee and the Finance Parties shall be
liable in any manner whatsoever to any Chargor, any Lessor or any Hedge
Counterparty for any consent, amendment, variations, release, waiver or like
action under or in relation to the Senior Documents or the Second Lien
Documents which results in any Chargor infringing or contravening any of the
terms of the Lease Documents or any Hedge Agreement.

 

14.3.2      Without
prejudice to the rights of the Lessors or the Hedge Counterparties with respect
of any breach by the Security Trustee or a Finance Party of its obligations
under this Deed, each Lessor and each Hedge Counterparty will have no remedy
whatsoever against any of the Security Trustee or the Finance Parties by reason
of any present or future transaction entered into between the Security Trustee
or the Lenders (or any of them) and the Chargors (or any of them) which
infringes or contravenes the terms of the Lease Documents or any Hedge
Agreement.

 

14.4         Approvals

 

14.4.1      Until
the Senior Discharge Date, any waiver or consent granted or amendment approved
under the Senior Documents, will also be deemed to be given by each Second Lien
Finance Party, each Lessor and each Hedge Counterparty if any transaction or
circumstances would, in the absence of such waiver, consent or amendment,
violate any terms of the Second Lien Documents, Lease Documents or any Hedge
Agreement or constitute an event of default (howsoever described) thereunder
provided that no such waiver, consent or amendment shall be deemed to be given
by any Lessor in respect of any breach by the relevant Lessee of its
undertakings in relation to insurance contained in the relevant Lease (to the
extent that the same continues following the sale of the relevant equipment by
such Lessor) or which would prevent the enforcement by any Lessor pursuant to
Clause 8.1 (Restrictions on Enforcement by
the Lessors) and provided further that no such

 

48

 

waiver, consent or amendment shall be deemed
to be given by virtue of this Clause 14.4.1 by any Second Lien Finance Party in
respect of any of the following provisions of the Second Lien Facility
Agreement:

 

(a)           Clause
7.1 (Change of Control);

 

(b)           Clause
17.1 (Ratios), except in the case
of the ratio of Consolidated Net Borrowings to Consolidated Annualised TCN
Group Net Operating Cash Flow and the ratio of Consolidated Annualised TCN
Group Net Operating Cash Flow to Total Interest Charges only, to the extent
that the Senior Lenders agree to any amendment or waiver relating to either or
both of such ratios to the extent that the covenant test after such amendment
or waiver is within 10% of the relevant covenant test as at the date of this
Deed;

 

(c)           Clause
19.2 (Negative Pledge), except to
the extent that the Financial Indebtedness to be secured which would otherwise
breach the provisions of that Clause, will constitute New Senior Liabilities;

 

(d)           Clause
19.4 (Financial Indebtedness),
except to the extent that the Financial Indebtedness to be incurred which would
otherwise breach the provisions of that Clause, will constitute New Senior
Liabilities;

 

(e)           Clause
19.5 (Dividends, Distributions and Share
Capital);

 

(f)            Clause
21.2 (Non-Payment);

 

(g)           paragraph
(a) of Clause 21.3 (Covenants) to
the extent it relates to Clause 19.2 (Negative
Pledge), Clause 19.4 (Financial
Indebtedness) or Clause 19.5 (Dividends,
Distributions and Share Capital), except in the case of Clause 19.2
(Negative Pledge) and Clause 19.4
(Financial Indebtedness) to the
extent that the Financial Indebtedness to be incurred or secured which would
otherwise breach the provisions of those Clauses, constitutes New Senior
Liabilities;

 

(h)           paragraph
(d) of Clause 21.3 (Covenants),
except in the case of the ratio of Consolidated Net Borrowings to Consolidated
Annualised TCN Group Net Operating Cash Flow and the ratio of Consolidated
Annualised TCN Group Net Operating Cash Flow to Total Interest Charges only, to
the extent that the actual ratio as at the relevant testing date which would
otherwise constitute a breach under such paragraph, is within 10% of the
applicable covenant test as at the date of this Deed;

 

(i)            Clause
21.6 (Cross-Default);

 

(j)            Clause
21.7 (Insolvency);

 

(k)           Clause
21.8 (Winding-up);

 

(l)            Clause
21.9 (Execution or Distress);

 

(m)          Clause
21.10 (Similar Events);

 

49

 

(n)           Clause
21.11 (Repudiation);

 

(o)           Clause
21.12 (Illegality);

 

(p)           Clause
21.13 (Intercreditor Default);

 

(q)           Clause
21.16 (Material Adverse Effect);
or

 

(r)            a
change to any other provision of the Second Lien Facility Agreement which
contemplates the need for the consent or approval of all the Second Lien
Lenders.

 

14.4.2      Each
of the Senior Agents agrees to notify the Second Lien Facility Agent and the
Lessors’ Agent of any Event of Default referred to in Clause 26 (Events of Default) of the Senior
Facilities Agreement or any similar provision of any applicable Target Facility
Agreement following it becoming aware thereof.

 

14.4.3      If
a Chargor is obliged to perform any obligation under this Deed, or is
prohibited by this Deed from performing or has undertaken in this Deed not to
perform, any obligation, the performance of or failure to perform such
obligation shall not constitute a breach of any provision of any other Senior
Document, the Second Lien Document, the Lease Documents or any Hedge Agreement.

 

14.4.4      If
a Chargor is not restricted by the terms of any Senior Document from taking any
action, or if the taking of any such action would not constitute an Event of
Default, the taking of any such action shall not constitute an event of default
(howsoever described) under any of the Second Lien Documents, Lease Documents
or the Hedge Agreements provided that this Clause 14.4.3 shall not restrict the
rights under the relevant Lease Documents of any Lessor in respect of a breach
by the relevant Lessee of its undertakings relating to insurance contained in
the relevant Lease (to the extent that the same continue following the sale of
the relevant equipment by such Lessor).

 

14.5         Refinancing/Merger

 

If prior to the last to occur of the Lessor
Junior Discharge Date and the Hedge Discharge Date:

 

(a)           there
is a refinancing of any portion of the Senior Indebtedness and/or the Second
Lien Indebtedness, or

 

(b)           an
Integrated Merger Event occurs,

 

the Lessors and the Hedge Counterparties
agree that they will, without prejudice to the Lessor Security:

 

(i)            release
the Security provided that there is granted replacement security acceptable to
each of them in their absolute discretion of at least an equivalent nature,
value and ranking to the security granted under the Security Documents and
provided further that in the case of a refinancing, the amount of any Senior
Indebtedness and/or Second Lien Indebtedness, as the case may be, in existence
following any such refinancing is not greater than the amount of the Senior
Indebtedness

 

50

 

and/or the Second Lien Indebtedness
refinanced; and/or

 

(ii)           enter
into such intercreditor arrangements or other documentation as may be
reasonably necessary to give effect to such refinancing or Integrated Merger
Event provided that the provisions affecting the priority, ranking, permitted
payments and permitted enforcement by the Lessors and the Hedge Counterparties,
shall be on substantially equivalent terms to the terms hereof, it being
understood that the Target Group Senior Indebtedness shall rank pari passu with
all other Senior Indebtedness.

 

15.          Information

 

15.1         Amount of Debt

 

Each Lessor, each Hedge Counterparty and each
Intergroup Creditor will on written request by the Security Trustee from time
to time notify the Security Trustee in writing of details of the amount of the
Hedge Counterparty Indebtedness, the Intergroup Liabilities or the Lessor Debt owed
to it (as the case may be) provided that nothing in this Deed shall require any
Lessor to disclose any information regarding its business, tax affairs or tax
computations or any of the same of any of its Affiliates.

 

15.2         Authorisation

 

Each Chargor authorises each Lessor, the
Lenders, the Security Trustee, each of the Agents and each Hedge Counterparty
to make the disclosures of information referred to in this Deed.

 

16.          Protection
of Subordination

 

16.1         Continuing subordination

 

The subordination provisions in Clause 6
(Subordination on Insolvency) of
this Deed constitute a continuing subordination and benefit to the ultimate
balance of the Senior Indebtedness, the Second Lien Indebtedness, the Lessor
Debt, the Hedge Counterparty Indebtedness and the Intergroup Liabilities,
regardless of any intermediate payment or discharge of the Senior Indebtedness,
the Second Lien Indebtedness, the Lessor Debt, the Hedge Counterparty
Indebtedness or the Intergroup Liabilities in whole or in part.

 

16.2         Waiver of defences

 

The subordination of the obligations of each
Lessor under this Deed will not be affected by any act, omission, matter or
thing which, but for this provision, would reduce, release or prejudice the
subordination of any of those obligations in whole or in part, including
without limitation:

 

16.2.1      any
time or waiver granted to, or composition with any Chargor or other person;

 

16.2.2      the
taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or security over
assets of, any Chargor or other person in respect of the Senior Indebtedness,
the Second Lien

 

51

 

Indebtedness, the Lessor Debt, the Hedge
Counterparty Indebtedness, the Intergroup Liabilities or any other document or
security or otherwise or any non-presentment or non-observance of any formality
or other requirement in respect of any instruments or any failure to realise
the full value of any security; and

 

16.2.3      any
unenforceability, illegality or invalidity of any obligation of any Chargor, or
security under or in respect of any Senior Indebtedness, Second Lien
Indebtedness, any Lessor Debt, any Hedge Counterparty Indebtedness, any
Intergroup Liabilities or any other document or security.

 

17.          Preservation of
Debt

 

17.1         Preservation

 

Notwithstanding any terms of this Deed
postponing, subordinating or preventing the payment of the Second Lien
Indebtedness, the Hedge Counterparty Indebtedness, the Lessor Debt or the Intergroup
Liabilities, such indebtedness shall, solely as between the relevant parties
hereto remain owing or due and payable in accordance with the terms of the
Second Lien Documents, the Hedge Agreements, the relevant Lease Documents or
the documents constituting the Intergroup Liabilities (as the case may be) and
interest and default interest will accrue on missed payments accordingly.

 

17.2         Delay

 

No delay in exercising rights and remedies
under any terms of the Second Lien Documents, the Lease Documents, the Hedge
Agreements or the documents constituting the Intergroup Liabilities (as the
case may be) by reason of any terms of this Deed postponing, restricting or
preventing such exercise shall operate as a waiver of any of those rights and
remedies.  If a party hereto is, as a
result of receiving any moneys relating to a debt owed to that party by a
Chargor, obliged to make a payment to the Security Trustee pursuant to this
Deed, such debt shall not, as between (1) the Chargors and (2) such party, be
deemed to be reduced except to the extent that those monies are applied towards
that debt in accordance with Clause 9 (Proceeds
of Enforcement of Security).

 

18.          Power of Attorney

 

By way of security for its obligations, each
Lender, Lessor, each Hedge Counterparty and each Intergroup Creditor
irrevocably appoints the Security Trustee as its attorney to do anything which
it (a) has authorised the Security Trustee to do under this Deed and (b) is
required to do by this Deed but has failed to do for a period of ten Business
Days after receiving notice from the Security Trustee requiring it to do
so.  The Security Trustee may delegate
this power in accordance with Clause 23.5 (Power to engage agents and advisors).

 

19.          Expenses

 

19.1         Enforcement Costs

 

Each Chargor shall, forthwith on demand, pay
to the Security Trustee the amount of all reasonable costs and expenses
properly incurred by it in connection with the

 

52

 

enforcement against the Chargors (or any of
them) of the rights of the Security Trustee and/or the Lenders and/or the
Lessors and/or the New Hedge Counterparties and/or the Existing Hedge
Counterparties against it under this Deed.

 

19.2         Legal expenses and taxes

 

The costs and expenses referred to above include,
without limitation, the fees and expenses of legal advisers reasonably and
properly incurred and any value added tax or similar tax, and are payable in
the currency in which they are incurred.

 

20.          Instructing Party

 

Where, at any relevant time, the Instructing
Party is one or more of the Lenders, instructions of the relevant Lenders shall
be provided to the Security Trustee by the relevant Agent on their behalf.  Where at any relevant time the Instructing
Party includes the Lessors, the instructions of any Lessor shall be provided to
the Security Trustee by the Lessors’ Agent.

 

21.          Powers of
the Security Trustee

 

21.1         Authorisation of Security Trustee

 

Each of the Beneficiaries hereby authorises
the Security Trustee (whether or not by or through employees or agents):

 

21.1.1      to
exercise such rights, remedies, powers and discretions as are specifically
delegated to or conferred upon the Security Trustee by the Security Documents
together with such powers and discretions as are reasonably incidental thereto;
and

 

21.1.2      to
take such action on its behalf as may from time to time be authorised under or
in accordance with the Security Documents.

 

21.2         Extent of Security Trustee’s duties

 

The Security Trustee shall have no duties,
obligations or liabilities to any of the Beneficiaries beyond those expressly
stated in the Security Documents.

 

21.3         Security Trustee’s authority to execute Security
Documents.

 

21.3.1      Each
of the Beneficiaries hereby authorises the Security Trustee to enter into and
execute:

 

(a)           each
of the Initial Security Documents (and ratifies any Initial Security Document
which the Security Trustee shall have entered into prior to the execution of
this Deed); and

 

(b)           any
one or more further Security Documents or a Further Assurance Deed; and

 

(c)           any
and all such further Security Documents as may be approved by the Instructing
Party in writing for entry into by the Security Trustee,

 

53

 

and, in each and every case, to hold any and
all guarantees and/or security thereby created, as appropriate, for the
Beneficiaries in the manner contemplated by this Deed.

 

21.4         Amendments to Security Documents

 

The Security Trustee may with the prior
written consent of an Instructing Party, or at any time if and to the extent
expressly authorised by any other provision of any Transaction Document, amend,
modify or otherwise vary or waive breaches of, or defaults under, or otherwise
excuse performance of, any provision of any Security Document, provided that no
new or additional obligations may be imposed upon any person without the
consent of that person and any amendment or waiver which relates to the rights
of any Agent or the Security Trustee shall not be effective without the consent
of that Agent or the Security Trustee, as the case may be.

