Document:

Exhibit 4.27

 

EXECUTION COPY

 

ONO FINANCE PLC,

 

AS ISSUER,

 

CABLEUROPA S.A.U., MEDITERRÁNEA NORTE SISTEMAS DE CABLE, S.A., MEDITERRÁNEA
SUR SISTEMAS DE CABLE, S.A., REGIÓN DE MURCIA DE CABLE, S.A., AND VALENCIA DE
CABLE, S.A.,

 

AS SUBSIDIARY GUARANTORS,

 

AND

 

THE BANK OF NEW YORK,

 

AS TRUSTEE

 

 

Indenture

 

Dated as of May 17,
2004

 

 

€180,000,000

101⁄2% Senior Notes due 2014

 

 

CROSS-REFERENCE TABLE

 

	
  TIA Sections

  	
   

  	
  Indenture Sections

  
	
   

  	
   

  	
   

  
	
  310

  	
   

  	
  (a)(1)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N/A

  
	
  311

  	
   

  	
  (a)

  	
   

  	
  7.03; 7.10

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.03; 7.10

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N/A

  
	
  312

  	
   

  	
  (a)

  	
   

  	
  2.05(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  13.03

  
	
   

  	
   

  	
  (c)

  	
   

  	
  13.03

  
	
  313

  	
   

  	
  (a)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.01(b); 7.05; 13.02(b)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.05

  
	
  314

  	
   

  	
  (a)(1)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  4.05(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  13.04(a)

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  13.04(b)

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (d)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (e)

  	
   

  	
  13.05

  
	
   

  	
   

  	
  (f)

  	
   

  	
  N/A

  
	
  315

  	
   

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.01(b)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
   

  	
  (a) (last
  sentence)

  	
   

  	
  2.09

  
	
   

  	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.14

  
	
  317

  	
   

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
   

  	
  (a)

  	
   

  	
  13.01

  
	
   

  	
   

  	
  (c)

  	
   

  	
  13.01

  

 

N/A means not applicable.

 

Note:      The
Cross-Reference Table shall not for any purpose be deemed to be a part of this
Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE DEFINITIONS AND INCORPORATION
  BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions.

  	
   

  
	
  SECTION 1.02.

  	
  Other Definitions.

  	
   

  
	
  SECTION 1.03.

  	
  Trust Indenture Act Terms.

  	
   

  
	
  SECTION 1.04.

  	
  Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  The Notes.

  	
   

  
	
  SECTION 2.02.

  	
  Execution and Authentication.

  	
   

  
	
  SECTION 2.03.

  	
  Registrar, Transfer Agent and Paying Agent.

  	
   

  
	
  SECTION 2.04.

  	
  Paying Agent to Hold Money in Trust.

  	
   

  
	
  SECTION 2.05.

  	
  Holders List.

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and Exchange.

  	
   

  
	
  SECTION 2.07.

  	
  Replacement Notes.

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding Notes.

  	
   

  
	
  SECTION 2.09.

  	
  Notes Held by Issuer.

  	
   

  
	
  SECTION 2.10.

  	
  Certificated Notes.

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation.

  	
   

  
	
  SECTION 2.12.

  	
  Defaulted Interest.

  	
   

  
	
  SECTION 2.13.

  	
  Computation of Interest.

  	
   

  
	
  SECTION 2.14.

  	
  ISIN and Common Code Numbers.

  	
   

  
	
  SECTION 2.15.

  	
  Issuance of Additional Notes.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE REDEMPTION; OFFERS TO
  PURCHASE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Right of Redemption.

  	
   

  
	
  SECTION 3.02.

  	
  Notices to Trustee.

  	
   

  
	
  SECTION 3.03.

  	
  Selection of Notes to be Redeemed.

  	
   

  
	
  SECTION 3.04.

  	
  Notice of Redemption.

  	
   

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price.

  	
   

  
	
  SECTION 3.06.

  	
  Payment of Notes Called for Redemption.

  	
   

  
	
  SECTION 3.07.

  	
  Notes Redeemed in Part.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes.

  	
   

  
	
  SECTION 4.02.

  	
  [Reserved.].

  	
   

  
	
  SECTION 4.03.

  	
  [Reserved.]

  	
   

  
	
  SECTION 4.04.

  	
  [Reserved.]

  	
   

  
	
  SECTION 4.05.

  	
  Statement as to Compliance.

  	
   

  
	
  SECTION 4.06.

  	
  Limitation on Debt.

  	
   

  
	
  SECTION 4.07.

  	
  Limitation on Restricted Payments.

  	
   

  
	
  SECTION 4.08.

  	
  Limitation on the Sale or Issuance of Capital Stock of Restricted
  Subsidiaries.

  	
   

  
	
  SECTION 4.09.

  	
  Limitation on Transactions with Affiliates.

  	
   

  
	
  SECTION 4.10.

  	
  Limitation on Liens.

  	
   

  

 

i

 

	
  SECTION 4.11.

  	
  Limitation on Sale of Certain Assets.

  	
   

  
	
  SECTION 4.12.

  	
  Limitation on Sale and Leaseback Transactions.

  	
   

  
	
  SECTION 4.13.

  	
  Limitation on Restrictions on Distributions from Restricted
  Subsidiaries.

  	
   

  
	
  SECTION 4.14.

  	
  Limitation on the Company’s Business.

  	
   

  
	
  SECTION 4.15.

  	
  Change of Control.

  	
   

  
	
  SECTION 4.16.

  	
  Additional Amounts.

  	
   

  
	
  SECTION 4.17.

  	
  Designation of Unrestricted and Restricted Subsidiaries.

  	
   

  
	
  SECTION 4.18.

  	
  Limitation on Issuer Activities.

  	
   

  
	
  SECTION 4.19.

  	
  Payment of Taxes and Other Claims.

  	
   

  
	
  SECTION 4.20.

  	
  Payments for Consent.

  	
   

  
	
  SECTION 4.21.

  	
  Reports to Holders.

  	
   

  
	
  SECTION 4.22.

  	
  Limitation on Layered Debt.

  	
   

  
	
  SECTION 4.23.

  	
  Limitation on Notarization Under Spanish Law.

  	
   

  
	
  SECTION 4.24.

  	
  Future Note Guarantors.

  	
   

  
	
  SECTION 4.25.

  	
  Use of Proceeds by the Issuer.

  	
   

  
	
  SECTION 4.26.

  	
  Restriction on Transfer of Assets.

  	
   

  
	
  SECTION 4.27.

  	
  Conversion of GCO Loan and Participative Loans into Common Stock of
  Cableuropa.

  	
   

  
	
  SECTION 4.28.

  	
  Further Instruments and Acts.

  	
   

  
	
  SECTION 4.29.

  	
  Listing.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE CONSOLIDATION, MERGER OR
  SALE OF ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Consolidation, Merger or Sale of Assets.

  	
   

  
	
  SECTION 5.02.

  	
  Successor Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default.

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration.

  	
   

  
	
  SECTION 6.03.

  	
  Other Remedies.

  	
   

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults.

  	
   

  
	
  SECTION 6.05.

  	
  Control by Majority.

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on Suits.

  	
   

  
	
  SECTION 6.07.

  	
  Collection Suit by Trustee.

  	
   

  
	
  SECTION 6.08.

  	
  Trustee May File Proofs of Claim.

  	
   

  
	
  SECTION 6.09.

  	
  Application of Money Collected.

  	
   

  
	
  SECTION 6.10.

  	
  Undertaking for Costs.

  	
   

  
	
  SECTION 6.11.

  	
  Restoration of Rights and Remedies.

  	
   

  
	
  SECTION 6.12.

  	
  Rights and Remedies Cumulative.

  	
   

  
	
  SECTION 6.13.

  	
  Delay or Omission not Waiver.

  	
   

  
	
  SECTION 6.14.

  	
  Record Date.

  	
   

  
	
  SECTION 6.15.

  	
  Waiver of Stay or Extension Laws.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee.

  	
   

  
	
  SECTION 7.02.

  	
  Certain Rights of Trustee.

  	
   

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee.

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer.

  	
   

  

 

ii

 

	
  SECTION 7.05.

  	
  Reports by Trustee to Holders.

  	
   

  
	
  SECTION 7.06.

  	
  Compensation and Indemnity.

  	
   

  
	
  SECTION 7.07.

  	
  Replacement of Trustee.

  	
   

  
	
  SECTION 7.08.

  	
  Successor Trustee by Merger.

  	
   

  
	
  SECTION 7.09.

  	
  Eligibility: Disqualification.

  	
   

  
	
  SECTION 7.10.

  	
  Preferential Collection of Claims Against Issuer.

  	
   

  
	
  SECTION 7.11.

  	
  Appointment of Co-Trustee.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT DEFEASANCE; SATISFACTION
  AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Issuer’s Option to Effect Defeasance or Covenant Defeasance.

  	
   

  
	
  SECTION 8.02.

  	
  Defeasance and Discharge.

  	
   

  
	
  SECTION 8.03.

  	
  Covenant Defeasance.

  	
   

  
	
  SECTION 8.04.

  	
  Conditions to Defeasance.

  	
   

  
	
  SECTION 8.05.

  	
  Satisfaction and Discharge of Indenture.

  	
   

  
	
  SECTION 8.06.

  	
  Survival of Certain Obligations.

  	
   

  
	
  SECTION 8.07.

  	
  Acknowledgment of Discharge by Trustee.

  	
   

  
	
  SECTION 8.08.

  	
  Application of Trust Money.

  	
   

  
	
  SECTION 8.09.

  	
  Repayment to Issuer.

  	
   

  
	
  SECTION 8.10.

  	
  Indemnity for Government Securities.

  	
   

  
	
  SECTION 8.11.

  	
  Reinstatement.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE AMENDMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders.

  	
   

  
	
  SECTION 9.02.

  	
  With Consent of Holders.

  	
   

  
	
  SECTION 9.03.

  	
  [Reserved].

  	
   

  
	
  SECTION 9.04.

  	
  Effect of Supplemental Indentures.

  	
   

  
	
  SECTION 9.05.

  	
  Notation on or Exchange of Notes.

  	
   

  
	
  SECTION 9.06.

  	
  Payment for Consent.

  	
   

  
	
  SECTION 9.07.

  	
  Notice of Amendment or Waiver.

  	
   

  
	
  SECTION 9.08.

  	
  Trustee to Sign Amendments, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guarantees.

  	
   

  
	
  SECTION 10.02.

  	
  Subrogation.

  	
   

  
	
  SECTION 10.03.

  	
  Release of the Subsidiary Guarantees.

  	
   

  
	
  SECTION 10.04.

  	
  Limitation and Effectiveness of Guarantees.

  	
   

  
	
  SECTION 10.05.

  	
  Notation Not Required.

  	
   

  
	
  SECTION 10.06.

  	
  Successors and Assigns.

  	
   

  
	
  SECTION 10.07.

  	
  No Waiver.

  	
   

  
	
  SECTION 10.08.

  	
  Modification.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Agreement to Subordinate.

  	
   

  
	
  SECTION 11.02.

  	
  Subordination of the Subsidiary Guarantees Prior to a Repayment
  Event.

  	
   

  

 

iii

 

	
  SECTION 11.03.

  	
  Subordination of the Subsidiary Guarantees Upon a Repayment Event.

  	
   

  
	
  SECTION 11.04.

  	
  Enforcement Standstills.

  	
   

  
	
  SECTION 11.05.

  	
  Payment Blockage Provisions.

  	
   

  
	
  SECTION 11.06.

  	
  Subordination on Insolvency.

  	
   

  
	
  SECTION 11.07.

  	
  Turnover.

  	
   

  
	
  SECTION 11.08.

  	
  Intercreditor Agreement.

  	
   

  
	
  SECTION 11.09.

  	
  Continuing Offer.

  	
   

  
	
  SECTION 11.10.

  	
  Amendment and Modification.

  	
   

  
	
  SECTION 11.11.

  	
  Trustee Entitled to Rely.

  	
   

  
	
  SECTION 11.12.

  	
  Trustee to Effectuate Subordination.

  	
   

  
	
  SECTION 11.13.

  	
  Trustee Not Fiduciary for the Holders of Senior Debt.

  	
   

  
	
  SECTION 11.14.

  	
  Reliance on Subordination Provisions.

  	
   

  
	
  SECTION 11.15.

  	
  Trustee’s Compensation Not Prejudiced.

  	
   

  
	
  SECTION 11.16.

  	
  Subrogation to Rights of Holders of Senior Debt

  	
   

  
	
  SECTION 11.17.

  	
  Provisions Solely to Define Relative Rights.

  	
   

  
	
  SECTION 11.18.

  	
  Notice to Trustee.

  	
   

  
	
  SECTION 11.19.

  	
  Acceleration Only Pursuant to Section 6.02.

  	
   

  
	
  SECTION 11.20.

  	
  Trust Moneys Not Subordinated.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE HOLDERS’ MEETINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
  Purposes of Meetings.

  	
   

  
	
  SECTION 12.02.

  	
  Place of Meetings.

  	
   

  
	
  SECTION 12.03.

  	
  Call and Notice of Meetings.

  	
   

  
	
  SECTION 12.04.

  	
  Voting at Meetings.

  	
   

  
	
  SECTION 12.05.

  	
  Voting Rights, Conduct and Adjournment.

  	
   

  
	
  SECTION 12.06.

  	
  Revocation of Consent by Holders at Meetings.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
  Trust Indenture Act Controls.

  	
   

  
	
  SECTION 13.02.

  	
  Notices.

  	
   

  
	
  SECTION 13.03.

  	
  Communication by Holders with Other Holders.

  	
   

  
	
  SECTION 13.04.

  	
  Certificate and Opinion as to Conditions Precedent.

  	
   

  
	
  SECTION 13.05.

  	
  Statements Required in Certificate or Opinion.

  	
   

  
	
  SECTION 13.06.

  	
  Rules by Trustee, Paying Agent and Registrar.

  	
   

  
	
  SECTION 13.07.

  	
  Legal Holidays.

  	
   

  
	
  SECTION 13.08.

  	
  Governing Law.

  	
   

  
	
  SECTION 13.09.

  	
  Jurisdiction.

  	
   

  
	
  SECTION 13.10.

  	
  No Recourse Against Others.

  	
   

  
	
  SECTION 13.11.

  	
  Successors.

  	
   

  
	
  SECTION 13.12.

  	
  Multiple Originals.

  	
   

  
	
  SECTION 13.13.

  	
  Table of Contents, Cross-Reference Sheet and Headings.

  	
   

  
	
  SECTION 13.14.

  	
  Severability.

  	
   

  
	
  SECTION 13.15.

  	
  Currency Indemnity.

  	
   

  

 

iv

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of Notes

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Form of Transfer
  Certificate for Transfer from Restricted Global Note to Regulation S Global
  Note

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Transfer
  Certificate for Transfer from Regulation S Global Note to Restricted Global
  Note

  

 

v

 

INDENTURE dated as of May 17,
2004 among ONO Finance Plc incorporated under the laws of England and Wales as
a public limited company (the “Issuer”), Cableruopa S.A.U., Mediterránea
Norte Sistemas de Cable, S.A., Mediterránea Sur Sistemas de Cable, S.A., Región
de Murcia de Cable, S.A., Valencia de Cable, S.A., each a corporation organized
under the laws of the Kingdom of Spain, (the “Subsidiary Guarantors”)
and The Bank of New York, a New York banking corporation (the “Trustee”).

 

RECITALS OF THE ISSUER

 

The Issuer has duly
authorized the execution and delivery of this Indenture to provide for the issuance
of its 101⁄2% Senior Notes due 2014 issued on the date hereof (the “Original
Notes”) and any additional Notes (“Additional Notes” and, together
with the Original Notes, the “Notes”) that may be issued on any other
Issue Date (as defined herein).  The Note
Guarantors have duly authorized the execution and delivery of this Indenture to
provide for the issuance of their Guarantees (as defined herein).  The Issuer and the Note Guarantors have
received good and valuable consideration for the execution and delivery of this
Indenture.  All necessary acts and things
have been done to make (i) the Notes, when duly issued and executed by the
Issuer and authenticated and delivered hereunder, the legal, valid and binding
obligations of the Issuer, (ii) the Guarantees, when executed by the Note
Guarantors and delivered hereunder, the legal, valid and binding agreement of
the Issuer and the Note Guarantors (iii) this Indenture a legal, valid and
binding agreement of the Issuer and the Note Guarantors in accordance with the
terms of this Indenture.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

For and in consideration
of the premises and the purchase of the Notes by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all Holders,
as follows:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01.      Definitions.

 

“Acquired
Debt” means, with respect to any specified Person, Debt of
any other Person (the “Acquired Person”) existing at the time such Acquired
Person merged with or into or became a Subsidiary of such specified Person,
including Debt Incurred in connection with, or in contemplation of, such
Acquired Person merging with or into or becoming a Subsidiary of such specified
Person.

 

“Acquired
Person” has the
meaning specified in the definition of “Acquired Debt”.

 

“Additional
Assets” means (a) any
Property (other than cash, cash equivalents and securities) to be used in a
Telecommunications Business; or (b) Capital Stock of a Person that becomes
a Restricted Subsidiary as a result of the acquisition of such Capital Stock by
the Company or another Restricted Subsidiary from any Person; provided, however,
that, in the case of clause (b), such Restricted Subsidiary is engaged in a
Telecommunications Business.

 

“Affiliate” of any specified Person means (a) any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person or (b) any
other Person who is a director or officer of:

 

1

 

(i)                            such
specified Person;

 

(ii)                           any
Subsidiary of such specified Person; or

 

(iii)                          any Person
described in clause (a) above.

 

For the purposes of this
definition, “control” when used with respect to any Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.  For purposes of Sections 4.09
and 4.11 only, “Affiliate” shall also mean any beneficial owner of shares
representing 5% or more of the total voting power of the Voting Stock (on a
fully diluted basis) of the Company or of rights or warrants to purchase such
Voting Stock (whether or not currently exercisable) and any Person who would be
an Affiliate of any such beneficial owner pursuant to the first sentence
hereof.

 

“Annualized
Pro Forma EBITDA” means,
with respect to any Person, such Person’s Pro Forma EBITDA for the latest
fiscal quarter multiplied by four.

 

“Applicable
Premium” means, with respect to any Note on any redemption
date, the greater of:

 

(i)            1.0%
of the principal amount of such Note; and

 

(ii)           the
excess of:

 

(A)          the present
value at such redemption date of (x) the redemption price of the Note at May 15,
2009 plus (y) all required interest payments due on the Note through May 15,
2009 (excluding accrued but unpaid interest to the redemption date), computed
using a discount rate equal to the Bund Rate as of such redemption date plus 50
basis points; over

 

(B)           the
principal amount of such Note, if greater.

 

“Asset
Sale” of the Company or a Restricted Subsidiary means any
sale, lease, transfer, issuance or other disposition (or series of related sales,
leases, transfers, issuances or dispositions) by the Company or any Restricted
Subsidiary, including any disposition by means of a merger, consolidation or
similar transaction (each referred to for the purposes of this definition as a “disposition”),
of (a) any shares of Capital Stock of a Restricted Subsidiary (other than
directors’ qualifying shares) or (b) any other assets of the Company or
any Restricted Subsidiary outside of the ordinary course of business of the
Company or such Restricted Subsidiary (other than, in the case of clauses (a) and
(b) above:

 

(i)            any
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to another Restricted Subsidiary;

 

(ii)           any disposition that constitutes a
Permitted Investment or Restricted Payment permitted under Section 4.07;
and

 

(iii)          any disposition effected in compliance
with Section 5.01(b).

 

“Asset
Sale” of the Issuer means any sale, lease, transfer, issuance
or other disposition (or series of related sales, leases, transfers, issuances
or dispositions) by the 

 

2

 

Issuer, including any disposition by means of a merger, consolidation
or similar transaction of any assets of the Issuer.

 

“Attributable
Debt” in respect
of a Sale and Leaseback Transaction means, at any date of determination, (a) if
such Sale and Leaseback Transaction is a Capital Lease Obligation, the amount
of Debt represented thereby according to the definition of “Capital Lease
Obligation” and (b) in all other instances, the greater of:

 

(i)            the Fair
Market Value of the Property subject to such Sale and Leaseback Transaction;
and

 

(ii)           the present value (discounted at the
interest rate borne by the Notes, compounded annually) of the total obligations
of the lessee for rental payments during the remaining term of the lease
included in such Sale and Leaseback Transaction (including any period for which
such lease has been extended).

 

“Average
Life” means, as
of any date of determination, with respect to any Debt or Preferred Stock, the
quotient obtained by dividing (a) the sum of the product of the numbers of
years (rounded to the nearest one-twelfth of one year) from the date of
determination to the dates of each successive scheduled principal payment of such
Debt or redemption or similar payment with respect to such Preferred Stock
multiplied by the amount of such payment by (b) the sum of all such
payments.

 

“Bankruptcy Law” means any law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization
or relief of debtors or any amendment to, succession to or change in any such
law, including, without limitation, any (i) bankruptcy law of Spain, (ii) the
U.K. Insolvency Act 1986, as amended, and (iii) title 11, United States
Bankruptcy Code of 1978, as amended.

 

“Board
of Directors” means
the Board of Directors of the Company or any committee thereof duly authorized
to act on behalf of such Board of Directors.

 

“Bund
Rate” means (i) the rate borne by direct obligations of
the Federal Republic of Germany (Bunds or Bundesanleihen) having a constant
maturity most nearly equal to the period from the redemption date to May 15,
2014 and (ii) if there are no such obligations, the rate determined by
linear interpolation between the rates borne by the two direct obligations of
the Federal Republic of Germany maturing closest to, but straddling, such date,
in each case as published in the Financial
Times.

 

“Business
Day” means a day
other than a Saturday, Sunday or other day on which banking institutions in the
State of New York, London or the Kingdom of Spain or a place of payment are
authorized or required by law to close.

 

“Capital
Lease Obligation” means
any obligation under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP; and the amount of Debt represented
by such obligation shall be the capitalized amount of such obligations
determined in accordance with GAAP; and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty. For purposes of Section 4.10, a Capital
Lease Obligation shall be deemed secured by a Lien on the Property being
leased.

 

3

 

“Capital
Stock” means,
with respect to any Person, any shares or other equivalents (however
designated) of any class of corporate stock or partnership interests or any
other participations, rights, warrants, options or other interests in the
nature of an equity interest in such Person, including Preferred Stock, but
excluding any debt security convertible or exchangeable into such equity
interest.

 

“Capital
Stock Sale Proceeds” means
the aggregate cash proceeds received by the Company from the issuance or sale
(other than to a Subsidiary of the Company or an employee stock ownership plan
or trust established by the Company or any such Subsidiary for the benefit of
their employees) by the Company of its Capital Stock (other than Disqualified
Stock) after the Issue Date, net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or commissions and
brokerage, consultant and other fees actually Incurred in connection with such
issuance or sale and net of taxes paid or payable as a result thereof.

 

“Change
of Control” means
the occurrence of any of the following events:

 

(a)           prior to the first Public Equity Offering, any Person, other
than a Permitted Holder, is or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for purposes of this clause (a) such
Person shall be deemed to have “beneficial ownership” of all shares that any
such other Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of the Company (for the
purposes of this clause (a), such Person shall be deemed to beneficially own
any Voting Stock of an entity held by any other entity (the “parent entity”),
if such other Person is the beneficial owner (as defined in this clause (a),
directly or indirectly, of more than 50% of the voting power of the Voting
Stock of such parent entity);

 

(b)           on or after the first Public Equity Offering during any
period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors (together with (i) any new
directors whose election or appointment by such Board of Directors, or whose
nomination for election by the shareholders of GCO or the Company was approved
by a vote of a majority of the directors of the 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 or (ii) any new
directors whose nomination for election by the shareholders of GCO or the
Company was approved by a majority of Permitted Holders) cease for any reason
to constitute a majority of the Board of Directors then in office;

 

(c)           the sale, transfer, assignment, lease, conveyance or other
disposition, directly or indirectly, of all or substantially all the assets of
the Company or the Restricted Subsidiaries, considered as a whole (other than a
disposition of such assets as an entirety or substantially as an entirety to a
Wholly Owned Subsidiary or to one or more Permitted Holders) shall have
occurred, or Cableuropa or any Holdco of Cableuropa merges, consolidates or amalgamates
with or into any other Person (other than one or more Permitted Holders) or any
other person (other than one or more Permitted Holders) merges, consolidates or
amalgamates with or into Cableuropa or any Holdco 

 

4

 

of Cableuropa, in any such event pursuant to a transaction in which the
outstanding Voting Stock of Cableuropa or any Holdco of Cableuropa is
reclassified into or exchanged for cash, securities or other Property, other
than any such transaction where (i) the outstanding Voting Stock of
Cableuropa or any Holdco of Cableuropa is reclassified into or exchanged for
Voting Stock of the surviving corporation and (ii) the holders of the
Voting Stock of Cableuropa or any Holdco of Cableuropa immediately prior to
such transaction own, directly or indirectly, not less than a majority of the
Voting Stock of the surviving corporation immediately after such transaction
and in substantially the same proportion as before the transaction; or

 

(d)           Retco or another professional trust corporation (which is
not an Affiliate of or otherwise related to the Company or its Affiliates)
shall cease to directly or indirectly hold at least 98% of the Capital Stock of
the Issuer pursuant to the terms of an English law a charitable trust.

 

“Clearstream” means Clearstream Banking, société anonyme.

 

“Code” means the U.S. Internal Revenue Code
of 1986, as amended.

 

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

 

“Common Depositary” means a depositary
common to Euroclear and Clearstream, being initially The Bank of New York
Depository (Nominees) Ltd. on behalf of The Bank of New York, until a successor
Common Depositary, if any, shall have become such pursuant to this Indenture,
and thereafter Common Depositary shall mean or include each Person who is then
a Common Depositary hereunder.

 

“Company”
means, prior to a Repayment Event, Cableuropa, and thereafter means the Parent
Guarantor.

 

“Consolidated
Interest Expense” means,
for any period, the total interest expense of the Company and its consolidated
Restricted Subsidiaries determined in accordance with GAAP, plus, to the extent
not included in such total interest expense, and to the extent Incurred by the
Company or its Restricted Subsidiaries:

 

(a)           interest expense attributable to leases constituting part of
a Sale and Leaseback Transaction and to capital leases;

 

(b)           amortization of debt discount and debt issuance cost,
including commitment fees;

 

(c)           capitalized interest (other than with respect to Subordinated
Shareholder Indebtedness);

 

(d)           cash or non-Cash interest expenses (other than with respect
to Subordinated Shareholder Indebtedness);

 

(e)           commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing;

 

5

 

(f)            net costs associated with
Hedging Obligations (including amortization of fees);

 

(g)           Disqualified Stock Dividends;

 

(h)           Preferred Stock Dividends;

 

(i)            interest Incurred in connection
with Investments in discontinued operations;

 

(j)            interest accruing on any Debt of
any other Person to the extent such Debt is Guaranteed by the Company or any
Restricted Subsidiary; and

 

(k)           the cash contributions to any employee stock ownership plan
or similar trust to the extent such contributions are used by such plan or
trust to pay interest or fees to any Person (other than the Company) in
connection with Debt Incurred by such plan or trust.

 

“Consolidated
Net Income” means,
for any period, the net income (loss) of the Company and its consolidated
Restricted Subsidiaries determined in accordance with GAAP; provided, however,
that there shall not be included in such Consolidated Net Income:

 

(a)           any net income (loss) of any Person (other than the Company)
if such Person is not a Restricted Subsidiary, except that:

 

(i)            subject to
the exclusion contained in clause (c) below, the Company’s equity in the
net income of any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash distributed by such
Person during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution; and

 

(ii)           the Company’s equity in a net loss of any
such Person other than an Unrestricted Subsidiary for such period shall be
included in determining such Consolidated Net Income;

 

(b)           for purposes of Section 4.07 only, any net income
(loss) of any Person acquired by the Company or any of its consolidated
Subsidiaries in a pooling of interests transaction for any period prior to the
date of such acquisition;

 

(c)           any gain (but not loss) realized upon the sale or other
disposition of any Property of the Company or any of its consolidated
Subsidiaries (including pursuant to any Sale and Leaseback Transaction) that is
not sold or otherwise disposed of in the ordinary course of business;

 

(d)           any extraordinary gain or loss;

 

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

 

(f)            any non-cash compensation
expense realized for grants of performance shares, stock options or other
rights to officers, directors and employees of the Company or any Restricted
Subsidiary; provided that such
shares, options or other rights can be redeemed at the option of the holder
only for Capital Stock of the Company (other than Disqualified Stock).

 

6

 

Notwithstanding the
foregoing, for purposes of Section 4.07 only, there shall be excluded from
Consolidated Net Income any dividends, repayments of loans or advances or other
transfers of assets from Unrestricted Subsidiaries to the Company or a
Restricted Subsidiary to the extent such dividends, repayments or transfers
increase the amount of Restricted Payments permitted under Section 4.07(b)(iii)(D).

 

“Corporate Trust Office” means the
designated corporate trust office of the Trustee, at which at any particular
time its corporate trust business shall be administered, which office at the
date of execution of this Indenture is located at One Canada Square, London E14
5AL, Attention: Corporate Trust Administration, or such other address as the
Trustee may designate from time to time by notice to the Holders and the
Issuer, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Holders and the Issuer).

 

“Credit
Facility” or “Credit
Facilities” means, one or more debt facilities, or commercial paper
facilities with banks, insurance companies or other institutional lenders
providing for revolving credit loans, term loans, notes, including the Senior
Bank Facility, letters of credit or other forms of guarantees and assurances or
other credit facilities, including overdrafts, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time; provided,
that such debt or commercial paper facilities may not provide for or consist of
the borrowing or issuance of any Public Debt; and provided, further,
that no such amendment, restatement, modification, renewal, refund, replacement
or refinancing may consist of or provide for the borrowing or issuance of
Public Debt.

 

“Currency
Exchange Protection Agreement” means, in respect of a Person, any foreign exchange contract,
currency swap agreement, currency option or other similar agreement or
arrangement designed to protect such Person against fluctuations in currency
exchange rates.

 

“Custodian” means any receiver, trustee,
assignee, liquidator, custodian, administrator or similar official under any
Bankruptcy Law.

 

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

 

(a)           the principal of and premium (if any) in respect of (i) debt
of such Person for money
borrowed and (ii) debt evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable;

 

(b)           all Capital Lease Obligations of such Person and all
Attributable Debt in respect of Sale and Leaseback Transactions entered into by
such Person;

 

(c)           all obligations of such Person issued or assumed as the
deferred purchase price of Property, all conditional sale obligations of such
Person and all obligations of such Person under any title retention agreement
(but excluding trade accounts payable or accrued expenses arising in the
ordinary course of business);

 

7

 

(d)           all obligations of such Person for the reimbursement of any
obligor on any letter of credit, banker’s acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in (a) through (c) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the tenth Business Day following
receipt by such Person of a demand for reimbursement following payment on the
letter of credit);

 

(e)           the amount of all obligations of such Person with respect to
the Repayment of any Disqualified Stock or, with respect to any Restricted
Subsidiary of such Person, any Preferred Stock of such Restricted Subsidiary
(but excluding, in each case, any accrued dividends);

 

(f)            all obligations of the type
referred to in clauses (a) through (e) of other Persons and all
dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor
or otherwise, including by means of any Guarantee;

 

(g)           all obligations of the type referred to in clauses (a) through
(f) of other Persons secured by any Lien on any Property of such Person
(whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the value of such Property or the
amount of the obligation so secured; and

 

(h)           to the extent not otherwise included in this definition,
Hedging Obligations of such Person.

 

The amount of Debt of any
Person at any date shall be the outstanding balance at such date of all
unconditional obligations as described above and, with respect to contingent
obligations, the maximum liability upon the occurrence of the contingency
giving rise to the obligation.  For the
purposes of this definition, “Debt” shall not include Subordinated Shareholder
Indebtedness.  The amount of Debt
represented by a Hedging Obligation shall be equal to (i) zero if such
Hedging Obligation has been Incurred pursuant to Section 4.06(c)(iv) or
(c)(v) or (ii) the notional amount of such Hedging Obligation if not
Incurred pursuant to such clauses.