 

21.5         Binding on all Beneficiaries

 

Any action authorised and effected pursuant
to this Clause 21 shall be notified promptly to the Beneficiaries and shall be
binding on all the Beneficiaries regardless of whether or not their consent is
required to such action.  For the
avoidance of doubt, the consent of any Beneficiary other than those
specifically referred to in the relevant Clause shall not be required in
relation to any of the matters referred to in Clauses 21.4 (Amendments to Security Documents).

 

22.          General
duties of the Security Trustee

 

22.1         Duty to act on instructions from the Agent

 

The Security Trustee shall (subject always to
Clauses 21.4 (Amendments to the
Security Documents), 26.7 (Retention
of deeds and documents; power to grant
access) and 26.8 (No mortgage in
possession)), in its capacity as trustee of, and generally in
relation to, the Trust Property, act, or (as the case may be) refrain from
acting, as directed in writing from time to time by the Instructing Party in
accordance with Clause 24.2 (Duty to
act as directed).  In taking
(or, as the case may be, in refraining from taking) any such action, the
Security Trustee may rely on the indemnities set out in the Senior Documents
but, if the Security Trustee deems such indemnities not to be satisfactory, the
Security Trustee shall not be bound to act (or, as the case may be, refrain
from acting) on such directions unless and until the Security Trustee shall
have been indemnified to its satisfaction against all liabilities, damages,
costs and claims liable to be incurred by the Security Trustee in so acting
(or, as the case may be, refraining from acting).

 

22.2         Protection in acting on Agent’s instructions

 

The Security Trustee and each Chargor shall
be entitled (and bound) to assume that any directions given by any Agent under
or pursuant to this Deed or the Agreements are either the directions of the
Instructing Party or the necessary relevant Lenders (as the case may be) being
made through such Agent, or the directions of such Agent itself, acting
pursuant to the provisions of the Senior Documents to which such Agent may from
time to time be party (as appropriate) or as otherwise duly authorised or
empowered by or on behalf of the relevant Lenders.

 

54

 

22.3         Duty to notify

 

The Security Trustee shall provide to the
Lessors’ Agent and the Hedge Counterparties copies of the Security Documents
and, if requested in writing, shall promptly notify each of the Agents, the
Lessors’ Agent and each Hedge Counterparty of the contents of each notice,
certificate or other document received by the Security Trustee from any Chargor
under or pursuant to any of the Security Documents and the occurrence of any
Event of Default of which the Security Trustee has received written notice from
any other party to this Deed.

 

23.          Declaration
of trust; supplementary provisions

 

23.1         Declaration of trust

 

The Security Trustee hereby declares itself
trustee of the Trust Property with effect from the date of this Deed to hold
the same on trust for the Beneficiaries and to apply the same in accordance
with Clause 9 (Proceeds of Enforcement
of Security).

 

23.2         Duration

 

The trusts constituted by this Deed in
respect of the Trust Property shall remain in full force and effect until
whichever is the earlier of:

 

(a)           the
expiration of a period of 80 years from the date of this Deed; and

 

(b)           the
date on which the Security Trustee receives unconditional confirmation in
writing from all the Beneficiaries that there is no longer outstanding any
Indebtedness which is secured by the Security Documents nor are any of the
Beneficiaries under an obligation to permit such Indebtedness to be incurred,
such confirmation to be promptly provided by the Beneficiaries; and

 

(c)           the
unconditional release of the Chargors from all their respective obligations
under the Security Documents,

 

and the parties to this Deed declare that the
perpetuity period applicable to this Deed shall for the purposes of the
Perpetuities and Accumulations Act 1964 be the period of 80 years.

 

23.3         Powers of Security Trustee

 

In its capacity as trustee in relation to the
Security, the Security Trustee shall, without prejudice to any of the powers,
discretions and immunities conferred upon trustees by the Trustee Act 1925, by
law or otherwise (and to the extent not inconsistent with the provisions of
this Deed or any of the Security Document), have all the same powers and
discretions as a natural person acting as the beneficial owner of such property
and/or as are conferred upon the Security Trustee by this Deed and/or any
Security Document provided that, the Security Trustee may only exercise such
powers and discretions to the extent that the Security Trustee is authorised so
to exercise the same in accordance with the provisions of this Deed (including
specifically, but without limitation, Clause 24.2 (Duty to act as directed)) and, in
exercising such powers and discretions, the Security Trustee shall have regard
to and comply with any applicable constraints and/or restrictions imposed by
this Deed.

 

55

 

23.4         Power to invest

 

It is expressly declared that, in its
capacity as trustee in relation to the Security Documents, the Security Trustee
shall be entitled to invest moneys forming part of the Trust Property and
which, in the opinion of the Security Trustee, may not be paid out promptly
following receipt in the name or under the control of the Security Trustee in
any of the investments for the time being authorised by law for the investment
by trustees of trust moneys or in any other property or investments whether
similar to the aforesaid or not or by placing the same on deposit in the name
or under the control of the Security Trustee as the Security Trustee may, in
its discretion, think fit without being under any duty to diversify its
investments and the Security Trustee may at any time vary or transpose any such
property or investments for or into any others of a like nature and shall not
be responsible for any loss due to depreciation in value or otherwise of such
property or investments except in the case of fraud, wilful misconduct or gross
negligence on the part of the Security Trustee. 
Any investment of any part or all of the Trust Property may, at the
discretion of the Security Trustee, be made or retained in the names of
nominees.

 

23.5         Power to engage agents and advisors

 

The Security Trustee may, in the conduct of
any trusts constituted by this Deed and in the conduct of its obligations under
and in respect of the Security Documents (otherwise than in relation to its
right to make any declaration, determination or decision), (a) instead of
acting personally, employ and pay any agent to transact or concur in
transacting any business and to do or concur in doing any acts required to be
done by the Security Trustee (including the receipt and payment of money) or
(b) engage, pay for and rely on the advice and services of any lawyers,
accountants or other professionals or experts whose advice is, in the
discretion of the Security Trustee, deemed necessary, expedient or
desirable.  Any such agent or advisor
engaged in any profession or business shall be entitled to be paid all usual
professional and other charges for business transacted and acts done by him or
any partner or employee of his in connection with such trusts provided, and to
the extent that, such charges are reasonably and properly incurred.  The Security Trustee shall not be bound to
supervise, or be responsible for any loss incurred by reason of any act or
omission of, any such agent or advisor if the Security Trustee shall have
exercised reasonable care in the selection of such agent or advisor.

 

23.6         Power to appoint new trustees

 

Without prejudice to Clause 29 (Changes to Security Trustee), the
statutory power to appoint new or additional trustees of the trusts constituted
by this Deed shall be vested in the Security Trustee.

 

23.7         Power to appoint additional trustees

 

With the prior consent of the Instructing
Party communicated in writing by the relevant Agent, the Security Trustee shall
have power, by notice in writing given to that Agent, to appoint any person
either to act as separate trustee or as co-trustee jointly with the Security
Trustee:

 

56

 

23.7.1      if
the Security Trustee considers such appointment to be in the interests of the
Beneficiaries; or

 

23.7.2      for
the purpose of conforming with any legal requirement, restriction or condition
in any jurisdiction in which any particular act is to be performed; or

 

23.7.3      for
the purpose of obtaining a judgment in any jurisdiction or the enforcement in
any jurisdiction against any person of a judgment already obtained,

 

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

 

23.8         Co-trustees to act by majority decision

 

If there ever shall be more than two trustees
having equal authority under this Deed the majority of such trustees shall be
competent to execute and exercise all the duties, powers, trusts, authorities
and discretions vested by this Deed in the Security Trustee generally.

 

23.9         Conflicts of law; consent of Beneficiaries to
amendments to trusts

 

It is agreed between all parties to this Deed
that:

 

23.9.1      in
relation to any jurisdiction the courts of which would not recognise or give
effect to the trusts expressed to be constituted by this Deed, the relationship
of the Beneficiaries to the Security Trustee shall be construed simply as one
of principal and agent but, to the fullest extent permissible under the laws of
each and every such jurisdiction, this Deed shall have full force and effect as
between the parties; and

 

23.9.2      any
of the provisions of this Clause 23 or of Clauses 24 (Enforcement of and other action under the Security
Documents), 25 (Application of
Proceeds), 26 (Restrictions and
limitations on and exclusions of the duties and responsibilities of the
Security Trustee) or
27 (No restriction on or liability to
account for other transactions) may be amended by agreement between
the Beneficiaries and the Security Trustee without the consent of any other
party to this Deed (except, in the case of (i) any amendment to this
Clause 23 or Clause 26 (Restrictions
and limitations on and exclusions of the duties and responsibilities of the
Security Trustee) to
the extent that it adversely affects the rights and/or obligations of any
Chargor contained in either Clause, (ii) any amendment to the proviso to
Clause 24.2 (Duty to act as directed)
and (iii) any amendment to any provision of this Deed which has been made with
the consent of the Chargors which consent was required for any such amendment
to be made, when

 

57

 

in each case the consent of TCN on behalf of
the Chargors shall be required) and each such other party irrevocably
authorises the Security Trustee in its name and on its behalf to execute all
documents necessary to effect any such amendment.

 

24.          Enforcement
of and other action under the Security Documents

 

24.1         All action through the Security Trustee

 

None of the Beneficiaries shall have any
independent power to enforce any of the Security Documents or to exercise any
rights, discretions or powers or to grant any consents or releases under or
pursuant to any of the Security Documents or otherwise have direct recourse to
the security and/or guarantees constituted by any of the Security Documents
except through the Security Trustee.

 

24.2         Duty to act as directed

 

Subject as provided in Clause 22.1 (Duty to act on instructions from the Agents),
the Security Trustee shall take such action (including, without limitation, the
exercise of all rights, discretions or powers and the granting of consents or
releases) or, as the case may be, refrain from taking such action under or
pursuant to the Security Documents as the Instructing Party shall specifically
direct the Security Trustee in writing from time to time.  Unless and until the Security Trustee shall
have received such directions, the Security Trustee shall not take any action
under the Security Documents provided that the Chargors shall not be concerned
with whether the Security Trustee shall be acting in accordance with these
provisions and shall be conclusively entitled to assume that the Security
Trustee has all the necessary right, title and authority.

 

25.          Application of
proceeds

 

25.1         Co-operation to achieve agreed priorities of
application

 

The Beneficiaries shall co-operate with each
other and with the Security Trustee and any Receiver under the Security
Documents in realising the Secured Assets and in ensuring that the net proceeds
realised under the Security Documents are applied in accordance with
Clause 9 (Proceeds of Enforcement of
Security).

 

25.2         Security Trustee to rely on Beneficiaries

 

In considering at any time (and from time to
time) the persons entitled to the benefit of any of the Secured Obligations or
the Security Trustee may (without prejudice to Clause 26.6 (Reliance on communications and professional advice)),
rely and act in reliance upon any information from time to time furnished to
the Security Trustee by the Beneficiaries (whether pursuant to Clause 25.3
(Information to be provided to the Security
Trustee) or otherwise) unless and until the same is superseded by
further such information, so that the Security Trustee shall have no liability
or responsibility to any party as a consequence of placing reliance on and
acting in reliance upon any such information unless the Security Trustee has
actual knowledge that such information is inaccurate or incorrect.

 

58

 

25.3         Information to be provided to the Security Trustee

 

Without prejudice to Clause 25.2 (Security Trustee to rely on Beneficiaries),
each Beneficiary (whether directly or through the relevant Agent or the Lessors’
Agent, as the case may be) shall provide the Security Trustee with all
necessary directions in writing so as to apply the proceeds of realisation of the
security constituted by the Security Documents as contemplated by this Deed and
such other information as it may reasonably require for the purpose of carrying
out its duties and obligations under the Security Documents provided that each
Beneficiary is not obliged to disclose such other information where, in its
reasonable opinion, to do so would materially and adversely prejudice its
affairs.

 

25.4         Waivers by the Chargors

 

Each Chargor hereby unconditionally waives
any right it may have, whether at law or otherwise, to require demands to be
made under any of the Security Documents or for the security or any guarantee
created by the Security Documents to be enforced or realised in any specific
order or manner or to require the proceeds thereof to be appropriated in any
specific order or manner.

 

25.5         Security Trustee’s duty of care

 

Nothing in this Deed shall in any case where
the Security Trustee has failed to show the degree of care and diligence
required of it as a trustee having regard to the provisions of the Security
Documents exempt the Security Trustee from or indemnify it against any
liability for breach of trust or any liability which by virtue of any rule of
law would otherwise attach to it in respect of any fraud, gross negligence,
wilful default, gross breach of duty or gross breach of trust of which it may
be guilty in relation to its duties under any of the Security Documents.

 

25.6         Permitted Deductions

 

The Security Trustee shall be entitled (a) to
set aside by way of reserve amounts required to meet, and (b) to make and pay,
any deductions and withholdings (on account of taxes or otherwise), which it is
or may be required by any applicable law to make from any distribution or
payment made by it under this Deed, and to pay all taxes which may be assessed
against it in respect of any of the Security Property, or as a consequence of
performing its duties, or by virtue of its capacity as Security Trustee under
any of the Security Documents or otherwise (other than in connection with its
remuneration for performing its duties under this Deed).

 

25.7         Currency Conversion

 

For the purpose of or pending the discharge
of any of the Secured Obligations the Security Trustee may convert any moneys
received or recovered by the Security Trustee from one currency to another, at
the spot rate at which the Security Trustee is able to purchase the currency in
which the Secured Obligations are due with the amount received.

 

59

 

25.8         Clawback

 

25.8.1      If
any Beneficiary has received an amount as a result of the enforcement of the
Security and the Security Trustee on its behalf is subsequently required to pay
that amount (a “Clawback Amount”)
to a liquidator (or any other party) pursuant to a court order, that Beneficiary
will immediately pay an amount equal to such Clawback Amount to the Security
Trustee for payment to the liquidator (or other relevant party).

 

25.8.2      Each
Beneficiary that has received a Clawback Amount shall indemnify the Security
Trustee against any and all costs, claims, losses, expenses (including legal
fees) and liabilities together with any VAT thereon which the Security Trustee
may incur with respect to that Clawback Amount otherwise than by reason of the
Security Trustee’s own gross negligence or wilful misconduct.

 

26.          Restrictions
and limitations on and exclusions of the duties and responsibilities of the
Security Trustee

 

26.1         No liability

 

The Security Trustee shall not:

 

26.1.1      be
obliged to make any enquiry as to any default by any Chargor in the performance
or observance of any provision of any of the Security Documents or as to
whether any event or circumstance has occurred as a result of which the
security constituted by any of the Security Documents shall have or may become
enforceable;

 

26.1.2      be
liable to any of the Beneficiaries for any action taken or omitted under or in
connection with any of the Security Documents unless caused by its fraud, gross
negligence or wilful misconduct;

 

26.1.3      be
bound to account to any other Beneficiary for any sum or the profit element of
any sum received by it for its own account;

 

26.1.4      be
bound to disclose to any other person (including any Beneficiary) (i) any
confidential information or (ii) any other information if disclosure would or
might in its reasonable opinion constitute a breach of any law or be a breach
of fiduciary duty;

 

26.1.5      have
or be deemed to have any duty, obligation or responsibility to, or relationship
of trust or agency with, any Chargor; or

 

26.1.6      be
under any obligation to insure any of the Security Property, to require any
other person to maintain any insurance or to verify any obligation to arrange
or maintain any insurance contained in the Finance Documents, the Hedging
Finance Documents or the Lease Documents and shall not be responsible for any
loss which may be suffered by any person as a result of the lack of or
inadequacy of any such insurance.  Where
the Security Trustee is named on any insurance policy as an insured party, it
shall not be responsible for any loss which may be suffered by reason of,
directly or indirectly, its failure to notify the insurers of any material fact
relating to the risk assumed by such insurers or any other information of any
kind, unless any Beneficiary shall have requested it to do so in writing and
the Security Trustee shall have failed to do so within fourteen days after
receipt of that request.

 

60

 

26.2         Limited duty to notify

 

The Security Trustee shall not have any duty
or responsibility, either initially or on a continuing basis, to provide any of
Beneficiaries with any information with respect to any Chargor whenever coming
into its possession other than as provided in Clauses 21.4 (Amendments to Security Documents),
21.5 (Binding on all Beneficiaries)
and 22.3 (Duty to notify).

 

26.3         Indemnity from Trust Property

 

The Security Trustee and every agent or other
person appointed by it in connection with its appointment under this Deed shall
be entitled, in priority to any payment to any other Beneficiary, to be
indemnified out of the Trust Property in respect of all liabilities, damages,
reasonable costs, claims, reasonable charges or expenses whatsoever properly
incurred or suffered by it:

 

(a)           in
the execution or exercise or bona fide purported execution or exercise of the
trusts, rights, powers, authorities, discretions and duties created or
conferred by or pursuant to this Deed; and/or

 

(b)           in
respect of any matter or thing done or omitted or in any way relating to the
Trust Property or the provisions of any of the Security Documents.

 

The rights conferred by this Clause 26.3
are without prejudice to any right to indemnity by law given to trustees
generally and to any provision of the Security Documents entitling the Security
Trustee or any other person to indemnity in respect of, and/or reimbursement
of, any liabilities, damages, costs, claims, charges or expenses incurred or
suffered by it in connection with any of the Security Documents or the
performance of any duties under any of the Security Documents.  Nothing contained in this Clause 26.3
shall entitle the Security Trustee or any other person to be indemnified in
respect of any liabilities, damages, costs, claims, charges or expenses to the extent
that the same arise from such person’s own fraud, gross negligence or wilful
misconduct.

 

26.4         Limit on Security Trustee’s responsibility

 

The Security Trustee shall not have any
responsibility to any Beneficiary:

 

26.4.1      for
the adequacy, accuracy and/or completeness of any information supplied by the
Security Trustee or any other person in connection with the Security Documents,
or the transactions contemplated in the Finance Documents, Hedging Documents or
Lease Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, pursuant to or in connection therewith;

 

26.4.2      for
the legality, validity, effectiveness, adequacy or enforceability of any
Security Document or the Security or any other agreement, arrangement or
document entered into, made or executed in anticipation of, pursuant thereto or
in connection therewith;

 

26.4.3      for
any losses to any person or any liability arising as a result of taking or
refraining from taking any action in relation to any of the Security Documents,
the Security or

 

61

 

otherwise, whether in accordance with an
instruction from the one or both of the Agents or otherwise;

 

26.4.4      for
the exercise of, or any failure to exercise, any judgment, discretion or power
given to it by or in connection with any of the Security Documents or the
Security or any other agreement, arrangement or document entered into, made or
executed in anticipation of, pursuant to or in connection therewith;

 

26.4.5      for
any shortfall which arises on the enforcement of the Security; to ascertain
whether all deeds and documents which should have been deposited with it under
or pursuant to any Security Document have been so deposited or to require any
such deeds or documents to be so deposited;

 

26.4.6      to
investigate or make any enquiry into the title of any Chargor to the Secured
Assets or any part thereof and shall be entitled to accept such title without
enquiry;

 

26.4.7      for
any failure to register any Security Document with the Registrar of Companies
(other than as a result of gross negligence on the part of the Security
Trustee);

 

26.4.8      for
any failure to register any Security Document in accordance with the provisions
of the documents of title of any Chargor to any of the Secured Assets (other
than as a result of gross negligence on the part of the Security Trustee);

 

26.4.9      for
any failure to effect or procure the registration of any floating charge
created by any of the Security Documents by registering under the Land
Registration Act 1925 or any Act amending or extending the same, any notice,
caution or other entry prescribed by or pursuant to the provisions of the said
Act against any land for the time being forming part of the Secured Assets
(other than as a result of gross negligence on the part of the Security
Trustee);

 

26.4.10    for
any failure to take or require any Chargor to take any steps to render any
Security Document effective as regards Secured Assets outside England or Wales
or to secure the creation of any ancillary charge under the laws of the
jurisdiction concerned;

 

26.4.11    for
any failure to obtain any licence, consent or other authorisation for the
execution, delivery, validity, enforceability or admissibility in evidence of
any Security Document;

 

26.4.12    for
any failure to require any further assurance in relation to any Secured Assets;

 

26.4.13    for
acting (or, as the case may be, refraining from acting) in accordance with the
directions of any of the Beneficiaries given pursuant to this Deed,

 

and each of the Beneficiaries agrees that it
will not assert or seek to assert against any officer, employee or agent of the
Security Trustee any claim it might have against any of them in respect of the
matters referred to in this Clause 26.4. 
Any third party referred to in this Clause 26.4 may enjoy the benefit
of, or enforce the terms of, this Clause 26.4 in accordance with the provisions
of the Contracts (Rights of Third Parties) Act 1999.

 

62

 

26.5         Security Trustee’s Discretions

 

The Security Trustee may:

 

26.5.1      assume
unless it has, in its capacity as trustee for the Beneficiaries, received
actual notice to the contrary that (a) no Chargor is in breach of or default
under its obligations under any of the Finance Documents, the Hedging Finance
Documents or the Lease Documents and (b) any right, power, authority or
discretion vested by any Finance Document or any Lease Document in any person
has not been exercised;

 

26.5.2      if
it receives any instructions or directions from the Agent to take any action in
relation to the Security, assume that all applicable conditions under the
Finance Documents, the Hedging Finance Documents and the Lease Documents for
taking that action have been satisfied;

 

26.5.3      rely
upon any communication or document believed by it to be genuine and, as to any
matters of fact which might reasonably be expected to be within the knowledge
of a Beneficiary or an Chargor, upon a certificate signed by or on behalf of
that person; and

 

26.5.4      refrain
from acting in accordance with the instructions of any person (including
bringing any legal action or proceeding arising out of or in connection with
the Security Documents) until it has received such indemnification and/or
security as it may in its absolute discretion require (whether by way of
payment in advance or otherwise) for all costs, losses and liabilities which it
may incur in bringing such action or proceedings.

 

26.6         Reliance on communications and professional advice

 

The Security Trustee shall be entitled to
rely on any communication, instrument or document believed by it to be genuine
and correct and to have been signed or sent by the proper person and shall be
entitled to rely as to legal or other professional matters on opinions and
statements of any legal or other professional advisers selected or approved by
it.

 

26.7         Retention of deeds and documents; power to grant
access

 

The Security Trustee shall be entitled to
place all deeds, certificates and other documents relating to the Secured
Assets deposited with it under or pursuant to the Security Documents or any of
them in any safe deposit, safe or receptacle selected by the Security Trustee
or with any solicitor or firm of solicitors and may make any such arrangements
as it thinks fit for allowing the Chargor concerned access to, or its
solicitors or auditors possession of, such documents when necessary or
convenient and the Security Trustee shall not be responsible for any loss
incurred in connection with any such deposit, access or possession.

 

26.8         No mortgage in possession

 

Nothing in any of the Security Documents
shall oblige the Security Trustee to become a mortgagee in possession.

 

63

 

26.9         Unlawful actions

 

The Security Trustee may refrain from doing
anything which would, or might in its opinion, be contrary to any law of any
jurisdiction or any directive, regulation or regulatory requirement of any
State (or any agency thereof) or which would or might render it liable to any
person and may do anything which is, in its opinion, necessary to comply with
any such law, directive, regulation or regulatory requirement.

 

26.10       Indemnity by Beneficiaries

 

Prior to the Senior Discharge Date (in the
case of the Senior TCN Group Lenders) or the Second Lien Discharge Date (in the
case of the Second Lien Lenders), each Lender shall reimburse the Security
Trustee (rateably in accordance with the Sterling Amount of such Lender’s
Commitment) and after the Senior Discharge Date, but prior to the Hedge
Discharge Date, each Hedge Counterparty shall reimburse the Security Trustee
(rateably in accordance with such Hedge Counterparty’s Hedge Counterparty
Indebtedness) and, after the later to occur of the Senior Discharge Date and
the Hedge Discharge Date but prior to the Lessor Junior Discharge Date, each
Lessor shall reimburse the Security Trustee (rateably in accordance with such
Lessor’s Lessor Debt) in any case to the extent that the Security Trustee is
not reimbursed by the Chargors in respect of all liabilities, damages,
reasonable costs, claims, reasonable charges or expenses referred to in
Clause 26.3 (Indemnity from Trust
Property).  Provided that
where more than one of the Lenders, the Hedge Counterparties and the Lessors
are required to reimburse the Security Trustee, the obligation of each to do so
shall be apportioned rateably in accordance with, in the case of a Lender, the
Sterling Amount of each Lender’s Commitment, in the case of a Hedge
Counterparty, its Hedge Counterparty Indebtedness and, in the case of a Lessor,
its Lessor Pari Passu Debt.

 

26.11       Own Responsibility

 

It is understood and agreed by each
Beneficiary that at all times that Beneficiary has itself been, and will
continue to be, solely responsible for making its own independent appraisal of
and investigation into all risks arising under or in connection with the
Finance Documents, the Hedging Finance Documents or the Lease Documents
including but not limited to:

 

26.11.1    the
financial condition, creditworthiness, condition, affairs, status and nature of
each of the Chargors;

 

26.11.2    the
legality, validity, effectiveness, adequacy and enforceability of each of the
Finance Documents, the Hedging Finance Documents or the Lease Documents, the
Security, the Lessor Security and any other agreement, arrangement or document
entered into, made or executed in anticipation of, pursuant to or in connection
therewith;

 

26.11.3    whether
that Beneficiary has recourse, and the nature and extent of that recourse,
against any Chargor or any other person or any of their respective assets under
or in connection with the Finance Documents, the Hedging Finance Documents or
the Lease Documents or the transactions contemplated therein or any other
agreement,

 

64

 

arrangement or document entered into, made or
executed in anticipation of, pursuant to or in connection therewith;

 

26.11.4    the
adequacy, accuracy and/or completeness of any information provided by any
person in connection with the Finance Documents, the Hedging Finance Documents
or the Lease Documents, the transactions contemplated therein or any other
agreement, arrangement or document entered into, made or executed in
anticipation of, pursuant to or in connection therewith; and

 

26.11.5    the
right or title of any person in or to, or the value or sufficiency of any part
of the Security Property or the Lessor Security, the priority of any of the
Security or the Lessor Security or the existence of any Encumbrance affecting
the Security Property or the Lessor Security,

 

and each Beneficiary warrants to the Security
Trustee that it has not relied on and will not at any time rely on the Security
Trustee in respect of any of these matters.

 

27.          No
restriction on or liability to account for other transactions

 

27.1         Other dealings

 

The Security Trustee may, without any
liability to account to any of the Beneficiaries, accept deposits from, lend
money to, and generally engage in any kind of trust or banking business with,
any Chargor or any of its Subsidiaries, Joint Ventures or minority interests,
associated partnerships or Affiliates as if it were not the Security Trustee.

 

27.2         Rights as a Beneficiary

 

With respect to its own status as a
Beneficiary the Security Trustee shall have the same rights and powers under
the Security Documents as any other Beneficiary and may exercise the same as
though it were not performing the duties and functions of the Security Trustee.

 

28.          Common
Agent and Security Trustee

 

Notwithstanding that the Senior Facility
Agent and/or the Second Lien Facility Agent and the Security Trustee may from
time to time be the same entity, each of the Agents and Security Trustee have
entered into this Deed in their separate capacities as agent for the Lenders
under and pursuant to the Agreement and as Security Trustee for the Beneficiaries
to hold the guarantees and/or security created or to be created by the Security
Documents on the terms set out in the Security Documents, provided that where
this Deed provides for an Agent to communicate with or provide instructions to
the Security Trustee, while an Agent or (as the case may be) the Security
Trustee are the same entity, it will not be necessary for there to be any such
formal communication or instructions notwithstanding that this Deed provides in
certain cases for the same to be in writing.