 

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

 

“Designated
Senior Debt” means
(a) any Senior Debt that has, at the time of determination, an aggregate
principal amount outstanding of at least €25.0 million (including the amount of
all undrawn commitments and matured and contingent reimbursement obligations
pursuant to letters of credit thereunder) that is specifically designated in
the instrument evidencing such Senior Debt and is designated in a notice
delivered by the Company to the holders or a Representative of the holders of
such Senior Debt and in an Officers’ Certificate of the Company delivered to
the Trustee as “Designated Senior Debt” of the Company for purposes of this
Indenture and (b) the Senior Bank Facility.

 

8

 

“Disqualified
Stock” means,
with respect to any Person, any Capital Stock that by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable, in either case at the option of the holder thereof) or otherwise:

 

(i)            matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

 

(ii)           is or may become redeemable or
repurchaseable at the option of the holder thereof, in whole or in part; or

 

(iii)          is convertible or exchangeable at the
option of the holder thereof for Debt or Disqualified Stock,

 

on or prior to, in the
case of clauses (i),(ii) or (iii), the first anniversary of the Stated
Maturity of the Notes.

 

“Disqualified
Stock Dividends” means
all dividends with respect to Disqualified Stock of the Company held by Persons
other than a Wholly Owned Subsidiary. 
The amount of any such dividend shall be equal to the quotient of such
dividend divided by the difference between one and the maximum statutory
federal income tax rate (expressed as a decimal number between 1 and 0) then
applicable to the Company.

 

“dollars” means the lawful currency of the
United States of America.

 

“EBITDA” means, for any period, an amount equal to,
for any Person:

 

(a)           the sum of Consolidated Net Income for such period
(exclusive of any gain or loss realized in such period upon an Asset Sale),
plus the following to the extent reducing Consolidated Net Income for such
period:

 

(i)            the provision
for taxes based on income or profits or utilized in computing net loss,

 

(ii)           Consolidated Interest Expense,

 

(iii)          depreciation,

 

(iv)          amortization of intangibles; and

 

(v)           any other non-cash items (other than any
such non-cash item to the extent that it represents an accrual of or reserve
for cash expenditures in any future period), minus

 

(b)                           all non-cash items increasing
Consolidated Net Income for such period (other than any such non-cash item to
the extent that it will result in the receipt of cash payments in any future
period), all for such Person and its subsidiaries (or, in the case of the
Company, the Restricted Subsidiaries) determined in accordance with GAAP
consistently applied.

 

“Enforcement
Action” means, in relation to any Debt of the Issuer or any
Note Guarantor, any action (whether taken by the relevant creditor or creditors
or an agent or Trustee on its or their behalf) to:

 

(a)           demand
payment, declare prematurely due and payable or otherwise seek to accelerate
payment of or place on demand all or any part of such Debt or to 

 

9

 

require the Issuer or a
Note Guarantor to redeem or purchase any part of such Debt;

 

(b)           recover
all or any part of such Debt (including, by exercising any rights of set-off or
combination of accounts);

 

(c)           exercise
or enforce any security right against sureties or any other rights under any
other document or agreement in relation to (or given in support of) all or any
part of such Debt (including under any security documents);

 

(d)           commence
legal or arbitration proceedings against any Person; or

 

(e)           apply
or petition or vote for (or take any other steps which may reasonably be
expected to lead to) a total or partial liquidation, dissolution or winding up
of any Note Guarantor or an insolvency, bankruptcy, reorganization,
composition, receivership (suspensión de
pagos), administration, voluntary arrangement, judicial intervention
or similar proceeding relating to any Note Guarantor or any of such Note
Guarantor’s Property;

 

provided
that neither (i) any legal proceedings not falling within clause (a) through
(e) above necessary to preserve the validity and existence of claims,
including the commencement of such claims before any court or governmental
authority nor (ii) legal proceedings against the Issuer or any Guarantor
to challenge the basis on which any sale or disposal is being implemented nor (iii) legal
proceedings against any person in connection with any securities violation or
fraud shall, in each case, constitute Enforcement Action.

 

“euro” or “€” means the lawful currency of the member
states of the European Union who have agreed to share a common currency in
accordance with the provisions of the Maastricht Treaty dealing with European
monetary union.

 

“European
Government Obligations” means direct obligations (or
certificates representing an ownership interest in such obligations) of the
German government or French government (including any agency or instrumentality
thereof) for the payment of which the full faith and credit of such German government
or French government is pledged and which are not callable or redeemable at the
Issuer’s option.

 

“Event
of Default” has
the meaning set forth under Article 6.

 

“Exchange
Act” means the U.S. 
Securities Exchange Act of 1934, as amended, or any successor statute,
and the rules and regulations promulgated by the Commission thereunder.

 

“Euroclear” means Euroclear S.A./N.V., as
operator of the Euroclear System.

 

“Excluded
Companies” means
Madrid Sistemas de Cable, S.A. (“MSC”), Sevilla Sistemas de Cable, S.A. (“SSC”),
Univertel Communicaçôes Universais (“UCV”), S.A., and NSEC International, B.V.
(“NSEC”). UCV and NSEC do not conduct any activities.  MSC and SSC do not conduct any activities and
are excluded from Cableuropa’s consolidated financial statements.

 

“Existing Equity Value Certificate Guarantee” means the Guarantee by Cableuropa of the Issuer’s
obligations under the Existing Equity Value Certificates.

 

10

 

“Existing
Equity Value Certificates” means
(i) the 275,000 Equity Value Certificates of the Issuer which initially
evidenced the right to receive the cash value of 632.4057 ordinary shares of
Cableuropa in dollars and the 125,000 Equity Value Certificates of the Issuer
which initially evidenced the right to receive the cash value of 305.1645
ordinary shares of Cableuropa in euro, all dated May 6, 1999 and (ii) the
200,000 Equity Value Certificates of the Issuer evidencing the right to receive
the cash value of 9,779,025.70 ordinary shares of Cableuropa in dollars and the
150,000 Equity Value Certificates of the Issuer evidencing the right to receive
the cash value of 6,898,246.97 ordinary shares of Cableuropa in euro, all dated
February 9, 2001.

 

“Existing
EVC Funding Agreements” means
the agreements dated as of May 6, 1999 and February 9, 2001 between
Cableuropa and the Issuer pursuant to which Cableuropa will pay to the Issuer
an amount sufficient to fund the Issuer’s obligations under the Existing Equity
Value Certificates.

 

“Existing
Note Guarantee” means
a Guarantee on the terms set forth in the Existing Notes Indentures by the
applicable Guarantors of the Issuer’s obligations with respect to the Existing
Notes.

 

“Existing
Notes” means the
$275,000,000 13% notes due 2009, the €125,000,000 13% notes due 2009, the
€200,000,000 14% notes due 2010 of the Issuer, the $200,000,000 14% notes due
2011 and the €150,000,000 14% notes due 2011.

 

“Existing
Notes Indentures” means
the indenture dated as of May 6, 1999 in respect of the $275,000,000 13%
notes due 2009 of the Issuer, the indenture dated as of May 6, 1999 in
respect of the €125,000,000 13% notes due 2009 of the Issuer, the indenture
dated as of June 30, 2000 in respect of the €200,000,000 14% notes due
2010 of the Issuer, the indenture dated February 9, 2001 in respect of the
$200,000,000 14% notes due 2011 of the Issuer and the indenture dated February 9,
2001 in respect of the €150,000,000 14% notes due 2011 of the Issuer.

 

“Fair Market
Value” means,
with respect to any Property, the price that could be negotiated in an arm’s-length,
free market transaction, for cash, between a willing seller and a willing
buyer, neither of whom is under undue pressure or compulsion to complete the
transaction.  Fair Market Value shall be
determined (a) if such Property has a Fair Market Value equal to or less
than €5.0 million, by any Officer of the Company or (b) if such Property
has a Fair Market Value in excess of €5.0 million, by a majority of the Board
of Directors and evidenced by a board resolution, dated within 60 days of the
relevant transaction, delivered to the Trustee.

 

“Fixed
Rate Note Proceeds Loan” means the loan dated as of the Issue
Date pursuant to which the Issuer shall loan the proceeds of the offering of
the Notes to Cableuropa and the other Subsidiary Guarantors.

 

“Floating
Rate Indenture” means the indenture dated as of the date
hereof in respect of the Floating Rate Notes.

 

“Floating
Rate Note Proceeds Loan” means the loan dated as of the Issue
Date pursuant to which the Issuer shall loan the proceeds of the offering of
the Floating Rate Notes to Cableuropa and the other Subsidiary Guarantors.

 

11

 

“Floating
Rate Notes” means
the Issuer’s €100,000,000 floating rate senior notes due 2014.

 

“GAAP” means generally accepted accounting
principles in Spain consistently applied, which are in effect from time to
time.

 

At any time after the
Issue Date, the Company may elect to apply IFRS in lieu of GAAP and, upon such
election, references herein to GAAP shall thereafter be construed to mean IFRS
as in effect from time to time after such election; provided that any such election once made shall be
irrevocable.  The Company shall give
notice of any such election to the Trustee and the holders.

 

“GCO” means Grupo Corporativo ONO, S.A., and its
successors.

 

“GCO
Loan” means the loan agreement dated February 13, 2003
between Cableuropa as borrower and GCO as lender in an aggregate principal
amount of €98.5 million.  GCO has
confirmed that Cableuropa shall convert the GCO Loan into common stock of
Cableuropa.

 

“Guarantee” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any Debt of any
other Person and any obligation, direct or indirect, contingent or otherwise,
of such Person (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt of such other Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services, to take-or-pay or to maintain financial
statement conditions or otherwise) or (b) entered into for the purpose of
assuring in any other manner the obligee against loss in respect thereof (in
whole or in part); provided, however, that the term “Guarantee” shall
not include (i) endorsements for collection or deposit in the ordinary
course of business or (ii) a contractual commitment by one Person to
invest in another Person for so long as such Investment is reasonably expected
to constitute a Permitted Investment under clause (b) of the definition of
Permitted Investments.  The term “Guarantee”
used as a verb has a corresponding meaning. 
The term “Guarantor” shall mean any Person Guaranteeing any obligation.

 

“Hedging
Obligation” of
any Person means any obligation of such Person pursuant to any Interest Rate
Agreement, Currency Exchange Protection Agreement or any other similar
agreement or arrangement.

 

“Holdco”
means any entity that owns 100% of the share capital of another company
(whether directly, or through wholly-owned subsidiaries).

 

“holder”
means (i) in the case of Global Notes, each Person shown in the records of
the Book-Entry Depositary as a holder of a certificated depositary interest in
respect of such Global Notes for all purposes other than with respect to the
payment of principal of, premium, if any, and interest on, such Notes the right
to which shall be vested, as against the Issuer, solely in the bearer of such
Global Note (being at the Issue Date the Book-Entry Depositary) in accordance
with and subject to its terms and the terms of this Indenture and (ii) in
the case of Definitive Notes, the Person in whose name a Definitive Note is
registered on the registrar’s books.

 

12

 

“IFRS”
means the accounting standards adopted by the International Financial Reporting
Standards Board and its predecessor.

 

“Incur” means, with respect to any Debt or other
obligation of any Person, to create, issue, incur (by merger, conversion,
exchange or otherwise), extend, assume, Guarantee or otherwise become liable in
respect of such Debt or other obligation or the recording, as required pursuant
to GAAP or otherwise, of any such Debt or obligation on the balance sheet of
such Person (and “Incurrence” and “Incurred” shall have meanings correlative to
the foregoing); provided, however, that a change in GAAP that
results in an obligation of such Person that exists at such time, and is not
theretofore classified as Debt, becoming Debt shall not be deemed an Incurrence
of such Debt; provided  further, however,
that solely for purposes of determining compliance with Section 4.06,
amortization of debt discount shall not be deemed to be the Incurrence of Debt,
provided that in the case of Debt
sold at a discount, the amount of such Debt Incurred shall at all times be the
aggregate principal amount at Stated Maturity.

 

“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument
and any such supplemental indenture, the provisions of the TIA that are
expressly incorporated, by reference or otherwise, herein and in any such
supplemental indenture, respectively.

 

“Independent
Appraiser” means
an investment banking firm of international standing or any third party
appraiser of international standing, provided
that such firm or appraiser is not an Affiliate of the Company.

 

“Interest Payment Date” means the Stated
Maturity of an installment of interest on the Notes.

 

“Interest
Rate Agreement” means,
for any Person, any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement or other similar agreement designed to protect
against fluctuations in interest rates.

 

“Investment” by any Person means any direct or indirect
loan (other than advances to customers in the ordinary course of business that
are recorded as accounts receivable on the balance sheet of such Person),
advance or other extension of credit or capital contribution (by means of
transfers of cash or other Property to others or payments for Property or
services for the account or use of others, or otherwise) to, or Incurrence of a
Guarantee of any obligation of, or purchase or acquisition of Capital Stock,
bonds, notes, debentures or other securities or evidence of Debt issued by, any
other Person. For purposes of Sections 4.07 and 4.17 and of the definition of “Restricted
Payment”, “Investment” shall include the portion (proportionate to the Company’s
equity interest in such Subsidiary) of the Fair Market Value of the net assets
of any Subsidiary at the time that such Subsidiary is designated an
Unrestricted Subsidiary.  In determining
the amount of any Investment made by transfer of any Property other than cash,
such Property shall be valued at its Fair Market Value at the time of such
investment.

 

“Issue
Date” means the
date on which the Notes are initially issued.

 

“Issuer” means ONO Finance Plc.

 

13

 

“Issuer Order” means a written order signed
in the name of the Issuer by any Person authorized by a resolution of the board
of directors of the Issuer.

 

“Issuer
Restricted Payment” means
with respect to the Issuer;

 

(a)           any dividend or distribution (whether made in cash,
securities or other Property) declared or paid on or with respect to any shares
of Capital Stock of the Issuer (including any payment in connection with any
merger or consolidation with or into the Issuer);

 

(b)           the purchase, repurchase, redemption, acquisition or
retirement for value of any Capital Stock of the Issuer or any securities
exchangeable for or convertible into any such Capital Stock, including the
exercise of any option to exchange any Capital Stock;

 

(c)           the purchase, repurchase, redemption, acquisition or
retirement for value, prior to the date for any scheduled maturity, sinking
fund or amortization or other installment payment, of any Subordinated
Obligation (other than the purchase, repurchase or other acquisition of any
Subordinated Obligation purchased in anticipation of satisfying a scheduled
maturity, sinking fund or amortization or other installment obligation, in each
case due within one year of the date of acquisition); or

 

(d)           any Investment (other than Permitted Investments of the
Issuer) in any Person.

 

“Lien” means, with respect to any Property of any
Person, any mortgage or deed of trust, pledge, hypothecation, assignment,
deposit arrangement, security interest, lien, charge, easement (other than any
easement not materially impairing usefulness or marketability), encumbrance,
preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever on or with respect to such Property (including
any Capital Lease Obligations, conditional sale or other title retention
agreement having substantially the same economic effect as any of the foregoing
or any Sale and Leaseback Transaction).

 

“Material
License” means a
license, authorization or concession to operate a cable or telephone system
held by the Company or any of the Restricted Subsidiaries which system at the
time of determination covers a number of Total Homes which equals or exceeds
7.5% of the aggregate number of Total Homes covered by all of the licenses,
authorizations or concessions to operate cable or telephone systems held by the
Company and the Restricted Subsidiaries at such time.

 

“Maturity” means,
with respect to any indebtedness, the date on which any principal of such
indebtedness becomes due and payable as therein or herein provided, whether at
the Stated Maturity with respect to such principal or by declaration of
acceleration, call for redemption or purchase or otherwise.

 

“Moody’s” means
Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

 

“Multi-Borrower
Credit Facilities” means the multi-borrower credit facility
dated as of May 6, 1999 among the Issuer, Cableuropa and the other
borrowers thereunder pursuant to which the Issuer lent the proceeds of the
Issuer’s $275,000,000 13% notes due 2009 to 

 

14

 

Cableuropa and such other borrowers, the multi-borrower credit facility
dated as of May 6, 1999 among the Issuer, Cableuropa and the other borrowers
thereunder pursuant to which the Issuer lent the proceeds of the Issuer’s
€125,000,000 13% notes due 2009 to Cableuropa and such other borrowers, the
multi-borrower credit facility dated as of June 30, 2000 among the Issuer,
Cableuropa and the other borrowers thereunder pursuant to which the Issuer lent
the proceeds of the Issuer’s €200,000,000 14% notes due 2010 to Cableuropa and
such other borrowers, the multi-borrower credit facility dated as of February 9,
2001 among the Issuer, Cableuropa and the other borrowers thereunder pursuant
to which the Issuer lent the proceeds of the Issuer’s $200,000,000 14% notes
due 2011 to Cableuropa and such other borrowers, and the multi-borrower credit
facility dated as of February 9, 2001 among the Issuer, Cableuropa and the
other borrowers thereunder pursuant to which the Issuer lent the proceeds of
the Issuer’s €150,000,000 14% notes due 2011 to Cableuropa and such other
borrowers.

 

“Murcia” means
Región de Murcia de Cable, S.A. and its successors.

 

“Net
Available Cash” from
any Asset Sale means cash payments received therefrom (including any cash
payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received, but
excluding any other consideration received in the form of assumption by the
acquiring Person of Debt or other obligations relating to the Property that is
the subject of such Asset Sale or received in any other non-cash form), in each
case net of:

 

(a)           all legal, title and recording tax expenses, commissions and
other fees and expenses incurred, and all federal, state, provincial, foreign
and local taxes required to be accrued as a liability under GAAP, as a
consequence of such Asset Sale;

 

(b)           all payments made on any Debt that is secured by any
Property subject to such Asset Sale, in accordance with the terms of any Lien
upon or other security agreement of any kind with respect to such Property, or
which must by its terms, or in order to obtain a necessary consent to such
Asset Sale, or by applicable law, be repaid out of the proceeds from such Asset
Sale;

 

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

 

(d)           the deduction of appropriate amounts provided by the seller
as a reserve, in accordance with GAAP, against any liabilities associated with
the Property disposed in such Asset Sale and retained by the Company or any
Restricted Subsidiary after such Asset Sale.

 

“Net
Cash Proceeds” means:

 

(a)           with respect to any Asset Sale, the proceeds thereof in the
form of cash or cash equivalents including payments in respect of deferred
payment obligations when received in the form of, or stock or other assets when
disposed for, cash or cash equivalents (except to the extent that such
obligations are financed or sold with recourse to the Issuer or any Restricted
Subsidiary), net of:

 

15

 

(i)            brokerage
commissions and other fees and expenses (including, without limitation, fees
and expenses of legal counsel, accountants, investment banks and other
consultants) related to such Asset Sale;

 

(ii)           provisions for all taxes paid or payable,
or required to be accrued as a liability under GAAP as a result of such Asset
Sale;

 

(iii)          all payments made on any Debt that is
secured by any Property subject to such Asset Sale, in accordance with the
terms of any Lien upon or other security agreement of any kind with respect to
such Property, or which must by its terms, or in order to obtain a necessary
consent to such Asset Sale, or by applicable law, be repaid out of the proceeds
from such Asset Sale;

 

(iv)          all distributions and other payments
required to be made to any Person (other than the Issuer or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale;
and

 

(v)           appropriate amounts required to be
provided by the Issuer or any Restricted Subsidiary, as the case may be, as a
reserve in accordance with GAAP against any liabilities associated with such
Asset Sale and retained by the Issuer or any Restricted Subsidiary, as the case
may be, after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as reflected in an Officer’s Certificate delivered to the
Trustee; and

 

(b)           with respect to any capital contributions, issuance or sale
of Capital Stock or options, warrants or rights to purchase Capital Stock, or
debt securities or Capital Stock that have been converted into or exchanged for
Capital Stock as referred to under Section 4.07, the proceeds of such
issuance or sale in the form of cash or cash equivalents, payments in respect
of deferred payment obligations when received in the form of, or stock or other
assets when disposed of for, cash or cash equivalents (except to the extent
that such obligations are financed or sold with recourse to the Issuer or any
Restricted Subsidiary), net of attorney’s fees, accountant’s fees and
brokerage, consultation, underwriting and other fees and expenses actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result of thereof.

 

“Notarize” means, with respect to any Debt or other
obligation, to notarize (put in notarial form before a Spanish notary republic)
or to intervene (signed before a Spanish notary public), in each case in
accordance with Spanish law.

 

“Note Guarantees” means
a guarantee on the terms set forth in this Indenture by the Parent Guarantor
and the Subsidiary Guarantors of the Issuer’s obligations with respect to the
Notes.

 

“Note Guarantors” means the Parent
Guarantor and the Subsidiary Guarantors.

 

“Notes
Proceeds Loans” means
the Fixed Rate Note Proceeds Loan and the Floating Rate Note Proceeds Loan.

 

16

 

“Officer” means
any director, the Chief Executive Officer, the President, the Chief Financial
Officer or any person performing similar functions, of the Company, a
Restricted Subsidiary or the Issuer, as applicable.

 

“Officers’ Certificate” means a certificate signed by two Officers of the Company,
a Restricted Subsidiary or the Issuer, as applicable, at least one of whom
shall be the principal executive officer or principal financial officer of the
Company, such Restricted Subsidiary or the Issuer, as applicable, and delivered
to the Trustee.

 

“Opinion of Counsel” means
a written opinion from legal counsel. 
The counsel may be an employee of or counsel to the Company, the
Restricted Subsidiaries or the Issuer or the Trustee.

 

“Parent Guarantee” means a guarantee on
the terms set forth in this Indenture by the Parent Guarantor of the Issuer’s
obligations with respect to the Notes.

 

“Parent Guarantor” means a direct Holdco
of Cableuropa that is a subsidiary of GCO, which will, upon a Repayment Event,
guarantee the obligations of the Issuer under this Indenture.  The Parent Guarantor will not engage in any
business activity or undertake any other activity except any activity relating
to (i) the granting of the Parent Guarantee, (ii) fulfilling its
obligations under the Parent Guarantee, (iii) any activities permitted by
this Indenture, or (iv) directly related to the establishment and
maintenance of its corporate existence.

 

“Participative Loans”
means the loan agreements dated January 31, 2002 and March 30, 2002
between Cableuropa as borrower and GCO as lender in the aggregate principal
amount of €100 million and €200 million, respectively. GCO has
confirmed that Cableuropa will convert the Participative Loans into common
stock of Cableuropa.

 

“Permitted Debt” has
the meaning given to such term under Section 4.06.

 

“Permitted Holders” means
(a) General Electric Company; Bank of America Corporation; Caisse de dépôt
et placement du Québec; Banco Santander; Grupo Ferrovial S.A.; Grupo Multitel,
Multitel Luxco, Hidrocantabrico S.A.; VAL Telecommunications, S.L; Sodinteleco,
S.L.; any Affiliate of such Person or any Person of which the foregoing “beneficially
owns” (as defined in Rule 13d-3 under the Exchange Act), individually or
collectively with any of the foregoing, at least 662/3%
of the total voting power of the Voting Stock of such Person and (b) any
Person acting in the capacity of an underwriter in connection with a public or
private offering of the Company’s Capital Stock.

 

“Permitted Investment” means
any Investment by the Company, a Restricted Subsidiary or the Issuer, as
specifically set forth below, in:

 

(a)           in the case of the Company and the Restricted Subsidiaries,
the Company, any Restricted Subsidiary or any Person that will, upon the making
of such Investment, become a Restricted Subsidiary; provided, however,
that such Restricted Subsidiary is engaged in the Telecommunications Business;

 

(b)           in the case of the Company and the Restricted Subsidiaries,
any Person if as a result of such Investment such Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its
Property to, the Company or a 

 

17

 

Restricted Subsidiary; provided,
however, that such Person is
engaged in the Telecommunications Business;

 

(c)           in the case of the Company, the Restricted Subsidiaries and
the Issuer, Temporary Cash Investments;

 

(d)           in the case of the Company and the Restricted Subsidiaries,
receivables owing to the Company or a Restricted Subsidiary, if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; provided,
however, that such trade terms
may include such concessionary trade terms as the Company or such Restricted
Subsidiary deems reasonable under the circumstances;

 

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

 

(f)            in the case of the Company and
the Restricted Subsidiaries, loans and advances to employees made in the
ordinary course of business consistent with past practices of the Company or
such Restricted Subsidiary, as the case may be; provided, however,
that such loans and advances do not exceed €1.0 million at any one time
outstanding;

 

(g)           in the case of the Company and the Restricted Subsidiaries,
stock, obligations or other securities received in settlement of debts created
in the ordinary course of business and owing to the Company or such Restricted
Subsidiary or in satisfaction of judgments;

 

(h)           in the case of the Company and the Restricted Subsidiaries,
any Person to the extent such Investment represents the non-cash portion of the
consideration received in connection with an Asset Sale consummated in
compliance with Section 4.11;

 

(i)            in the case of the Company and
the Restricted Subsidiaries, other Investments made for Fair Market Value that
do not exceed the greater of (x) €20 million or (y) an amount equal to 10% of
any Capital Stock Sale Proceeds received in connection with a Public Equity
Offering to the extent that such Capital Stock Sale Proceeds have not been used
pursuant to Section 4.07(b)(iii)(B) to make a Restricted Payment, in
either case, outstanding at any one time in the aggregate; and

 

(j)            in the case of the Issuer, the
loan of the proceeds of (x) the Notes by the Issuer to Cableuropa and the other
Subsidiary Guarantors under the Notes Proceeds Loans and (y) a debt offering
with terms substantially similar to the offering of the Notes by the Issuer to
Cableuropa and the other Subsidiary Guarantors under an agreement or agreements
substantially similar to the Notes Proceeds Loans.

 

“Permitted
Junior Securities” means, with respect to any Person: (a) Capital
Stock in such Person; or (b) debt securities of such Person that are
subordinated to all Senior Debt and 

 

18

 

any debt securities issued in exchange for Senior Debt to substantially
the same extent as, or to a greater extent that, Subordinated Guarantees are
subordinated to Senior Debt pursuant to this Indenture.

 

“Permitted
Liens” means (A) with
respect to the Company and the Restricted Subsidiaries:

 

(a)           Liens to secure Debt permitted to be Incurred under Sections
4.06(c)(ii), (iv) and (v);

 

(b)           Liens for taxes, assessments or governmental charges, levies
or claims on the Property of the Company or any Restricted Subsidiary if the
same shall not at the time be delinquent or thereafter can be paid without
penalty, or are being contested in good faith and by appropriate proceedings
promptly instituted and diligently concluded; provided,
however, that any reserve or
other appropriate provision that shall be required in conformity with GAAP
shall have been made therefor;

 

(c)           Liens imposed by law, such as carriers’, warehousemen’s and
mechanics’ Liens and other similar Liens, on the Property of the Company or any
Restricted Subsidiary arising in the ordinary course of business and securing
payment of obligations that are not more than 60 days past due or are being
contested in good faith and by appropriate proceedings;

 

(d)           Liens on the Property of the Company or any Restricted
Subsidiary Incurred in the ordinary course of business to secure performance of
obligations with respect to statutory or regulatory requirements, performance
or return-of-money bonds, surety bonds or other obligations of a like nature
and Incurred in a manner consistent with industry practice, in each case which
are not Incurred in connection with the borrowing of money, the obtaining of
advances or credit or the payment of the deferred purchase price of Property
and which do not in the aggregate impair in any material respect the use of
Property in the operation of the business of the Company and the Restricted
Subsidiaries taken as a whole;

 

(e)           Liens on Property existing at the time the Company or any
Restricted Subsidiary acquired such Property, including any acquisition by
means of a merger or consolidation with or into the Company or any Restricted
Subsidiary; provided, however, that any such Lien may not extend
to any other Property of the Company or any Restricted Subsidiary; provided further, however, that such Liens shall not have
been Incurred in anticipation of or in connection with the transaction or
series of related transactions pursuant to which such Property was acquired by
the Company or any Restricted Subsidiary;

 

(f)            Liens on the Property of a
Person existing at the time such Person becomes a Restricted Subsidiary; provided, however,
that any such Lien may not extend to any other Property of the Company or any
other Restricted Subsidiary that is not a direct Subsidiary of such Person; provided further, however, that any such Lien was not
Incurred in anticipation of or in connection with the 

 

19

 

transaction or series of related transactions pursuant to which such
Person became a Restricted Subsidiary;

 

(g)           pledges or deposits by the Company or any Restricted
Subsidiary under workmen’s compensation laws, unemployment insurance laws or
similar legislation, or good faith deposits in connection with bids, tenders,
contracts (other than for the payment of Debt) or leases to which the Company
or any Restricted Subsidiary is party, or deposits to secure public or
statutory obligations of the Company or any Restricted Subsidiary, or deposits
for the payment of rent, in each case Incurred in the ordinary course of
business;

 

(h)           easements, rights of way, restrictions on the use of
properties and such other encumbrances or charges against real property as are
of a nature generally existing with respect to properties of a similar
character;

 

(i)            Liens on the Property of the
Company or any Restricted Subsidiary to secure any Refinancing, in whole or in
part, of any Debt secured by Liens referred to in clause (a), (e) or (f) above
or (p) below; provided, however, that any such Lien shall be
limited to all or part of the same Property that secured the original Lien
(together with improvements and accessions to such Property) and the aggregate
principal amount of Debt that is secured by such Lien shall not be increased to
an amount greater than the sum of (i) the outstanding principal amount,
or, if greater, the committed amount, of the Debt secured by Liens described
under clause (a), (e) or (f) above or (p) below, as the case may be,
at the time the original Lien became a Permitted Lien under this Indenture and (ii) an
amount necessary to pay any fees and expenses, including premiums and
defeasance costs, incurred by the Company or such Restricted Subsidiary in
connection with such Refinancing;

 

(j)            Liens on Property of any
Unrestricted Subsidiary; provided,
however, that such Liens do not
extend to any Property of the Company and the Restricted Subsidiaries;

 

(k)           Liens in favor of the Company or any Restricted Subsidiary;

 

(l)            Liens on Property of the Company
or any Restricted Subsidiary pursuant to conditional sale or title retention
agreements;

 

(m)          Liens on Property of the Company or any Restricted
Subsidiary relating to judgments being contested in good faith by the Company
or such Restricted Subsidiary;

 

(n)           Liens on the Property of the Company or any Restricted
Subsidiary pursuant to good faith contract deposits;

 

(o)           Liens on Property of the Company or any Restricted
Subsidiary arising as a result of immaterial leases of such Property to other
persons;

 

(p)           Liens relating to escrow accounts established for the
benefit of holders of Public Debt of Cableuropa;

 

20

 

(q)           Liens to secure Debt permitted to be incurred under the
Subsidized Loans and VAT Discounting Facility pursuant to Section 4.06(c)(viii);

 

(r)            Liens existing on the Issuer
Date not otherwise described in clauses (a) through (q) above; and

 

(r)            Liens
Incurred in the ordinary course of business of the Company or any subsidiary of
the Company with respect of obligations that do not exceed €10.0 million at any
one time outstanding;

 

and (B) with respect
to the Issuer:

 

(a)           The pledge of the Notes Proceeds Loans for the benefit of
lenders under the Senior Bank Facility after a Repayment Event;

 

(b)           Liens relating to escrow accounts established for the
benefit of holders of Public Debt of Cableuropa; and

 

(c)           Liens for taxes, assessments or governmental charges, levies
or claims on the Property of the Issuer if the same shall not at the time be
delinquent or thereafter can be paid without penalty, or are being contested in
good faith and by appropriate proceedings promptly instituted and diligently
concluded; provided, however, that (x) any reserve or other
appropriate provision that shall be required in conformity with GAAP shall have
been made therefor and (y) the Issuer shall have notified the Company that a
payment under the Notes Proceeds Loans in respect thereof may be due.

 

“Permitted
Refinancing Debt” means
any Debt that Refinances any other Debt, including any successive Refinancings,
so long as:

 

(a)           such Debt is in an aggregate principal amount (or if
Incurred with original issue discount, an aggregate issue price) not in excess
of the sum of (i) the aggregate principal amount (or if Incurred with
original issue discount, the aggregate accreted value) then outstanding of the
Debt being Refinanced and (ii) an amount necessary to pay any fees and
expenses, including premiums and defeasance costs, related to such Refinancing;

 

(b)           the Average Life of such Debt is equal to or greater than
the Average Life of the Debt being Refinanced;

 

(c)           the Stated Maturity of such Debt is no earlier than the
Stated Maturity of the Debt being Refinanced; and

 

(d)           the new Debt shall not be senior in right of payment to the
Debt that is being Refinanced,

 

provided,
however, that Permitted
Refinancing Debt shall not include Debt of the Company or a Restricted
Subsidiary that Refinances Debt of an Unrestricted Subsidiary.