 

65

 

29.          Changes to the
Parties

 

29.1         Retirement of Security Trustee:

 

29.1.1      The
Security Trustee may, at any time upon 30 days’ notice to TCN and to the
Beneficiaries and conditional upon the successor trustee executing a Security
Trustee’s Deed of Accession to give effect to the provisions of Clause 29.1.4
below, retire from its appointment as Security Trustee under this Deed. No such
retirement shall take effect unless there has been appointed as a successor
trustee in relation to the Trust Property:

 

(a)           a
Lender;

 

(b)           any
other reputable and experienced bank or financial institution with offices in
London nominated and accepted by the Instructing Party and to which TCN has
given its consent (such consent not to be unreasonably withheld or delayed) or,
failing such a nomination; or

 

(c)           any
reputable and experienced bank or financial institution with offices in London
nominated by the Security Trustee and to which TCN has given its consent (such
consent not to be unreasonably withheld or delayed).

 

29.1.2      All
of the Lenders (other than any Agent, in its capacity as a Lender) may, having
given to the Security Trustee not less than 30 days’ notice of the intention to
do so, remove the Security Trustee from its appointment as such under this
Deed.  The removal shall automatically be
of effect on the expiry of the notice save, where the Lenders (other than the
Security Trustee, in its capacity as a Lender) shall have failed to appoint a
successor security trustee falling within the requirements of
Clauses 29.1.1(a) or 29.1.1(b), in which case the removal shall be
deferred until such appointment is made. 
The Lenders (other than the Security Trustee, in its capacity as a
Lender) shall immediately notify the Security Trustee in writing of their
making such appointment.

 

29.1.3      On
the Senior Discharge Date, the provisions of Clause 29.1.1 shall cease to
apply and the Security Trustee may, upon 30 days’ notice to TCN, the Lessors’
Agent and the Hedge Counterparties and conditional upon the successor trustee
executing a deed supplemental hereto with the Chargors to give effect to the
provisions of Clause 29.1.4 below, retire from its appointment as Security
Trustee under this Deed.  No such
retirement shall take effect unless there has been appointed as a successor
trustee any reputable and experienced bank or financial institution with
offices in London nominated by the Security Trustee and to which TCN has given
its consent (such consent not to be unreasonably withheld or delayed).  From (and including) the Senior Discharge
Date until the Hedge Discharge Date, the Hedge Counterparties, and from (and
including) the Hedge Discharge Date and all of the Lessors (until the Lessor
Junior Discharge Date) undertake to the Security Trustee that following receipt
of a notice from the Security Trustee pursuant to this Clause 29.1.3 they
will ensure that a successor trustee is appointed in accordance with this
Clause 29.1.3 as soon as practicable.

 

29.1.4      Upon
any such successor as aforesaid being appointed, and subject to appropriate
arrangements having been made in relation to the rights, titles and interests

 

66

 

constituted by this Deed to the satisfaction
of the Beneficiaries, the retiring Security Trustee shall be discharged from
any further obligations under this Deed and its successor and the other parties
to this Deed shall have the same rights and obligations among themselves as
they would have had if such successor had been a party to this Deed in place of
the retiring Security Trustee.

 

29.1.5      Any
corporation into which the Security Trustee may be merged or converted or any
corporation with which the Security Trustee may be consolidated or any
corporation resulting from any merger, conversion, amalgamation, consolidation
or other reorganisation to which the Security Trustee shall be a party shall,
to the extent permitted by applicable law, be the successor Security Trustee
under the Security Documents without the execution or filing of any document or
any further act on the part of any of the parties to this Deed or any Security
Document, save that notice of any such merger, conversion, amalgamation,
consolidation or other reorganisation shall forthwith be given to the TCN and
the Beneficiaries.

 

29.2         Effective date

 

The retirement of the Security Trustee and
the appointment of the successor trustee shall take effect upon the signing by
the Security Trustee and the successor trustee of all deeds and other documents
and the performing of all other acts necessary for the transfer of all the
Security Trustee’s title to and interest in the Trust Property (other than, in
each case, any interest accruing to the Security Trustee by virtue of the
Security Trustee being a Second Beneficiary) to the successor trustee, such
title and interest to be held by the successor trustee on the same trusts and
on the same terms as if the successor trustee had been a party to this Deed in
place of the retiring Security Trustee.

 

29.3         Transfers by the Lenders

 

Each party to this Deed agrees and
acknowledges that:

 

29.3.1      the
Senior TCN Group Lenders may transfer their respective rights, liabilities and
obligations under this Deed in accordance with the provisions of
Clause 36.3 (Assignments or transfers
by Lenders) of the Senior Facilities Agreement;

 

29.3.2      the
Second Lien Lenders may transfer their respective rights, liabilities and
obligations under this Deed in accordance with the provisions of
Clause 31.3 (Assignments or transfers
by Lenders) of the Second Lien Facility Agreement; and

 

29.3.3      to
the extent applicable, the Target Group Lenders may transfer their respective
rights, liabilities and obligations under this Deed in accordance with the
corresponding provisions of the Target Group Facility Agreement.

 

29.4         References to Lenders following a transfer

 

If any Lender transfers all or any of its
rights and obligations as provided in Clause 29.3 (Transfers by the Lenders), all relevant
references in this Deed and the Security Documents to such Lender shall
thereafter be construed as a reference to such Lender and/or the new Lender to
the extent of their respective rights and/or obligations and the other parties
to this Deed shall thereafter look only to the new

 

67

 

Lender in respect of that proportion of that
Lender’s rights or obligations under this Deed as corresponds to the rights or
obligations assumed by such new Lender.

 

29.5         Authorisation of Agent

 

Each party to this Deed irrevocably
authorises the relevant Agent to countersign each Transfer Deed executed
pursuant to the Agreement in respect of which it is Agent on its behalf without
any further consent of, or consultation with, any such party provided that all
relevant conditions under the Agreement have been satisfied.

 

29.6         No assignment by Chargors

 

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

 

29.7         Assignment and/or transfer by the Hedge Counterparties

 

Each party to this Deed agrees and acknowledges
that upon execution and delivery of a Hedge Counterparty’s Deed of Accession
the relevant New Hedge Counterparty shall become a party to this Deed as
such.  Each party to this Deed agrees and
acknowledges that any Hedge Counterparty may assign or transfer all or any of
its rights, liabilities or obligations under this Deed, provided that such
assignment or transfer is contemporaneous with and to the same person as an
assignment or transfer by the relevant Hedge Counterparty of its corresponding
rights and/or obligations in respect of the relevant Hedge Agreements and
provided further that any such assignment or transfer shall be conditional upon
the relevant assignee or transferee having executed a Hedge Counterparty’s Deed
of Accession by which such assignee or transferee agrees to be bound by and
comply with the obligations incumbent upon the relevant Hedge Counterparty
under the Security Documents as if it had been a party to this Deed in place of
the relevant Hedge Counterparty.  The
Security Trustee may deem and treat such assignee or transferee as Hedge
Counterparty for all purposes of this Deed Security Documents after the
conditions set out in this Clause 29.7 have been satisfied.

 

29.8         Discharge of retiring Agent

 

Upon any successor to the Senior Facilities
Agent being appointed pursuant to Clause 29.11 (Resignation) of the Senior Facilities Agreement, upon any
successor to the Target Facility Agent being appointed pursuant to any
equivalent provision of the Target Facility Agreement or upon any successor to
the Second Lien Facility Agent being appointed pursuant to Clause 24.11 (Resignation) of the Second Lien Facility
Agreement, and conditional upon the relevant successor Agent executing and
delivering on Agent’s Deed of Accession, the relevant retiring Agent shall be
discharged from any further obligation under this Deed and its successor and
each of the other parties to this Deed shall have the same rights and
obligations among themselves as they would have had if such successor had been
a party to this Deed in place of the relevant retiring Agent.

 

68

 

29.9         Transfer by a Lender of its entire Commitment

 

Each of the parties to this Deed agrees that
upon:

 

29.9.1      a
Senior Lender ceasing to be a Senior Lender following the transfer of all its
commitment (as defined in the relevant Agreement), rights and obligations under
the relevant Agreement pursuant to the applicable provisions thereof; or

 

29.9.2      a
Second Lien Lender ceasing to be a Second Lien Lender following the transfer of
all its Commitment (as defined in the Second Lien Facility Agreement), rights
and obligations under the Second Lien Facility Agreement pursuant to
Clause 31.3 (Assignments or Transfers
by Lenders) thereof,

 

(each such retiring Lender, a “Former Lender”), such Former Lender shall
cease to be a Beneficiary in its capacity as a Lender hereunder but to the
extent it is also a Hedge Counterparty, it shall continue to be a Beneficiary
in its capacity as such.

 

29.10       Deeds of Accession

 

29.10.1    Each
party to this Deed shall be fully entitled to rely on any Deed of Accession
delivered to the Security Trustee in connection with this Deed which is
complete and regular on its face as regards its contents and purportedly signed
on behalf of the relevant new Agent, Security Trustee or new Chargor, as
appropriate.

 

29.10.2    No
party to this Deed shall have any liability or responsibility to any other
party to this Deed as consequence of placing reliance on and acting in
accordance with such Deed of Accession if it proves to be the case that it was
not authentic or duly authorised.

 

29.10.3    Each
of the parties to this Deed hereby irrevocably authorises the Security Trustee
to execute any duly completed Deed of Accession as appropriate, on behalf of
that party.

 

29.10.4    The
Security Trustee shall give notice of any accessions to this Deed and shall
provide a copy of each duly completed Deed of Accession to TCN upon request.

 

30.          Effect
of this Deed as regards the Chargors

 

30.1         Consent and agreement to arrangements

 

Each of the Chargors acknowledges the
provisions of this Deed and undertakes with the Security Trustee and each of
the Beneficiaries that it will not do or, to the extent required to take action
under this Deed, omit to do anything to prejudice or adversely affect the
enforcement of such provisions or do anything which would be in breach of the
terms of this Deed.

 

30.2         No prejudice to other rights and remedies

 

Without prejudice to the rights of any
Chargor to rely on Clause 14.4 (Approvals)
and any other provisions of this Deed which (a) excuse any Chargor from
performing any obligation, under a Transaction Document in the manner
contemplated by such Transaction Document; or (b) pursuant to which any party
to a Transaction Document agrees not to exercise any or all of its rights in
the manner contemplated by, or in any

 

69

 

way agrees to limit the extent or
circumstances in which it may exercise or enforce any of its rights under, such
Transaction Document, nothing contained in this Deed shall as between any
Chargor and the Security Trustee and/or the Beneficiaries or any of them affect
or prejudice any rights or remedies of any such person against any Chargor in
respect of any of the Secured Obligations.

 

30.3         If
in accordance with Clause 42.5 (Release
of Guarantees and Security) of the Senior Facility Agreement,
Clause 37.5 (Release of Guarantees and
Security) of the Second Lien Facility Agreement or, if applicable
from and after the occurrence of an Integrated Merger Event, the provisions of
any applicable Target Facility Agreement, the obligations of any Chargor are
released, their obligations hereunder shall automatically terminate.

 

31.          Miscellaneous

 

31.1         Rights under other arrangements

 

Nothing contained in this Deed shall
prejudice or affect the rights of the Security Trustee or the Beneficiaries or
any of them under any guarantee, lien, bill, note, charge or other security
other than that granted pursuant to the Senior Documents, the Second Lien
Documents, the Lease Documents or the Hedging Agreements now or hereafter held
by it in respect of any moneys, obligations or liabilities thereby secured and
so that (without limitation) each and any such person may apply any moneys
recovered under any such guarantee, lien, bill, note, charge or other security
in or towards payment of any money, obligation or liability, actual or
contingent, now or hereafter due, owing or incurred to it by any Chargor or may
hold such moneys on a suspense account for such period as it may in its
absolute discretion think fit.

 

31.2         Several obligations of Beneficiaries

 

The obligations of each Beneficiary under
this Deed are several; the failure of any Beneficiary to perform such
obligations shall not relieve any other Beneficiary or any of the Chargors of
any of their respective obligations or liabilities under the Agreement or any
of the Security Documents, nor shall any Beneficiary be responsible for the
obligations of any other Beneficiary under this Deed.

 

31.3         Provisions severable

 

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

 

31.4         No partnership

 

This Deed shall not and shall not be
construed so as to constitute a partnership between the parties or any of them.

 

31.5         Chargor

 

TCN will comply with its obligations under
each of the Agreements (and will procure the compliance of each relevant member
of the TCN Group required to become and

 

70

 

remain a party to the Agreements, with the
provisions thereof) relating to the execution and delivery of an Accession
Notice (as defined in the relevant Agreement), any deed of accession to this
Deed, the Security Documents and any other documents or instruments as may
required by the relevant Agents to ensure that the relevant member of the Group
is bound by the terms of the Senior Documents.

 

31.6         No implied waivers, remedies cumulative

 

No failure or delay on the part of any Agent,
the Lead Arrangers, the Security Trustee, any Lender, any Lessor, any Hedge
Counterparty to exercise any power, right or remedy under this Deed or any
other Security Document shall operate as a waiver thereof, nor shall any single
or partial exercise by any Agent, the Lead Arrangers, the Security Trustee, any
Lender, any Lessor, any Hedge Counterparty of any power, right or remedy
preclude any other or further exercise thereof or the exercise of any other
power, right or remedy.  The remedies
provided in this Deed and the Security Documents, are cumulative and are not
exclusive of any remedies provided by law.