 

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

 

21

 

“Preferred Stock” means
any Capital Stock of a Person, however designated, which entitles the holder
thereof to a preference with respect to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of any other class of Capital Stock
issued by such Person.

 

“Preferred Stock Dividends” means all dividends with respect to Preferred Stock of
Restricted Subsidiaries held by Persons other than the Company or a Wholly
Owned Subsidiary. The amount of any such dividend shall be equal to the
quotient of such dividend divided by the difference between one and the maximum
statutory federal income rate (expressed as a decimal number between 1 and 0)
then applicable to the Issuer of such Preferred Stock.

 

“pro
forma” means,
with respect to any calculation made or required to be made pursuant to the
terms hereof, a calculation performed in accordance with Article 11 of
Regulation S-X promulgated under the Securities Act, as interpreted in good
faith by the Board of Directors after consultation with the independent
certified public accountants of the Company, or otherwise a calculation made in
good faith by the Board of Directors after consultation with the independent
certified public accountants of the Company, as the case may be.

 

“Pro Forma EBITDA” means
for any Person, for any period, the EBITDA of such Person as determined on a
consolidated basis in accordance with GAAP consistently applied after giving
effect to the following: (i) if, during or after such period, such Person
or any of its subsidiaries shall have made any Asset Sale, Pro Forma EBITDA of
such Person and its subsidiaries for such period shall be reduced by an amount
equal to the Pro Forma EBITDA (if positive) directly attributable to the assets
which are the subject of such Asset Sale for the period or increased by an
amount equal to the Pro Forma EBITDA (if negative) directly attributable
thereto for such period and (ii) if, during or after such period, such
Person or any of its subsidiaries completes an acquisition of any Person or
business which immediately after such acquisition is a Subsidiary of such
Person or whose assets are held directly by such Person or a Subsidiary of such
Person, Pro Forma EBITDA shall be computed so as to give pro forma effect to
the acquisition of such Person or business, provided
that, with respect to the Company, all of the foregoing references
to “Subsidiary” or “Subsidiaries” shall be deemed to refer only to a “Restricted
Subsidiary” or “Restricted Subsidiaries”.

 

“Property” means,
with respect to any Person, any interest of such Person in any kind of property
or asset, whether real, personal or mixed, or tangible or intangible, including
Capital Stock in, and other securities of, any other Person.  For purposes of any calculation required
pursuant to this Indenture, the value of any Property shall be its Fair Market
Value.

 

“Public
Debt” means any bonds, debentures, notes or other
indebtedness of a type that could be issued or traded in any market where
capital funds (whether debt or equity) are traded, including private placement
sources of debt and equity as well as organized markets and exchanges, whether
such indebtedness is issued in a public offering or in a private placement to
institutional investors or otherwise.

 

“Public
Equity Offering” means
an underwritten public offering of ordinary shares of Cableuropa or any Holdco
of Cableuropa, following which at least 15% of the total issued and outstanding
ordinary shares of Cableuropa or any Holdco of Cableuropa is listed on a
nationally recognized stock exchange or automated quotation system in the
United States or in a member state of the European Union.

 

22

 

“QIB” means a “Qualified Institutional
Buyer” as defined under Rule 144A.

 

“Redemption Date”, when used with respect
to any Note to be redeemed, in whole or in part, means the date fixed for such
redemption by or pursuant to this Indenture.

 

“Redemption Price”, when used with respect
to any Note to be redeemed, means the price at which it is to be redeemed
pursuant to this Indenture.

 

“Refinance” means,
in respect of any Debt, to refinance, extend, renew, refund, repay, prepay,
repurchase, redeem, defease or retire, or to issue other Debt, in exchange or
replacement for, such Debt. “Refinanced” and “Refinancing” shall have
correlative meanings.

 

“Regulation S” means Regulation S under the
Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

“Repay” means,
in respect of any Debt, to repay, prepay, repurchase, redeem, legally defease
or otherwise retire such Debt.  “Repayment”
and “Repaid” shall have correlative meanings. 
For purposes of Section 4.11, Debt shall be considered to have been
Repaid only to the extent the related loan commitment, if any, shall have been
permanently reduced in connection therewith.

 

“Repayment
Event” means the later of (i) the establishment of a
Holdco of Cableuropa that is a subsidiary of GCO; (ii) the guarantee of
the Notes on a senior unsecured basis by that Holdco; and (iii) (a) the
redemption, repurchase or maturity of all of the Existing Notes, or (b) the
Existing Notes Indentures being amended to reflect the terms of this Indenture
governing the Notes with respect to the subordination of the Subsidiary
Guarantees following the redemption, repurchase or maturity of the Existing
Notes.

 

“Representative” means
the trustee, agent or representative expressly authorized to act in such
capacity, if any, for any Senior Debt or if no person is so authorized, the
holders of such Senior Debt.

 

“Restricted
Payment” means;

 

(a)           any dividend or distribution (whether made in cash,
securities or other Property) declared or paid on or with respect to any shares
of Capital Stock of the Company or any Restricted Subsidiary (including any
payment in connection with any merger or consolidation with or into the Company
or any Restricted Subsidiary), except for;

 

(i)            any dividend
or distribution that is made solely to the Company or a Restricted Subsidiary;

 

(ii)           any dividend or distribution that is made
by a Restricted Subsidiary that is not a Wholly Owned Subsidiary to a
shareholder other than the Company or a Restricted Subsidiary provided that (x)
the dividend or distribution has been paid to all shareholders (including the
Company and/or any Restricted Subsidiary) on a pro rata basis, or on a basis
that results in the receipt by the Company or a Restricted Subsidiary of
dividends or distributions of greater value than it would receive on a pro rata
basis and (y) the aggregate amount of such dividends or 

 

23

 

distributions permitted by this exception (ii) does not exceed
€500,000 per year; or

 

(iii)          any dividend or distribution payable
solely in shares of Capital Stock (other than Disqualified Stock) of the
Company or such Restricted Subsidiary;

 

(b)                           the purchase, repurchase,
redemption, acquisition or retirement for value of any Capital Stock of the
Company (other than from the Company or a Restricted Subsidiary) or any
securities exchangeable for or convertible into any such Capital Stock,
including the exercise of any option to exchange any Capital Stock of the
Company (other than for or into Capital Stock of the Company that is not
Disqualified Stock);

 

(c)           the purchase, repurchase, redemption, acquisition or
retirement for value from any direct or beneficial shareholder of the Company
of any Capital Stock of any Restricted Subsidiary or any securities
exchangeable for or convertible into any such Capital Stock, including the
exercise of any option to exchange any Capital Stock of a Restricted Subsidiary
(other than for or into Capital Stock of a Restricted Subsidiary that is not
Disqualified Stock);

 

(d)           the purchase, repurchase, redemption, acquisition or
retirement for value, prior to the date for any scheduled maturity, sinking
fund or amortization or other installment payment, of any Subordinated Obligation
(other than the purchase, repurchase or other acquisition of any Subordinated
Obligation purchased in anticipation of satisfying a scheduled maturity,
sinking fund or amortization or other installment obligation, in each case due
within one year of the date of acquisition or in exchange for Capital Stock of
a Restricted Subsidiary); or

 

(e)           any Investment (other than Permitted Investments) in any
Person.

 

“Restricted
Subsidiaries” means
(a) any Subsidiary (other than the Excluded Companies) of the Company
unless such Subsidiary shall have been designated an Unrestricted Subsidiary as
permitted or required pursuant to the Section 4.17 and (b) an
Unrestricted Subsidiary that is redesignated as a Restricted Subsidiary as
permitted pursuant to such Section.

 

“Retco”
means Royal Exchange Trust Company Limited.

 

“Retecal”
means Retecal Sociedad Operadora de Telecommunicaciones de Castilla y León,
S.A.

 

“Rule 144” means Rule 144 under
the Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

“Rule 144A” means Rule 144A under
the Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

“S&P” means Standard & Poor’s Ratings
Service or any successor to the rating agency business thereof.

 

“Sale
and Leaseback Transaction” means
any direct or indirect arrangement relating to Property now owned or hereafter
acquired whereby the Company or a Restricted 

 

24

 

Subsidiary transfers such Property to another Person and the Company or
a Restricted Subsidiary leases it from such Person.

 

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

 

“Senior
Bank Facility” means the senior bank facility dated as of August 8,
2001, as subsequently amended on February 13, 2003 among the ONO Group, as
guarantors and borrowers, a series of international banks as arrangers, and
Banc of America Securities Limited as agent and security agent, and as further
amended, restated, augmented, modified, renewed, refunded, replaced, or
refinanced in whole or in part from time to time.

 

“Senior
Debt” of any
Person means:

 

(a)           all obligations consisting of any amount (including the
principal, premium, if any, and accrued and unpaid interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company to the extent post-filing interest is
allowed in such proceeding)) arising under or in respect of (i) Debt for
borrowed money and (ii) Debt evidenced by notes, debentures, bonds or
other similar instruments permitted under this Indenture;

 

(b)           all Capital Lease Obligations and all Attributable Debt in
respect of Sale and Leaseback Transactions;

 

(c)           all obligations of any Person:

 

(i)            for the
reimbursement of any obligor on any letter of credit, bankers’ acceptance or
similar credit transaction;

 

(ii)           under Hedging Obligations; or

 

(iii)          issued or assumed as the deferred
purchase price of Property and all conditional sale obligations and all
obligations under any title retention agreement permitted under this Indenture;
and

 

(d)           all obligations of other Persons of the type referred to in
clauses (a), (b) and (c) above for the payment of which such Person
is responsible or liable as Guarantor; provided,
however, that Senior Debt shall
not include:

 

(A)          Debt that is by its terms subordinate or pari passu in right
of payment to the Notes Proceeds Loans, including any Senior Subordinated Debt
or any Subordinated Obligations;

 

(B)           any Debt Incurred in violation of the provisions of this
Indenture;

 

(C)           accounts payable or any other obligations to trade creditors
created or assumed in the ordinary course of business in connection with the
obtaining of materials or services (including Guarantees thereof or instruments
evidencing such liabilities other than provided pursuant to Credit Facilities);

 

(D)          any liability for federal, state, local, foreign or other
taxes owed or owing;

 

25

 

(E)           any obligation of the Company or any Restricted Subsidiary
to any Restricted Subsidiary (other than obligations of the Company to any
Restricted Subsidiary which represent amounts provided to such Restricted
Subsidiary under Senior Debt which such Restricted Subsidiary has lent to the
Company); or

 

(F)           any obligations with respect to any Capital Stock of the
Company.

 

“Senior
Subordinated Debt”

 

(a)           With respect to the Company means the Multi-Borrower Credit
Facilities and the Notes Proceeds Loans and any other subordinated Debt of the
Company that specifically provides that such Debt is to rank pari passu with the Notes Proceeds Loans
and is not subordinated by its terms to any other subordinated Debt or other
obligation of the Company which is not Senior Debt of the Company. “Senior
Subordinated Debt” of any Restricted Subsidiary or any other Note Guarantor has
a correlative meaning; and

 

(b)           With respect to the Issuer means the Subordinated Debt of
the Issuer that specifically provides that such Debt is to rank pari passu with the Notes (after payment
of the Existing Notes) and is not subordinated by its terms to any other
Subordinated Debt or other obligation of the Issuer which is not Senior Debt of
the Issuer. “Senior Subordinated Debt” of any Restricted Subsidiary or any
other Note Guarantor has a correlative meaning.

 

“Spanish
Government Obligations” means
direct obligations (or certificates representing an ownership interest in such
obligations) of the Kingdom of Spain (including any agency or instrumentality thereof)
for the payment of which the full faith and credit of the Kingdom of Spain is
pledged and which are not callable or redeemable at the issuer’s option.

 

“Stated
Maturity” means, with respect to any Debt or security, the
date specified in such Debt or security as the fixed date on which the payment
of principal of such Debt or security is due and payable, including pursuant to
any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

 

“Subordinated
Obligation” means
any Debt of any Note Guarantor (whether outstanding on the Issue Date or
thereafter Incurred) that is subordinate or junior in right of payment to the
Notes Proceeds Loans or the applicable Note Guarantee pursuant to a written
agreement to that effect.

 

“Subordinated
Shareholder Indebtedness”, means subordinated indebtedness
issued by the Company or any Restricted Subsidiary to any Holdco of Cableuropa
or any Permitted Holder that by its terms or pursuant to the terms of any
subordination agreement to which it is subject;

 

(i)            does not
(including upon the happening of any event) mature and is not (including upon
the happening of any event) mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the 

 

26

 

option of the holder, in whole or in part, and does not include any
provision requiring re-purchase by the Company or any Restricted Subsidiary
(including upon the happening of any event) prior to the date that is one year
after the date on which the Notes mature;

 

(ii)           does not (including upon the happening of
any event) require or provide for the payment in cash or otherwise, of interest
or any other amounts prior to its final Stated Maturity (provided that interest
may accrete while such subordinated indebtedness is outstanding and accreted
interest may become due upon acceleration of maturity as permitted by clause (iii) of
this definition and any interest may be satisfied at any time by the issues to
the holders thereof of additional Subordinated Shareholder Indebtedness);

 

(iii)          does not provide (including upon the
happening of any event) for the acceleration of its maturity or the exercise of
remedies prior to the date that is one year after the date on which the Notes
mature and are repaid other than by converting it into Capital Stock (other
than Disqualified Stock);

 

(iv)          is not secured by a Lien on any asset of
the Company or any Restricted Subsidiary and is not Guaranteed by any
Restricted Subsidiary;

 

(v)           does not (including upon the happening of
any event) restrict the payment of amounts due in respect of the Notes or the
Guarantees;

 

(vi)          is not (including upon the happening of
any event) mandatorily convertible or exchangeable, or convertible or
exchangeable at the option of the holder, in whole or in part, prior to the
date that is one year after the date on which the Notes mature other than into
or for Capital Stock (other than Disqualified Stock); and

 

(vii)         such Subordinated Shareholder
Indebtedness shall be fully subordinated and junior in right of payment to the
Notes, the Notes Guarantees and the Notes Proceeds Loans pursuant to
subordination, payment blockage and enforcement limitation terms which, taken
as a whole, are no less favorable, in any material respects, to the holders
than those contained in the Notes Proceeds Loans and the Note Guarantees, as
applicable, as in effect on the Issue Date.

 

“Subsidiary” means, in respect of any Person, any
corporation, company (including any limited liability company), association,
partnership, joint venture or other business entity of which a majority of the total
voting power of the Voting Stock is at the time owned or controlled, directly
or indirectly, by (a) such Person, (b) such Person and one or more
subsidiaries of such Person or (c) one or more subsidiaries of such
Person.

 

“Subsidiary
Guarantee” means
a guarantee on the terms set forth in this Indenture by each Subsidiary
Guarantor of the Issuer’s obligations with respect to the Notes.

 

“Subsidiary
Guarantor” means
Cableuropa; Murcia; Valencia; Valencia South; and Valencia North; and any other
Person that becomes a Note Guarantor, other than the Parent Guarantor, pursuant
to Section 4.24.

 

27

 

“Subsidized
Loans” means
loans or other Credit Facilities provided by any national or regional public
authority in Spain or the European Union, and any guarantee to secure such
loans or Credit Facilities.

 

“Telecommunications
Business” means (i) the
business of operating or owning a license, authorization or concession to
operate a cable or telephone or telecommunications (including Internet) system
or service principally in the European Union and (ii) any business
reasonably related, ancillary or complementary thereto, provided that the determination of what
constitutes a Telecommunications Business shall be made in good faith by the
Board of Directors.

 

“Temporary
Cash Investments” means any of the following:

 

(a)           Investments in European Government Obligations or Spanish
Government Obligations maturing within 365 days of the date of acquisition
thereof;

 

(b)           Investments in checking accounts, time deposit accounts,
certificates of deposit and money market deposits maturing within 90 days of
the date of acquisition thereof issued by a bank or trust company organized
under the laws of the United States of America or any state thereof or any
foreign country recognized by the United States of America having capital,
surplus and undivided profits aggregating in excess of €500 million and whose
long-term debt is rated “A-3” or “A-” or higher according to Moody’s or S&P
(or such similar equivalent rating by at least one “nationally recognized
statistical rating organization” (as defined in Rule 436 under the
Securities Act));

 

(c)           repurchase obligations with a term of not more than 30 days
for underlying securities of the types described in clause (a) entered
into with (i) a bank meeting the qualifications described in clause (b) above
or (ii) any primary government securities dealer reporting to the Market
Reports Division of the Federal Reserve Bank of New York;

 

(d)           Investments in commercial paper, maturing not more than 90
days after the date of acquisition, issued by a corporation (other than an
Affiliate of the Company) organized and in existence under the laws of the
United States of America or any foreign country recognized by the United States
of America with a rating at the time as of which any Investment therein is made
of “P-l” (or higher) according to Moody’s or “A-l” (or higher) according to
S&P (or such similar equivalent rating by at least one “nationally
recognized statistical rating organization” (as defined in Rule 436 under
the Securities Act) and

 

(e)           direct obligations (or certificates representing an
ownership interest in such obligations) of any state of the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of such state is pledged and which are not
callable or redeemable at the issuer’s option, provided
that (i) the long-term debt of such state is rated “A-3” or “A-” or higher
according to Moody’s or S&P (or such similar equivalent rating by at least
one “nationally recognized statistical rating organization” (as defined in Rule 436
under the Securities Act)) and (ii) such obligations mature within 180
days of the date of acquisition thereof.

 

28

 

“Trustee” means the party named as such in
this Indenture until a successor replaces it in accordance with the provisions
of this Indenture and, thereafter, means the successor serving hereunder.

 

“Trust
Indenture Act”  or “TIA”
means the U.S.  Trust Indenture Act of
1939, as amended, or any successor statute, and the rules and regulations
promulgated by the Commission thereunder.

 

“Trust Officer” means, when used with
respect to the Trustee, any vice president, assistant vice president, assistant
treasurer or trust officer in the corporate trust administration of the Trustee
or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above-designated officers, and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his or her knowledge of and familiarity with the
particular subject, and, in each case, who shall have direct responsibility for
the administration of this Indenture.

 

“Unrestricted
Subsidiary” means
the Excluded Companies and any Subsidiary or Affiliate of the Company that is
designated after the Issue Date as an Unrestricted Subsidiary as permitted or
required pursuant to Section 4.17 and not thereafter redesignated as a
Restricted Subsidiary as permitted pursuant thereto.

 

“Valencia” means Valencia de Cable, S.A. and its
successors.

 

“Valencia
North” means
Mediterrànea Norte Sistemas de Cable, S.A. and its successors.

 

“Valencia
South” means
Mediterrànea Sur Sistemas de Cable, S.A. and its successors.

 

“VAT
Discounting Facility” means
any credit facility with one or more financial institutions for the purpose of
financing VAT receivables from the Spanish tax authorities.

 

“Voting
Stock” of any
Person means all classes of Capital Stock 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.

 

“Wholly
Owned Subsidiary” means,
at any time, a Restricted Subsidiary all the Voting Stock of which (except
directors’ qualifying shares) is at such time owned, directly or indirectly, by
the Company and its other wholly owned Subsidiaries.

 

29

 

SECTION 1.02.      Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Additional
  Amounts”

  	
   

  	
  4.16(a)

  
	
  “Additional
  Notes”

  	
   

  	
  Recitals

  
	
  “Affiliate
  Transaction

  	
   

  	
  4.09(a)

  
	
  “Allocable Excess
  Proceeds”

  	
   

  	
  4.11(e)

  
	
  “Authorized
  Agent”

  	
   

  	
  13.09

  
	
  “bankruptcy
  provisions”

  	
   

  	
  6.01(a)(vii)

  
	
  “Change of
  Control Offer”

  	
   

  	
  4.15(a)

  
	
  “Change of
  Control Purchase Date”

  	
   

  	
  4.15(a)

  
	
  “Change of
  Control Purchase Price”

  	
   

  	
  4.15(a)

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.03

  
	
  “cross acceleration
  provisions”

  	
   

  	
  6.01(a)(v)

  
	
  “Defaulted
  Interest”

  	
   

  	
  2.12

  
	
  “Event of
  Default”

  	
   

  	
  6.01(a)

  
	
  “Excess Proceeds”

  	
   

  	
  4.11(d)

  
	
  “Global Notes”

  	
   

  	
  2.01(c)

  
	
  “incorporated
  provision”

  	
   

  	
  13.01

  
	
  “judgment
  default provisions”

  	
   

  	
  6.01(a)(vi)

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.02

  
	
  “Notes”

  	
   

  	
  Recitals

  
	
  “Notice of
  Default”

  	
   

  	
  6.01(a)

  
	
  “Obligations”

  	
   

  	
  10.01(a)

  
	
  “Original Notes”

  	
   

  	
  Recitals

  
	
  “Participants”

  	
   

  	
  2.01(c)

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Blockage Notice”

  	
   

  	
  11.02(c)

  
	
  “Payment
  Blockage Period”

  	
   

  	
  11.02(c)

  
	
  “Permitted Debt”

  	
   

  	
  4.06(b)

  
	
  “Prepayment
  Offer”

  	
   

  	
  4.11(d)

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Regulation S
  Global Note”

  	
   

  	
  2.01(b)

  
	
  “Relevant Taxing
  Jurisdiction”

  	
   

  	
  4.16

  
	
  “Restricted
  Global Note”

  	
   

  	
  2.01(b)

  
	
  “Security
  Register”

  	
   

  	
  2.03

  
	
  “Significant
  Subsidiary”

  	
   

  	
  4.21(a)(iii)

  
	
  “Surviving
  Person”

  	
   

  	
  5.01(b)(i)

  
	
  “Standstill Period”

  	
   

  	
  11.03(a)(iii)(B)

  
	
  “Taxes”

  	
   

  	
  4.16(a)

  
	
  “Transfer Agent”

  	
   

  	
  2.03

  

 

SECTION 1.03.      Trust
Indenture Act Terms.  The following
TIA terms have the following meanings as used in this Indenture:

 

“Commission” means the Commission.

 

“indenture securities” means the Notes.

 

“indenture securities holder” means a
Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the “indenture securities” means the Issuer and
the Note Guarantors.

 

30

 

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

 

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

 

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

 

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

 

(iii)          “or”
is not exclusive;

 

(iv)          “including”
or “include” means including or include without limitation;

 

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

 

(vi)          “interest”
shall include Special Interest, if any;

 

(vii)         unsecured
or unguaranteed Debt shall not be deemed to be subordinate or junior to secured
or guaranteed Debt merely by virtue of its nature as unsecured or unguaranteed
Debt;

 

(viii)        the
words “herein”, “hereof” and “hereunder” and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section, clause
or other subdivision;

 

(ix)           costs,
charges, remuneration or expenses include any value added, turnover or similar
tax charged in respect thereof; and

 

(x)            “actual
knowledge” of the Trustee shall be construed to mean that the Trustee shall not
be charged with knowledge (actual or otherwise) of the existence of facts that
would impose an obligation on it to make any payment or prohibit it from making
any payment unless a Trust Officer of the Trustee has received three Business
Days’ written notice that such payments are required or prohibited by this
Indenture.

 

31

 

ARTICLE TWO

THE NOTES

 

SECTION 2.01.      The
Notes.  (a)  Form and
Dating.  The Notes and the Trustee’s
certificate of authentication shall be substantially in the form of Exhibit A
hereto with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture.  The Notes may have notations, legends or
endorsements required by law, the rules of any securities exchange or
usage.  The Issuer shall approve the form
of the Notes.  Each Note shall be dated
the date of its authentication.  The
terms and provisions contained in the form of the Notes shall constitute and
are hereby expressly made a part of this Indenture. The Notes shall be issued
only in registered form without coupons and only in denominations of €1,000 and
integral multiples thereof.

 

(b) Global Notes.  Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of one or more Global Notes
substantially in the form of Exhibit A hereto, with such applicable
legends as are provided in Exhibit A hereto, except as otherwise permitted
herein (the “Regulation S Global Note”), which shall be deposited on
behalf of the purchasers of the Notes represented thereby with the Common
Depositary, and registered in the name of the Common Depositary or its nominee,
as the case may be, for the accounts of Euroclear or Clearstream, duly executed
by the Issuer and authenticated by the Trustee (or an authenticating agent
appointed by the Trustee in accordance with Section 2.02) as hereinafter
provided. The aggregate principal amount of the Regulation S Global Note may
from time to time be increased or decreased by adjustments made by the
Registrar on Schedule A to the Regulation S Global Note and recorded in
the Security Register, as hereinafter provided.

 

Notes offered and sold to
QIBs in reliance on Rule 144A shall be issued initially in the form of one
or more Global Notes substantially in the form of Exhibit A hereto, with
such applicable legends as are provided in Exhibit A hereto, except as
otherwise permitted herein (the “Restricted Global Note”), which shall
be deposited on behalf of the purchasers of the Notes represented thereby with
the Common Depositary, and registered in the name of the Common Depositary or
its nominee, as the case may be, duly executed by the Issuer and authenticated
by the Trustee (or its agent in accordance with Section 2.02) as
hereinafter provided. The aggregate principal amount of the Restricted Global
Note may from time to time be increased or decreased by adjustments made by the
Registrar on Schedule A to the Restricted Global Note and recorded in the
Security Register, as hereinafter provided.

 

(c) Book-Entry
Provisions.  This Section 2.01(c) shall
apply to the Regulation S Global Note and the Restricted Global Note
(collectively, the “Global Notes”) deposited with or on behalf of the
Common Depositary.

 

Members of, or
participants and account holders in Euroclear and Clearstream (“Participants”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Common Depositary or by the Trustee or any custodian of
the Depositary or the Common Depositary or under such Global Note, and the
Common Depositary or its nominee may be treated by the Issuer, a Note
Guarantor, the Trustee and any agent of the Issuer, a Note Guarantor or the
Trustee as the sole owner of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, a Note Guarantor, the Trustee or any agent of the
Issuer, a Note Guarantor or the Trustee from giving effect to any written
certification, proxy or other authorization 

 

32

 

furnished by the Common Depositary or impair, as between the Common
Depositary and its Participants, the operation of customary practices of such
persons governing the exercise of the rights of a Holder of a beneficial
interest in any Global Note.

 

Subject to the provisions
of Section 2.10(b), the registered Holder of a Global Note may grant
proxies and otherwise authorize any Person, including Participants and Persons
that may hold interests through Participants, to take any action that a Holder
is entitled to take under this Indenture or the Notes.

 

Except as provided in Section 2.10,
owners of a beneficial interest in Global Notes shall not be entitled to
receive physical delivery of certificated Notes.

 

SECTION 2.02.      Execution and
Authentication.  An authorized member
of the board of directors or executive officer of the Issuer shall sign the
Notes for the Issuer by manual or facsimile signature.

 

If an authorized member
of the board of directors or executive officer whose signature is on a Note no
longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless.

 

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

 

Pursuant to an Issuer
Order, the Issuer shall execute and the Trustee shall authenticate (a) Original
Notes for original issue up to an aggregate principal amount of €180,000,000
and (b) Additional Notes, from time to time, subject to compliance at the
time of issuance of such Additional Notes with the provisions of Section 2.15.  Any issue of Additional Notes that is to
utilize the same ISIN or Common Code number as a Note already issued hereunder
shall be effected in a manner and under circumstances whereby the issue of
Additional Notes is treated as a “qualified reopening” (within the meaning of
U.S. Treas. Reg. 1.1275-2(k)(3), or any successor provision, all as in effect
at the time of further issue) of the issue of notes having the shared ISIN or
Common Code number, as the case may be. 
The aggregate principal amount of Notes outstanding shall not exceed the
amount set forth herein except as provided in Sections 2.07 and 2.15.

 

The Trustee may appoint
an authenticating agent reasonably acceptable to the Issuer to authenticate the
Notes. Unless limited by the terms of such appointment, any such authenticating
agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by any such agent. An
authenticating agent has the same rights as any Registrar, co-Registrar
Transfer Agent or Paying Agent to deal with the Issuer or an Affiliate of the
Issuer.

 

The Trustee shall have
the right to decline to authenticate and deliver any Notes under this Section 2.02
if the Trustee, being advised by counsel, determines that such action may not
lawfully be taken or if the Trustee in good faith shall determine that such
action would expose the Trustee to personal liability to existing Holders.

 

SECTION 2.03.      Registrar, Transfer Agent
and Paying Agent.  The Issuer shall
maintain an office or agency for the registration of the Notes and of their
transfer or exchange (the “Registrar”), an office or agency where Notes
may be transferred or exchanged (the 

 

33

 

“Transfer Agent”), an office or agency where the Notes may be
presented for payment (the “Paying Agent”) and an office or agency where
notices or demands to or upon the Issuer in respect of the Notes may be
served.  The Issuer may appoint one or
more Transfer Agents, one or more co-Registrars and one or more additional
Paying Agents.

 

The Issuer shall maintain
a Transfer Agent and Paying Agent in London, England.  The Issuer shall also maintain a Transfer
Agent and Paying Agent in Luxembourg so long as the Notes are listed on the
Luxembourg Stock Exchange and the rules of the exchange so require.  The Issuer may appoint one or more Transfer
Agents, one or more co-Registrars and one or more additional Paying
Agents.  The Issuer or any of its
Affiliates may act as Transfer Agent, Registrar, co-Registrar, Paying Agent and
agent for service of notices and demands in connection with the Notes;
provided, however, that neither the Issuer nor any of its Affiliates shall act
as Paying Agent for the purposes of Articles Three and Eight and Sections 4.11
and 4.15.

 

The Issuer hereby
appoints (i) the office of The Bank of New York in London, England located
at the address set forth in Section 13.02(a) as Transfer Agent and
Paying Agent in London, England and agent for service of notices and demands in
connection with the Notes and (ii) the office of The Bank of New York in
Luxembourg located at the address set forth in Section 13.02(a) as
Transfer Agent and Paying Agent in Luxembourg. 
The Transfer Agents and the Paying Agents shall be entitled to such
compensation and indemnification as the Trustee under Section 7.06 hereof.

 

Subject to any applicable
laws and regulations, the Issuer shall cause the Registrar to keep a register
(the “Security Register”) at its corporate trust office in which,
subject to such reasonable regulations it may prescribe, the Issuer shall
provide for the registration of ownership, exchange and transfer of the Notes.
Such registration in the Security Register shall be conclusive evidence of the
ownership of Notes.  Included in the
books and records for the Notes shall be notations as to whether such Notes
have been paid, exchanged or transferred, cancelled, lost, stolen, mutilated or
destroyed and whether such Notes have been replaced. In the case of the
replacement of any of the Notes, the Registrar shall keep a record of the Note
so replaced and the Note issued in replacement thereof. In the case of the
cancellation of any of the Notes, the Registrar shall keep a record of the Note
so cancelled and the date on which such Note was cancelled.

 

The Issuer shall enter
into an appropriate agency agreement with any Paying Agent or co-Registrar not
a party to this Indenture.  The agreement
shall implement the provisions of this Indenture that relate to such agent. The
Issuer shall notify the Trustee of the name and address of any such agent.  If the Issuer fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.06.

 

SECTION 2.04.      Paying
Agent to Hold Money in Trust.  Not
later than 11:00 am (London, England time) on each due date of the principal,
premium, if any, and interest on any Notes, the Issuer shall deposit with the
Paying Agent money in immediately available funds sufficient to pay such
principal, premium, if any, and interest so becoming due on the due date for
payment under the Notes.  The Issuer
shall require each Paying Agent other than the Trustee to agree in writing that
such Paying Agent shall hold in trust for the benefit of the Holders or the
Trustee all money held by the Paying Agent for the payment of principal of,
premium, if any, and interest on the Notes (whether such money has been paid to
it by the Issuer or any other obligor on the Notes), and such Paying Agent
shall promptly notify the 

 

34

 

Trustee of any default by the Issuer (or any other obligor on the
Notes) in making any such payment.  The
Issuer at any time may require a Paying Agent to pay all money held by it to
the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. 
Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the Trustee.  If
the Issuer or any Affiliate of the Issuer acts as Paying Agent, it shall, on or
before each due date of any principal, premium, if any, or interest on the
Notes, segregate and hold in a separate trust fund for the benefit of the
Holders a sum of money sufficient to pay such principal, premium, if any, or
interest so becoming due until such sum of money shall be paid to such Holders
or otherwise disposed of as provided in this Indenture, and shall promptly
notify the Trustee of its action or failure to act.

 

SECTION 2.05.      Holders List.  The Registrar shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders and shall otherwise comply with TIA Section 312(a).
If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee,
in writing no later than the record date for each Interest Payment Date and at
such other times as the Trustee may request in writing, a list in such form and
as of such Record Date as the Trustee may reasonably require of the names and
addresses of Holders, including the aggregate principal amount of Notes held by
each Holder.

 

SECTION 2.06.      Transfer and Exchange.  (a)  Where Notes are presented to the
Registrar or a co-Registrar with a request to register a transfer or to
exchange them for an equal principal amount of Notes of other denominations,
the Registrar shall register the transfer or make the exchange in accordance
with the requirements of this Section 2.06.  To permit registrations of transfers and
exchanges, the Issuer shall execute and the Trustee shall, upon receipt of an
Issuer’s order, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Notes, of any authorized
denominations and of a like aggregate principal amount, at the Registrar’s
request. No service charge shall be made for any registration of transfer or
exchange of Notes (except as otherwise expressly permitted herein), but the
Issuer may require payment of a sum sufficient to cover any agency fee or
similar charge payable in connection with any such registration of transfer or
exchange of Notes (other than any agency fee or similar charge payable upon
exchanges pursuant to Sections 2.10, 3.07 or 9.05 or in accordance with an
Excess Proceeds Offer pursuant to Section 4.11 or Change of Control Offer
pursuant to Section 4.15, not involving a transfer).

 

Upon presentation for
exchange or transfer of any Note as permitted by the terms of this Indenture
and by any legend appearing on such Note, such Note shall be exchanged or
transferred upon the Security Register and one or more new Notes shall be
authenticated and issued in the name of the Holder (in the case of exchanges
only) or the transferee, as the case may be. No exchange or transfer of a Note
shall be effective under this Indenture unless and until such Note has been
registered in the name of such Person in the Security Register. Furthermore,
the exchange or transfer of any Note shall not be effective under this
Indenture unless the request for such exchange or transfer is made by the
Holder or by a duly authorized attorney-in-fact at the office of the Registrar.

 

Every Note presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Issuer or the Registrar) be duly endorsed, or be accompanied by a
written instrument or transfer, in form satisfactory to the Issuer and the
Registrar, duly executed by the Holder thereof or his attorney duly authorized
in writing.

 

35

 

All Notes issued upon any
registration of transfer or exchange of Notes shall be the valid obligations of
the Issuer evidencing the same indebtedness, and entitled to the same benefits
under this Indenture, as the Notes surrendered upon such registration of
transfer or exchange.

 

Neither the Issuer nor
the Trustee, Registrar or any Paying Agent shall be required (i) to issue,
register the transfer of, or exchange any Note during a period beginning at the
opening of 15 Business Days before the day of the mailing of a notice of
redemption of Notes selected for redemption under Section 3.02 and ending
at the close of business on the day of such mailing or (ii) to register
the transfer of or exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

(b)           Notwithstanding any provision to the contrary herein, so
long as a Global Note remains outstanding and is held by or on behalf of the
Common Depositary, transfers of a Global Note, in whole or in part, or of any
beneficial interest therein, shall only be made in accordance with Section 2.01(c),
Section 2.06(a) and this Section 2.06(b); provided, however,
that, although no restrictions will be required to effect such transfers, a
beneficial interest in a Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Global Note
in accordance with the transfer restrictions set forth in the restricted Note
legend on the Note, if any.

 

(i)            Except
for transfers or exchanges made in accordance with any of clauses (ii), (iii) or
(iv) of this Section 2.06(b), transfers of a Global Note shall be
limited to transfers of such Global Note in whole, but not in part, to nominees
of the Common Depositary or to a successor of the Common Depositary or such
successor’s nominee.

 

(ii)           Restricted
Global Note to Regulation S Global Note. 
If the Holder of a beneficial interest in the Restricted Global Note at
any time wishes to exchange its interest in such Restricted Global Note for an
interest in the Regulation S Global Note, or to transfer its interest in such
Restricted Global Note to a Person who wishes to take delivery thereof in the
form of a beneficial interest in the Regulation S Global Note, such transfer or
exchange may be effected only in accordance with this clause (ii) and the rules and
procedures of Euroclear and Clearstream. Upon receipt by the Registrar from the
Transfer Agent of (A) instructions directing the Registrar to credit or
cause to be credited an interest in the Regulation S Global Note in a specified
principal amount and to cause to be debited an interest in the Restricted
Global Note in such specified principal amount and (B) a certificate in
the form of Exhibit B attached hereto given by the Holder of such
beneficial interest stating that the transfer of such interest has been made in
compliance with the transfer restrictions applicable to the Global Notes and
(x) pursuant to and in accordance with Regulation S or (y) that the Note being
transferred is being transferred in a transaction permitted by Rule 144,
then the Registrar shall instruct the Common Depositary to reduce or cause to
be reduced the principal amount of the Restricted Global Note and the Common
Depositary to increase or cause to be increased the principal amount of the
Regulation S Global Note by the aggregate principal amount of the interest in
the Restricted Global Note to be exchanged.

 

(iii)          Regulation
S Global Note to Restricted Global Note. 
If the Holder of a beneficial interest in the Regulation S Global Note
at any time wishes to transfer such 

 

36

 

interest to a Person who wishes to take delivery thereof in the form of
a beneficial interest in the Restricted Global Note, such transfer may be
effected only in accordance with this clause (iii) and the rules and
procedures of Euroclear and Clearstream. Upon receipt by the Registrar from the
Transfer Agent of (A) instructions directing the Registrar to credit or
cause to be credited an interest in the Restricted Global Note in a specified
principal amount and to cause to be debited an interest in the Regulation S
Global Note in such specified principal amount and (B) a certificate in
the form of Exhibit C attached hereto given by the Holder of such
beneficial interest stating that the transfer of such interest has been made in
compliance with the transfer restrictions applicable to the Global Notes and
stating that (x) the Person transferring such interest reasonably believes that
the Person acquiring such interest is a QIB and is obtaining such interest in a
transaction meeting the requirements of Rule 144A and any applicable
securities laws of any state of the United States or (y) that the Person
transferring such interest is relying on an exemption other than Rule 144A
from the registration requirements of the Securities Act and, in such
circumstances, such opinion of counsel as the Issuer or the Trustee may
reasonably request to ensure that the requested transfer or exchange is being
made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act, then the Registrar shall
instruct the Common Depositary to reduce or cause to be reduced the principal
amount of the Regulation S Global Note and to increase or cause to be increased
the principal amount of the Restricted Global Note by the aggregate principal
amount of the interest in the Regulation S Global Note to be exchanged or
transferred.

 

(iv)          Global
Notes to Certificated Notes.  In the
event that a Global Note is exchanged for Notes in certificated, registered
form pursuant to Section 2.10, such Notes may be exchanged only in
accordance with such procedures as are substantially consistent with the
provisions of clauses (ii) and (iii) above (including the
certification requirements intended to ensure that such transfers comply with Rule 144A
or Regulation S under the Securities Act, as the case may be) and such other
procedures as may from time to time be adopted by the Issuer and the Trustee.

 

(c)           If Notes are issued upon the transfer, exchange or
replacement of Notes bearing the restricted Notes legends set forth in Exhibit A
hereto, the Notes so issued shall bear the restricted Notes legends, and a
request to remove such restricted Notes legends from Notes shall not be
honoured unless there is delivered to the Issuer such satisfactory evidence,
which may include an Opinion of Counsel licensed to practice law in the State
of New York, as may be reasonably required by the Issuer, that neither the
legend nor the restrictions on transfer set forth therein are required to
ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144(k)
under the Securities Act. Upon provision of such satisfactory evidence, the
Trustee, at the direction of the Issuer, shall authenticate and deliver Notes
that do not bear the legend.

 

(d)           The Trustee shall have no responsibility for any actions
taken or not taken by Euroclear or Clearstream, as the case may be.

 

SECTION 2.07.      Replacement Notes.  If a mutilated certificated Note is
surrendered to the Registrar or if the Holder claims that the Note has been
lost, destroyed or wrongfully taken, the Issuer shall issue and the Trustee
shall, upon receipt of an Issuer Order, authenticate a replacement Note in such
form as the Note mutilated, lost, destroyed or wrongfully taken if the Holder
satisfies any other reasonable requirements of the Trustee or 

 

37

 

the Issuer. If required by the Trustee or the Issuer, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Issuer and the
Trustee to protect the Issuer, the Trustee, the Paying Agent, the Transfer
Agent, the Registrar and any co-Registrar and any authenticating agent from any
loss that any of them may suffer if a Note is replaced. The Issuer and the
Trustee may charge the Holder for their expenses in replacing a Note.

 

Every replacement Note
shall be an additional obligation of the Issuer.

 

SECTION 2.08.      Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those cancelled by it, those delivered
to it for cancellation and those described in this Section 2.08 as not
outstanding. A Note does not cease to be outstanding because the Issuer or an
Affiliate of the Issuer holds the Note.

 

If a Note is replaced
pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
and the Issuer receive proof satisfactory to them that the Note that has been
replaced is held by a bona fide purchaser.

 

If the Paying Agent
segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal,
premium, if any, interest and Additional Amounts, if any, payable on that date
with respect to the Notes (or portions thereof) to be redeemed or maturing, as
the case may be, and the Paying Agent is not prohibited from paying such money
to the Holders on that date pursuant to the terms of this Indenture, then on
and after that date such Notes (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.

 

SECTION 2.09.      Notes Held by Issuer. Notwithstanding Section 2.08, in
determining whether the Holders of the required principal amount of Notes have
concurred in any direction or consent or any amendment, modification or other
change to this Indenture, Notes owned by the Issuer or by an Affiliate of the
Issuer shall be disregarded and treated as if they were not outstanding, except
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent or any amendment, modification
or other change to this Indenture, only Notes which a Trust Officer of the
Trustee actually knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the
Notes and that the pledgee is not the Issuer or an Affiliate of the Issuer.

 

SECTION 2.10.      Certificated Notes.  (a)  A Global Note deposited with the
Common Depositary or other custodian for the Common Depositary pursuant to Section 2.01
shall be transferred to the beneficial owners thereof in the form of
certificated Notes only if such transfer complies with Section 2.06 and (i) the
Common Depositary notifies the Issuer that it is unwilling or unable to
continue as the Common Depositary for such Global Note, or if at any time the
Common Depositary ceases to be a “clearing agency” registered under the
Exchange Act and a successor depositary is not appointed by the Issuer within
120 days of such notice, or (ii) the Issuer, at its option, executes and
delivers to the Trustee a notice that such Global Note be so transferable,
registrable and exchangeable, or (iii) an Event of Default, or an event
which after notice or lapse of time or both would be an Event of Default, has
occurred and is continuing with respect to the Notes or (iv) the issuance
of such certificated Notes is necessary in order for a Holder or beneficial
owner to present its Note or Notes to a Paying Agent in order to avoid any Tax
that is imposed on or with respect to a 

 

38

 

payment made to such Holder or beneficial owner.  Notice of any such transfer shall be given by
the Issuer in accordance with the provisions of Section 13.02(a).

 

(b)           Any Global Note that is transferable to the beneficial
owners thereof in the form of certificated Notes pursuant to this Section 2.10
shall be surrendered by the Common Depositary to the Transfer Agent, to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount at maturity of Notes of
authorized denominations in the form of certificated Notes. Any portion of a
Global Note transferred or exchanged pursuant to this Section 2.10 shall
be executed, authenticated and delivered only in registered form in
denominations of €1,000 and integral multiples thereof and registered in such
names as the Common Depositary shall direct. Subject to the foregoing, a Global
Note is not exchangeable except for a Global Note of like denomination to be
registered in the name of the Common Depositary or its nominee.  In the event that a Global Note becomes
exchangeable for certificated Notes, payment of principal, premium, if any, and
interest on the certificated Notes shall be payable, and the transfer of the
certificated Notes shall be registrable, at the office or agency of the Issuer
maintained for such purposes in accordance with Section 2.03. Such
certificated Notes shall bear the applicable legends set forth in Exhibit A
hereto.

 

(c)           In the event of the occurrence of any of the events
specified in Section 2.10(a), the Issuer shall promptly make available to
the Trustee a reasonable supply of certificated Notes in definitive, fully
registered form without interest coupons.

 

SECTION 2.11.      Cancellation.  The Issuer at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The
Trustee, in accordance with its customary procedures, and no one else shall
cancel (subject to the record retention requirements of the Exchange Act and
the Trustee’s retention policy) all Notes surrendered for registration of
transfer, exchange, payment or cancellation and dispose of such cancelled Notes
in its customary manner.  Except as
otherwise provided in this Indenture the Issuer may not issue new Notes to
replace Notes it has redeemed, paid or delivered to the Trustee for
cancellation.

 

SECTION 2.12.      Defaulted Interest.  (a)  Any interest on any Note that is
payable, but is not punctually paid or duly provided for, on the dates and in
the manner provided in the Notes and this Indenture (all such interest herein
called “Defaulted Interest”) shall forthwith cease to be payable to the
Holder on the relevant Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Issuer, at its election in each
case, as provided in clause (b) or (c) below:

 

(b)           The Issuer may elect to make payment of any Defaulted
Interest to the Persons in whose names the Notes are registered at the close of
business on a special record date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Issuer shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Note and the date of the proposed payment, and at the same time the Issuer
may deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest; or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. In addition, the Issuer shall fix a special record date for the 

 

39

 

payment of such Defaulted Interest, such date to be not more than 15
days and not less than 10 days prior to the proposed payment date and not less
than 15 days after the receipt by the Trustee of the notice of the proposed
payment date. The Issuer shall promptly but, in any event, not less than 15
days prior to the special record date, notify the Trustee of such special
record date and, in the name and at the expense of the Issuer, the Trustee
shall cause notice of the proposed payment date of such Defaulted Interest and
the special record date therefor to be mailed first-class, postage prepaid to
each Holder as such Holder’s address appears in the Security Register, not less
than 10 days prior to such special record date. Notice of the proposed payment
date of such Defaulted Interest and the special record date therefor having
been so mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Notes are registered at the close of business on such special record
date and shall no longer be payable pursuant to clause (c) below.

 

(c)           The Issuer may make payment of any Defaulted Interest on the
Notes in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the Issuer to the
Trustee of the proposed payment date pursuant to this clause, such manner of
payment shall be deemed reasonably practicable.

 

Subject to the foregoing
provisions of this Section 2.12, each Note delivered under this Indenture
upon registration of transfer of or in exchange for or in lieu of any other
Note shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Note.

 

SECTION 2.13.      Computation of Interest.  Interest on the Notes shall be computed on
the basis of a 360-day year of twelve 30-day months.

 

SECTION 2.14.      ISIN and Common Code
Numbers.  In issuing the Notes the
Issuer may use ISIN and Common Code numbers (if then generally in use), and, if
so, the Trustee shall use ISIN and Common Code numbers, as appropriate, in
notices of redemption as a convenience to Holders; provided, however, that any
such notice may state that no representation is made as to the correctness of such
numbers or codes either as printed on the Notes or as contained in any notice
of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or omission of such numbers. The Issuer shall
promptly notify the Trustee of any change in the ISIN or Common Code numbers.

 

SECTION 2.15.      Issuance of Additional
Notes.  The Issuer may, subject to Section 4.06
of this Indenture, issue Additional Notes under this Indenture in accordance
with the procedures of Section 2.02. 
The Original Notes issued on the date of this Indenture and any
Additional Notes subsequently issued shall be treated as a single class for all
purposes under this Indenture.

 

40

 

ARTICLE THREE

REDEMPTION; OFFERS TO PURCHASE

 

SECTION 3.01.      Right of Redemption.  The Issuer may redeem all or any portion of
the Notes upon the terms and at the Redemption Prices set forth in the Notes.
Any redemption pursuant to this Section 3.01 shall be made pursuant to the
provisions of this Article Three.

 

SECTION 3.02.      Notices to Trustee.  If the Issuer elects to redeem Notes pursuant
to Section 3.01, it shall notify the Trustee in writing of the Redemption Date,
the Redemption Price, the principal amount of Notes to be redeemed and the
paragraph of the Notes pursuant to which the redemption shall occur.

 

The Issuer shall give
each notice to the Trustee provided for in this Section 3.02 in writing at
least 35 days before the date notice is mailed to the Holders pursuant to Section 3.04
unless the Trustee consents to a shorter period. Such notice shall be
accompanied by an Officer’s Certificate from the Issuer to the effect that such
redemption shall comply with the conditions herein. If fewer than all the Notes
are to be redeemed, the record date relating to such redemption shall be
selected by the Issuer and given to the Trustee, which record date shall be not
less than 15 days after the date of notice to the Trustee.

 

SECTION 3.03.      Selection
of Notes to be Redeemed.  If less
than all of the Notes are to be redeemed, the Trustee shall select the Notes to
be redeemed in compliance with the requirements, as certified to it by the
Issuer, of the principal securities exchange or automated quotation system, if
any, on which the Notes are listed or, if the Notes are not listed on a
securities exchange or automated quotation system, pro rata, by lot or by such
other method as the Trustee in its sole discretion shall deem fair and
appropriate; provided, however, that no such partial redemption shall reduce
the portion of the principal amount of a Note not redeemed to less than €1,000.

 

The Trustee shall make
the selection from the Notes outstanding and not previously called for
redemption. The Trustee may select for redemption portions equal to €1,000 in
principal amount or integral multiples thereof. 
Provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.  The Trustee shall notify the Issuer and the
Registrar promptly in writing of the Notes or portions of Notes to be called
for redemption.

 

SECTION 3.04.      Notice
of Redemption.  (a)  At least 30
days but not more than 60 days before a date for redemption of Notes, the
Issuer shall mail a notice of redemption by first-class mail to each Holder to
be redeemed and shall comply with the provisions of Section 13.02(b).

 

(b)           The notice shall identify the Notes to be redeemed
(including ISIN and Common Code numbers) and shall state:

 

(i)            the
Redemption Date;

 

(ii)           the
Redemption Price and the amount of accrued interest, if any, and Additional
Amounts, if any, to be paid;

 

41

 

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

 

(iv)          that
Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price plus accrued interest, if any, and Additional Amounts, if
any;

 

(v)           that,
if any Note is being redeemed in part, the portion of the principal amount
(equal to €1,000 in principal amount or integral multiples thereof) of such
Note to be redeemed and that, on and after the Redemption Date, upon surrender
of such Note, a new Note or Notes in principal amount at maturity equal to the
unredeemed portion thereof shall be reissued;

 

(vi)          that,
if any Note contains a ISIN or Common Code number, no representation is being
made as to the correctness of such ISIN or Common Code number either as printed
on the Notes or as contained in the notice of redemption and that reliance may
be placed only on the other identification numbers printed on the Notes;

 

(vii)         that,
unless the Issuer and any Note Guarantors default in making such redemption
payment, interest on the Notes (or portion thereof) called for redemption shall
cease to accrue on and after the Redemption Date; and

 

(viii)        the
paragraph of the Notes pursuant to which the Notes called for redemption are being
redeemed.

 

At the Issuer’s written
request, the Trustee shall give a notice of redemption in the Issuer’s name and
at the Issuer’s expense. In such event, the Issuer shall provide the Trustee
with the notice and the other information required by this Section 3.04.

 

SECTION 3.05.      Deposit of Redemption
Price.  On or prior to any Redemption
Date, the Issuer shall deposit or cause to be deposited with the Paying Agent
(or, if the Issuer or a Wholly Owned Restricted Subsidiary is the Paying Agent,
shall segregate and hold in trust) a sum in same day funds sufficient to pay
the Redemption Price of and accrued interest and Additional Amounts, if any, on
all Notes to be redeemed on that date other than Notes or portions of Notes
called for redemption that have previously been delivered by the Issuer to the
Trustee for cancellation.  The Paying
Agent shall return to the Issuer any money so deposited that is not required
for that purpose.

 

SECTION 3.06.      Payment of Notes Called
for Redemption.  If notice of
redemption has been given in the manner provided above, the Notes or portion of
Notes specified in such notice to be redeemed shall become due and payable on
the Redemption Date at the Redemption Price stated therein, together with
accrued interest to such Redemption Date, and on and after such date (unless
the Issuer shall default in the payment of such Notes at the Redemption Price
and accrued interest to the Redemption Date, in which case the principal, until
paid, shall bear interest from the Redemption Date at the rate prescribed in
the Notes), such Notes shall cease to accrue interest.  Upon surrender of any Note for redemption in
accordance with a notice of redemption, such Note shall be paid and redeemed by
the Issuer at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders registered as such at the close of business on the relevant Record
Date.

 

42

 

Notice of redemption
shall be deemed to be given when mailed, whether or not the Holder receives the
notice.  In any event, failure to give
such notice, or any defect therein, shall not affect the validity of the
proceedings for the redemption of Notes held by Holders to whom such notice was
properly given.

 

SECTION 3.07.      Notes Redeemed in Part.  (a)  Upon surrender of a Global Note
that is redeemed in part, the Paying Agent shall forward such Global Note to
the Trustee who shall make a notation on the Security Register to reduce the
principal amount of such Global Note to an amount equal to the unredeemed
portion of the Global Note surrendered; provided, however, that each such
Global Note shall be in a principal amount at final Stated Maturity of €1,000
or integral multiples thereof.

 

(b)           Upon surrender and cancellation of a certificated Note that
is redeemed in part, the Issuer shall execute and the Trustee shall
authenticate for the Holder (at the Issuer’s expense) a new Note equal in
principal amount to the unredeemed portion of the Note surrendered and
cancelled; provided, however, that each such certificated Note shall be in a
principal amount at final Stated Maturity of €1,000 or integral multiples
thereof.

 

ARTICLE FOUR

COVENANTS

 

SECTION 4.01.      Payment
of Notes.  The Issuer covenants and
agrees for the benefit of the Holders that they shall duly and punctually pay
the principal of, premium, if any, interest and Additional Amounts, if any, on
the Notes on the dates and in the manner provided in the Notes and in this
Indenture.  Principal, premium, if any,
interest and Additional Amounts, if any, shall be considered paid on the date
due if on such date the Trustee or the Paying Agent (other than the Issuer or
any of its Affiliates) holds, as of 11:00 a.m. London, England time on the
due date, in accordance with this Indenture, money sufficient to pay all
principal, premium, if any, interest and Additional Amounts, if any then
due.  If the Issuer or any of its
Affiliates acts as Paying Agent, principal, premium, if any, interest and
Additional Amounts, if any, shall be considered paid on the due date if the
entity acting as Paying Agent complies with Section 2.04.

 

The Issuer or a Note
Guarantor shall pay interest on overdue principal at the rate specified
therefor in the Notes.  The Issuer or a
Note Guarantor shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

 

SECTION 4.02.      [Reserved].

 

SECTION 4.03.      [Reserved.]

 

SECTION 4.04.      [Reserved.]

 

SECTION 4.05.      Statement as to
Compliance.  (a)  The Issuer and
the Company shall each deliver to the Trustee, within 120 days after the end of
each fiscal year of the Issuer or the Company, as appropriate, an Officer’s Certificate
stating that in the course of the performance by the signer of their duties as
an Officer he would normally have knowledge of any Default and whether or not
the signer knows of any Default that occurred during such period and if any
specifying such Default, its status and what action the Issuer or the 

 

43

 

Company is taking or proposed to take with respect thereto.  For purposes of this Section 4.05(a),
such compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

(b)           When any Default has occurred and is continuing under this
Indenture, the Issuer or Cableuropa, as the case may be, shall, upon any
Officer becoming aware of such Default, deliver to the Trustee within 30
Business Days by registered or certified mail or facsimile transmission an
Officer’s Certificate specifying such event, notice or other action, its status
and what action the Issuer is taking or proposes to take with respect thereto.

 

SECTION 4.06.      Limitation on Debt.  (a)  The Issuer shall not Incur,
directly or indirectly, any Debt (including Acquired Debt) unless, after giving
pro forma effect to the application of the proceeds thereof, no Default or
Event of Default would occur as a consequence of such Incurrence or be
continuing following such Incurrence and such Debt is Permitted Debt of the
Issuer.  The Company shall not, and shall
not permit any Restricted Subsidiary to, nor shall any Restricted Subsidiary,
Incur, directly or indirectly, any Debt (including Acquired Debt) unless, after
giving pro forma effect to the application of the proceeds thereof, no Default
or Event of Default would occur as a consequence of such Incurrence or be
continuing following such Incurrence and either (i)(A) prior to the date
that is two years from the Issue Date, the Debt of the Company and the
Restricted Subsidiaries, on a consolidated basis, including any Debt Incurred
pursuant to the exceptions set forth in the second following paragraph, shall
be less than the product of Annualized Pro Forma EBITDA for the Company and the
Restricted Subsidiaries for the latest fiscal quarter for which interim
financial statements are available immediately preceding the date on which such
additional Debt is Incurred, determined on a pro forma basis (including a pro
forma application of the net proceeds therefrom), as if the additional Debt had
been Incurred at the beginning of such period, multiplied by 7.0 and (B) after
the date that is two years after the Issue Date, the Debt of the Company and
the Restricted Subsidiaries, on a consolidated basis, including any Debt
Incurred pursuant to the exceptions set forth in the second following
paragraph, shall be less than the product of Annualized Pro Forma EBITDA for
the Company and the Restricted Subsidiaries for the latest fiscal quarter for
which interim financial statements are available immediately preceding the date
on which such additional Debt is Incurred, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the
additional Debt had been Incurred at the beginning of such period, multiplied
by 5.5, or (ii) such Debt is Permitted Debt of the Company and the
Restricted Subsidiaries.

 

(b)           The term “Permitted Debt of the Issuer” is defined to
include the following:

 

(i)            Debt
of the Issuer evidenced by the Notes;

 

(ii)           Debt
of the Issuer the proceeds of which are loaned to the Company and/or the
Restricted Subsidiaries under an agreement or agreements substantially similar
to either the Notes Proceeds Loans or the Multi-Borrower Credit Facilities;
provided, however, that the Company and the Restricted Subsidiaries shall have
the ability to Incur the Debt under any such agreement or agreements under the
terms of this Section; and

 

(iii)          Debt
of the Issuer outstanding on the Issue Date not otherwise described in clauses (i) and
(ii) above (including, without limitation, the Existing Notes and the
Existing Equity Value Certificates).

 

44

 

(c)           The term “Permitted Debt of the Company and the Restricted
Subsidiaries” is defined to include the following:

 

(i)            Debt of
the Company and the Restricted Subsidiaries (A) evidenced by the Note
Guarantees relating to the Notes and (B) under the Notes Proceeds Loans;

 

(ii)           Debt under
Credit Facilities in an aggregate principal amount at any one time outstanding
not to exceed €900.0 million, minus the amount of any permanent repayments or
prepayments of such Debt with the proceeds of Asset Sales made in accordance
with Section 4.11 (but only to the extent of any corresponding commitment
reduction if such Debt is revolving credit borrowings);

 

(iii)          Debt
of the Company owing to and held by any Restricted Subsidiary and Debt of a
Restricted Subsidiary owing to and held by the Company or any Restricted
Subsidiary; provided, however, that any subsequent issue or transfer of Capital
Stock or other event that results in any such Restricted Subsidiary ceasing to
be a Restricted Subsidiary or any subsequent transfer of any such Debt (except
to the Company or a Restricted Subsidiary) shall be deemed, in each case, to
constitute the Incurrence of such Debt by the issuer thereof;

 

(iv)          Debt under
Interest Rate Agreements entered into by the Company or a Restricted Subsidiary
for the purpose of limiting interest rate risk in the ordinary course of the
financial management of the Company or such Restricted Subsidiary as the case
may be, and not for speculative purposes; provided, however, that the
obligations under such agreements are directly related to payment obligations
on Debt otherwise permitted by the terms of this Section 4.06;

 

(v)           Debt under
Currency Exchange Protection Agreements entered into by the Company or a
Restricted Subsidiary for the purpose of limiting currency exchange rate risks
directly related to transactions entered into by the Company or such Restricted
Subsidiary, as the case may be, in the ordinary course of business and not for
speculative purposes;

 

(vi)          Debt in
connection with one or more standby letters of credit, bankers’ acceptances or
performance bonds issued by the Company or a Restricted Subsidiary in the
ordinary course of business or pursuant to workers’ compensation claims or
self-insurance obligations and, in each case, not in connection with the
borrowing of money or the obtaining of advances or credit;

 

(vii)         Debt
of the Company or any Restricted Subsidiary outstanding on the Issue Date not
otherwise described in clauses (i) through (vi) above and listed on a
schedule to this Indenture (including, without limitation, the Existing
Multi-Borrower Credit Facilities, the Existing Note Guarantees, the Existing
Equity Value Certificate Guarantee and the Existing EVC Funding Agreements);

 

(viii)        Debt
under the Subsidized Loans, the VAT Discounting Facility and short-term credit
facilities, as amended, restated, modified in part from time to time in an
aggregate principal amount at any time outstanding not to exceed €71.0 million.

 

(ix)           Debt of
the Company or any Restricted Subsidiary arising from the honoring by a bank or
other financial institution of a cheque, draft or similar 

 

45

 

instrument inadvertently
drawn against insufficient funds, so long as such Debt is covered within five
Business Days;

 

(x)            Debt of
the Company or any Restricted Subsidiary consisting of advance or extended
payment terms in the ordinary course of business;

 

(xi)           Debt of
the Company or any Restricted Subsidiary arising from agreements of the Company
or a Restricted Subsidiary providing for indemnification, adjustment of
purchase price, or similar obligations, in each case Incurred or assumed in
connection with the disposal of any business, assets or Capital Stock of a
Subsidiary, other than Guarantees of indebtedness of the Subsidiary disposed of
or Incurred or assumed by any Person acquiring all or any portion of such
business, assets or Capital Stock for the purpose of financing such
acquisition; provided that the
maximum liability of the Company and its Restricted Subsidiaries in respect of
all such Debt shall at no time exceed the gross proceeds, including the Fair
Market Value or non-cash proceeds (measured at the time received and without
giving effect to any subsequent changes in value) actually received by the
Company and its Restricted Subsidiaries in connection with such disposal;

 

(xii)          Debt
represented by Capital Lease Obligations, mortgage financing or purchase money
obligations, in each case, Incurred for the purpose of financing all or any
part of the purchase price or cost of construction or improvement of property,
plant or equipment used in the Telecommunications Business in an aggregate
principal amount not to exceed €10.0 million at any time outstanding;

 

(xiii)         Guarantees
by the Company or any Restricted Subsidiary of Debt of the Company or a
Restricted Subsidiary that was permitted to be Incurred by another provision of
this Section; provided, however that if the Debt being Guaranteed is
subordinated in right of payment to the Notes or the Note Guarantees, then such
Guarantees shall be subordinated to the same extent as the Debt Guaranteed;

 

(xiv)        Subordinated
Shareholder Indebtedness;

 

(xv)         Debt of the
Company and the Restricted Subsidiaries (other than Debt permitted pursuant to
clauses (i) through (xiv) above) in an aggregate principal amount
outstanding at any one time not to exceed €25.0 million; and

 

(xvii)       Permitted
Refinancing Debt Incurred in respect of Debt Incurred pursuant to paragraphs
(a)(i)(A) and (a)(i)(B) this Section and paragraphs (c)(i) and
(c)(vii).