 

31.7         Counterparts

 

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

 

31.8         Lessors’ Agent

 

The Lessors’ Agent undertakes to the Security
Trustee that whilst any Lessor Debt is outstanding it will not resign as
Lessors’ Agent without a substitute having been appointed pursuant to
Clause 4 of the Agency and Co-ordination Agreement.

 

32.          Notices

 

32.1         Every Relevant Communication shall:

 

32.1.1      be
in writing delivered personally or by first-class prepaid letter (airmail if
applicable and available) or telefax (confirmed in the case of a telefax, by
first-class prepaid letter (airmail if available));

 

32.1.2      be
deemed to have been received, subject as otherwise provided in this Deed, in
the case of a letter, when delivered personally or 3 days (7 days in the case
of a letter posted from one country to another) after it has been put into the
post and, in the case of a telefax, at the time of despatch with confirmation
by the sender’s facsimile machine that the message has been received at the
correct facsimile number (provided that if the date of delivery or despatch is
not a business day in the country of the addressee or if the time of despatch
of any telefax is after the close of business in the country of the addressee
it shall be deemed to have been received at the opening of business on the next
such business day); and

 

71

 

32.1.3      be
sent:

 

(a)           to
each Chargor and each Lessee at:

 

160 Great Portland Street

London
W1W 5QA

Attention:      Group Treasurer

Telefax:          0207 299 6400

 

(b)           to
the Senior Facility Agent at:

 

5 The North Colonnade

Canary Wharf
London
E14 4BB

England

Attention:      Frank Rogers

Telefax:          + 44 (0) 20 7773 4893

 

(c)           to
the Second Lien Facility Agent at:

 

5 The North Colonnade

Canary Wharf
London
E14 4BB

England

Attention:      Frank Rogers

Telefax:          + 44 (0) 20 7773 4893

 

(d)           to
the Security Trustee at:

 

5 The North Colonnade

Canary Wharf
London
E14 4BB

England

Attention:      Frank Rogers

Telefax:          + 44 (0) 20 7773 4893

 

(e)           to
each Mandated Lead Arranger and each Lender at its address or telefax number
specified in Schedule 2 (The Mandated
Lead Arrangers), Schedule 3 (The
Senior TCN Group Lenders) or Schedule 4 (The Second Lien Lenders) (as the case may
be) or in any relevant Transfer Deed;

 

(f)            to
each Existing Hedge Counterparty at its address or telefax number specified in Schedule 5
(The Existing Hedge Counterparties and
Existing Hedge Agreements) or any relevant Deed of Accession;

 

(g)           to
each New Hedge Counterparty at its address or telefax number specified in any
relevant Deed of Accession;

 

72

 

(h)           to
the Lessors at:

 

c/o Lloyds Leasing Limited

Great Surrey House

203 Blackfriars Road
London

SE1 8NH

Telefax: 020 7922 1874

Attention: The Managing Director

 

or to such other address or telefax number as
is notified by any Chargor, any Lessee, any Agent, any Mandated Lead Arranger,
the Security Trustee, any Lessor, any Hedge Counterparty or any Lender (as the
case may be) to the other parties to this Deed save that a Lender, Mandated Lead
Arranger or a Lessor need not notify the other Lenders, the Mandated Lead
Arrangers or the Lessors.

 

32.2         Notices through the Security Trustee

 

Any Relevant Communication to be given (i) by
any Chargor to any Finance Party shall be given to the Security Trustee for
onward transmission as appropriate, (ii) to any Chargor shall (except as
otherwise provided in this Deed) be given to TCN on behalf of such Chargor by
the Security Trustee (iii) by or to a Lessor shall be given to or by (as
applicable) the Lessors’ Agent for onward transmission as appropriate and (iv)
by or to a Finance Party shall be given to or by (as applicable) the Security
Trustee for onward transmission as appropriate.

 

32.3         IntraLinks Site

 

In the event that TCN and the Agents agree
that they wish to deliver Relevant Communications to each other and to the
other parties to the Transaction Documents by posting the same to a web site at
secure hosting facilities the parties to this Deed agree that they will co-operate
with TCN and the Agents in order to agree such changes to this Deed as may be
required in order for Relevant Information to be delivered in such manner.

 

33.          Governing
Law and jurisdiction

 

33.1         Law

 

This Deed is governed by and shall be
construed in accordance with English law.

 

33.2         Submission to jurisdiction

 

Each Chargor agrees for the benefit of the
Agents, the Lead Arrangers, the Security Trustee, the Lessors, the Hedge
Counterparties and the Lenders that any legal action or proceedings in
connection with this Deed against any Chargor or any of their respective assets
may be brought in the English courts. 
Each Chargor irrevocably and unconditionally submits to the jurisdiction
of such courts and in the case of Chargors which are not incorporated or
organised under the laws of England, irrevocably designate, appoint and empower
TCN at present of Export House, Cawsey Way, Woking, Surrey, GU21 6QX to receive
for them and on their behalf, service of

 

73

 

process issued out of the English courts in
any legal action or proceedings arising out of or in connection with this
Deed.  The submission to such
jurisdiction shall not (and shall not be construed so as to) limit the right of
any Agent, the Mandated Lead Arrangers, the Security Trustee, the Lessors, the
Hedge Counterparties or the Lenders to take proceedings against any Chargor to
enforce any judgment obtained in any court referred to in this Clause 33.2
in any jurisdiction in which any of the assets of any Chargor are situated, nor
shall the taking of proceedings in any one or more jurisdiction referred to in
this Clause 33.2 preclude the taking of proceedings in any other such
jurisdiction, whether concurrently or not.

 

33.3         Inconvenient forum

 

Each Chargor irrevocably waives any objection
they may have now or hereafter to the laying of venue of any action or
proceeding in any court or jurisdiction referred to in Clause 33.2 (Submission to Jurisdiction) and any claim
they may have now or hereafter that any action or proceeding brought in such
courts or jurisdiction has been brought in an inconvenient forum.

 

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

 

74

 

SCHEDULE 1

 

The
Original Guarantors

 

	
  English Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Birmingham
  Cable Corporation Limited

  	
   

  	
  2170379

  	
   

  
	
  Birmingham
  Cable Limited

  	
   

  	
  2244565

  	
   

  
	
  Cable Camden
  Limited

  	
   

  	
  01795642

  	
   

  
	
  Cable
  Enfield Limited

  	
   

  	
  02466511

  	
   

  
	
  Cable
  Hackney & Islington Limited

  	
   

  	
  01795641

  	
   

  
	
  Cable
  Haringey Limited

  	
   

  	
  01808589

  	
   

  
	
  Cable London
  Limited

  	
   

  	
  01794264

  	
   

  
	
  Central
  Cable Holdings Limited

  	
   

  	
  3008567

  	
   

  
	
  Crystal
  Palace Radio Limited

  	
   

  	
  01459745

  	
   

  
	
  Filegale
  Limited

  	
   

  	
  2804553

  	
   

  
	
  General
  Cable Group Limited

  	
   

  	
  2872852

  	
   

  
	
  General
  Cable Holdings Limited

  	
   

  	
  2798236

  	
   

  
	
  General
  Cable Limited

  	
   

  	
  2369824

  	
   

  
	
  Imminus
  Limited

  	
   

  	
  1785381

  	
   

  
	
  Middlesex
  Cable Limited

  	
   

  	
  2460325

  	
   

  
	
  Sheffield
  Cable Communications Limited

  	
   

  	
  2465953

  	
   

  
	
  Southwestern
  Bell International Holdings Limited

  	
   

  	
  2378768

  	
   

  
	
  Telewest
  Communications (Central Lancashire) Limited

  	
   

  	
  1737862

  	
   

  
	
  Telewest
  Communications (Cotswolds) Limited

  	
   

  	
  1743081

  	
   

  
	
  Telewest
  Communications (Liverpool) Limited

  	
   

  	
  1615567

  	
   

  
	
  Telewest
  Communications (London South) Limited

  	
   

  	
  1697437

  	
   

  
	
  Telewest
  Communications (Midlands and North West) Limited

  	
   

  	
  2795350

  	
   

  
	
  Telewest
  Communications (Midlands) Limited

  	
   

  	
  1882074

  	
   

  
	
  Telewest
  Communications (North East) Limited

  	
   

  	
  2378214

  	
   

  
	
  Telewest
  Communications (North West) Limited

  	
   

  	
  2321124

  	
   

  
	
  Telewest
  Communications (South East) Limited

  	
   

  	
  2270764

  	
   

  
	
  Telewest
  Communications (South Thames Estuary) Limited

  	
   

  	
  2270763

  	
   

  
	
  Telewest
  Communications (South West) Limited

  	
   

  	
  2271287

  	
   

  
	
  Telewest
  Communications (St. Helens & Knowsley) Limited

  	
   

  	
  2466599

  	
   

  
	
  Telewest
  Communications (Tyneside) Limited

  	
   

  	
  2407676

  	
   

  

 

75

 

	
  Telewest
  Communications (Wigan) Limited

  	
   

  	
  2451112

  	
   

  
	
  Telewest
  Communications Cable Limited

  	
   

  	
  2883742

  	
   

  
	
  Telewest
  Communications Group Limited

  	
   

  	
  2514287

  	
   

  
	
  Telewest
  Communications Holdings Limited

  	
   

  	
  2982404

  	
   

  
	
  Telewest Communications
  (Nominees) Limited

  	
   

  	
  2318746

  	
   

  
	
  Telewest
  Limited

  	
   

  	
  03291383

  	
   

  
	
  Telewest
  Parliamentary Holdings Limited

  	
   

  	
  2514316

  	
   

  
	
  The Cable
  Corporation Limited

  	
   

  	
  2075227

  	
   

  
	
  Theseus No.
  1 Limited

  	
   

  	
  2994027

  	
   

  
	
  Theseus No.
  2 Limited

  	
   

  	
  2994061

  	
   

  
	
  Windsor
  Television Limited

  	
   

  	
  1745542

  	
   

  
	
  Yorkshire
  Cable Communications Limited

  	
   

  	
  2490136

  	
   

  
	
  The
  Yorkshire Cable Group Limited

  	
   

  	
  2782818

  	
   

  
	
  Eurobell
  (Holdings) Limited

  	
   

  	
  29404215

  	
   

  
	
  Eurobell
  (Sussex) Limited

  	
   

  	
  2272340

  	
   

  
	
  Eurobell
  (South West) Limited

  	
   

  	
  1796131

  	
   

  
	
  Eurobell
  (West Kent) Limited

  	
   

  	
  2886001

  	
   

  
	
  Eurobell
  (IDA) Limited

  	
   

  	
  3373001

  	
   

  
	
  Eurobell
  Internet Services Limited

  	
   

  	
  3172207

  	
   

  
	
  Eurobell CPE
  Limited

  	
   

  	
  2742145

  	
   

  
	
  Eurobell
  Limited

  	
   

  	
  2983427

  	
   

  
	
  EMS
  Investments Limited

  	
   

  	
  3373057

  	
   

  
	
  Eurobell
  (No.2) Limited

  	
   

  	
  3405634

  	
   

  
	
  Eurobell
  (No.3) Limited

  	
   

  	
  3006948

  	
   

  
	
  Eurobell
  (No.4) Limited

  	
   

  	
  2983110

  	
   

  

 

	
  Scottish Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Telewest
  Communications (Dundee & Perth) Limited

  	
   

  	
  SC096816

  	
   

  
	
  Telewest
  Communications (Motherwell) Limited

  	
   

  	
  SC121617

  	
   

  
	
  Telewest
  Communications (Scotland Holdings) Limited

  	
   

  	
  SC150058

  	
   

  
	
  Telewest
  Communications (Scotland) Limited

  	
   

  	
  SC80891

  	
   

  

 

76

 

	
  Jersey Obligors

  	
   

  	
  Company Number

  	
   

  
	
  Birmingham
  Cable Finance Limited

  	
   

  	
  60972

  	
   

  

 

	
  Partnership Obligors

  	
   

  	
  Principal Place of Business

  	
   

  
	
  Avon Cable
  Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Avon Cable
  Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Cotswolds
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Edinburgh
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Estuaries
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  London South
  Cable Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  TCI/US WEST
  Cable Communications Group

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (London South) Joint Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (Cotswolds) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (North East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (Scotland) Venture

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Telewest
  Communications (South East) Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  Tyneside
  Cable Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  
	
  United Cable
  (London South) Limited Partnership

  	
   

  	
  Export House, Cawsey Way

  Woking, Surrey GU21 6QX

  	
   

  

 

77

 

SCHEDULE 2

 

The
Mandated Lead Arrangers

 

	
  Barclays Capital

  	
   

  	
  5 The North Colonade

  Canary Wharf,

  London

  E14 4BB

  
	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
  10 Harewood Avenue

  London

  NW1 6AA

  
	
   

  	
   

  	
   

  
	
  Citigroup Global Markets Limited

  	
   

  	
  33 Canada Square,

  Canary Wharf,

  London,

  E14 5LB

  
	
   

  	
   

  	
   

  
	
  Credit Suisse First Boston

  	
   

  	
  One Cabot Square,

  London,

  E14 4QJ

  
	
   

  	
   

  	
   

  
	
  Deutsche Bank AG London

  	
   

  	
  Winchester House

  1 Great Winchester Street,

  London

  EC2N 2DB

  
	
   

  	
   

  	
   

  
	
  GE Capital Structured Finance Group Limited

  	
   

  	
  6-12 Clarges
  Street
London

  W1J 8DH

  
	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland Plc

  	
   

  	
  Corporate and Institutional Banking

  (Technology Media and Telecom)

  135 Bishopsgate,

  London,

  EC2M 3UR

  

 

78

 

SCHEDULE 3

 

The Senior
TCN Group Lenders

 

Barclays Bank PLC

 

BNP Paribas

 

Citibank, N.A.

 

Credit Suisse First Boston

 

Deutsche Bank AG London

 

GE Capital Structured Finance Group Limited

 

The Royal Bank of Scotland plc

 

79

 

SCHEDULE 4

 

The Second
Lien Lenders

 

Barclays Bank PLC

 

BNP Paribas

 

Citibank, N.A.