 

(d)           Notwithstanding
anything to the contrary contained in this Section 4.06, the Company shall
not, and shall not permit any other Note Guarantor to, nor shall any other Note
Guarantor, Incur any Debt pursuant to this Section 4.06, other than debt
Incurred pursuant to Section 4.06(a)(i)(A) or (B), if the proceeds
thereof are used, directly or indirectly, to Refinance (i) any
Subordinated Obligations unless such Debt shall be subordinated to the Notes
Proceeds Loans or the applicable Note Guarantee, as the case may be, to at
least the same extent as such Subordinated Obligations or (ii) any Senior
Subordinated Debt unless such Debt shall be Senior Subordinated Debt or shall
be subordinated to the Notes Proceeds Loans and the applicable Note Guarantee,
as the case may be.

 

46

 

SECTION 4.07.      Limitation on Restricted
Payments.  (a)  The Issuer shall
not make, directly or indirectly, any Issuer Restricted Payment; provided that, the Issuer may make
payments in respect of the Existing Equity Value Certificates; and provided  further,
that the Issuer may pay dividends to ONO Holdings in an aggregate amount not to
exceed €75,000 per year or its equivalent for the purpose of permitting the
recipient to pay expenses related to the administration of the Issuer or ONO
Holdings.

 

(b)           The Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, make, directly or
indirectly, any Restricted Payment if at the time of, and after giving effect
thereto,

 

(i)            a Default
or Event of Default shall have occurred and be continuing,

 

(ii)           the
Company could not Incur at least €1.00 of additional Debt pursuant to Section 4.06(a)(i) or

 

(iii)          the
aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made since the Issue Date (the amount of any Restricted Payment, if
made other than in cash, to be based upon Fair Market Value) would exceed an
amount equal to the sum of:

 

(A)          50%
of Consolidated Net Income accrued during the period (treated as one accounting
period) from the beginning of the fiscal quarter immediately following the
fiscal quarter during which the Issue Date occurs to the end of the most recent
fiscal quarter ending at least 45 days prior to date of the Restricted Payment
(or in case such Consolidated Net Income will be a deficit, minus 100% of such
deficit)

 

(B)           Capital
Stock Sale Proceeds (other than that portion of such Capital Stock Sale
Proceeds in excess of €20.0 million that has been used pursuant to clause (i) of
the definition of Permitted Investment to make a Permitted Investment);

 

(C)           the
aggregate Net Cash Proceeds received by the Company or any Restricted
Subsidiary from the issuance or sale after the Issue Date of convertible or
exchangeable Debt that has been converted into or exchanged for Capital Stock
(other than Disqualified Stock) of the Company;

 

(D)          the
aggregate cash proceeds received by the Company or any Restricted Subsidiary in
connection with the Incurrence of any Subordinated Shareholder Indebtedness
after the Issue Date; and

 

(E)           an
amount equal to the sum of (I) any dividends, repayments of loans or advances
or other transfers of Property, in each case to the Company or any Restricted
Subsidiary from any Unrestricted Subsidiary, and (II) the portion
(proportionate to the Company’s equity interest in such Unrestricted Subsidiary)
of the Fair Market Value of the net assets of an Unrestricted Subsidiary at the
time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however,
that the foregoing sum shall not exceed the amount 

 

47

 

of Investments previously
made (and treated as a Restricted Payment) by the Company or any Restricted
Subsidiary in such Unrestricted Subsidiary.

 

(c)           Notwithstanding the foregoing limitation, the Company may
take the following actions:

 

(i)            pay
dividends on its Capital Stock within 60 days of the declaration thereof if, on
said declaration date, such dividends could have been paid in compliance with
this Indenture; provided, however, that such dividend shall be
included in the calculation of the amount of Restricted Payments;

 

(ii)           purchase,
repurchase, redeem, legally defease, acquire or retire for value Capital Stock
of the Company or Subordinated Obligations in exchange for, or out of the
proceeds of the substantially concurrent sale of, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary of the Company or an employee stock ownership plan or trust
established by the Company or any such Subsidiary for the benefit of their
employees); provided, however, that (A) such purchase,
repurchase, redemption, legal defeasance, acquisition or retirement shall be
excluded in the calculation of the amount of Restricted Payments and (B) the
Capital Stock Sale Proceeds from such exchange or sale shall be excluded from
the calculation pursuant to clause (b)(iii)(B) above;

 

(iii)          purchase,
repurchase, redeem, legally defease, acquire or retire for value any
Subordinated Obligations in exchange for, or out of the proceeds of the
substantially concurrent sale of, Permitted Refinancing Debt; provided, however,
that such purchase, repurchase, redemption, legal defeasance, acquisition or
retirement shall be excluded in the calculation of the amount of Restricted
Payments;

 

(iv)          make payments
in respect of the Existing Equity Value Certificate Guarantee and under the
Existing EVC Funding Agreements;

 

(v)           (A) repurchase,
redeem or otherwise acquire or retire for value any Capital Stock of Cableuropa
or any Holdco of Cableuropa or any Restricted Subsidiary held by any current or
former officer, director or employee of Cableuropa or any Restricted Subsidiary
that are issued on the Issue Date or issued to such Persons following the Issue
Date pursuant to any share option scheme, compensation plan, incentive scheme
or similar arrangement or; (B) the purchase, in the open market, at any
time following the Public Equity Offering of Cableuropa or a Holdco of
Cableuropa of listed ordinary shares of Cableuropa or a Holdco of Cableuropa to
be reserved for Issuance upon exercise of options issued to any current or
former officer, director or employee of Cableuropa or a Holdco of Cableuropa or
any Restricted Subsidiary pursuant to any share option scheme, compensation
plan, incentive scheme or similar arrangement; provided
that the aggregate price paid for all such repurchased, redeemed,
acquired, retired or purchased Capital Stock referred to in Clauses (A) and
(B) may not exceed €2.0 million in any twelve month period;

 

(vi)          the
repurchase of Capital Stock deemed to occur upon the exercise of stock options
to the extent that such Capital Stock represents a portion of the exercise
price of those stock options;

 

48

 

(vii)         the
repurchase, redemption or other acquisition for value of Capital Stock of
Cableuropa or a Holdco of Cableuropa or any Restricted Subsidiary representing
fractional shares of such Capital Stock in connection with a share dividend
distribution share split, reverse share split, merger, consolidation,
amalgamation or other business combination of Cableuropa, such Holdco or such
Restricted Subsidiary in each case permitted under this Indenture;

 

(viii)        Following
a Public Equity Offering, the payment of dividends on Capital Stock of the
Company up to 6% per annum of the net cash proceeds received by Cableuropa in
any such Public Equity Offering or any subsequent public offering of such
ordinary shares or net cash proceeds of any such Public Equity Offering or
subsequent public offering of such Capital Stock by any Holdco of Cableuropa
that are contributed in cash to Cableuropa’s equity (other than through the
issuance of Disqualified Stock) or loaned to Cableuropa in the form of
Subordinated Shareholder Indebtedness; provided
that if such Public Equity Offering was of Capital Stock of a Holdco
of Cableuropa, then that proceeds of any such dividends are used to fund an
equal dividend on the ordinary shares of such Holdco; provided, further, that at the time of such payment no
Default or Event of Default has occurred and is continuing; and

 

(ix)           cash
payments, advances, loans or expense reimbursements made to GCO to permit GCO
to pay general operating expenses (other than management, consulting or similar
fees payable by Affiliates of the Issuer), accounting, legal, corporate
reporting and administrative expenses incurred in the ordinary course of its
business in an amount not to exceed €5.0 million in the aggregate in any fiscal
year; and

 

(x)            any other
Restricted Payment, provided that
the total aggregate amount of Restricted Payments made under this clause (x)
does not exceed €7.5 million in the aggregate in any fiscal year; provided, further,
that at the time of such payment no Default or Event of Default has occurred
and is continuing.

 

The actions described in
clauses (i) and (vii) of this paragraph (c) are Restricted
Payments that will be permitted to be made in accordance with this paragraph
but that reduce the amount that would otherwise be available for Restricted
Payments under clause (b)(iii)(B) above.

 

SECTION 4.08.      Limitation on the Sale or
Issuance of Capital Stock of Restricted Subsidiaries.  The Company shall not sell or otherwise
dispose of any shares of Capital Stock of a Restricted Subsidiary, and will not
permit any Restricted Subsidiary, directly or indirectly, to issue or sell or
otherwise dispose of any shares of its Capital Stock except:

 

(a)           to the Company or another Restricted Subsidiary;

 

(b)           the Incurrence of a Lien permitted under Section 4.10
(solely to the extent such Incurrence constitutes a disposition of the Capital
Stock subject to such Lien under applicable law);

 

(c)           the issuance and sale to a citizen of any jurisdiction of
shares of Capital Stock of such Restricted Subsidiary, to the extent required
by applicable law of such jurisdiction;

 

49

 

(d)           if, immediately after giving effect to such issuance, sale
or other disposition, neither the Company nor any Restricted Subsidiary owns
any Capital Stock of such Restricted Subsidiary;

 

(e)           if, immediately after giving effect to such issuance or
sale, such Restricted Subsidiary would no longer constitute a Restricted
Subsidiary and any Investment in such Person remaining after giving effect
thereto would have been permitted to be made under Section 4.07 if made on
that date of such issuance, sale or other disposition (and such Investment
shall be deemed to be an Investment for the purposes of such Section).

 

SECTION 4.09.      Limitation on
Transactions with Affiliates.  (a) 
The Company shall not, and shall not permit any Restricted Subsidiary to, nor
shall any Restricted Subsidiary, directly or indirectly, conduct any business
or enter into or suffer to exist any transaction or series of related
transactions (including the purchase, sale, transfer, assignment, lease,
conveyance or exchange of any Property or the rendering of any service) with,
or for the benefit of, any Affiliate of the Company (an “Affiliate
Transaction”), unless:

 

(i)            the terms
of such Affiliate Transaction are (A) set forth in writing and (B) no
less favorable, in any material respect, taken as a whole, to the Company or
such Restricted Subsidiary, as the case may be, than those that could be
obtained in a comparable arm’s-length transaction with a Person that is not an
Affiliate of the Company as determined in good faith by any Officer of the
Company;

 

(ii)           if such
Affiliate Transaction involves aggregate payments or value in excess of €10.0
million, the Board of Directors (including a majority of the disinterested
members of the Board of Directors) approves such Affiliate Transaction and, in
its good faith judgment, believes that such Affiliate Transaction complies with
clause (a)(i)(B) of this Section 4.09 as evidenced by a board
resolution promptly delivered to the Trustee; and

 

(iii)          if
such Affiliate Transaction involves aggregate payments or value in excess of
€25.0 million, the Company obtains a written opinion from an Independent
Appraiser to the effect that the consideration to be paid or received in
connection with such Affiliate Transaction is fair, from a financial point of
view, to the Company or such Restricted Subsidiary, as the case may be.

 

(b)           Notwithstanding
the foregoing limitation, the following shall not be Affiliate Transactions:

 

(i)            any
transaction or series of transactions between the Company and one or more
Restricted Subsidiaries or between two or more Restricted Subsidiaries in the
ordinary course of business;

 

(ii)           any
transaction or series of transactions between the Parent Guarantor and
Cableuropa or between the Parent Guarantor and one or more Restricted
Subsidiaries;

 

50

 

(iii)          any
Restricted Payment or Issuer Restricted Payment permitted to be made pursuant
to Section 4.07 or any Permitted Investment of the Company or the
Restricted Subsidiaries;

 

(iv)          any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors;

 

(v)           loans and
advances to employees made in the ordinary course of business and consistent
with the past practices of the Company or any Restricted Subsidiary, as the
case may be; provided, however, that such loans and advances do not exceed €1.0
million in the aggregate at any one time outstanding, provided, however that
the Company or any Restricted Subsidiary may make loans or advances to
employees in connection with a Public Equity Offering in amounts not to exceed
€3.5 million;

 

(vi)          arrangements
in existence on the Issue Date (including any construction and equipment
purchase contracts and any consultancy agreements) and any renewal thereof;
provided, however, that any such renewal is on terms no less favorable in any
material respect, taken as a whole, than the terms of any such existing
agreement;

 

(vii)         arrangements
relating to the offer and sale of Capital Stock of the Company or any
Restricted Subsidiary that the Board of Directors determines in good faith to
be customary for such an offer and sale;

 

(viii)        any
Guarantee or grant of any Lien by the Company or a Restricted Subsidiary in
connection with any Debt (other than Subordinated Obligations) permitted
pursuant to Section 4.06;

 

(ix)           any
payments or other transactions pursuant to a tax sharing agreement between the
Company and any other Person with which the Company files a consolidated tax
return or with which the Company is part of a consolidated group for tax
purposes;

 

(x)            (A) the
provision by Bank of America Corporation and its Affiliates and Banco Santander
and its Affiliates of investment banking or commercial banking or similar
services to the Company and the Restricted Subsidiaries; and (B) any
agreement with Grupo Ferrovial, S.A. and its Affiliates or Isolux WAT S.A. and
its Affiliates to construct the telecommunications networks of the Company and
the Restricted Subsidiaries, which, in the case of each of (A) and (B),
are fair to the Company and the Restricted Subsidiaries, in the reasonable
determination of the Board of Directors of the Company or an Officer thereof,
or are on terms no less favorable in any material respect, taken as a whole, to
the Company or such Restricted Subsidiary, as the case may be, than those that
could be obtained in a comparable arm’s-length transaction with a Person that
is not an Affiliate of the Company as determined in good faith by any Officer
of the Company; and

 

51

 

(xi)           any payments
or other transactions with respect to the lease or sharing or other use of
cable or fiber lines, equipment, transmission capacity, right-of-way or other
access rights, service agreements, content provision agreements or any other
transactions entered into in the ordinary course of business and related to the
Telecommunications Business between the Company or any Restricted Subsidiary
and Retecal provided (a) such transaction satisfies the requirements of
paragraph (a)(i) of this Section 4.09 and (b) The Board of
Directors (including a majority of disinterested directors (which shall include
at least two such directors)) approves such transaction and, in its good faith
judgment, believes such transaction complies with clause (a)(i)(B) of this
Section 4.09 as evidenced by a board resolution promptly delivered to the
Trustee.

 

SECTION 4.10.      Limitation on Liens.  (a) 
The Issuer shall not, directly or indirectly, Incur or suffer to exist, any
Lien (other than Permitted Liens) upon any of its Property, whether owned at
the Issue Date or thereafter acquired, or any interest therein or any income or
profits therefrom.

 

(b)           the Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, directly or indirectly,
Incur or suffer to exist, any Lien (other than Permitted Liens or Liens
securing Senior Debt) upon any of its Property (including Capital Stock of a
Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired,
or any interest therein or any income or profits therefrom, unless

 

(i)            if
such Lien secures Senior Subordinated Debt, the Notes Proceeds Loans and the
applicable Note Guarantee are secured on an equal and ratable basis with such
Debt, and

 

(ii)           if
such Lien secures Subordinated Obligations, such Lien shall be subordinated to
a Lien securing the Notes Proceeds Loans and the applicable Note Guarantee in
the same Property as that securing such Lien to the same extent as such
Subordinated Obligations are subordinated to the Notes Proceeds Loans and the
applicable Note Guarantee.

 

SECTION 4.11.      Limitation on Sale of
Certain Assets.  (a)  The Issuer
shall not, directly or indirectly, consummate any Asset Sale.

 

(b)           The Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, directly or indirectly,
consummate any Asset Sale unless:

 

(i)            the
Company or such Restricted Subsidiary receives consideration at the time of
such Asset Sale at least equal to the Fair Market Value of the Property subject
to such Asset Sale;

 

(ii)           at
least 75% of the consideration paid to the Company or such Restricted
Subsidiary in connection with such Asset Sale is in the form of cash or cash
equivalents or the assumption by the purchaser of liabilities of the Company or
any Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Notes Proceeds Loans and the applicable Note Guarantee) as
a result of which the 

 

52

 

Company and the Restricted
Subsidiaries are no longer obligated with respect to such liabilities;

 

(iii)          the
Company delivers an Officers’ Certificate to the Trustee certifying that such
Asset Sale complies with the foregoing clauses (i) and (ii); and

 

(iv)          no
Default or Event of Default shall have occurred and be continuing immediately
prior to and after giving effect to such Asset Sale.

 

(c)           The Net Available Cash (or any portion thereof) from Asset
Sales shall be applied by the Company or a Restricted Subsidiary, to the extent
the Company or such Restricted Subsidiary elects (or is required by the terms
of any Debt):

 

(i)            to
repay Senior Debt of the Company or any other Note Guarantor (excluding, in any
such case, any Debt owed to the Company or an Affiliate of the Company);

 

(ii)           to
invest or reinvest in Additional Assets (including an Investment in Additional
Assets by a Restricted Subsidiary with Net Available Cash received by the
Company or another Restricted Subsidiary that is invested in such Restricted
Subsidiary); or

 

(iii)          Any
combination of the foregoing.

 

(d)           Any Net Available Cash from an Asset Sale not applied in
accordance with the preceding paragraph within 360 days from the date of the
receipt of such Net Available Cash or that is not segregated from the general
funds of the Company for investment in identified Additional Assets in respect
of a project that shall have been commenced, and for which binding contractual
commitments have been entered into, prior to the end of such 360-day period and
that shall not have been completed or abandoned shall constitute “Excess
Proceeds”.  When the aggregate amount of
Excess Proceeds exceeds €10.0 million (taking into account income earned on
such Excess Proceeds, if any), Cableuropa will be required to make an offer to
make prepayments under the Notes Proceeds Loans sufficient to enable the Issuer
to purchase Notes pursuant to the Prepayment Offer (as defined below), and the
Issuer shall be required to make an offer to purchase (the “Prepayment Offer”)
the Notes which offer shall be in the amount of the Allocable Excess Proceeds,
on a pro rata basis according to principal amount, at a purchase price equal to
100% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the purchase date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date), in
accordance with the procedures (including prorating in the event of
over-subscription) set forth in this Indenture. 
To the extent that any portion of the amount of Net Available Cash
remains after compliance with the preceding sentence and provided
that all holders of Notes have been given the opportunity to tender their Notes
for purchase in accordance with this Indenture, the Company or such Restricted
Subsidiary may use such remaining amount for any general corporate purpose and
the amount of Excess Proceeds will be reset to zero.

 

(e)           The term “Allocable Excess Proceeds” will mean the
product of (a) the Excess Proceeds and (b) a fraction, the numerator
of which is the aggregate principal amount of the Notes outstanding on the date
of the Prepayment Offer and the denominator of which is the sum of the
aggregate principal amount of the Notes outstanding on the date of the 

 

53

 

Prepayment Offer and the aggregate principal
amount of other Debt of Cableuropa outstanding on the date of the Prepayment
Offer that is pari passu in right
of payment with the Notes Proceeds Loans and subject to terms and conditions in
respect of Asset Sales similar in all material respects to this Section and
requiring Cableuropa to make an offer to purchase such Debt at substantially
the same time as the Prepayment Offer.

 

(f)            Within five Business Days after
Cableuropa is obligated to make a Prepayment Offer as described in the
preceding paragraph, the Issuer shall send a notice pursuant to Section 13.02,
accompanied by such information regarding the Issuer, the Company and the
Restricted Subsidiaries as the Issuer in good faith believes will enable the
holders to make an informed decision with respect to such Prepayment Offer.  Such notice shall state, among other things,
the purchase price and the purchase date, which shall be, subject to any
contrary requirements of applicable law, a Business Day no earlier than 30 days
nor later than 60 days from the date such notice is given.

 

(g)           The Issuer and each of the Note Guarantors will comply, to
the extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 4.11.  To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 4.11,
each of the Issuer and the Note Guarantors will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.11 by virtue thereof.

 

SECTION 4.12.      Limitation on Sale and
Leaseback Transactions.  The Company
shall not, and shall not permit any Restricted Subsidiary to, nor shall any
Restricted Subsidiary, enter into any Sale and Leaseback Transaction with
respect to any Property unless:

 

(i)            the
Company or such Restricted Subsidiary would be entitled to (i) Incur Debt
in an amount equal to the Attributable Debt with respect to such Sale and
Leaseback Transaction pursuant to Section 4.06 and (ii) create a Lien
on such Property securing such Attributable Debt without also securing the
Notes Proceeds Loans and the applicable Note Guarantee pursuant to Section 4.10;

 

(ii)           such
Sale and Leaseback Transaction is effected in compliance with Section 4.11;
and

 

(iii)          the
net proceeds received in connection with such Sale and Leaseback Transaction
are at least equal to the Fair Market Value of such Property.

 

SECTION 4.13.      Limitation on
Restrictions on Distributions from Restricted Subsidiaries.  (a)  The Company shall not, and shall
not permit any Restricted Subsidiary to, nor shall any Restricted Subsidiary,
directly or indirectly, create or otherwise cause or suffer to exist any
consensual restriction on the right or ability of any Restricted Subsidiary
(and, in the case of clause (iv) below, Cableuropa) to:

 

(i)            pay
dividends, in cash or otherwise, or make any other distributions on or in
respect of its Capital Stock, or pay any Debt or other obligation owed, to the
Company or any other Restricted Subsidiary;

 

54

 

(ii)           make
any loans or advances to the Company or any other Restricted Subsidiary;

 

(iii)          transfer
any of its Property to the Company or any other Restricted Subsidiary; or

 

(iv)          satisfy
its obligations under the Notes Proceeds Loans.

 

(b)           The
foregoing limitations will not apply:

 

(i)            with
respect to clauses (a)(i), (a)(ii), (a)(iii) and (a)(iv), to restrictions:

 

(A)          in
effect or entered into on the Issue Date;

 

(B)           relating
to Debt of a Restricted Subsidiary and existing at the time it became a
Restricted Subsidiary if such restriction was not created in connection with or
in anticipation of the transaction or series of transactions pursuant to which
such Restricted Subsidiary became a Restricted Subsidiary or was acquired by
the Company;

 

(C)           relating
to the Senior Bank Facility;

 

(D)          under
(I) this Indenture, the Floating Rate Indenture, the Note Guarantees or the
Notes or (II) any customary encumbrance or restriction that is contained in an
agreement or instrument governing or relating to any Indebtedness Incurred; provided, however,
that the restrictions contained in any such agreement or instrument are no less
favorable in any material respect, taken as a whole, to the holders of Notes
than the restrictions contained in this Indenture, the Floating Rate Indenture,
the Note Guarantees or the Notes;

 

(E)           that
result from the Refinancing of Debt Incurred pursuant to an agreement referred
to in clause (b)(i)(A), (B), (C) or (D) (in respect of clause (I)
only) above or in clause (c)(i) or (ii) below; provided, however,
such restriction with respect to such Refinanced Debt is no less favorable in
any material respect, taken as a whole, to the holders of Notes than those
under the agreement evidencing the Debt so Refinanced;

 

(F)           relating
to Hedging Obligations, Subsidized Loans or the VAT Discounting Facility; or

 

(G)           any
customary encumbrance or restriction applicable to a Restricted Subsidiary that
is contained in an agreement or instrument governing or relating to Senior
Debt, provided that the provisions of any such agreement or instrument do not
prevent (other than following an event of default on such Senior Debt) the
payment of interest and mandatory payment of principal pursuant to the terms of
this Indenture and the Notes, but provided, further that such agreement or
instrument may nevertheless contain customary net worth, leverage, invested
capital and other financial covenants, customary covenants regarding 

 

55

 

the merger of or sale of
all or any substantial part of the assets of the Company or any Restricted
Subsidiary, customary restrictions on transactions with Affiliates, customary
subordination provisions governing future Debt to be Incurred by the Company or
any Restricted Subsidiary no less favorable in any material respect, taken as a
whole, to the holders of Notes than the subordination provisions applicable to
the Note Guarantees, and provisions prohibiting redemptions or repurchases of
Notes in the event of a Change of Control; and

 

(c)           with
respect to clause (a)(iii) of this Section 4.13 only, to
restrictions:

 

(A)          relating
to Debt that is permitted to be Incurred and secured without also securing the
Notes Proceeds Loans or the applicable Note Guarantee pursuant to Sections 4.06
and 4.10 that limit the right of the debtor to dispose of the Property securing
such Debt;

 

(B)           encumbering
Property at the time such Property was acquired by the Company or any
Restricted Subsidiary, so long as such restriction relates solely to the
Property so acquired and was not created in connection with or in anticipation
of such acquisition;

 

(C)           resulting
from customary provisions in leases or customary provisions in other agreements
that restrict assignment of such agreements or rights thereunder;

 

(D)          customary
restrictions contained in asset sale agreements limiting the transfer of such
Property pending the closing of such sale;

 

(E)           encumbrances
or restrictions existing by reason of customary merger or acquisition
agreements for the purchase or acquisition of the Capital Stock or assets of
the Company or any of its Subsidiaries by another Person;

 

(F)           customary
restrictions contained in operating leases for real property and restricting
only the transfer of such real property or effective only upon the occurrence
and during the continuance of a default in the payment of rent;

 

(G)           encumbrances
or restrictions arising as a result of applicable law or regulation; or

 

(H)          encumbrances
or restrictions that may be imposed by governmental licenses, concessions,
franchises or permits.

 

SECTION 4.14.      Limitation on the Company’s
Business.  The Company shall not, and
the Company and the Restricted Subsidiaries as a group shall not, engage in any
business other than a Telecommunications Business.

 

SECTION 4.15.      Change of Control.  (a)  Upon the occurrence of a Change
of Control, each holder of Notes shall have the right to require the Issuer to
repurchase all or any 

 

56

 

part (equal to €1,000 or an integral multiple thereof) of such holder’s
Notes pursuant to the offer (the “Change of Control Offer”) described
below at a purchase price (the “Change of Control Purchase Price”) equal
to 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the date of purchase (the “Change of Control Purchase Date”)
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

(b)           Within 30 days following any Change of Control, the Issuer
and the Company shall:

 

(i)            cause
a notice of the Change of Control Offer to be sent to the Dow Jones News
Service and Reuters News Service or similar business news services (and, if and
so long as Notes are listed on the Luxembourg Stock Exchange and the rules of
such Stock Exchange shall so require, publish a notice in a newspaper having a
general circulation in Luxembourg (which is expected to be the Luxemburger Wort)); and

 

(ii)           in
the event the Notes are in the form of definitive Notes, send, by first-class
mail, with a copy to the Trustee, to each holder of Notes, at such holder’s
address as it appears on the registration books of the Registrar, a notice
stating:

 

(A)          that a Change of Control has
occurred and a Change of Control Offer is being made pursuant to this Section 4.15
and that all Notes timely tendered will be accepted for payment;

 

(B)           the Change of Control Purchase
Price and the Change of Control Purchase Date, which shall be, subject to any
contrary requirements of applicable law, a business day no earlier than 30 days
nor later than 60 days from the date such notice is given;

 

(C)           the circumstances and relevant
facts regarding the Change of Control; and

 

(D)          the procedures that holders of
Notes must follow in order to tender their Notes (or portions thereof) for
payment, and the procedures that holders of Notes must follow in order to
withdraw an election to tender Notes (or portions thereof) for payment.

 

(c)           The Issuer and each of the Note Guarantors will comply, in
each case to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act and any other securities laws or regulations, including any
securities laws of the United Kingdom, Spain and Luxembourg and the
requirements of the Luxembourg Stock Exchange or any other securities exchange
on which the Notes are listed, in connection with the Repurchase of Notes
pursuant to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.15,
the Issuer and each of the Note Guarantors will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance.

 

SECTION 4.16.      Additional Amounts.  (a)  All payments that the Issuer makes
under or with respect to the Notes or that any Note Guarantor makes under or
with respect to 

 

57

 

any Note Guarantee will be made free and clear of, and without
withholding or deduction for or on account of, any present or future tax, duty,
levy, impost, assessment or other governmental charges (including, without
limitation, penalties, interest and other similar liabilities related thereto)
of whatever nature (collectively, “Taxes”) imposed or levied by or on
behalf of any jurisdiction in which the Issuer, any Note Guarantor or any
surviving Person is incorporated, organized or otherwise resident for tax
purposes or from or through which any of the foregoing makes any payment on the
Notes or by or within any department or political subdivision thereof (each, a “Relevant
Taxing Jurisdiction”), unless the Issuer or such Note Guarantor, as the
case may be, is required to withhold or deduct Taxes by law or by the
interpretation or administration of law. 
If the Issuer or a Note Guarantor is required to withhold or deduct any
amount for, or on account of, Taxes of a Relevant Taxing Jurisdiction from any
payment made under or with respect to the Notes, the Issuer or such Note
Guarantor, as the case may be, will pay additional amounts (“Additional
Amounts”) as may be necessary to ensure that the net amount received and
retained by each holder of the Notes (including Additional Amounts) after such
withholding, deduction, imposition or levy will be not less than the amount the
holder would have received and retained if such Taxes had not been required to
be withheld or deducted.

 

(b)           Neither the Issuer nor any Note Guarantor will, however, pay
Additional Amounts to a holder or beneficial owner of Notes in respect or on
account of:

 

(i)            any
Taxes that are imposed or levied by a Relevant Taxing Jurisdiction by reason of
the holder’s or beneficial owner’s present or former connection with such
Relevant Taxing Jurisdiction (other than the mere receipt or holding of Notes
or by reason of the receipt of payments thereunder or the exercise or
enforcement of rights under any Notes or this Indenture);

 

(ii)           any
Taxes that are imposed or levied by reason of the failure of the holder or
beneficial owner of Notes, following the Issuer’s written request addressed to
the holder (and made at a time that would enable the holder or beneficial owner
acting reasonably to comply with that request), to comply with any
certification, identification, information or other reporting requirements,
whether required by statute, treaty, regulation or administrative practice of a
Relevant Taxing Jurisdiction, as a precondition to exemption from, or reduction
in the rate of withholding or deduction of, Taxes imposed by the Relevant
Taxing Jurisdiction (including, without limitation, a certification that the
holder or beneficial owner is not resident in the Relevant Taxing Jurisdiction);

 

(iii)          any
estate, inheritance, gift, sales, transfer, personal property or similar Taxes;

 

(iv)          any
Tax that is payable otherwise than by withholding or deduction from payments
made under, or with respect to, the Notes;

 

(v)           any
Tax that is imposed or levied by reason of the presentation (where presentation
is required in order to receive payment) of such Notes for payment on a date
more than 30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for, whichever is later,
except to the extent that the holder or beneficial owner thereof would have
been entitled to Additional Amounts had the Notes been presented for payment on
any date during such 30 day period;

 

58

 

(vi)          any
withholding or deduction in respect of any Taxes where such withholding or
deduction is imposed on a payment to an individual and is required to be made
pursuant to European Council Directive 2003/48/EC or any other Directive
implementing the conclusions of the ECOFIN Council meeting of November 26-27,
2000 on the taxation of savings income or any law implementing or complying
with, or introduced in order to conform to, such Directive; or

 

(vii)         any
Tax that is imposed on or with respect to a payment made to a holder or
beneficial owner who would have been able to avoid such withholding or
deduction by presenting the Notes to another paying agent in a Member State of
the European Union.

 

(c)           The Issuer and any Note Guarantor will (i) make such
withholding or deduction as is required by applicable law and (ii) remit
the full amount withheld or deducted to the relevant taxing authority in
accordance with applicable law.

 

(d)           At least 30 calendar days prior to each date on which any
payment under or with respect to the Notes is due and payable, if the Issuer or
any Note Guarantor will be obligated to pay Additional Amounts with respect to
such payment (unless such obligation to pay Additional Amounts arises after the
30th day prior to the date on which payment under or with respect to the Notes
is due and payable, in which case it will be promptly thereafter), the Issuer
will deliver to the Trustee an Officer’s Certificate stating that such
Additional Amounts will be payable and the amounts so payable and will set
forth such other information necessary to enable the Trustee to pay such
Additional Amounts to holders on the payment date.  The Issuer will promptly publish a notice in
accordance with the provisions set forth in Section 13.02 stating that
such Additional Amounts will be payable and describing the obligation to pay
such amounts.

 

(e)           Upon request, the Issuer or any Note Guarantor, as the case
may be, will furnish to a holder of the Notes copies of tax receipts evidencing
the payment of any Taxes by the Issuer or such Note Guarantor in such form as
provided in the normal course by the taxing authority imposing such Taxes and
as is reasonably available to the Issuer or such Note Guarantor.  If, notwithstanding the efforts of the Issuer
to obtain such receipts the same are not obtainable, the Issuer or such Note
Guarantor will provide such holder with other evidence reasonably satisfactory
to the holder of such payments by the Issuer or such Note Guarantor.

 

(f)            In addition, the Issuer and any
Note Guarantor will pay any present or future stamp, issue, registration, court
documentation, excise or property taxes or other similar taxes, charges and
duties, including interest and penalties with respect thereto, imposed by or in
any Relevant Taxing Jurisdiction in respect of the execution, issue or delivery
of the Notes or any other document or instrument referred to thereunder and any
such taxes, charges or duties imposed by any jurisdiction as a result of, or in
connection with, the enforcement of the Notes or any other such document or
instrument following the occurrence of any Event of Default with respect to the
Notes.

 

(g)           Whenever this Indenture refers to, in any context, the
payment of principal, premium, if any, interest or any other amount payable
under or with respect to any Note, such reference includes the payment of
Additional Amounts, if applicable.

 

59

 

SECTION 4.17.      Designation of
Unrestricted and Restricted Subsidiaries. 
(a)  Unless so designated as an Unrestricted Subsidiary, any Person
that becomes a Subsidiary of the Company will be classified as a Restricted
Subsidiary.  The Board of Directors may
designate any Subsidiary of the Company, including any newly acquired or newly
formed subsidiary, to be an Unrestricted Subsidiary if:

 

(i)            no
Event of Default shall have occurred or be continuing at the time of or after
giving effect to such designation;

 

(ii)           the
Subsidiary to be so designated does not own any Capital Stock or Debt of, or
own or hold any Lien on any Property of, the Company or any Restricted
Subsidiary; and

 

(iii)          either
(A) the Subsidiary to be so designated has total assets of €60,000 or less
or (B) such designation is effective immediately upon such entity becoming
a Subsidiary of the Company.

 

(b)           Except as provided in the second sentence of paragraph (a) above,
no Restricted Subsidiary may be redesignated as an Unrestricted
Subsidiary.  Neither the Company nor any
Restricted Subsidiary shall at any time be directly or indirectly liable for
any Debt that provides that the holder thereof may (with the passage of time or
notice or both) declare a default thereon or cause the payment thereof to be
accelerated or payable prior to its Stated Maturity upon the occurrence of a
default with respect to any Debt, Lien or other obligation of any Unrestricted
Subsidiary (including any right to take enforcement action against such
Unrestricted Subsidiary).  Upon
designation of a Restricted Subsidiary as an Unrestricted Subsidiary in
compliance with this Section, such Restricted Subsidiary shall, by execution
and delivery of a supplemental indenture in form satisfactory to the Trustee,
be released from any Note Guarantee previously made by such Restricted
Subsidiary.

 

(c)           The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary if, immediately after giving pro forma
effect to such designation:

 

(i)            the
Company could Incur €1.00 of additional Debt pursuant to Section 4.06(a)(i);

 

(ii)           no
Default or Event of Default shall have occurred and be continuing or would
result therefrom;

 

(iii)          such
Unrestricted Subsidiary is a subsidiary of the Company; and

 

(iv)          such
Unrestricted Subsidiary executes and delivers to the Trustee a Note Guarantee
at the time such Unrestricted Subsidiary becomes a Restricted Subsidiary.

 

(d)           Any such designation or redesignation by the Board of
Directors will be evidenced to the Trustee by filing with the Trustee a board
resolution giving effect to such designation or redesignation and an Officers’
Certificate of the Company (i) certifying that such designation or
redesignation complies with the foregoing provisions and (ii) giving the
effective date of such designation or redesignation, such filing with the
Trustee to occur within 45 days after the end of the fiscal quarter of the
Company in which such designation or redesignation is made (or, in the case of
a designation or redesignation made during the 

 

60

 

last fiscal quarter of the Company’s fiscal year, within 90 days after
the end of such fiscal year).

 

SECTION 4.18.      Limitation on Issuer
Activities.  (a)  The Issuer
will not engage in any business activity or undertake any other activity,
except any activity:

 

(i)            relating
to the offering, sale or issuance of the Notes or the Incurrence of Permitted
Debt of the Issuer (including the lending of the proceeds of such sale of Notes
or Permitted Debt of the Issuer to the Company and the Restricted
Subsidiaries);

 

(ii)           undertaken
with the purpose of, and directly related to, fulfilling its obligations under
the Existing Notes, the Notes, this Indenture, the Floating Rate Indenture, the
Existing Notes Indentures, the agreements relating to the Existing Equity Value
Certificates or such Permitted Debt, including the Incurrence of Permitted
Liens of the Issuer and the making of Permitted Investments of the Issuer; or

 

(iii)          directly
related to the establishment and maintenance of the Issuer’s corporate
existence.

 

(b)           All of the proceeds of the offering will be lent to
Cableuropa and the other Subsidiary Guarantors by the Issuer pursuant to the
Notes Proceeds Loans.  The Issuer shall
not:

 

(i)            Incur
any Debt other than the Notes or Permitted Debt of the Issuer;

 

(ii)           issue
any Capital Stock (other than to ONO Holdings, the Company or Retco);

 

(iii)          consummate
any Asset Sale; or

 

(iv)          take
any action which would cause it to no longer satisfy the requirements of its
exemption from the provisions of the Investment Company Act of 1940, as
amended.

 

(c)           Whenever the Issuer receives a payment or prepayment under
the Notes Proceeds Loans, it shall use the funds received solely to satisfy its
obligations (to the extent of the amount owing in respect of such obligations)
under this Indenture (including any premium paid by holders of the Notes), except
as otherwise provided pursuant to the subordination and other provisions of the
Notes Proceeds Loans and this Indenture. The Issuer’s Articles of Association
and Memorandum of Association prohibit the transfer of its shares to any Person
other than ONO Holdings, the Company or Retco.

 

SECTION 4.19.      Payment of Taxes and
Other Claims.  The Issuer shall pay
or discharge and shall cause each of its Subsidiaries to pay or discharge, or
cause to be paid or discharged, before the same shall become delinquent: (a) all
material taxes, assessments and governmental charges levied or imposed upon (i) the
Issuer or any such Subsidiary, (ii) the income or profits of any such
Subsidiary which is a corporation or (iii) the property of the Issuer or
any such Subsidiary and (b) all material lawful claims for labor,
materials and supplies that, if unpaid, might by law become a lien upon the
property of the Issuer or any 

 

61

 

such Subsidiary; provided, that the Issuer shall not be required to pay
or discharge, or cause to be paid or discharged, any such tax, assessment,
charge or claim the amount, applicability or validity of which is being
contested in good faith by appropriate proceedings and for which adequate
reserves have been established.

 

SECTION 4.20.      Payments for Consent.  Neither the Issuer nor any of its Restricted
Subsidiaries will, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any holder of
any Notes for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid or is paid to all holders of the Notes that
consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

SECTION 4.21.      Reports to Holders.  (a)  So long as any Notes are
outstanding, each of the Company and the Issuer will furnish to the Trustee
(who, at the Company’s or the Issuer’s expense, as the case may be, will
furnish by mail to holders of the Notes):

 

(i)            within
120 days following the end of each fiscal year, information including “Selected
Historical Financial Data”, “Management’s Discussion and Analysis of Results of
Operations” and “Business” sections with scope and content similar to the
corresponding sections of the offering memorandum prepared in connection with
the offering of the Notes, dated May 7, 2004, (after taking into
consideration any changes to the business and operations of the Company or the
Issuer after the Issue Date), information regarding the Company’s and the
Issuer’s share capital, constitutional documents and any material contracts to
which the Company, the Issuer or the Restricted Subsidiaries are party other
than contracts entered into in the ordinary course of business, consolidated
audited income statements, balance sheets and cash flow statements and the
related notes thereof for the Company and the Issuer for the two most recent
fiscal years in accordance with GAAP, which need not, however, contain any
reconciliation to U.S.  GAAP or otherwise
comply with Regulation S-X of the Commission, together with an audit report
thereon by the Issuer’s independent auditors;

 

(ii)           within
60 days following the end of the fiscal quarters ended June 30, 2004 and September 30,
2004 and of the first three fiscal quarters in each fiscal year thereafter,
quarterly reports containing unaudited balance sheets, statements of income,
statements of shareholders equity and statements of cash flows and condensed
footnote disclosure; for the Company and the Restricted Subsidiaries on a
consolidated basis, in each case for the quarterly period then ended and the
corresponding quarterly period in the prior fiscal year and prepared in
accordance with GAAP, which need not, however, contain any reconciliation to
U.S.  GAAP or otherwise comply with
Regulation S-X of the Commission, together with a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” section for
such quarterly period;

 

(iii)          promptly
from time to time after the occurrence of a material acquisition or disposition
that would constitute a Significant Subsidiary (as defined in Regulation S-X of
the Commission), financial statements of the acquired business and a pro forma
consolidated balance sheet and statement of operations of the Company and the
Restricted Subsidiaries giving effect to the acquisition or disposition to the
extent practicable utilizing available information, (which need not be required
to

 

62

 

contain any U.S. GAAP
information or otherwise comply with Regulation S-X of the Commission); and

 

(iv)          promptly
from time to time after the occurrence of an event required to be reported
therein, such other reports containing substantially the same information
required to be contained in Form 6-K (or any successor form) of the
Commission.

 

(b)           Each of the Company and the Issuer shall be deemed to
satisfy the foregoing obligations so long as it furnishes the foregoing
information in compliance with the corresponding obligation in the Existing
Notes Indentures.

 

(c)           In addition, so long as the Notes remain outstanding and
during any period during which Cableuropa and the Issuer are not subject to Section 13
or 15(d) of the Exchange Act or exempt therefrom pursuant to each of
Cableuropa and the Issuer will furnish to the holders of the Notes and to
prospective investors, upon the requests of such holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act so long as the Notes are not freely transferable under the
Exchange Act by Persons who are not “affiliates” under the Securities Act.

 

(d)           Each of the Issuer and the Company will also make available
copies of all reports furnished to the Trustee with 15 days after the Issuer or
the Company, as the case may be, furnishes such reports to the Trustee: (a) on
the website of the Company, as the case may be; (b) to the newswire
service of Bloomberg, or, if Bloomberg does not then operate, any similar
agency; and (c) if and so long as the Notes are listed on the Luxembourg
Stock Exchange and the rules of the Luxembourg Stock Exchange so require,
at the specified office of the paying agent in Luxembourg.

 

SECTION 4.22.      Limitation on Layered
Debt.  Cableuropa shall not, and shall
not permit any other Guarantor to, nor shall any other Subsidiary Guarantor,
Incur, create, issue, assume, Guarantee or otherwise become liable for any Debt
that is both subordinate or junior in right of payment to any Senior Debt of
Cableuropa or such Subsidiary Guarantor and senior in any respect in right of
payment to any Senior Subordinated Debt of Cableuropa or such Subsidiary
Guarantor or any other Debt of Cableuropa or such Subsidiary Guarantor ranking
equally with Senior Subordinated Debt of Cableuropa or such Subsidiary
Guarantor.

 

SECTION 4.23.      Limitation on
Notarization Under Spanish Law.  Until
September 1, 2004, the Company shall not, and shall not permit any other
Guarantor to, nor shall any other Note Guarantor, notarize any Debt or other obligation
other than Senior Debt.

 

SECTION 4.24.      Future Note Guarantors.  The Company shall cause each Person that
becomes a Restricted Subsidiary following the Issue Date to execute and deliver
to the Trustee a Note Guarantee at the time such Person becomes a Restricted
Subsidiary.  The Company, however, will
not be obligated to cause any Restricted Subsidiary to become a Note Guarantor
if the provision by such Restricted Subsidiary of a Note Guarantee would result
in any violation of applicable law that cannot be avoided or otherwise
prevented through measures reasonably available to the Company (including any “whitewash”
or similar procedures that would be required in order to enable such Note
Guarantee to be provided in accordance with applicable law).

 

63

 

SECTION 4.25.      Use of Proceeds by the
Issuer.  The gross proceeds to the
Issuer from the offering of the Notes shall be lent by the Issuer to Cableuropa
and the other Subsidiary Guarantors pursuant to the Notes Proceeds Loans.

 

SECTION 4.26.      Restriction on Transfer
of Assets.  The Company and any
Restricted Subsidiary that is a Note Guarantor shall not sell, convey, transfer
or otherwise dispose of its assets or property to any Restricted Subsidiary
that is not a Note Guarantor.

 

SECTION 4.27.      Conversion of GCO Loan
and Participative Loans into Common Stock of Cableuropa.  Within one month of the Issue Date,
Cableuropa shall take all necessary actions and make all necessary submissions,
including submissions to the Mercantile Registry, to convert the GCO Loan and
the Participative Loans into common stock of Cableuropa.

 

SECTION 4.28.      Further Instruments and
Acts.  Upon request of the Trustee
(but without imposing any duty or obligation of any kind on the Trustee to make
any such request), the Issuer and any Guarantors shall execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

 

SECTION 4.29.      Listing.  The Issuer and Cableuropa will use their best
efforts to cause the Notes to be listed on the Luxembourg Stock Exchange, or to
the extent that it is precluded from listing the Notes on such exchange, the
Issuer and Cableuropa shall use their best efforts to cause the Notes to be
listed on another EU recognized stock exchange. 
The Issuer and Cableuropa shall cause the Notes to be listed as required
by this Section 4.29 prior to August 15, 2004.

 

ARTICLE FIVE

CONSOLIDATION, MERGER OR SALE OF ASSETS

 

SECTION 5.01.      Consolidation, Merger or
Sale of Assets.    (a)  The
Issuer shall not merge, consolidate or amalgamate with or into any other Person
or sell, transfer, assign, lease, convey or otherwise dispose of all or
substantially all its Property in any one transaction or series of related
transactions.

 

(b)           Except with respect to an enforcement sale as described
under Section 10.03, the Company and each of the other Note Guarantors
shall not merge, consolidate or amalgamate with or into any other Person (other
than a merger of a Restricted Subsidiary into the Company or such other Note
Guarantor) or sell, transfer, assign, lease, convey or otherwise dispose of all
or substantially all its Property in any one transaction or series of related
transactions unless:

 

(i)            the
Company or such other Note Guarantor shall be the surviving Person (the “Surviving
Person”) or the Surviving Person (if other than the Company or such other
Note Guarantor, as applicable) formed by such merger, consolidation or
amalgamation or to which such sale, transfer, assignment, lease, conveyance or
disposition is made shall be a corporation organized and existing under the
laws of the United States of America, any State thereof or the District of
Columbia or a member state of the European Union on the Issue Date;

 

64

 

(ii)           the
Surviving Person (if other than the Company or such other Note Guarantor, as
applicable) expressly assumes, by supplemental indenture in form reasonably
satisfactory to the Trustee, executed and delivered to the Trustee by such
Surviving Person, the due and punctual payment of the principal of, and
premium, if any, and interest on the Notes Proceeds Loans, and the due and
punctual performance and observance of all the covenants and conditions of this
Indenture to be performed by the Company and such other Note Guarantor, as
applicable, and the due and punctual performance of all obligations of the
Company or such other Note Guarantor, as applicable, under its respective Note
Guarantee;

 

(iii)          in
the case of a sale, transfer, assignment, lease, conveyance or other
disposition of all or substantially all the Property of the Company or such
other Note Guarantor, as applicable, such Property shall have been transferred as
an entirety or substantially as an entirety to one Person, which is the
Surviving Person;

 

(iv)          immediately
before and after giving effect to such transaction or series of related
transactions on a pro forma basis, no Default or Event of Default will have
occurred and be continuing;

 

(v)           Except
with respect to the merger, consolidation or amalgamation with or into Retecal,
or of Retecal into or with any Note Guarantor, immediately after giving effect
to such transaction or series of related transactions on a pro forma basis the
Surviving Person would be able to incur €1.00 of additional Debt pursuant to Section 4.06(a)(i);

 

(vi)          the Company
shall deliver, or cause to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion
of Counsel, each stating that such transaction and the supplemental indenture
and such Note Guarantee, if any, in respect thereto comply with this Section and
that all conditions precedent herein provided for relating to such transaction
have been satisfied; and

 

(vii)         such
transaction would not result in the revocation of any Material License which is
not replaced, substituted, reinstated or reissued to the holder of such
Material License or to the Surviving Person (if other than the Company or
another Note Guarantor).

 

(c)           Except with respect to an enforcement sale as described
under Section 10.03, the Surviving Person (other than the Company) shall
succeed to, and be substituted for, and may exercise every right and power of
the Company under this Indenture, the Notes Proceeds Loans and their respective
Note Guarantees (or of such other Note Guarantor under this Indenture, the
Notes Proceeds Loans and their respective Note Guarantees, as the case may be),
but the predecessor company in the case of (i) a sale, transfer,
assignment, conveyance or other disposition (unless such sale, transfer,
assignment, conveyance or other disposition is of all the assets of the Company
(or such other Note Guarantor) as an entirety or substantially as an entirety)
or (ii) a lease, shall not be released from any of the obligations or
covenants under this Indenture, the Notes Proceeds Loans and the applicable
Note Guarantee.

 

SECTION 5.02.      Successor Substituted.  Upon any consolidation or merger, or any
sale, conveyance, transfer, lease or other disposition of all or substantially
all of the property and assets of the Issuer in accordance with Section 5.01
of this Indenture, any 

 

65

 

Surviving Entity formed by such consolidation or into which the Issuer
is merged or to which such sale, conveyance, transfer, lease or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Issuer under this Indenture with the same effect
as if such Surviving Entity had been named as the Issuer herein; and
thereafter, except in the case of a lease of all or substantially all of its
property and assets, the predecessor Issuer shall be released of all
obligations and covenants under this Indenture and the Notes.

 

ARTICLE SIX

DEFAULTS AND REMEDIES

 

SECTION 6.01.      Events of Default.  (a)  Each of the following will be an “Event
of Default” under this Indenture:

 

(i)            default
for 30 days in the payment when due of any interest or any Additional Amounts on
any Note;

 

(ii)           default
in the payment of the principal of or premium, if any, on any Note at its
Maturity;

 

(iii)          failure
to comply with Section 5.01;

 

(iv)          failure
to comply with any other covenant or agreement in the Notes or in this
Indenture (other than as specified in clause (i), (ii) or (iii) above)
and such failure continues for a period of 30 days or more after written notice
is given to the Issuer and Company as provided below;

 

(v)           a
default under any Debt by the Issuer, the Company or any Restricted Subsidiary
that results in acceleration of the maturity of such Debt, or failure to pay
any such Debt at maturity, in an aggregate amount greater than €15.0 million or
its foreign currency equivalent at the time (the “cross acceleration
provisions”);

 

(vi)          any
judgment or judgments for the payment of money in an aggregate amount in excess
of €15.0 million (or its foreign currency equivalent at the time) that shall be
rendered against the Issuer, the Company or any Restricted Subsidiary and that
shall not be waived, satisfied or discharged for any period of 30 consecutive
days during which a stay of enforcement shall not be in effect (the “judgment
default provisions”);

 

(vii)         certain
events involving bankruptcy, insolvency or reorganization of the Issuer, the
Company or any Restricted Subsidiary (the “bankruptcy provisions”);

 

(viii)        any
Note Guarantee ceases to be, or shall be asserted in writing by any Note
Guarantor, or any Person acting on behalf of any Note Guarantor, not to be in
full force and effect or enforceable in accordance with its terms (other than
in accordance with the terms of this Indenture);

 

(ix)           the
Notes Proceeds Loans cease to be in full force and effect or the Notes Proceeds
Loans are declared null and void or unenforceable or the Notes Proceeds Loans
are found to be invalid or the Company denies its liability under the 

 

66

 

Notes Proceeds Loans or
payments under the Notes Proceeds Loans become subject to any Lien;

 

(x)            an
event of default under, or modification which is adverse to the Issuer or the
holders of the Notes or, the Notes Proceeds Loans; and

 

(xi)           the
revocation of a Material License which is not replaced, substituted, reinstated
or reissued to (A) the holder of such Material License, (B) another
entity which is a Restricted Subsidiary of the Company or (C) the
Surviving Person (other than the Company or another Note Guarantor) in
connection with any transaction permitted by Section 5.01.

 

A Default under clause (vi) is
not an Event of Default under this Indenture until the Trustee or the holders
of not less than 25% in aggregate principal amount of the Notes then
outstanding notify the Company of the Default and the Company does not cure (or
cause the Restricted Subsidiaries to cure) such Default within the time
specified after receipt of such notice. 
Such notice must specify the Default, demand that it be remedied and
state that such notice is a “Notice of Default”.

 

Each of the Issuer and
the Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice in the form of an Officers’ Certificate of any event
that with the giving of notice and the lapse of time would become an Event of
Default, its status and what action the Company is taking or proposes to take
with respect thereto.

 

In case an Event of
Default shall occur and be continuing, the Trustee will be under no obligation
to exercise any of its rights or powers under this Indenture at the request or
direction of any of the holders of the Notes, unless such holders shall have
offered to such Trustee reasonable indemnity. 
Subject to such provisions for the indemnification of the Trustee, the
holders of a majority in aggregate principal amount of the Notes then
outstanding will have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on such Trustee with respect to the Notes.

 

In the case of any Event
of Default occurring by reason of any willful action (or inaction) taken (or
not taken) by or on behalf of the Issuer with the intention of avoiding payment
of the premium that the Issuer would have had to pay if the Issuer then had
elected to redeem the Notes pursuant to the optional redemption provisions of
this Indenture, an equivalent premium shall also become and be immediately due
and payable to the extent permitted by law upon the acceleration of the
Notes.  If an Event of Default occurs during
any time that the Notes are outstanding, by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Issuer with the intention
of avoiding the prohibition on redemption of the Notes, then the premium
specified in this Indenture that would have been payable upon redemption at the
time the Event of Default occurs shall also become immediately due and payable
to the extent permitted by law upon the acceleration of the Notes.

 

If a Default or an Event
of Default occurs and is continuing and is known to the Trustee, such Trustee
will mail to each holder of the Notes notice of the Default or Event of Default
within 15 Business Days after its occurrence. 
Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, Additional Amounts or interest on any Notes, the
Trustee may withhold the notice to the holders of such Notes if a 

 

67

 

committee of its trust officers in good faith determines that
withholding the notice is in the interests of the holders of the Notes.

 

SECTION 6.02.      Acceleration.  If an Event of Default with respect to the
Notes (other than an Event of Default resulting from certain events involving
bankruptcy, insolvency or reorganization with respect to the Company) shall
have occurred and be continuing, the Trustee or the registered holders of not
less than 25% in aggregate principal amount of the Notes then outstanding may
declare to be immediately due and payable the principal amount of all the Notes
then outstanding and all amounts outstanding under the Notes Proceeds Loans, in
each case plus accrued but unpaid interest to the date of acceleration. In case
an Event of Default resulting from certain events of bankruptcy, insolvency or
reorganization with respect to the Company shall occur, such amount with
respect to all the Notes and the Notes Proceeds Loans shall be due and payable
immediately without any declaration or other act on the part of the Trustee or
the holders of the Notes.  Whenever
amounts are due and payable under an Indenture, the same amounts due to the
Issuer under the Notes Proceeds Loans will be due and payable.  After any such acceleration, but before a
judgment or decree based on acceleration is obtained by the Trustee, the
holders of a majority in aggregate principal amount of the Notes then
outstanding may, under certain circumstances, rescind and annul such
acceleration if all Events of Default, other than the non-payment of
accelerated principal, premium or interest, have been cured or waived as
provided in this Indenture.  Upon any
such rescission and annulment of any such declaration and its consequences with
respect to the Notes, the declaration and consequences under the Notes Proceeds
Loans shall be rescinded.

 

SECTION 6.03.      Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy.

 

All rights of action and
claims under this Indenture or the Notes may be prosecuted and enforced by the
Trustee without the possession of any of the Notes or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name and as Trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders in respect of
which such judgment has been recovered.

 

SECTION 6.04.      Waiver of Past Defaults.  (a)  At any time after a declaration of
acceleration under this Indenture, but before a judgment or decree for payment
of the money due has been obtained by the Trustee, the holders of a majority in
aggregate principal amount of the outstanding Notes, by written notice to the
Issuer and the Trustee, may rescind such declaration and its consequences if:

 

(i)            the
Issuer has paid or deposited with the Trustee a sum sufficient to pay:

 

(A)          all
overdue interest and Additional Amounts on all Notes then outstanding;

 

68

 

(B)           all
unpaid principal of and premium, if any, on any outstanding Notes that has
become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Notes;

 

(C)           to
the extent that payment of such interest is lawful, interest upon overdue
interest and overdue principal at the rate borne by the Notes; and

 

(D)          all
sums paid or advanced by the Trustee under this Indenture and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel;

 

(ii)           the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; and

 

(iii)          all
Events of Default, other than the non-payment of amounts of principal of,
premium, if any, and any Additional Amounts and interest on the Notes that has
become due solely by such declaration of acceleration, have been cured or
waived.

 

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

(b)           The holders of not less than a majority in aggregate
principal amount of the outstanding Notes may, on behalf of the holders of all
the Notes, waive any past defaults under this Indenture, except a default:

 

(i)            in
the payment of the principal of, premium, if any, and Additional Amounts or
interest on any Note; or

 

(ii)           in
respect of a covenant or provision which under this Indenture cannot be
modified or amended without the consent of the holder of each Note outstanding.

 

SECTION 6.05.      Control by Majority.  The Holders of not less than a majority in
aggregate principal amount of the Notes may direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee under this Indenture;
provided, that:

 

(a)           the Trustee may refuse to follow any direction that
conflicts with law, this Indenture or that the Trustee determines in good faith
may be unduly prejudicial to the rights of holders not joining in the giving of
such direction;

 

(b)           the Trustee may refuse to follow any direction that the
Trustee determines is unduly prejudicial to the rights of other Holders or
would involve the Trustee in personal liability; and

 

(c)           the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction.

 

SECTION 6.06.      Limitation on Suits.  No
holder of any of the Notes has any right to institute any proceedings with
respect to this Indenture or any remedy hereunder, subject to the provisions
described under Section 11.03 through 11.07, unless the holders of at
least 25% in aggregate principal amount of the outstanding Notes have made a
written 

 

69

 

request and offered reasonable indemnity to the Trustee to institute
such proceeding as Trustee under the Notes and this Indenture, the Trustee has
failed to institute such proceeding within 30 days after receipt of such notice
and such Trustee within such 30-day period has not received directions
inconsistent with such written request by holders of a majority in aggregate
principal amount of the outstanding Notes. 
Such limitations do not, however, apply to a suit instituted by a holder
of a Note for the enforcement of the payment of the principal of, premium, if
any, and Additional Amounts or interest on such Note on or after the respective
due dates expressed in such Note.

 

SECTION 6.07.      Collection Suit by Trustee.  (a)  The Issuer covenants that if
default is made in the payment of:

 

(i)            any
instalment of interest on any Note when such interest becomes due and payable
and such default continues for a period of 30 days, or

 

(ii)           the
principal of (or premium, if any, on) any Note at the Maturity thereof,

 

the Issuer shall, upon
demand of the Trustee, pay to the Trustee for the benefit of the Holders of
such Notes, the whole amount then due and payable on such Notes for principal
(and premium, if any), Additional Amounts, if any and interest, and interest on
any overdue principal (and premium, if any) and Additional Amounts, if any and,
to the extent that payment of such interest shall be legally enforceable, upon
any overdue installment of interest, at the rate borne by the Notes, and, in
addition thereto, such further amount as shall be sufficient to cover the
amounts provided for in Section 7.06 and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

(b)           If the Issuer fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name as Trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Issuer or any other obligor upon the Notes and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Issuer or any other obligor upon the Notes,
wherever situated.

 

SECTION 6.08.      Trustee May File
Proofs of Claim.  The Trustee may
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.06)
and the Holders allowed in any judicial proceedings relative to the Issuer or
any Guarantor, their creditors or their property and, unless prohibited by law
or applicable regulations, may vote on behalf of the Holders at their direction
in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.06.

 

Nothing herein contained
shall be deemed to empower the Trustee to authorize or consent to, or accept or
adopt on behalf of any Holder, any plan of reorganization, 

 

70

 

arrangement,
adjustment or composition affecting the Notes or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

SECTION 6.09.      Application of Money
Collected.  If the Trustee collects
any money or property pursuant to this Article Six, it shall pay out the
money or property in the following order:

 

FIRST:                    to
the Trustee for amounts due under Section 7.06;

 

SECOND:               to
Holders for amounts due and unpaid on the Notes for principal of, premium, if
any, interest, if any, and Additional Amounts, if any, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal, premium, if any, interest, if any, and Additional
Amounts, if any, respectively; and

 

THIRD:                  to
the Issuer, any Guarantor or any other obligors of the Notes, as their
interests may appear, or as a court of competent jurisdiction may direct.

 

The Trustee may fix a
record date and payment date for any payment to Holders pursuant to this Section 6.09.
At least 15 days before such record date, the Issuer shall mail to each Holder
and the Trustee a notice that states the record date, the payment date and
amount to be paid.

 

SECTION 6.10.      Undertaking for Costs.  A court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in the suit of an undertaking to pay the costs of
such suit, and such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by the party litigant. This Section 6.10 does not apply to a suit by the
Trustee, a suit by Holders of more than 10% in aggregate principal amount of
the outstanding Notes or to any suit by any Holder pursuant to Section 6.06.

 

SECTION 6.11.      Restoration of Rights and
Remedies.  If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Issuer, any Guarantor, the Trustee and the Holders shall be restored severally
and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

SECTION 6.12.      Rights and Remedies
Cumulative.  Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes in Section 2.07, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or 

 

71

 

otherwise. The assertion of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

SECTION 6.13.      Delay or Omission not
Waiver.  No delay or omission of the
Trustee or of any Holder of any Note to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article Six or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

 

SECTION 6.14.      Record Date.  The Issuer may set a record date for purposes
of determining the identity of Holders entitled to vote or to consent to any
action by vote or consent authorized or permitted by Sections 6.04, 6.05 and
11.05. Unless this Indenture provides otherwise, such record date shall be the
later of 30 days prior to the first solicitation of such consent or the date of
the most recent list of Holders furnished to the Trustee pursuant to Section 2.05
prior to such solicitation.

 

SECTION 6.15.      Waiver of Stay or
Extension Laws.  The Issuer covenants
(to the extent that it may lawfully do so) that it shall not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law and covenants that it
shall not hinder, delay or impede the execution of any power herein granted to
the Trustee but shall suffer and permit the execution of every such power as
though no such law had been enacted.

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01.      Duties of Trustee.  (a)  If an Event of Default has occurred
and is continuing of which a Trust Officer of the Trustee has actual knowledge,
the Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

(b)           Except during the continuance of an Event of Default of
which a Trust Officer of the Trustee has actual knowledge: (i) the Trustee
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture and no others and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and (ii) in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  In the
case of any such certificates or opinions which by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine
same to determine whether they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

(c)           The Trustee shall not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

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(A)          this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

(B)           the
Trustee shall not be liable for any error of judgment made in good faith by a Trust
Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

 

(C)           the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.02
or 6.05.

 

(d)           The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Issuer or
any Note Guarantor.  Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

 

(e)           No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

 

(f)            Every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section 7.01.

 

SECTION 7.02.      Certain Rights of
Trustee.  (a)  Subject to Section 7.01:

 

(A)                  the
Trustee may rely, and shall be protected in acting or refraining from acting,
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper person;

 

(B)           before
the Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel, which shall conform to Section 13.05.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion;

 

(C)           the
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any attorney or agent appointed with due
care by it hereunder;

 

(D)          the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders, unless such 

 

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Holders shall have offered to
the Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities that might be incurred by it in compliance with such
request or direction;

 

(E)           the
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers,
provided that the Trustee’s conduct does not constitute gross negligence or bad
faith;

 

(F)           whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s
Certificate;

 

(G)           the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Issuer personally or by agent or attorney;

 

(H)          the
Trustee shall not be required to give any bond or surety with respect to the
performance of its duties or the exercise of its powers under this Indenture;

 

(I)            in
the event the Trustee receives inconsistent or conflicting requests and
indemnity from two or more groups of holders, each representing less than a
majority in aggregate principal amount of the Notes then outstanding, pursuant
to the provisions of this Indenture, the Trustee, in its sole discretion, may
determine what action, if any, will be taken;

 

(J)            the
permissive right of the Trustee to take the actions permitted by this Indenture
will not be construed as an obligation or duty to do so;

 

(K)          delivery
of reports, information and documents to the Trustee under Section 4.21 is
for informational purposes only and the Trustee’s receipt of the foregoing will
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Issuer’s
compliance with any of their 

 

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covenants hereunder (as to
which the Trustee is entitled to rely exclusively on Officer’s Certificates);

 

(L)           the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its rights to be indemnified, are extended to,
and will be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder; and

 

(M)         the
Trustee may consult with counsel and the advice of such counsel or any Opinion
of Counsel will, subject to Section 7.01(c), be full and complete
authorization and protection from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(b)           The Trustee may request that the Issuer deliver an Officer’s
Certificate setting forth the names of the individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officer’s Certificate may be signed by any person authorized
to sign an Officer’s Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded.