 

Credit Suisse First Boston

 

Deutsche Bank AG London

 

The Royal Bank of Scotland plc

 

80

 

SCHEDULE 5

 

The
Existing Hedge Counterparties and Existing Hedge Agreements

 

	
  Existing Hedge Counterparty

  and Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
  JPMorgan Chase Bank N.A.

  125 London Wall

  London

  EC2Y 5AJ

  Tel:                         +44(0)207
  777 3250

  Fax:                         +44(0)207 777 3459

  Attention:              Mike Wharrad

  	
   

  	
  •              ISDA Master Agreement dated 15 July 2004
  made between JP Morgan Chase Bank and TCN.

   

  •              Confirmation
  with trade date 20 July 2004 relating to a fixed for floating rate swap
  with a notional amount of £256 million.

  
	
   

  	
   

  	
   

  
	
  Calyon

  Broadwalk House

  5 Appold Street
London EC2A
  2DA

  Tel:                         +44(0)207 214 7009

  Fax:                         +44(0)207 214 7159

  Attention:              Steve Tubb

  	
   

  	
  •              ISDA Master Agreement dated 15 July 2004
  made between Calyon and TCN.

   

  •              Confirmation
  with trade date 21 July 2004 relating to a fixed for floating rate swap
  with a notional amount of £322 million.

  
	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland plc

  Corporate Restructuring Unit

  Specialised Lending Services

  10th Floor

  280 Bishopsgate

  London

  EC2M 4RB

  Tel:                         0207
  672 0269/0207 672 1827

  Fax:                         0207 672 0324

  Attention:              Neil Wright / Mike Birch

  	
   

  	
  •              ISDA Master Agreement dated 15 July 2004
  made between The Royal Bank of Scotland plc and TCN.

   

  •              Confirmation with trade date 19
  July 2004 relating to a fixed for floating rate swap with a notional
  amount of £355 million.

   

  •              Confirmation
  with trade date 7 March 2002 relating to a fixed for floating rate swap
  with a notional amount of £100 million.

  

 

81

 

	
  Existing Hedge Counterparty

  and Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
  The Bank of New York

  One Canada Square

  Canary Wharf
London

  E14 5AL

   

  Tel:                         +44(0)207 570 0892

  Fax:                         +44(0)207
  964 6034

  Attention:              Stuart
  Pitfield

   

  and:

   

  Tel:                         +44(0)207
  964 6533

  Fax:                         +44(0)207
  964 6193

  Attention:              Jason
  Garwood

   

  With copy to:

   

  The Bank of New York

  Derivatives Desk

  Global Markets Division

  32 Old Slip             - 15th Floor

   

  Tel:                         +1
  (212) 804 2137

  Fax:                         +1
  (212) 495 1015

  Attention:              James
  G. McAuliffe

   

  The Bank of New York

  Legal Department

  One Wall Street - 10th Floor

  New York, NY 10286

   

  Tel:                         +1
  (212) 635 1688

  Fax:                         +1
  (212) 635 1958

  Attention:              General
  Counsel

  	
   

  	
  •              ISDA Master Agreement dated 15 July 2004
  made between The Bank of New York and TCN.

   

  •              Confirmation
  with trade date 19 July 2004 relating to a fixed for floating rate swap
  with a notional amount of £66 million.

  
	
   

  	
   

  	
   

  
	
  Bayerische
  Landesbank Girozentrale

  acting through its London branch

  Bavaria House

  13/14 Appold Street

  London EC2A 2NB

   

  Tel:                         +44 (0)207 955 5173

  Fax:                         +44 (0)207 247 0056

  Attention:              Loans Administration

  	
   

  	
  •              ISDA Master
  Agreement dated June 11, 2001 made between Bayerische Landesbank
  Girozentrale and TCN.

   

  •              Confirmation with trade date 11
  June 2001 relating to a fixed for floating rate swap with a notional
  amount of £150 million.

  

 

82

 

	
  Existing Hedge Counterparty

  and Contact Details

  	
   

  	
  Existing
  Hedge Agreements

  
	
  Barclays
  Bank PLC

  Incoming Transaction Documentation

  Barclays Capital Global OTC

  5, The North Colonnade

  Canary Wharf

  London E14 4BB

  Tel:                         +44 (0)20 7773 6461

  Fax:                         +44 (0)20 7773 6810

  Attention:              Transaction Documentation & Management,
  Global Operations

  	
   

  	
  •              ISDA Master Agreement dated September 3,
  1996 made between Barclays Bank PLC and TCN.

   

  •              Confirmation with
  trade date 11 June 2001 relating to a fixed for floating rate swap with
  a notional amount of £50 million.

   

  •              Confirmation with trade date 11
  June 2001 relating to a fixed for floating rate swap with a notional
  amount of £100 million.

  

 

83

 

SCHEDULE 6

 

Agent’s
Deed of Accession

 

THIS AGENT’S DEED OF ACCESSION is
dated [•]·and made between:

 

(1)           [NEW AGENT] (the “New Agent”) and

 

(2)           BARCLAYS BANK PLC as Security Trustee

 

and relates to an Intercreditor Deed dated [•] 2004 between Telewest Communications Networks Limited (1),
Telewest UK Limited (2), the companies and partnerships listed in Schedule 1
thereto as Original Guarantors (3), Barclays Bank PLC as Security Trustee (4),
the banks and financial institutions listed in Schedule 2 thereto as
Mandated Lead Arrangers (5), Barclays Bank PLC as Senior Facility Agent (6),
Barclays Bank PLC as Second Lien Facility Agent (7), the institutions listed in
Schedule 3 thereto as Senior TCN Group Lenders (together with each other
institution which becomes a “Lender” under and as defined in the Senior
Facilities Agreement) (8), the institutions listed in Schedule 4
thereto as Second Lien Lenders (together with each other institution which
becomes a “Lender” under and as defined in the Second Lien Facility Agreement)
(9), Lloyds (Nimrod) Specialist Finance Limited, Robert Fleming Leasing (Number
4) Limited and Lombard Commercial Limited as Lessors (10), The Cable
Corporation Limited and The Yorkshire Cable Group Limited as Lessees (11), the
institutions listed in Schedule 6 thereto as Existing Hedge Counterparties
(together with each other institution which becomes a “Hedge Counterparty” in
accordance therewith) (12), Lloyds Leasing Limited (13), the Intergroup Debtors
named therein (14) and the Intergroup Creditors named therein (15),
as amended, varied, extended, restated, refinanced or replaced from time to
time (the “Intercreditor Deed”).

 

WHEREAS:

 

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

 

NOW IT IS HEREBY AGREED
as follows:

 

1              Definitions
under the Intercreditor Deed

 

Unless the context otherwise requires, words
and expressions defined in the Intercreditor Deed shall have the same meaning
in this Deed of Accession.

 

2              Succession
and Adherence

 

2.1           Each of the parties to
the Intercreditor Deed and the New Agent hereby agree that:

 

2.1.1        the
New Agent shall become a party to the Intercreditor Deed in its capacity as an
Agent; and

 

2.1.2        the
New Agent shall observe, perform and be bound by the terms and provisions of
and be entitled to exercise all the rights set out in the Intercreditor Deed in
the capacity of the Agent.

 

84

 

3              Accession

 

This Deed of Accession is supplemental to the
Intercreditor Deed and shall be read and construed as one instrument together
with the Intercreditor Deed.

 

4              Notices

 

For the purposes of Clause 32 (Notices) of the Intercreditor Deed every
notice, request, demand or other communication under the Intercreditor Deed
shall be sent to the New Agent at:

 

[Address]

 

[Telefax]

 

[Attention]

 

5              Effect
as a Deed

 

This Deed of Accession is intended to take
effect as a Deed notwithstanding that either party or both parties may have
executed it under hand only.

 

6              Law

 

This Deed of Accession is governed by English
law.

 

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

 

	
  New Agent

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a DEED
  by [Agent])

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  Security Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a Deed by BARCLAYS BANK PLC

  	
  )

  

 

85

 

SCHEDULE 7

 

Hedge
Counterparties’ Deed of Accession

 

THIS HEDGE COUNTERPARTY’S DEED OF ACCESSION is
dated [•] and made between:

 

(1)           [ACCEDING HEDGE COUNTERPARTY] (the “Acceding Hedge Counterparty”) and

 

(2)           BARCLAYS BANK PLC as Security Trustee

 

and relates to an Intercreditor Deed dated [•] 2004 between Telewest Communications Networks Limited (1),
Telewest UK Limited (2), the companies and partnerships listed in Schedule 1
thereto as Original Guarantors (3), Barclays Bank PLC as Security Trustee (4),
the banks and financial institutions listed in Schedule 2 thereto as
Mandated Lead Arrangers (5), Barclays Bank PLC as Senior Facility Agent (6),
Barclays Bank PLC as Second Lien Facility Agent (7), the institutions listed in
Schedule 3 thereto as Senior TCN Group Lenders (together with each other
institution which becomes a “Lender” under and as defined in the Senior
Facilities Agreement) (8), the institutions listed in Schedule 4
thereto as Second Lien Lenders (together with each other institution which
becomes a “Lender” under and as defined in the Second Lien Facility Agreement)
(9), Lloyds (Nimrod) Specialist Finance Limited, Robert Fleming Leasing (Number
4) Limited and Lombard Commercial Limited as Lessors (10), The Cable
Corporation Limited and The Yorkshire Cable Group Limited as Lessees (11), the
institutions listed in Schedule 6 thereto as Existing Hedge Counterparties
(together with each other institution which becomes a “Hedge Counterparty” in
accordance therewith) (12), Lloyds Leasing Limited (13), the Intergroup Debtors
named therein (14) and the Intergroup Creditors named therein (15),
as amended, varied, extended, restated, refinanced or replaced from time to
time (the “Intercreditor Deed”).

 

WHEREAS:

 

The Acceding Hedge Counterparty is to become a Hedge Counterparty for
the purposes of the Intercreditor Deed.

 

NOW IT IS HEREBY AGREED
as follows:

 

1              Definitions
under the Intercreditor Deed

 

Unless the context otherwise requires, words
and expressions defined in the Intercreditor Deed shall have the same meaning
in this Deed of Accession.

 

2              Succession
and Adherence

 

2.1           Each
of the parties to the Intercreditor Deed and the Acceding Hedge Counterparty
hereby agree that:

 

2.1.1        the
Acceding Hedge Counterparty shall become a party to the Intercreditor Deed in
its capacity as a Hedge Counterparty; and

 

86

 

2.1.2        the
Acceding Hedge Counterparty shall observe, perform and be bound by the terms
and provisions of and be entitled to exercise all the rights set out in the
Intercreditor Deed in the capacity of a Hedge Counterparty.

 

3              Accession

 

This Deed of Accession is supplemental to the
Intercreditor Deed and shall be read and construed as one instrument together
with the Intercreditor Deed.

 

4              Notices

 

For the purposes of Clause 32 (Notices) of the Intercreditor Deed every
notice, request, demand or other communication under the Intercreditor Deed
shall be sent to the Acceding Hedge Counterparty at:

 

[Address]

 

[Telefax]

 

[Attention]

 

5              Effect
as a Deed

 

This Deed of Accession is intended to take
effect as a Deed notwithstanding that either party or both parties may have
executed it under hand only.

 

6              Law

 

This Deed of Accession is governed by English
law.

 

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

 

	
  Acceding Hedge Counterparty

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a DEED
  by [Acceding Hedge Counterparty])

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  Security Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a Deed by BARCLAYS BANK PLC

  	
  )

  

 

87

 

SCHEDULE 8

 

Intergroup
Party’s Deed of Accession

 

THIS
INTERGROUP PARTY’S DEED OF ACCESSION is dated [•] and made
between:

 

(1)           [ACCEDING INTERGROUP CREDITOR/ DEBTOR] (the “Acceding Intergroup Creditor/Debtor”) and

 

(2)           BARCLAYS BANK PLC as Security Trustee

 

and relates to an Intercreditor Deed dated [•] 2004 between Telewest
Communications Networks Limited (1), Telewest UK Limited (2), the
companies and partnerships listed in Schedule 1 thereto as Original
Guarantors (3), Barclays Bank PLC as Security Trustee (4), the banks and
financial institutions listed in Schedule 2 thereto as Mandated Lead
Arrangers (5), Barclays Bank PLC as Senior Facility Agent (6), Barclays Bank
PLC as Second Lien Facility Agent (7), the institutions listed in Schedule 3
thereto as Senior TCN Group Lenders (together with each other institution which
becomes a “Lender” under and as defined in the Senior Facilities
Agreement) (8), the institutions listed in Schedule 4 thereto as
Second Lien Lenders (together with each other institution which becomes a “Lender”
under and as defined in the Second Lien Facility Agreement) (9), Lloyds
(Nimrod) Specialist Finance Limited, Robert Fleming Leasing (Number 4) Limited
and Lombard Commercial Limited as Lessors (10), The Cable Corporation
Limited and The Yorkshire Cable Group Limited as Lessees (11), the institutions
listed in Schedule 6 thereto as Existing Hedge Counterparties (together
with each other institution which becomes a “Hedge Counterparty” in accordance
therewith) (12), Lloyds Leasing Limited (13), the Intergroup Debtors named
therein (14) and the Intergroup Creditors named therein (15), as
amended, varied, extended, restated, refinanced or replaced from time to time
(the “Intercreditor Deed”).

 

WHEREAS:

 

The Acceding [Intergroup
Creditor]  [Intergroup Debtor] is to become an [Intergroup Creditor]  [Intergroup
Debtor] for the purposes of the
Intercreditor Deed.

 

NOW IT IS HEREBY AGREED
as follows:

 

1              Definitions
under the Intercreditor Deed

 

Unless the context otherwise requires, words
and expressions defined in the Intercreditor Deed shall have the same meaning
in this Deed of Accession.