 

SECTION 7.03.      Individual Rights of
Trustee.  The Trustee, any Paying
Agent, any Registrar or any other agent of the Issuer or of the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and,
subject to TIA Section 311, may otherwise deal with the Issuer with the
same rights it would have if it were not Trustee, Paying Agent, Registrar or
such other agent.

 

SECTION 7.04.      Trustee’s Disclaimer.  The recitals contained herein and in the
Notes, except for the Trustee’s certificates of authentication, shall be taken
as the statements of the Issuer, and the Trustee assumes no responsibility for
their correctness.  The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Notes, except that the Trustee represents that it is duly authorized to execute
and deliver this Indenture, authenticate the Notes and perform its obligations
hereunder.  The Trustee shall not be
accountable for the use or application by the Issuer of Notes or the proceeds
thereof or the use or application of any money received by any Paying Agent
other than the Trustee.

 

SECTION 7.05.      Reports by Trustee to
Holders.  Within 60 days after June 30
of each year commencing with June 30, 2005, the Trustee shall transmit to
the Holders, in the manner and to the extent provided in TIA Section 313(c),
a brief report dated as of such June 30, if required by TIA Section 313(a).
The Trustee also shall comply with TIA Sections 313(b) and (c).

 

The Issuer shall promptly
notify the Trustee whenever the Notes become listed on any securities exchange
and of any delisting thereof and the Trustee shall comply with TIA Section 313(d).

 

SECTION 7.06.      Compensation and
Indemnity.  The Issuer, failing which
any Note Guarantor, shall pay to the Trustee such compensation as shall be
agreed in writing for its services hereunder. The Trustee’s compensation shall
not be limited by any law on 

 

75

 

compensation of a trustee of an express trust. The Issuer, or where
indicated herein the Company, failing which any Note Guarantor, shall reimburse
the Trustee promptly upon request for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation and out-of-pocket expenses of the Trustee’s agents and counsel.

 

The Issuer, failing which
any Note Guarantor (jointly and severally) hereby agrees to indemnify the
Trustee against any and all loss, liability or expense (including attorneys’
fees and expenses) incurred by it without willful misconduct, gross negligence
or bad faith on its part arising out of or in connection with the
administration of this trust and the performance of its duties hereunder
(including the costs and expenses of enforcing this Indenture against the
Issuer and any Guarantor (including this Section 7.06) and defending
itself against any claim, whether asserted by the Issuer, any Note Guarantor,
any Holder or any other Person or liability in connection with the execution
and performance of any of its powers and duties hereunder).  The Trustee shall notify the Issuer promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Issuer shall not relieve the
Issuer or any Note Guarantor of its obligations hereunder. The Issuer shall, at
the Trustee’s sole discretion, defend the claim and the Trustee shall
reasonably cooperate and may participate at the Issuer’s expense in such
defense. Alternatively, the Trustee may have separate counsel of its own
choosing and the Issuer shall pay the fees and expenses of such counsel. The
Issuer need not pay for any settlement made without its consent, which consent
may not be unreasonably withheld. The Issuer shall not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct, gross negligence or bad faith.

 

To secure the Issuer’s
payment obligations in this Section 7.06, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee,
in its capacity as Trustee, except money or property held in trust to pay
principal of, premium, if any, and interest on particular Notes.  Such lien shall survive the satisfaction and
discharge of this Indenture.

 

When the Trustee incurs
expenses after the occurrence of a Default specified in Section 6.01(a)(vii) with
respect to the Issuer, any Note Guarantor, or any Restricted Subsidiary, the
expenses are intended to constitute expenses of administration under Bankruptcy
Law.

 

The Issuer’s obligations
under this Section 7.06 and any claim or lien arising hereunder shall
survive the resignation or removal of any Trustee, the satisfaction and
discharge of the Issuer’s obligations and any rejection or termination under
any Bankruptcy Law, and the termination of this Indenture.

 

SECTION 7.07.      Replacement of Trustee.  (a)  A resignation or removal of the
Trustee and appointment of a successor Trustee shall become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section 7.07.

 

(b)           The Trustee may resign at any time by so notifying the
Issuer. The Holders of a majority in outstanding principal amount of the
outstanding Notes may remove the Trustee by so notifying the Trustee and the
Issuer. The Issuer shall remove the Trustee if:

 

(i)            the
Trustee fails to comply with Section 7.09;

 

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(ii)           the
Trustee is adjudged bankrupt or insolvent;

 

(iii)          a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(iv)          the
Trustee otherwise becomes incapable of acting.

 

(c)           If the Trustee resigns or is removed, or if a vacancy exists
in the office of Trustee for any reason, the Issuer shall promptly appoint a
successor Trustee.  Within one year after
the successor Trustee takes office, the Holders of a majority in principal
amount of the outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Issuer. 
If the successor Trustee does not deliver its written acceptance
required by the next succeeding paragraph of this Section 7.07 within 30
days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Issuer or the Holders of a majority in principal amount of the outstanding
Notes may, at the expense of the Issuer, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(d)           A successor Trustee shall deliver a written acceptance of
its appointment to the retiring Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, provided that all sums
owing to the Trustee hereunder have been paid and subject to the lien provided
for in Section 7.06.

 

(e)           If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer
or the Holders of at least 25% in outstanding principal amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee at the expense of the Issuer.

 

(f)            If the Trustee fails to comply
with Section 7.09, any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

(g)           Notwithstanding the replacement of the Trustee pursuant to
this Section 7.07, the Issuer’s and the Note Guarantors’ obligations under
Section 7.06 shall continue for the benefit of the retiring Trustee.

 

SECTION 7.08.      Successor Trustee by
Merger.  Any corporation into which
the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be
otherwise qualified and eligible under this Article Seven, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.  In case any Notes shall
have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Notes so authenticated with the
same effect as if such successor Trustee had itself authenticated such
Notes.  In case at that time any of the
Notes shall not have been authenticated, any successor Trustee may authenticate
such Notes either in the name of any predecessor hereunder or in the name of the
successor Trustee.  In

 

77

 

all such cases such certificates shall have the full force and effect
which this Indenture provides for the certificate of authentication of the
Trustee shall have; provided, however, that the right to adopt the certificate
of authentication of any predecessor Trustee or to authenticate Notes in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

 

SECTION 7.09.      Eligibility:
Disqualification.  The Trustee shall
at all times satisfy the requirements of TIA Section 310(a)(1) and
(5). The Trustee shall have a combined capital and surplus of at least
€50,000,000 or its equivalent in US dollars as set forth in its most recent
published annual report of condition. No obligor upon the Notes or Person
directly controlling, controlled by, or under common control with such obligor
shall serve as trustee upon the Notes.

 

SECTION 7.10.      Preferential Collection
of Claims Against Issuer.  The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or
been removed shall be subject to TIA Section 311(a) to the extent
indicated therein.

 

SECTION 7.11.      Appointment of
Co-Trustee.  (a)  It is the
purpose of this Indenture that there shall be no violation of any law of any
jurisdiction denying or restricting the right of banking corporations or
associations to transact business as trustee in such jurisdiction. It is
recognized that in case of litigation under this Indenture, and in particular
in case of the enforcement thereof on default, or in the case the Trustee deems
that by reason of any present or future law of any jurisdiction it may not
exercise any of the powers, rights or remedies herein granted to the Trustee or
hold title to the properties, in trust, as herein granted or take any action
which may be desirable or necessary in connection therewith, it may be
necessary that the Trustee appoint an individual or institution as a separate
or co-trustee. The following provisions of this Section 7.11 are adopted
to these ends.

 

(b)           In the event that the Trustee appoints an additional
individual or institution as a separate or co-trustee, each and every remedy,
power, right, claim, demand, cause of action, immunity, estate, title, interest
and lien expressed or intended by this Indenture to be exercised by or vested
in or conveyed to the Trustee with respect thereto shall be exercisable by and
vest in such separate or co-trustee but only to the extent necessary to enable
such separate or co-trustee to exercise such powers, rights and remedies, and
only to the extent that the Trustee by the laws of any jurisdiction is
incapable of exercising such powers, rights and remedies, and every covenant
and obligation necessary to the exercise thereof by such separate or co-trustee
shall run to and be enforceable by either of them.

 

(c)           Should any instrument in writing from the Issuer be required
by the separate or co-trustee so appointed by the Trustee for more fully and
certainly vesting in and confirming to him or it such properties, rights,
powers, trusts, duties and obligations, any and all such instruments in writing
shall, on request, be executed, acknowledged and delivered by the Issuer;
provided, however, that if an Event of Default shall have occurred and be
continuing, if the Issuer does not execute any such instrument within 15 days
after request therefor, the Trustee shall be empowered as an attorney-in-fact
for the Issuer to execute any such instrument in the Issuer’s name and
stead.  In case any separate or
co-trustee or a successor to either shall die, become incapable or acting,
resign or be removed, all the estates, properties, rights, powers, trusts,
duties and obligations of such separate or co-trustee, so far as permitted by
law, shall vest in and be exercised by the Trustee until the appointment of a
new trustee or successor to such separate or co-trustee.

 

78

 

(d)           Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

 

(A)          all
rights and powers, conferred or imposed upon the Trustee shall be conferred or
imposed upon and may be exercised or performed by such separate trustee or
co-trustee; and

 

(B)           no
Trustee hereunder shall be personally liable by reason of any act or omission
of any other Trustee hereunder.

 

(e)           Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article Seven.

 

(f)            Any separate trustee or
co-trustee may at any time appoint the Trustee as its agent or attorney-in-fact
with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Indenture on its behalf and in its name.
If any separate trustee or co-trustee shall die, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and
trusts shall vest in and be exercised by the Trustee, to the extent permitted
by law, without the appointment of a new or successor trustee.

 

ARTICLE EIGHT

DEFEASANCE; SATISFACTION AND DISCHARGE

 

SECTION 8.01.      Issuer’s Option to Effect
Defeasance or Covenant Defeasance. 
The Issuer may, at its option by a resolution of its Board of Directors,
at any time, with respect to the Notes, elect to have either Section 8.02
or Section 8.03 be applied to all outstanding Notes upon compliance with
the conditions set forth below in this Article Eight.

 

SECTION 8.02.      Defeasance and Discharge.  The Issuer may, at its option and at any time
prior to the Stated Maturity of the Notes, elect to have the obligations of the
Issuer and any Note Guarantors discharged with respect to the outstanding Notes
(“Legal
Defeasance”).  Legal
Defeasance means that the Issuer will be deemed to have paid and discharged the
entire Debt represented by the outstanding Notes except as to:

 

(i)            the
rights of holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest on such Notes when such payments
are due from the trust referred to below;

 

(ii)           the
Issuer’s obligations to issue temporary Notes, register, transfer or exchange
any Notes, replace mutilated, destroyed, lost or stolen Notes, maintain an
office or agency for payments in respect of the Notes and segregate and hold
such payments in trust;

 

(iii)          the
rights, powers, trusts, duties and immunities of the Trustee and the
obligations of the Issuer and any Note Guarantors in connection therewith; and

 

79

 

(iv)          the Legal
Defeasance provisions of this Indenture.

 

SECTION 8.03.      Covenant Defeasance.  Upon the Issuer’s exercise under Section 8.01
of the option applicable to this Section 8.03, the Issuer shall be
released from its obligations under any covenant contained in Sections 4.03
through and including 4.15, Sections 4.17 and 4.18 and Sections 4.20 through
and including 4.27 and Section 5.01 with respect to the Notes on and after
the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”).  For this purpose, such
covenant defeasance means that, the Issuer may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby.

 

SECTION 8.04.      Conditions to Defeasance.  In order to exercise either Legal Defeasance
or Covenant Defeasance:

 

(a)           the Issuer, or the Company, as the case may be, must
irrevocably deposit or cause to be deposited in trust with the Trustee, for the
benefit of the holders of the Notes, cash in euro, European Government
Obligations, or a combination thereof, in such amounts as will be sufficient
without reinvestment, in the opinion of an internationally recognized firm of
independent certified public accountants, to pay and discharge the principal
of, premium, if any, and interest, on the outstanding Notes on the Stated
Maturity or on the applicable redemption date, as the case may be, and the
Issuer, or the Company, as the case may be, must (i) specify whether the
Notes are being defeased to maturity or to a particular redemption date and (ii) if
applicable, have delivered to the Trustee an irrevocable notice to redeem all
of the outstanding Notes of such principal, premium, if any, or interest;

 

(b)           in the case of Legal Defeasance, the Issuer, or the Company,
as the case may be, must have delivered to the Trustee an Opinion of Counsel
stating that (x) the Issuer has received from, or there has been published by,
the U.S.  Internal Revenue Service a
ruling, or (y) since the date of this Indenture, there has been a change in
applicable U.S. federal income tax law, in either case to the effect that (and
based thereon such opinion shall confirm that) the holders of the outstanding
Notes will not recognize income, gain or loss for U.S. federal income tax
purposes as a result of such Legal Defeasance and will be subject to U.S.
federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

(c)           in the case of Legal Defeasance, the Issuer, or the Company,
as the case may be, delivers to the Trustee an Opinion of Counsel in each of
the United Kingdom, the Kingdom of Spain and any other jurisdiction in which
the Issuer or the Company is conducting business in a manner which causes the
holders of the Notes to be liable for taxes on payments under the Notes for
which they would not have been so liable but for such conduct of business in
such other jurisdiction, or, in the case of any successor to the Issuer or the
Company, the jurisdiction in which such successor is organized (each a “relevant
jurisdiction”) to the effect that holders of the Notes will not recognize
income, gain or loss in the relevant jurisdiction as a result of such Legal Defeasance
and will be subject to taxes in the relevant jurisdiction (including
withholding taxes) on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

80

 

(d)           in the case of Covenant Defeasance, the Issuer must have
delivered to the Trustee an Opinion of Counsel to the effect that the holders
of the outstanding Notes will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such Covenant Defeasance and will be
subject to U.S. federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such Covenant Defeasance had
not occurred;

 

(e)           in the case of Covenant Defeasance, the Issuer, or the
Company, as the case may be, delivers to the Trustee an Opinion of Counsel in
each of the United Kingdom, the Kingdom of Spain and any other jurisdiction in
which the Issuer or the Company is conducting business in a manner which causes
the holders of the Notes to be liable for taxes on payments under the Notes for
which they would not have been so liable but for such conduct of business in
such other jurisdiction, or, in the case of any successor to the Issuer or the
Company, the jurisdiction in which such successor is organized (each a “relevant
jurisdiction”) to the effect that holders of the Notes will not recognize
income, gain or loss in the relevant jurisdiction as a result of such Covenant
Defeasance and will be subject to taxes in the relevant jurisdiction (including
withholding taxes) on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(f)            no Default or Event of Default
will have occurred and be continuing (i) on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) or (ii) insofar as bankruptcy or insolvency
events described in Section 6.01(a)(vii) is concerned, at any time
during the period ending on the 185th day after the date of such deposit;

 

(g)           such Legal Defeasance or Covenant Defeasance shall not cause
the Trustee for the Notes to have a conflicting interest as defined in this
Indenture with respect to any of the Issuer’s securities;

 

(h)           such Legal Defeasance or Covenant Defeasance will not result
in a breach or violation of, or constitute a default under (other than a
Default or Event of Default resulting from the borrowing of funds to be applied
to such deposit), any material agreement or instrument to which the Issuer or
any Restricted Subsidiary is a party or by which the Issuer or any Restricted
Subsidiary is bound;

 

(i)            such defeasance or Covenant
Defeasance shall not result in the trust arising from such deposit constituting
an investment company within the meaning of the U.S.  Investment Company Act of 1940 unless such
trust shall be registered under such act or exempt from registration thereunder;

 

(j)            the Issuer must have delivered
to the Trustee an opinion of independent counsel in the country of the Issuer’s
incorporation to the effect that after the 185th day following the deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally and an opinion of independent counsel reasonably acceptable to the
Trustee that the Trustee shall have a perfected security interest in such trust
funds for the ratable benefit of the holders of the Notes;

 

(k)           the Issuer must have delivered to the Trustee an Officer’s
Certificate stating that the deposit was not made by the Issuer with the intent
of preferring the holders of the 

 

81

 

Notes over the other creditors of the Issuer with the intent of
defeating, hindering, delaying or defrauding creditors of the Issuer or other
creditors, or removing assets beyond the reach of the relevant creditors or
increasing debts of the Issuer to the detriment of the relevant creditors;

 

(l)            no event or condition shall
exist that would prevent the Issuer from making payments of the principal of,
premium, if any, and interest on the Notes on the date of such deposit or at
any time during the period ending on the 185th day after the date of such
deposit; and

 

(m)          the Issuer must have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the Legal Defeasance or the Covenant Defeasance,
as the case may be, have been complied with.

 

If the funds deposited
with the Trustee to effect Covenant Defeasance are insufficient to pay the
principal of, premium, if any, and interest on the Notes when due because of
any acceleration occurring after an Event of Default, then the Issuer and the
Note Guarantors will remain liable for such payments.

 

SECTION 8.05.      Satisfaction and
Discharge of Indenture.  This
Indenture shall be discharged and shall cease to be of further effect (except
as to surviving rights of registration of transfer or exchange of the Notes as
expressly provided for in this Indenture) when:

 

(a)           the Issuer has irrevocably deposited or caused to be
deposited with the Trustee as funds in trust for such purpose an amount in euro
or European Government Obligations sufficient to pay and discharge the entire
Debt on such Notes that have not, prior to such time, been delivered to the
Trustee for cancellation, for principal of, premium, if any, and any Additional
Amounts and accrued and unpaid interest on the Notes to the date of such
deposit (in the case of Notes which have become due and payable) or to the
Stated Maturity or redemption date, as the case may be and the Issuer has
delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of Notes at Maturity or on the
redemption date, as the case may be and either:

 

(i)            all
the Notes that have been authenticated and delivered (other than destroyed,
lost or stolen Notes that have been replaced or paid and Notes for whose
payment money has been deposited in trust or segregated and held in trust by
the Issuer and thereafter repaid to the Issuer or discharged from such trust as
provided for in this Indenture) have been delivered to the Trustee for
cancellation; or

 

(ii)           all
Notes that have not been delivered to the Trustee for cancellation (x) have
become due and payable (by reason of the mailing of a notice of redemption or
otherwise), (y) will become due and payable at Stated Maturity within one year
or (z) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the Issuer’s name and at the Issuer’s expense; and

 

(b)           the Issuer has paid or caused to be paid all sums payable by
the Issuer under this Indenture; and

 

82

 

(c)           the Issuer has delivered to the Trustee an Officer’s
Certificate and an opinion of counsel, each stating that:

 

(i)            all
conditions precedent provided in this Indenture relating to the satisfaction
and discharge of such Indenture have been satisfied; and

 

(ii)           such
satisfaction and discharge will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or instrument
to which the Issuer or any Subsidiary is a party or by which the Issuer or any
Subsidiary is bound.

 

SECTION 8.06.      Survival of Certain
Obligations.  Notwithstanding
Sections 8.01 and 8.03, any obligations of the Issuer and any Note Guarantor in
Sections 2.02 through 2.14, 7.06, 7.07, and 8.07 through 8.09 shall survive
until the Notes have been paid in full. 
Thereafter, any obligations of the Issuer and any Note Guarantor in Sections
7.06, 8.07 and 8.08 shall survive such satisfaction and discharge.  Nothing contained in this Article Eight
shall abrogate any of the obligations or duties of the Trustee under this
Indenture.

 

SECTION 8.07.      Acknowledgment of
Discharge by Trustee.  Subject to Section 8.09,
after the conditions of Section 8.02 or 8.03 have been satisfied, the
Trustee upon written request shall acknowledge in writing the discharge of all
of the Issuer’s obligations under this Indenture except for those surviving
obligations specified in this Article Eight.

 

SECTION 8.08.      Application of Trust
Money.  Subject to Section 8.09,
the Trustee shall hold in trust cash in euro or European Government Obligations
deposited with it pursuant to this Article Eight. It shall apply the
deposited cash or European Government Obligations through the Paying Agent and
in accordance with this Indenture to the payment of principal of, premium, if
any, interest, and Additional Amounts, if any, on the Notes; but such money
need not be segregated from other funds except to the extent required by law.

 

SECTION 8.09.      Repayment to Issuer.  Subject to Sections 7.06, and 8.01 through
8.04, the Trustee and the Paying Agent shall promptly pay to the Issuer upon
request set forth in an Officer’s Certificate any excess money held by them at
any time and thereupon shall be relieved from all liability with respect to
such money.  The Trustee and the Paying
Agent shall pay to the Issuer upon request any money held by them for the
payment of principal, premium, if any, interest or Additional Amounts, if any,
that remains unclaimed for two years; provided that the Trustee or Paying Agent
before being required to make any payment may cause to be (a) published in
the Financial Times or another
leading newspaper in London, England and in New York (which is expected to be
the Wall Street Journal) (b) made
available to the newswire service of Bloomberg or, if Bloomberg does not then
operate, any similar agency and (c) if and so long as the Notes are listed
on the Luxembourg Stock Exchange and the rules and regulations of such
exchange so require, published in the Luxemburger
Wort or another newspaper having a general circulation in Luxembourg
or mail to each Holder entitled to such money at such Holder’s address (as set
forth in the Security Register) notice that such money remains unclaimed and
that after a date specified therein (which shall be at least 30 days from the
date of such publication or mailing) any unclaimed balance of such money then
remaining shall be repaid to the Issuer. 
After payment to the Issuer, Holders entitled to such money must look to
the Issuer for payment as general creditors unless an applicable law designates
another Person, and all liability of the Trustee and such Paying Agent with
respect to such money shall cease.

 

83

 

SECTION 8.10.      Indemnity for Government
Securities.  The Issuer shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against deposited European Government Obligations or the principal,
premium, if any, interest, if any, and Additional Amounts, if any, received on
such European Government Obligations.

 

SECTION 8.11.      Reinstatement.  If the Trustee or Paying Agent is unable to
apply cash in euro or European Government Obligations in accordance with this Article Eight
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuer’s and each Note Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to this Article Eight until such time as the Trustee
or any such Paying Agent is permitted to apply all such cash or European Government
Securities in accordance with this Article Eight; provided, however, that,
if the Issuer has made any payment of principal of, premium, if any, interest,
if any, and Additional Amounts, if any, on any Notes because of the
reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the cash in euro or
euro Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENTS AND WAIVERS

 

SECTION 9.01.      Without Consent of
Holders.   Without the consent of any
holder of the Notes, the Issuer, the Note Guarantors and the Trustee may amend
or supplement this Indenture to cure any ambiguity, omission, defect or
inconsistency, to provide for the assumption by a successor corporation of the
obligations of the Issuer or the Note Guarantors under this Indenture, to add
additional Note Guarantees with respect to the Notes or to release Note
Guarantors from Note Guarantees as provided by the terms of this Indenture, to
secure the Notes, to add to the covenants of the Issuer or the Note Guarantors
for the benefit of the holders of the Notes, or to surrender any right or power
conferred upon the Issuer, to make any change that does not adversely affect
the rights of any holder of the Notes, or to make any change to the
subordination provisions of this Indenture that would limit or terminate the
benefits available to any holder of Senior Debt under such provisions (subject
to the following paragraph).

 

SECTION 9.02.      With Consent of Holders.  (a)  Without the consent of the holder
of each outstanding Note, the Issuer, the Guarantors and the Trustee may not:

 

(i)            reduce
the amount of Notes whose holders must consent to an amendment or waiver;

 

(ii)           reduce
the rate of or extend the time for payment of interest on any Note;

 

(iii)          reduce
the principal of or extend the Stated Maturity of any Note;

 

(iv)          make
any Note payable in money other than that stated in the Note;

 

84

 

(v)           impair
the right of any holder of the Notes to receive payment of principal of and
interest on such holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
holder’s Notes or any Note Guarantee;

 

(vi)          release
any security interest that may have been granted in favor of the holders of the
Notes other than pursuant to the terms of such security interest;

 

(vii)         reduce
the amount payable upon the redemption of any Note or change the time at which
any Note may be redeemed, as described in such Note under the heading “Optional
Redemption”;

 

(viii)        reduce
the amount payable upon a Change of Control or, at any time after a Change of
Control has occurred, change the time at which the Change of Control Offer
relating thereto must be made or at which the Notes must be repurchased
pursuant to such Change of Control Offer;

 

(ix)           at
any time after the Company is obligated to make a Prepayment Offer with the
Excess Proceeds from Asset Sales, change the time at which such Prepayment
Offer must be made or at which the Notes must be repurchased pursuant thereto;

 

(x)            amend
or modify the provisions described under Section 4.17 of the Indenture;

 

(xi)           make
any change to the subordination provisions of this Indenture or the Notes
Proceeds Loans that would adversely affect the holders of the Notes;

 

(xii)          make
any change in any Note Guarantee that would adversely affect the holders of the
Notes; or

 

(xiii)         release
Cableuropa and the other Subsidiary Guarantors from any of its obligations
under the Notes Proceeds Loans otherwise than in accordance with the terms of
the Notes Proceeds Loans.

 

(b)           Notwithstanding the foregoing, this Indenture may be amended
or supplemented with the consent of the Issuer, the Note Guarantors and the
holders of a majority in aggregate principal principal amount of the
outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for the Notes) and any existing Default or compliance
with any provisions may also be waived (except a default in the payment of
principal, premium or interest and certain covenants and provisions of this
Indenture which cannot be amended without the consent of each holder of an
outstanding Note) with the consent of the holders of at least a majority in
aggregate principal amount of the outstanding Notes.

 

SECTION 9.03.      [Reserved].

 

SECTION 9.04.      Effect of Supplemental
Indentures.  Upon the execution of
any supplemental indenture under this Article Nine, this Indenture shall
be modified in accordance therewith, and such supplemental indenture shall form
a part of this Indenture for 

 

85

 

all purposes; and every Holder theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

 

SECTION 9.05.      Notation on or Exchange
of Notes.  If an amendment,
modification or supplement changes the terms of a Note, the Issuer or Trustee
may require the Holder to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Note and on any Note subsequently authenticated
regarding the changed terms and return it to the Holder. Alternatively, if the
Issuer so determines, the Issuer in exchange for the Note shall issue and the
Trustee shall authenticate a new Note that reflects the changed terms. Failure
to make the appropriate notation or to issue a new Note shall not affect the
validity of such amendment, modification or supplement.

 

SECTION 9.06.      Payment for Consent.  None of the Issuer, any Note Guarantor nor
any Affiliate shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver, amendment, modification or
supplement of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid to all Holders that so consent,
waive or agree to amend, modify or supplement in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.

 

SECTION 9.07.      Notice of Amendment or
Waiver.  Promptly after the execution
by the Issuer and the Trustee of any supplemental indenture or waiver pursuant
to the provisions of Section 9.02, the Issuer shall give notice thereof to
the Holders of each outstanding Note affected, in the manner provided for in Section 13.02(b),
setting forth in general terms the substance of such supplemental indenture or
waiver.

 

SECTION 9.08.      Trustee to Sign
Amendments, Etc.  The Trustee may
execute any amendment, supplement or waiver authorized pursuant, and adopted in
accordance with, this Article Nine; provided that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee’s own rights, duties or immunities under this
Indenture.  The Trustee shall be entitled
to receive, if requested, an indemnity reasonably satisfactory to it and to
receive, and shall be fully protected in relying upon, an Opinion of Counsel
and an Officer’s Certificate each stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is
authorized or permitted by this Indenture. 
Such Opinion of Counsel shall be an expense of the Issuer.

 

ARTICLE TEN

GUARANTEES

 

SECTION 10.01.    Guarantees.  (a)  Each Subsidiary Guarantor hereby
fully and unconditionally guarantees, on an unsecured, joint and several basis,
to each Holder and to the Trustee and its successors and assigns on behalf of
each Holder, the full payment of principal of, premium, if any, interest, if
any, and Additional Amounts, if any on, and all other monetary obligations of
the Issuer under this Indenture and the Notes (including obligations to the
Trustee and the obligations to pay Additional Amounts, if any) with respect to
each Note authenticated and delivered by the Trustee or its agent pursuant to
and in accordance with this Indenture, in accordance with the terms of this Indenture
(all the foregoing being hereinafter collectively called the “Obligations”).  Each Subsidiary Guarantor further agrees that
the Obligations may be extended or renewed, in whole or in 

 

86

 

part, without notice or further assent from such Subsidiary Guarantor
and that such Subsidiary Guarantor shall remain bound under this Article Ten
notwithstanding any extension or renewal of any Obligation.  All payments under such Subsidiary Guarantees
shall be made in euro.

 

(b)           Upon a Repayment Event, the Parent Guarantor will fully and
unconditionally guarantee, on an unsecured, senior, joint and several basis, to
each Holder and to the Trustee and its successors and assigns on behalf of each
Holder, the full payment of principal of, premium, if any, interest, if any,
and Additional Amounts, if any on, and all other monetary obligations of the
Issuer under this Indenture and the Notes (including obligations to the Trustee
and the obligations to pay Additional Amounts, if any) with respect to each
Note authenticated and delivered by the Trustee or its agent pursuant to and in
accordance with this Indenture, in accordance with the terms of this Indenture
(all the foregoing being hereinafter collectively called the “Obligations”).  The Parent Guarantor will agree that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Parent Guarantor and that such Parent Guarantor shall
remain bound under this Article Ten notwithstanding any extension or
renewal of any Obligation.  All payments
under such Parent Guarantee shall be made in euro.

 

(c)           Each Note Guarantor hereby agrees that its obligations
hereunder shall be as if it were principal debtor and not merely surety, unaffected
by, and irrespective of, any invalidity, irregularity or unenforceability of
any Note or this Indenture, any failure to enforce the provisions of any Note
or this Indenture, any waiver, modification or indulgence granted to the Issuer
with respect thereto by the Holders or the Trustee, or any other circumstance
which may otherwise constitute a legal or equitable discharge of a surety or
Note Guarantor (except payment in full); provided that, notwithstanding the
foregoing, no such waiver, modification, indulgence or circumstance shall
without the written consent of such Note Guarantor increase the principal
amount of a Note or the interest rate thereon or change the currency of payment
with respect to any Note, or alter the Stated Maturity thereof.  Each Note Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of the Issuer, any right to require that the Trustee
pursue or exhaust its legal or equitable remedies against the Issuer prior to
exercising its rights under such Note Guarantor’s Guarantee (including, for the
avoidance of doubt, any right which such Note Guarantor may have to require the
seizure and sale of the assets of the Issuer to satisfy the outstanding principal
of, interest on or any other amount payable under each Note prior to recourse
against such Note Guarantor or its assets), protest or notice with respect to
any Note or the Debt evidenced thereby and all demands whatsoever, and
covenants that such Guarantee shall not be discharged with respect to any Note
except by payment in full of the principal thereof and interest thereon or as
otherwise provided in this Indenture.  If
at any time any payment of principal of, premium, if any, interest, if any, or
Additional Amounts, if any, on such Note is rescinded or must be otherwise
restored or returned upon the insolvency, bankruptcy or reorganization of the
Issuer, each Note Guarantor’s obligations hereunder with respect to such
payment shall be reinstated as of the date of such rescission, restoration or
returns as though such payment had become due but had not been made at such
times.

 

(d)           Each Note Guarantor also agrees to pay any and all costs and
expenses (including reasonable attorneys’ fees) incurred by the Trustee or any
Holder in enforcing any rights under this Section 10.01.