 

2              Succession
and Adherence

 

2.1           Each
of the parties to the Intercreditor Deed and the Acceding [Intergroup Creditor]  [Intergroup
Debtor] hereby agree that:

 

2.1.1        the Acceding [Intergroup
Creditor]  [Intergroup Debtor] shall become a party to the Intercreditor
Deed in its capacity as a [Intergroup
Creditor]  [Intergroup Debtor]; and

 

2.1.2        the Acceding [Intergroup
Creditor]  [Intergroup Debtor] shall observe, perform and be bound by
the terms and provisions of and be entitled to exercise all the

 

88

 

rights
set out in the Intercreditor Deed in the capacity of a [Intergroup Creditor]  [Intergroup
Debtor].

 

3              Accession

 

This Deed of Accession is supplemental to the
Intercreditor Deed and shall be read and construed as one instrument together
with the Intercreditor Deed.

 

4              Notices

 

For the purposes of Clause 32 (Notices) of the Intercreditor Deed every
notice, request, demand or other communication under the Intercreditor Deed
shall be sent to the Acceding [Intergroup
Creditor]  [Intergroup Debtor] at:

 

[Address]

 

[Telefax]

 

[Attention]

 

5              Effect
as a Deed

 

This Deed of Accession is intended to take
effect as a Deed notwithstanding that either party or both parties may have
executed it under hand only.

 

[6.           Process Agent

 

The Acceding Intergroup Creditor/Debtor
hereby confirms that for the purposes of Clause 33.2 (Submission to Jurisdiction) of the
Intercreditor Deed, it has appointed Telewest Communications Networks Limited
of [Export House, Cawsey Way,
Woking, Surrey, GU21 6QX] as its
process agent for service.](1)

 

7              Law

 

This Deed of Accession is governed by English
law.

 

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

 

	
  Acceding Intergroup Creditor/Debtor

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a DEED
  by [Acceding
  Intergroup Creditor/

  	
  )

  
	
  Debtor]

  	
  )

  
	
   

  	
   

  
	
  Security Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a Deed by BARCLAYS BANK PLC

  	
  )

  

 

(1)           Delete if inapplicable.

 

89

 

SCHEDULE 9

 

Security
Trustee’s Deed of Accession

 

THIS
SECURITY TRUSTEE’S DEED OF ACCESSION is dated and made between:

 

(1)           [ACCEDING SECURITY TRUSTEE] (the “Acceding Security Trustee”) and

 

(2)           BARCLAYS BANK PLC as the Security Trustee

 

and relates to an Intercreditor Deed dated [•] 2004 between Telewest
Communications Networks Limited (1), Telewest UK Limited (2), the companies
and partnerships listed in Schedule 1 thereto as Original Guarantors (3),
Barclays Bank PLC as Security Trustee (4), the banks and financial institutions
listed in Schedule 2 thereto as Mandated Lead Arrangers (5), Barclays Bank
PLC as Senior Facility Agent (6), Barclays Bank PLC as Second Lien Facility
Agent (7), the institutions listed in Schedule 3 thereto as Senior TCN
Group Lenders (together with each other institution which becomes a “Lender”
under and as defined in the Senior Facilities Agreement) (8), the
institutions listed in Schedule 4 thereto as Second Lien Lenders (together
with each other institution which becomes a “Lender” under and as defined in
the Second Lien Facility Agreement) (9), Lloyds (Nimrod) Specialist Finance
Limited, Robert Fleming Leasing (Number 4) Limited and Lombard Commercial
Limited as Lessors (10), The Cable Corporation Limited and The Yorkshire
Cable Group Limited as Lessees (11), the institutions listed in Schedule 6
thereto as Existing Hedge Counterparties (together with each other institution
which becomes a “Hedge Counterparty” in accordance therewith) (12), Lloyds
Leasing Limited (13), the Intergroup Debtors named therein (14) and the
Intergroup Creditors named therein (15), as amended, varied, extended,
restated, refinanced or replaced from time to time (the “Intercreditor Deed”).

 

WHEREAS:

 

The Acceding Security Trustee is to become the Security Trustee for the
purposes of the Intercreditor Deed.

 

NOW IT IS HEREBY AGREED
as follows:

 

1              Definitions
under the Intercreditor Deed

 

Unless the context otherwise requires, words
and expressions defined in the Intercreditor Deed shall have the same meaning
in this Deed of Accession.

 

2              Succession
and Adherence

 

2.1           Each
of the parties to the Intercreditor Deed and the Acceding Security Trustee
hereby agree that:

 

2.1.1        the Acceding Security Trustee shall become a party to:

 

(a)           the Intercreditor Deed in its capacity as Security Trustee;
and

 

(b)           the Security Documents in its capacity as Security Trustee.

 

90

 

2.1.2        the
Acceding Security Trustee shall observe, perform and be bound by the terms and
provisions of and be entitled to exercise all the rights set out in the
Intercreditor Deed and the Security Documents in its capacity as Security
Trustee.

 

3              Accession

 

This Deed of Accession is supplemental to the
Intercreditor Deed and the other Security Documents and shall be read and
construed as one instrument together with the Intercreditor Deed and each other
Security Document.

 

4              Notices

 

For the purposes of Clause 32 (Notices) of the Intercreditor Deed every
notice, request, demand or other communication under the Intercreditor Deed
shall be sent to the Acceding Security Trustee at:

 

[Address]

 

[Telefax]

 

[Attention]

 

5              Effect
as a Deed

 

This Deed of Accession is intended to take
effect as a Deed notwithstanding that either party or both parties may have
executed it under hand only.

 

6              Law

 

This Deed of Accession is governed by English
law.

 

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

 

	
  Acceding Security Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  
	
  as a DEED
  by

  	
  )

  
	
  [Acceding
  Security Trustee]

  	
  )

  
	
   

  	
   

  
	
  Security Trustee

  	
   

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED

  	
  )

  	
   

  
	
  as a Deed by

  	
  )

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
   

  

 

91

 

SCHEDULE 10

 

Intergroup
Creditors

 

Bravo TV Limited

 

Continental Shelf 16 Limited

 

Ed Stone Limited

 

Flextech (Travel Channel) Limited

 

Flextech 1992 Limited

 

Flextech Communications Limited

 

Flextech Digital Broadcasting Limited

 

Flextech Family Channel Limited

 

Flextech Interactive Limited

 

Flextech Living Health Limited

 

Flextech Rights Limited

 

Flextech Television Limited

 

Flextech Video Games Limited

 

Interactive Digital Sales Limited

 

Maidstone Broadcasting

 

Starstream Limited

 

UK Living Limited

 

United Artists Investments Limited

 

Telewest Communications Holdco Limited

 

92

 

SCHEDULE 11

 

Intergroup
Debtors

 

Telewest Communications Group Limited

 

Telewest Communications Networks Limited

 

Telewest Workwise Limited

 

Yorkshire Cable Communications Limited

 

93

 

SCHEDULE 12

 

Form of
Default Notice

 

From:      Barclays Bank PLC

as Facility Agent

 

[/Target Group Agent]

as Target Group Agent

 

To:          Barclays Bank PLC

as Second Lien Facility Agent for itself and for and on behalf of
the Second Lien Finance Parties

 

cc:           Telewest Communications Networks Limited

for itself and as Obligors’ Agent

 

cc:           Barclays Bank PLC

as Security Trustee

 

[/name of Target Group Security Trustee]

as Target Group Security Trustee

 

We refer to the intercreditor deed (the “Intercreditor Deed”) dated [-] 2004 between, among others, TCN, Telewest
UK Limited, the Original Guarantors listed therein, the Senior Facility Agent,
the Security Trustee, the Second Lien Facility Agent, the Senior TCN Group
Lenders, the Second Lien Lenders, the Hedge Counterparties, the Intergroup
Creditors and the Intergroup Debtors (as may be further amended, supplemented,
varied or novated from time to time).

 

Terms defined in the Intercreditor Deed shall have the same meaning
when used in this Default Notice.

 

Pursuant to Clause 4.3 (Suspension
of Permitted Payments relating to Second Lien Indebtedness) of the
Intercreditor Deed, we hereby give you notice of the occurrence of the Event(s)
of Default, details of which are set out below, and confirm that all payments
to the Second Lien Finance Parties which would otherwise be permitted to be made
pursuant to the Intercreditor Deed may no longer be made and may not be made
until the earliest date on which:

 

(x)            paragraph (a) of Clause 4.3 (Suspension of Permitted Payments relating to Second Lien Indebtedness)
does not apply; and

 

(y)           one of the following applies:

 

(i)            more
than 150 days having elapsed from the date hereof or if earlier, where a
Standstill Period is in effect at any time during that 150 day period, the date
on which that Standstill Period expires;

 

(ii)           we
have confirmed to you in writing that the relevant Event of Default has been
remedied or waived by the relevant Instructing Party in writing or is no longer
continuing;

 

94

 

(iii)          we give you written notice of the cancellation of this
Default Notice; or

 

(iv)          the Senior Discharge Date occurs.

 

Details of Event of Default: [•]

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For and on behalf of

  Barclays Bank PLC

  as Senior Facility Agent

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For and on behalf of

  [Target
  Group Agent]

  as Target Group Agent

  

 

95

 

SCHEDULE 13

 

Existing
Security Documents

 

Part 1:  Documents to remain in place after execution
of this Deed

 

A.            March 2001
Documents

 

English Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (1)

  	
   

  	
  Composite Guarantee and Debenture

  	
   

  	
  (1)           TCN

   

  (2)           Original
  Charging Subsidiaries

   

  (3)           Original
  Charging Partnerships

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  

 

Scottish Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (2)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Scotland Holdings) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Scotland) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Dundee & Perth) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Motherwell) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  

 

96

 

Colorado Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (6)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in Avon Cable

  Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in Cotswolds Cable

  Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in Edinburgh Cable

  Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in Estuaries Cable

  Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in Tyneside Cable

  Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable Communications Group 

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  

 

97

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (11)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in United Cable

  (London South) Limited

  Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

   

  (2)           Theseus
  No. 1 Limited

   

  (3)           Theseus
  No. 2 Limited

   

  (4)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (12)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in TCI/US West

  Cable Communications

  Group

  	
   

  	
  (1)           Theseus
  No. 1 Limited

   

  (2)           Theseus
  No. 2 Limited

   

  (3)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (13)

  	
   

  	
  Pledge and Security

  Agreement regarding

  interests in London South

  Cable Partnership

  	
   

  	
  (1)           United
  Cable (London South) Limited Partnership 

   

  (2)           Crystal
  Palace Radio Limited

   

  (3)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001 (as amended by a first
  amendment dated 14 July 2001)

  

 

B.            July 2004
Documents

 

English Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (1)

  	
   

  	
  New Composite Guarantee and Debenture

  	
   

  	
  (1)           TCN

  (2)           Original
  Charging Subsidiaries

  (3)           Original
  Charging Partnerships

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

Scottish Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (2)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Scotland Holdings) Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Scotland) Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Dundee & Perth) Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Bond and Floating Charge

  	
   

  	
  (1)           Telewest
  Communications

  (Motherwell) Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

98

 

Colorado Security Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (6)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in Avon

  Cable Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in

  Cotswolds Cable Limited

  Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in

  Edinburgh Cable Limited

  Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in Estuaries

  Cable Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in Tyneside

  Cable Limited Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in United

  Cable (London South) Limited

  Partnership

  	
   

  	
  (1)           TCI/US
  West Cable

  Communications Group 

  (2)           Theseus
  No. 1 Limited

  (3)           Theseus
  No. 2 Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

99

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (12)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in TCI/US

  West Cable Communications

  Group

  	
   

  	
  (1)           Theseus
  No. 1 Limited

  (2)           Theseus
  No. 2 Limited

  (3)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (13)

  	
   

  	
  Pledge and Security Agreement

  regarding interests in London

  South Cable Partnership

  	
   

  	
  (1)           United
  Cable (London South) Limited Partnership

  (2)           Crystal
  Palace Radio Limited

  (3)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

100

 

Part 2:  Documents to be released upon execution of
this Deed

 

A.  March 2001 Documents

 

English Security
Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (1)

  	
   

  	
  Charge Over Shares of TCN

  	
   

  	
  (1)           Telewest
  Communications plc

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Assignment of Loans

  	
   

  	
  (1)           Telewest
  Communications plc

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Deed of Subordination

  	
   

  	
  (1)           Telewest
  Communications plc

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Charge over Deposit Account

  	
   

  	
  (1)           TCN

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  27 September 2002

  

 

Jersey Security
Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (5)

  	
   

  	
  Security Agreement in

  respect of shares in

  Birmingham Cable Finance

  Limited

  	
   

  	
  (1)           Birmingham
  Cable Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Security Agreement in

  respect of shares in IVS

  Cable Holdings Limited

  	
   

  	
  (1)           Flextech
  Broadband Limited (previously known as Cheltrading 283 Limited)

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Security Agreement in

  respect of shares in IVS

  Cable Holdings Limited

  	
   

  	
  (1)           Flextech
  (1992) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  

 

101

 

Scottish Security
Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  	 

	 
	
  (8)

  	
   

  	
  Shares Pledge over shares in

  Telewest Communications

  (Scotland Holdings) Limited

  	
   

  	
  (1)           Telewest
  Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  (9)

  	
   

  	
  Shares Pledge over shares in

  Telewest Communications

  (Scotland) Limited,

  Telewest Communications

  (Dundee & Perth) Limited

  and Telewest

  Communications

  (Motherwell) Limited

  	
   

  	
  (1)           Telewest
  Communications (Scotland Holdings) Limited

   

  (2)           CIBC
  World Markets PLC

  	
   

  	
  16 March 2001

  
												

 

B.  July 2004 Documents

 

English Security
Documents

 

	
   

  	
   

  	
  Documents

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (1)

  	
   

  	
  Guarantee and Debenture

  	
   

  	
  (1)           Telewest
  UK Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Composite Guarantee and Debenture

  	
   

  	
  (1)           Non-TCN
  Entities

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Security Account Charge

  	
   

  	
  (1)           TCN

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Charge Over Shares of Telewest UK Limited

  	
   

  	
  (1)           Telewest
  Global, Inc.

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  New Charge Over Shares of TCN

  	
   

  	
  (1)           Telewest
  Communications plc

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Assignment of Loans

  	
   

  	
  (1)           Telewest
  Global, Inc.

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  New Assignment of Loans

  	
   

  	
  (1)           Telewest
  Communications plc

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

102

 

	
   

  	
   

  	
  Documents

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (8)

  	
   

  	
  Deed of Subordination

  	
   

  	
  (1)           Telewest
  Global, Inc.

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Deed of Subordination

  	
   

  	
  (1)           Telewest
  UK Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Deed of Subordination

  	
   

  	
  (1)           Non-TCN
  Entities

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  New Deed of Subordination

  	
   

  	
  (1)           Telewest
  Communications plc

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

Jersey Security
Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (12)

  	
   

  	
  Security Agreement in respect of shares in
  IVS Cable Holdings Limited

  	
   

  	
  (1)           Flextech
  Broadband Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (13)

  	
   

  	
  Security Agreement in respect of shares in
  IVS Cable Holdings Limited

  	
   

  	
  (1)           Flextech
  (1992) Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (14)

  	
   

  	
  Security Agreement in respect of shares in
  Birmingham Cable Finance Limited

  	
   

  	
  (1)           Birmingham
  Cable Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

Scottish Security
Documents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Parties

  	
   

  	
  Date

  
	
  (15)

  	
   

  	
  Shares Pledge over shares in Telewest
  Communications (Scotland Holdings) Limited

  	
   

  	
  (1)           Telewest
  Limited

  (2)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (16)

  	
   

  	
  Shares Pledge over shares in Telewest
  Communications (Scotland) Limited, Telewest Communications (Dundee &
  Perth) Limited and Telewest Communications (Motherwell) Limited

  	
   

  	
  (3)           Telewest
  Communications (Scotland Holdings) Limited

  (4)           CIBC
  World Markets PLC

  	
   

  	
  14 July 2004

  

 

103

 

SIGNATURES

 

	
  TCN

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by TELEWEST

  	
  )

  	
  /s/

  	
   

  
	
  COMMUNICATIONS NETWORKS

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TELEWEST UK

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST UK LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
						

 

THE ORIGINAL GUARANTORS

 

EXECUTED
as a DEED by

 

	
  By:

  	
  /s/

  	
   

  
	
   

  	
  /s/

  	
   

  
	
   

  	
   

  

 

For an on behalf of

 

BIRMINGHAM CABLE CORPORATION LIMITED

BIRMINGHAM CABLE FINANCE LIMITED

BIRMINGHAM CABLE LIMITED

CABLE CAMDEN LIMITED

CABLE ENFIELD LIMITED

CABLE HACKNEY & ISLINGTON LIMITED

CABLE HARINGEY LIMITED

CABLE LONDON LIMITED

CENTRAL CABLE HOLDINGS LIMITED

CRYSTAL PALACE RADIO LIMITED

FILEGALE LIMITED

GENERAL CABLE GROUP LIMITED

GENERAL CABLE HOLDINGS LIMITED

GENERAL CABLE LIMITED

IMMINUS LIMITED

MIDDLESEX CABLE LIMITED

SHEFFIELD CABLE COMMUNICATIONS LIMITED

SOUTHWESTERN BELL INTERNATIONAL HOLDINGS
LIMITED

 

 

TELEWEST COMMUNICATIONS (CENTRAL LANCASHIRE)
LIMITED

TELEWEST COMMUNICATIONS (COTSWOLDS) LIMITED

TELEWEST COMMUNICATIONS (DUNDEE & PERTH)
LIMITED

TELEWEST COMMUNICATIONS (LIVERPOOL) LIMITED

TELEWEST COMMUNICATIONS (LONDON SOUTH)
LIMITED

TELEWEST COMMUNICATIONS (MIDLANDS AND NORTH
WEST) LIMITED

TELEWEST COMMUNICATIONS (MIDLANDS) LIMITED

TELEWEST COMMUNICATIONS (MOTHERWELL) LIMITED

TELEWEST COMMUNICATIONS (NORTH EAST) LIMITED

TELEWEST COMMUNICATIONS (NORTH WEST) LIMITED

TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS)
LIMITED

TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED

TELEWEST COMMUNICATIONS (SOUTH EAST) LIMITED

TELEWEST COMMUNICATIONS (SOUTH THAMES
ESTUARY) LIMITED

TELEWEST COMMUNICATIONS (SOUTH WEST) LIMITED

TELEWEST COMMUNICATIONS (ST. HELENS &
KNOWSLEY) LIMITED

TELEWEST COMMUNICATIONS (TYNESIDE) LIMITED

TELEWEST COMMUNICATIONS (WIGAN) LIMITED

TELEWEST COMMUNICATIONS CABLE LIMITED

TELEWEST COMMUNICATIONS GROUP LIMITED

TELEWEST COMMUNICATIONS HOLDINGS LIMITED

TELEWEST COMMUNICATIONS (NOMINEES) LIMITED

TELEWEST LIMITED

TELEWEST PARLIAMENTARY HOLDINGS LIMITED

THE CABLE CORPORATION LIMITED

THESEUS NO. 1 LIMITED

THESEUS NO. 2 LIMITED

WINDSOR TELEVISION LIMITED

YORKSHIRE CABLE COMMUNICATIONS LIMITED

THE YORKSHIRE CABLE GROUP LIMITED

EUROBELL (HOLDINGS) LIMITED

EUROBELL (SUSSEX) LIMITED

EUROBELL (SOUTH WEST) LIMITED

EUROBELL (WEST KENT) LIMITED

EUROBELL (IDA) LIMITED

EUROBELL INTERNET SERVICES LIMITED

EUROBELL CPE LIMITED

EUROBELL LIMITED

EMS INVESTMENTS LIMITED

EUROBELL (NO.2) LIMITED

EUROBELL (NO.3) LIMITED

EUROBELL (NO.4) LIMITED

 

 

The Colorado Limited Partnerships

 

	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  AVON CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  COTSWOLDS CABLE

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  EDINBURGH CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  ESTUARIES CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

 

	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  UNITED CABLE (LONDON SOUTH)

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

Colorado General Partnerships

 

	
  EXECUTED  and  DELIVERED
  as a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  LONDON SOUTH CABLE

  	
  )

  	
  /s/

  	
   

  
	
  PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its managing partner

  	
  )

  	
   

  	
   

  
	
  UNITED CABLE (LONDON SOUTH)

  	
  )

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  

 

 

	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  CRYSTAL PALACE RADIO LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  TCI/US WEST CABLE

  	
  )

  	
  /s/

  	
   

  
	
  COMMUNICATIONS GROUP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  English Partnerships

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Avon Cable Joint Venture

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  AVON CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH WEST) LIMITED

  	
  )

  	
  /s/

  	
   

  

 

 

	
  The Partners of Telewest Communications
  (London South) Joint Venture

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  LONDON SOUTH CABLE

  	
  )

  	
   

  	
   

  
	
  PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its managing partner

  	
  )

  	
   

  	
   

  
	
  UNITED CABLE (LONDON

  	
  )

  	
   

  	
   

  
	
  SOUTH) LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
  /s/

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (LONDON SOUTH) LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Partners of Telewest Communications
  (Scotland) Venture

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
  /s/

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  	
   

  
	
  EDINBURGH CABLE

  	
  )

  	
   

  	
   

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  	
   

  
	
  (SCOTLAND) LIMITED

  	
  )

  	
  /s/

  	
   

  	
   

  
						

 

 

	
  The Partners of Telewest Communications
  (Cotswolds) Venture

  
	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  COTSWOLDS CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (COTSWOLDS) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Partners of Telewest Communications
  (South East) Partnership

  
	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/

  	
   

  
	
  ESTUARIES CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
   

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH EAST) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (SOUTH THAMES ESTUARY) LIMITED

  	
  )

  	
  /s/

  	
   

  
						

 

 

	
  The Partners of Telewest Communications
  (North East) Partnership

  
	
   

  
	
  EXECUTED and DELIVERED as
  a DEED

  	
  )

  	
   

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  	
   

  
	
  TYNESIDE CABLE

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED PARTNERSHIP

  	
  )

  	
  /s/

  	
   

  
	
  by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.1 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  and by its general partner

  	
  )

  	
   

  	
   

  
	
  THESEUS NO.2 LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (NORTH EAST) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED and DELIVERED as a DEED

  	
  )

  	
   

  	
   

  
	
  by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  (TYNESIDE) LIMITED

  	
   

  	
  /s/

  	
   

  

 

 

	
  THE
  MANDATED LEAD ARRANGERS

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  BARCLAYS CAPITAL

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BNP PARIBAS

  	
  )

  	
  /s/ François Artignan

  	
   

  
	
   

  	
  )

  	
  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, LONDON

  	
  )

  	
  /s/ Kamlesh Vara

  	
   

  
	
   

  	
  )

  	
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  DEUTSCHE BANK AG, LONDON

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  GE CAPITAL STRUCTURED FINANCE

  	
  )

  	
  /s/ Gurava Raniwala

  	
   

  
	
  GROUP LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
  )

  	
   

  	
   

  

 

 

	
  THE SENIOR FACILITY AGENT

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  BARCLAYS BANK PLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE SECOND LIEN FACILITY AGENT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE SECURITY TRUSTEE

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  

 

 

	
  THE SENIOR TCN GROUP LENDERS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BNP PARIBAS

  	
  )

  	
  /s/ François Artignan  /s/ Louis
  Kenna

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED  by

  	
  )

  	
   

  	
   

  
	
  CITIBANK, N.A.

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, 

  	
  )

  	
  /s/ Kamlesh Vara

  	
   

  
	
  LONDON

  	
  )

  	
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  DEUTSCHE BANK AG, LONDON

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  GE CAPITAL STRUCTURED FINANCE  

  	
  )

  	
  /s/ Gurava Raniwala

  	
   

  
	
  GROUP LIMITED

  	
  )

  	
  /s/

  	
   

  

 

	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
  )

  	
   

  	
   

  

 

 

	
  THE SECOND LIEN LENDERS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London E14 4BB

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BNP PARIBAS

  	
  )

  	
  /s/ François Artignan

  	
   

  
	
   

  	
  )

  	
  /s/ Louis Kenna

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CITIBANK, N.A.

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CREDIT SUISSE FIRST BOSTON, LONDON

  	
  )

  	
  /s/ Kamlesh Vara

  	
   

  
	
   

  	
  )

  	
  /s/ Tom Muoio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  DEUTSCHE BANK AG, LONDON

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  

 

	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
  )

  	
   

  	
   

  

 

 

	
  THE LESSORS’ AGENT

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  LLOYDS TSB LEASING LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE LESSORS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  LLOYDS (NIMROD) SPECIALIST FINANCE 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  LECKHAMPTON FINANCE LIMITED 

  	
  )

  	
   

  	
   

  
	
  (formerly known as Robert Fleming Leasing 

  	
  )

  	
  /s/ J M Shiells

  	
   

  
	
  (Number 4) Limited

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  LOMBARD
  COMMERCIAL LIMITED

  	
  )

  	
  /s/ J M Shiells

  	
   

  

 

 

	
  THE LESSEES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
  /s/

  	
   

  
	
  THE CABLE CORPORATION LIMITED

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE YORKSHIRE CABLE GROUP 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  

 

 

	
  THE EXISTING HEDGE COUNTERPARTIES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CALYON

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND PLC

  	
  )

  	
  /s/ Mike Cunningham

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  THE BANK OF NEW YORK

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  JP MORGAN CHASE BANK

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BAYERISCHE
  LANDESBANK 

  	
  )

  	
  /s/

  	
   

  
	
  GIROZENTRALE

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BARCLAYS BANK PLC

  	
  )

  	
  /s/

  	
   

  

 

	
  In the presence of:

  	
   

  	
  Ruth Musgrove

  	
   

  
	
  Address:

  	
   

  	
  5 The North Colonnade

  	
   

  
	
   

  	
   

  	
  Canary Wharf

  	
   

  
	
   

  	
   

  	
  London

  	
   

  
	
   

  	
   

  	
  E14 4BB

  	
   

  

 

 

	
  THE INTERGROUP CREDITORS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  BRAVO
  TV LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  CONTINENTAL SHELF 16 LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  ED STONE LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH (TRAVEL CHANNEL) LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH 1992 LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH COMMUNICATIONS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH DIGITAL BROADCASTING 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH FAMILY CHANNEL LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH INTERACTIVE LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH LIVING HEALTH LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH RIGHTS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH TELEVISION LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  FLEXTECH VIDEO GAMES LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  INTERACTIVE DIGITAL SALES LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  MAIDSTONE BROADCASTING

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  

 

 

	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  STARSTREAM LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  UK LIVING LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  UNITED ARTISTS INVESTMENTS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS HOLCO 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  

 

 

	
  THE INTERGROUP DEBTORS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS GROUP 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  YORKSHIRE CABLE COMMUNICATIONS 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS 

  	
  )

  	
  /s/

  	
   

  
	
  NETWORKS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST WORKWISE LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

  	
   

  

 

 

	
  THE INTERGROUP DEBTORS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS GROUP 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  YORKSHIRE CABLE COMMUNICATIONS 

  	
  )

  	
  /s/

  	
   

  
	
  LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST COMMUNICATIONS

  	
  )

  	
  /s/

  	
   

  
	
  NETWORKS LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as a DEED by

  	
  )

  	
   

  	
   

  
	
  TELEWEST WORKWISE LIMITED

  	
  )

  	
  /s/

  	
   

  
	
   

  	
  )

  	
  /s/

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]