 

87

 

SECTION 10.02.    Subrogation.  (a)  Each Note Guarantor shall be
subrogated to all rights of the Holders against the Issuer in respect of any
amounts paid to such Holders by the Note Guarantor pursuant to the provisions
of its Guarantee.

 

(b)           Each Note Guarantor agrees that they shall not be entitled
to any right of subrogation in relation to the Holders in respect of any
Obligations guaranteed hereby until payment in full of all Obligations.  Each Note Guarantor further agrees that, as
between them, on the one hand, and the Holders and the Trustee, on the other
hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated
as provided in Section 6.02 for the purposes of such Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby, and (y) in the
event of any declaration of acceleration of such obligations as provided in Section 6.02,
such Obligations (whether or not due and payable) shall forthwith become due
and payable by such Note Guarantor for the purposes of this Section 10.02
subject to Section 10.01(c) above.

 

SECTION 10.03.    Release of the Subsidiary
Guarantees.  (a)  Upon a
Repayment Event and subject to the following paragraph, the Subsidiary
Guarantee of a Subsidiary Guarantor and any Guarantees of its Subsidiaries,
once it becomes due, is a continuing guarantee and shall (i) remain in
full force and effect until payment in full of all of its obligations under the
Subsidiary Guarantee, (ii) be binding upon each Subsidiary Guarantor and
its successors and (iii) inure to the benefit of, and be enforceable by,
the Trustee, the holders and their successors, transferees and assigns.

 

(b)           Each Subsidiary Guarantor shall automatically and
unconditionally be released from all obligations under its Subsidiary
Guarantee, and such Subsidiary Guarantee shall thereupon terminate and be
discharged and be of no further force or effect, concurrently with any sale by
way of enforcement by the senior lenders under the Senior Bank Facility of a
security interest therein of (i) all of the Capital Stock of such
Subsidiary Guarantor or any parent company of such Subsidiary Guarantor or (ii) all
or substantially all of the assets of such Subsidiary Guarantor, in each case
so long as:

 

(i)            the
proceeds of such sale are in cash (or substantially all in cash) and are
applied in the manner described under Section 11.06;

 

(ii)           such
Subsidiary Guarantor is released from its obligations in respect of all other
Debt that is subordinated or junior in right of payment to the Notes and all
other debt ranking equally with the Notes provided,
however, that nothing in this
clause (ii) shall (x) require the release by the Subsidiary
Guarantors or any of their Subsidiaries of any of its or their obligations in
respect of any other Debt that is senior in right of payment to the Notes,
including any of their obligations in respect of the Senior Bank Facility or
(y) prohibit the assignment of the Notes Proceeds Loans in accordance with
their terms; and

 

(iii)          the
sale is made pursuant to either a public auction or a competitive bid process
to obtain the best price reasonably obtainable given the then-current condition
(financial or otherwise), earnings, business, assets and prospects of such
Subsidiary Guarantor and its Subsidiaries, the senior lenders under the Senior
Bank Facility having consulted with an internationally recognized investment
bank (including without limitation and to the extent appropriate a lender under
the Senior Bank Facility or a relationship bank of the Company or its
Subsidiaries) or an internationally recognized accounting firm regarding the
appropriate procedures for 

 

88

 

obtaining the best price for
the shares or assets, considered the recommendations of that investment bank or
accounting firm and used its reasonable efforts to cause the procedures
recommended by that investment bank or accounting firm to be implemented in all
material respects in relation to the sale and to permit holders to participate
in the sale process as bidders provided,
however, that the senior lenders
under the Senior Bank Facility shall not be under any further obligation to
cause such recommendation to be implemented to the extent not implemented in
connection with such sale by the relevant court, authority or other third party
required to act in connection with such sale; provided
further, however, that
such reasonable efforts will, to the extent permitted by applicable law,
include attempting to conduct such sale process other than through a court or
legal proceeding.

 

(c)           Upon the presentation of an Officer’s Certificate with
respect to the occurrence of an event specified in the preceding paragraph
(including confirmation from the investment bank or accounting firm that it has
consulted with the senior lenders regarding the appropriate procedures for
obtaining the best price for the shares or the assets), the Trustee shall
execute any documents reasonably required in order to evidence such release,
discharge and termination in respect of the Subsidiary Guarantee.

 

(d)           Neither the Issuer nor any Subsidiary Guarantor shall be
required to make a notation on the Notes to reflect the Subsidiary Guarantee or
any such release, termination or discharge. In the event that the Subsidiary
Guarantor is released from its obligations under the Subsidiary Guarantee at a
time when the Notes are listed on the Luxembourg Stock Exchange, the Issuer
will, to the extent required by the rules of the Luxembourg Stock
Exchange, publish notice of the release of the Subsidiary Guarantee in a daily
leading newspaper with general circulation in Luxembourg (expected to be the Luxemburger Wort) and send a copy of such
notice to the Luxembourg Stock Exchange.

 

(e)           In addition, the Subsidiary Guarantee of a Subsidiary
Guarantor shall be released:

 

(i)            in
connection with any sale or other disposition of all or substantially all of
the assets of such Subsidiary Guarantor (including by way of merger or
consolidation) to a Person that is not (either before or after giving effect to
such transaction) the Issuer, the Parent Guarantor or a Restricted Subsidiary,
if the sale or other disposition is an Asset Sale and does not violate the
covenant set forth under Section 4.11;

 

(ii)           in
connection with any sale or other disposition of all of the Capital Stock of
such Subsidiary Guarantor to a Person that is not (either before or after
giving effect to such transaction) the Issuer, the Parent Guarantor or a
Restricted Subsidiary, if the sale or other disposition is an Asset Sale and
does not violate the covenant set forth under Section 4.11;

 

(iii)          upon
legal defeasance of the Issuer’s obligations or satisfaction and discharge of
this Indenture; or

 

(iv)          upon
designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of the Indenture, including Section 4.17.

 

89

 

SECTION 10.04.    Limitation and
Effectiveness of Guarantees. 
Notwithstanding any other provision of this Indenture, the obligations
of any Note Guarantor under its Guarantee shall be limited under the relevant
laws applicable to such Note Guarantor and the granting of such Guarantees
(including laws relating to corporate benefit, capital preservation, financial
assistance, fraudulent conveyances and transfers or transactions under value)
to the maximum amount payable such that such Guarantees shall not constitute a
fraudulent conveyance, fraudulent transfer, voidable preference, a transaction
under value or unlawful financial assistance or otherwise cause the Note
Guarantor to be insolvent under relevant law or such Guarantee to be void,
unenforceable or ultra vires or cause the directors of such Note Guarantor to
be held in breach of applicable corporate or commercial law providing for such
Guarantee.

 

SECTION 10.05.    Notation Not Required.  Neither the Issuer nor any Note Guarantor
shall be required to make a notation on the Notes to reflect any Guarantee or
any release, termination or discharge thereof.

 

SECTION 10.06.    Successors and Assigns.  This Article Ten shall be binding upon
any Note Guarantor and each of its successors and assigns and shall inure to
the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Notes shall automatically extend to and be vested in such transferee
or assigns, all subject to the terms and conditions of this Indenture.

 

SECTION 10.07.    No Waiver.  Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this Article Ten shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of
any right, power or privilege. The rights, remedies and benefits of the Trustee
and the Holders herein expressly specified are cumulative and are not exclusive
of any other rights, remedies or benefits which either may have under this Article Ten
at law, in equity, by statute or otherwise.

 

SECTION 10.08.    Modification.  No modification, amendment or waiver of any
provision of this Article Ten, nor the consent to any departure by any
Note Guarantor therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Trustee, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
No notice to or demand on any Note Guarantor in any case shall entitle any Note
Guarantor to any other or further notice or demand in the same, similar or
other circumstance.

 

ARTICLE ELEVEN

SUBORDINATION

 

SECTION 11.01.    Agreement to Subordinate.  Each Subsidiary Guarantor agrees and each
Holder by accepting a Note agrees, that all payments pursuant to the Subsidiary
Guarantees made by or on behalf of any such Subsidiary Guarantor are
subordinated to the extent and in the manner provided in this Article Eleven
to all existing and future obligations of such Subsidiary Guarantor under the
Senior Debt of such Subsidiary Guarantor and that such subordination is for the
benefit of and enforceable by the holders of the Senior Debt of such Subsidiary
Guarantor.  Each Subsidiary Guarantee
shall in all respects rank senior in 

 

90

 

right of payment to any future Subordinated Debt of the Subsidiary
Guarantor that makes any such Subsidiary Guarantee.

 

SECTION 11.02.    Subordination of the
Subsidiary Guarantees Prior to a Repayment Event.  (a)  Prior to a Repayment Event, the
Subsidiary Guarantees will be senior subordinated, unsecured, unconditional,
joint and several obligations of the Subsidiary Guarantors. To the extent that
the Subsidiary Guarantees may be enforceable by the holders of the Notes, the
payment on the Subsidiary Guarantees shall be subordinated in right of payment
to the payment, when due, of all existing and future Senior Debt of the
relevant Subsidiary Guarantor (including the Senior Bank Facility and the VAT
Discounting Facility). The Subsidiary Guarantees shall rank pari passu in right of payment with all
Senior Subordinated Debt, including the Guarantees of the Existing Notes, and
senior to all Subordinated Obligations, of the relevant Subsidiary Guarantor,
including the Existing Equity Value Certificates. The Subsidiary Guarantees
also will be effectively subordinated to any secured Debt of the Subsidiary
Guarantors to the extent of the value of the assets securing such Debt and also
to any remaining amounts.

 

(b)           Each Subsidiary Guarantor may not make any payment on its
applicable Subsidiary Guarantee, or repurchase, redeem or otherwise retire any
Notes (collectively, “pay its Subsidiary Guarantee”), if:

 

(i)            any
amount (including principal, premium or interest) arising under or in respect
of any Senior Debt is not paid within any applicable grace period (including at
maturity); or

 

(ii)           any
other default (however described) on Senior Debt occurs and the maturity of
such Senior Debt is accelerated or becomes payable upon demand, in each case,
in accordance with its terms unless, in either case:

 

(A)          the
default has been cured or waived and any such acceleration has been rescinded
in writing by the Representative of such Senior Debt; or

 

(B)           such
Senior Debt has been paid in full in cash; provided,
however, that the applicable Subsidiary Guarantor may pay its
Subsidiary Guarantee without regard to the foregoing if the applicable
Subsidiary Guarantor and the Trustee receive written notice approving such
payment from the Representative of such issue of Senior Debt.

 

(c)           During the continuance of any default (other than a default
described in paragraphs b(i) or (b)(ii) above) with respect to any
Designated Senior Debt pursuant to which the maturity thereof may be
accelerated or declared to be payable on demand, or on the expiration of any
applicable grace period without further notice (except any notice required to
affect the acceleration), the applicable Subsidiary Guarantor may not pay its
Subsidiary Guarantee for a period (a “Payment Blockage Period”)
commencing upon the receipt by the applicable Subsidiary Guarantor and the
Trustee of written notice of such default from the Representative of the
holders of such Designated Senior Debt specifying an election to effect a
Payment Blockage Period (a “Payment Blockage Notice”) and ending
179 days thereafter (unless such Payment Blockage Period is earlier
terminated;

 

91

 

(i)            by
written notice to the Trustee and the applicable Subsidiary Guarantor from the
Representative that gave such Payment Blockage Notice;

 

(ii)           because
the Representative that gave such Payment Blockage Notice gives written notice
to the Trustee and the applicable Subsidiary Guarantors that such default is no
longer continuing or subsisting; or

 

(iii)          because
such Designated Senior Debt has been repaid in full in cash).

 

(d)           Unless the holders of such Designated Senior Debt or the
Representative of such holders have accelerated the maturity of such Designated
Senior Debt or declared it to be payable upon demand and not rescinded such
acceleration or declaration by notice in writing from the Representative of
such Designated Senior Debt, the applicable Subsidiary Guarantor may (unless
otherwise prohibited as described in the first sentence of preceding paragraph)
resume payments on its Subsidiary Guarantee after the end or termination of
such Payment Blockage Period. Not more than one Payment Blockage Notice with
respect to the same event of default, any other events of default existing and
known to the person giving such notice at the time of such notice, or any other
events of default arising directly as a result of the occurrence which gave
rise to the first-mentioned event of default, in each case in respect of the
same issue of Designated Senior Debt, may be given during any consecutive 360-day
period unless such event of default or such other events of default have been
cured or waived for a period of not less than 90 consecutive days.

 

(e)           Upon any payment or distribution of the assets of any of the
Subsidiary Guarantors upon a total or partial liquidation, dissolution or
winding up of such Subsidiary Guarantor or in a bankruptcy, reorganization,
insolvency (concurso),
receivership, judicial intervention or similar proceeding relating to such
Subsidiary Guarantor or any of its respective Property, the holders of Senior
Debt will be entitled to receive, on a pari passu basis with the Trustee’s
right to receive its fees, costs and expenses, payment in full in cash before
the holders of the Notes are entitled to receive any payment whatsoever (including
principal or interest) on the Notes, except that the holders of Notes may
receive and retain (subject to applicable law) shares of ordinary stock and any
debt securities that are subordinated to Senior Debt to at least the same
extent as the Subsidiary Guarantees. Until the Senior Debt is paid in full in
cash, any payment or distribution to which holders of the Notes would be
entitled but for the subordination provisions of the Indenture will be made to
holders of the Senior Debt. If a payment or distribution is made to, on behalf
or for the benefit of, holders of Notes that, due to the subordination
provisions, should not have been made to them, such holders are required to
hold it in trust for the holders of Senior Debt and pay it over to them as their
interests may appear (as notified by the holders of Senior Debt or their
Representative).

 

(f)            If payment of any Notes is
accelerated when any Designated Senior Debt is outstanding, each Subsidiary
Guarantor may not pay its Subsidiary Guarantee until ten Business Days after
the Representatives of all issues of Designated Senior Debt receive notice of
such acceleration and, thereafter, may pay its Subsidiary Guarantee only if the
Indenture otherwise permits payment at that time.

 

(g)           By reason of such subordination provisions, in the event of
bankruptcy, reorganization, insolvency (concurso)
or similar proceedings relating to a Subsidiary Guarantor, holders of Senior
Debt and other creditors (including trade creditors) of such Note Guarantor may
recover more ratably, even if the applicable Subsidiary Guarantee is pari 

 

92

 

passu with their
claims, than the holders of the Notes. In such event, there may be insufficient
assets or no assets remaining or available to pay the principal of or interest
on the Notes.

 

SECTION 11.03.    Subordination of the
Subsidiary Guarantees Upon a Repayment Event.  Upon a Repayment Event the Subsidiary
Guarantees will be subordinated pursuant to the terms described below in
Sections 11.04, 11.05, 11.06 and 11.07.

 

SECTION 11.04.    Enforcement Standstills.  Upon and after a Repayment Event, no
Subsidiary Guarantee may become due, and neither the holders of the Notes nor
the Trustee may take any Enforcement Action against a Subsidiary Guarantor
without the prior consent of the applicable Representative unless:

 

(i)            certain
insolvency or reorganization events have occurred in relation to such
Subsidiary Guarantor; or

 

(ii)           the
holders of Designated Senior Debt have taken any Enforcement Action in relation
to such Subsidiary Guarantor; or

 

(iii)          a
Default has occurred under the Notes; and

 

(A)          the
holders of Notes or the Trustee has notified the applicable Representative; and

 

(B)           a
period of not less than 179 days has passed from the date the applicable
Representative was notified of the default (a “Standstill Period”); and

 

(C)           at
the end of the Standstill Period, the Default is continuing and has not been
waived by the holders of the Notes.

 

SECTION 11.05.    Payment Blockage
Provisions.  (a)  Upon and after
a Repayment Event, a Subsidiary Guarantor may not make any payment in respect
of its Subsidiary Guarantee (except for payments in Permitted Junior Securities
or from the trust, if any, described in Section 8) if:

 

(i)            a
payment default on Designated Senior Debt of such Subsidiary Guarantor has
occurred and is continuing beyond any applicable grace period; or

 

(ii)           any
other default occurs and is continuing on any Designated Senior Debt of such
Subsidiary Guarantor that permits the holders of such Designated Senior Debt to
accelerate its maturity and the Trustee receives a notice of such default (a “Payment
Blockage Notice”) from the Issuer or the holders of such Designated Senior
Debt.

 

(b)           Payments on any such Subsidiary Guarantee may and will be
resumed:

 

(i)            in
the case of a payment default, when such default is cured or waived; or

 

(ii)           in
the case of a non-payment default, upon the earlier of the date on which such
non-payment default is cured or waived and 179 days after the date on 

 

93

 

which the applicable Payment Blockage Notice
is received, unless the maturity of any Designated Senior Debt has been
accelerated.

 

(c)           Not more than one Payment Blockage Notice with respect to
the same event of default, any other events of default existing and known to
the person giving such notice at the time of such notice, or any other events
of default arising directly as a result of the occurrence which gave rise to
the first-mentioned event of default, in each case in respect of the same issue
of Designated Senior Debt, may be given during any consecutive 360-day period
unless such event of default or such other events of default have been cured or
waived for a period of not less than 90 consecutive days.

 

(d)           For the avoidance of doubt, a Subsidiary Guarantor and/or
Issuer will nevertheless be entitled to pay, and the Trustee shall be entitled
to receive and retain, amounts which are for its own account by way of costs,
charges, expenses or by way of indemnity or remuneration pursuant to the
Indenture or any Subsidiary Guarantee.

 

SECTION 11.06.    Subordination on
Insolvency.  (a)  Upon and after
a Repayment Event, in the event of any distribution to the creditors of a
Subsidiary Guarantor:

 

(i)            in
a total or partial liquidation, dissolution or winding up of such Subsidiary
Guarantor;

 

(ii)           in
an insolvency, bankruptcy, reorganization, composition, receivership,
administration, voluntary arrangement, judicial intervention or similar
proceeding (quiebra, suspensión de pagos o
concurso) relating to such Subsidiary Guarantor or any of its
properties;

 

(iii)          in
an assignment for the benefit of the creditors of such Subsidiary Guarantor; or

 

(iv)          in
any marshalling of any such Subsidiary Guarantor’s assets and liabilities;

 

the holders of Senior Debt of such Subsidiary Guarantor shall be
entitled to receive payment in full in cash of all obligations in respect of
such Senior Debt (including interest after the commencement of any proceeding
at the rate specified in the applicable Senior Debt whether or not allowed or
allowable in any such proceeding), on a pari passu basis with the Trustee’s
right to receive its fees, costs and expenses, before the holders of Notes will
be entitled to receive any payment with respect to the Subsidiary Guarantee of
such Subsidiary Guarantor (except that holders of Notes may receive and retain
Permitted Junior Securities and payments made from the trust, if any, described
under Article 8).

 

(b)           As a result of the enforcement standstills, payment blockage
provisions and other subordination provisions described above, holders of Notes
may recover less, ratably, in the event of an insolvency, bankruptcy,
liquidation or reorganization of any Subsidiary Guarantor than other creditors
of such Subsidiary Guarantor, including trade creditors.

 

SECTION 11.07.    Turnover.  Upon and after a Repayment Event, if the
Trustee receives a payment in respect of the Notes (except for payments in
Permitted Junior Securities or from the trust, if any, described under Article 8)
when:

 

94

 

(i)            the
payment is prohibited by the provisions of the Indenture described in Section 11.02;
and

 

(ii)           the
Trustee has actual knowledge that payment is so prohibited;

 

then the Trustee will hold the payment on
trust for the benefit of the holders of the relevant Senior Debt and, upon the
proper written request of the holders of the relevant Senior Debt, the Trustee
will deliver the amounts in trust to the Representative or any other proper
representative of the holders of the relevant Senior Debt.

 

SECTION 11.08.    Intercreditor
Agreement.  Upon a Repayment Event
the Issuer, each Note Guarantor and the Trustee may (without any further
consent of the holders of Notes) enter into any intercreditor agreement or deed
in favor of the holders of Senior Debt of the Subsidiary Guarantors to give
effect to the preceding subordination provisions of the Indenture described in Section 11.03
to 11.07 inclusive.

 

SECTION 11.09.    Continuing Offer.  This Article 11 shall constitute a
continuing offer to all persons who become holders of or continue to hold
Senior Debt, and such provisions are made for the benefit of the holders of
Senior Debt and such holders will be obligees under the Indenture and any one
or more of them may enforce such subordination provisions.

 

SECTION 11.10.    Amendment and Modification.  The provisions of this Article 11 may
not be amended or modified without the written consent of the holders of all
Senior Debt.

 

SECTION 11.11.    Trustee Entitled to Rely.  Upon any payment or distribution pursuant to
this Article Eleven the Trustee and the Holders shall be entitled to rely (i) upon
any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 11.02 are pending, (ii) upon
a certificate of the liquidating trustee or agent or other Person making such
payment or distribution to the Trustee or to the Holders or (iii) upon the
senior agent or any other proper representative of the holders of the relevant
Senior Debt for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto
or to this Article Eleven.  In the
event that the Trustee determines, in good faith, that evidence is required
with respect to the right of any Person as a holder of a relevant Guarantor’s
Senior Debt to participate in any payment or distribution pursuant to this Article Eleven,
the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt held by such
Person, the extent to which such Person is entitled to participate in such payment
or distribution and other facts pertinent to the rights of such Person under
this Article Eleven, and, if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment. 
The provisions of Sections 7.01, 7.02 and 7.03 shall be applicable to
all actions or omissions of actions by the Trustee pursuant to this Article Eleven.

 

SECTION 11.12.    Trustee to Effectuate
Subordination.  Each holder of a
Note, by accepting such Note, will be deemed to have:

 

(i)            appointed
and authorized the Trustee to give effect to such subordination provisions;

 

95

 

(ii)           authorized
the Trustee to become a party to any future intercreditor arrangements
described above;

 

(iii)          agreed
to be bound by such subordination provisions and the provisions of any future
intercreditor arrangements described above that do not materially adversely
affect the rights of holders of the Notes; and

 

irrevocably appointed the
Trustee to act on its behalf to enter into and comply with such subordination
provisions and the provisions of any future intercreditor arrangements
described above.

 

SECTION 11.13.    Trustee Not Fiduciary for
the Holders of Senior Debt.  The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt of the Issuer or any Guarantor and shall not be liable to any holder of
Senior Debt of the Issuer or any Guarantor if it shall in good faith mistakenly
pay over or distribute to Holders or the Issuer, a Guarantor or any other
Person, cash, property or securities to which any holder of Senior Debt of any
Guarantor shall be entitled by virtue of this Article Eleven or
otherwise.  With respect to the holders
of Senior Debt, the Issuer and any Guarantor, the Trustee undertakes to perform
or to observe only such of its covenants or obligations as are specifically set
forth in this Indenture and no implied covenants or obligations with respect to
the holders of Senior Debt, the Issuer or any Guarantor shall be read into this
Indenture against the Trustee.

 

SECTION 11.14.    Reliance on Subordination
Provisions.  Each Holder by accepting
a Note acknowledges and agrees that the foregoing subordination provisions are
intended to be an inducement and a consideration to any and all holders of
existing and future Senior Debt of the Issuer and any Guarantors to acquire and
continue to hold, or to continue to hold such Senior Debt and such shall be
deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Debt.

 

SECTION 11.15.    Trustee’s Compensation Not
Prejudiced.  Nothing in this Article Eleven
shall apply to amounts due to the Trustee pursuant to other Sections of this
Indenture.

 

SECTION 11.16.    Subrogation
to Rights of Holders of Senior Debt. 
Subject to the unconditional discharge in full of the Senior Debt of any
Guarantor and such Guarantors having no further obligations under such Senior
Debt, the Holders of the Notes shall be subrogated (equally and ratably with
the holders of all Debt of such Guarantor which by its express terms is pari
passu and subordinated to Senior Debt of such Guarantor to the same extent as
such Guarantee is subordinated and which is entitled to like rights of
subrogation) to the rights of the holders of Senior Debt of such Guarantor to
receive payments and distributions of cash, property and securities applicable
to the Senior Debt until amounts due under such Guarantee shall be paid in
full.  For purposes of such subrogation,
no payments or distributions to the holders of Senior Debt of such Guarantor of
any cash, property or securities to which the Holders of the Notes would be
entitled except for the provisions of this Article Eleven, and no payments
pursuant to the provisions of this Article Eleven to the holders of Senior
Debt of such Guarantor by Holders of the Notes, shall, as among the Guarantor,
its creditors (other than the holders of Senior Debt of such Guarantor and the
Holders), be deemed to be a payment or distribution by such Guarantor to or on
account of the holders of Senior Debt of such Guarantor.

 

96

 

SECTION 11.17.    Provisions Solely to Define
Relative Rights.  The provisions of
this Article Eleven are and are intended solely for the purpose of
defining the relative rights of the Holders of the Notes on the one hand and
the holders of Senior Debt of the Issuer and each Guarantor on the other
hand.  Nothing contained in this Article Eleven
or elsewhere in this Indenture or in the Notes is intended to or shall (a) impair,
as between the Issuer or any Guarantor and the Holders of the Notes, the
obligation of the Issuer or such Guarantor to pay to the Holders of the Notes
of amounts due under the Notes or Guarantees as and when the same shall become
due and payable in accordance with its terms; or (b) affect the relative
rights against the Issuer or such Guarantor of the Holders of the Notes and
creditors of the Issuer or such Guarantor other than the holders of Senior Debt
of the Issuer or such Guarantor; or (c) prevent the Trustee or the Holder
of any Note from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this Article Eleven
of the holders of Senior Debt of the Issuer or such Guarantor.

 

SECTION 11.18.    Notice to Trustee.  (a)  The Issuer shall give prompt
written notice to the Trustee of any fact known to the Issuer which would prohibit
the making of any payment to or by the Trustee in respect of the Notes.  Notwithstanding the provisions of this Article Eleven
or any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts which would prohibit the making of any
payment to or by the Trustee in respect of the Notes, unless and until a Trust
Officer of the Trustee shall have received written notice thereof from the
Issuer or relevant Guarantor, the representative of the holders of Senior Debt
of the Issuer or from any trustee, fiduciary or agent therefor; and, prior to
the receipt of any such written notice, the Trustee, subject to TIA Sections
315(a) through 315(d), shall be entitled in all respects to assume that no
such facts exist, provided, that, if a Trust Officer of the Trustee shall not
have received the notice provided for in this Section at least three
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of (and premium, if any) or interest on any Note), then
anything  herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within three Business Days prior to such date.

 

(b)           Subject to TIA Sections 315(a) through 315(d), the
Trustee shall be entitled to rely on the delivery to it of a written notice by
a Person representing himself to be a holder of Senior Debt of the Issuer (or a
trustee, fiduciary or agent therefor) to establish that such notice has been
given by a holder of Senior Debt of the Issuer (or a trustee, fiduciary or
agent therefor).  In the event that the
Trustee determines in good faith that further evidence is required with respect
to the right of any Person as a holder of Senior Debt of the Issuer to
participate in any payment or distribution pursuant to this Article Eleven,
the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt of the Issuer held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and any other facts pertinent to the rights of
such Person under this Article Eleven and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

 

SECTION 11.19.    Acceleration Only Pursuant
to Section 6.02.  The Trustee
shall only accelerate the Notes in accordance with Section 6.02 hereof.

 

97

 

SECTION 11.20.    Trust Moneys Not
Subordinated.  Notwithstanding
anything contained herein to the contrary, payments from cash or the proceeds
of Cash Equivalents held in trust under Article Eight hereof by the
Trustee (or other qualifying trustee) and which were deposited in accordance
with the terms of Article Eight hereof and not in violation of Section 11.05
hereof for the payment of principal of (and premium, if any) and interest on
the Notes or any Guarantee shall not be subordinated to the prior payment of
any Senior Debt of the Issuer or relevant Guarantor or subject to the
restrictions set forth in this Article Eleven, and none of the Holders
shall be obligated to pay over any such amount to such Guarantor or any holder
of Senior Debt of the Issuer such Guarantor or any other creditor of the Issuer
or such Guarantor.

 

ARTICLE TWELVE

HOLDERS’ MEETINGS

 

SECTION 12.01.    Purposes of Meetings.  A meeting of the Holders may be called at any
time pursuant to this Article Twelve for any of the following purposes:

 

(a)           to give any notice to the Issuer or any Note Guarantor or to
the Trustee, or to give any directions to the Trustee, or to consent to the
waiving of any Default hereunder and its consequences, or to take any other
action authorized to be taken by Holders pursuant to Article Nine;

 

(b)           to remove the Trustee and appoint a successor trustee
pursuant to Article Seven; or

 

(c)           to consent to the execution of an indenture supplement
pursuant to Section 9.02.

 

SECTION 12.02.    Place of Meetings.  Meetings of Holders may be held at such place
or places as the Trustee or, in case of its failure to act, the Issuer, any
Note Guarantor or the Holders calling the meeting, shall from time to time
determine.

 

SECTION 12.03.    Call and Notice of
Meetings.  (a)  The Trustee may
at any time (upon not less than 21 days’ notice) call a meeting of Holders to
be held at such time and at such place in London, England; New York, New York
or in such other city as determined by the Trustee pursuant to Section 12.02.
Notice of every meeting of Holders, setting forth the time and the place of
such meeting and in general terms the action proposed to be taken at such
meeting, shall be mailed, at the Issuer’s expense, to each Holder and published
in the manner contemplated by Section 12.02(b).

 

(b)           In case at any time the Issuer, pursuant to a resolution of
the Board of Directors, or the Holders of at least 10% in aggregate principal
amount at maturity of the Notes then outstanding, shall have requested the
Trustee to call a meeting of the Holders, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first giving of the notice of such meeting
within 20 days after receipt of such request, then the Issuer or the Holders of
Notes in the amount above specified may determine the time (not less than 21
days after notice is given) and the place in London, England; New York, New
York or in such other city as determined by the Issuer or the Holders pursuant
to Section 12.02 for such meeting and may call such 

 

98

 

meeting to take any action authorized in Section 12.01 by giving
notice thereof as provided in Section 12.01(a).

 

SECTION 12.04.    Voting at Meetings.  To be entitled to vote at any meeting of
Holders, a Person shall be (i) a Holder at the relevant record date set in
accordance with Section 6.15 or (ii) a Person appointed by an
instrument in writing as proxy for a Holder or Holders by such Holder or
Holders. The only Persons who shall be entitled to be present or to speak at
any meeting of Holders shall be the Person so entitled to vote at such meeting
and their counsel and any representatives of the Trustee and its counsel and
any representatives of the Issuer and any Note Guarantor and their counsel.

 

SECTION 12.05.    Voting Rights, Conduct and
Adjournment.  (a) 
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
in regard to proof of the holding of Notes and of the appointment of proxies
and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Notes shall be proved in the manner specified
in Section 2.03 and the appointment of any proxy shall be proved in such
manner as is deemed appropriate by the Trustee or by having the signature of
the Person executing the proxy witnessed or guaranteed by any bank, banker or
trust company customarily authorized to certify to the holding of a Note such
as a Global Note.

 

(b)           At any meeting of Holders, the presence of Persons holding
or representing Notes in an aggregate principal amount at Stated Maturity
sufficient under the appropriate provision of this Indenture to take action
upon the business for the transaction of which such meeting was called shall
constitute a quorum.  Subject to any
required aggregate principal amount at Stated Maturity of Notes required for
the taking of any action pursuant to Article Nine, in no event shall less
than a majority of the votes given by Persons holding or representing Notes at
any meeting of Holders be sufficient to approve an action. Any meeting of
Holders duly called pursuant to Section 12.03 may be adjourned from time
to time by vote of the Holders (or proxies for the Holders) of a majority of
the Notes represented at the meeting and entitled to vote, whether or not a
quorum shall be present; and the meeting may be held as so adjourned without
further notice. No action at a meeting of Holders shall be effective unless
approved by Persons holding or representing Notes in the aggregate principal
amount at Stated Maturity required by the provision of this Indenture pursuant
to which such action is being taken.

 

(c)           At any meeting of Holders, each Holder or proxy shall be
entitled to one vote for each €1,000 aggregate principal amount at Stated
Maturity of outstanding Notes held or represented.

 

SECTION 12.06.    Revocation of Consent by
Holders at Meetings.  At any time
prior to (but not after) the evidencing to the Trustee of the taking of any
action at a meeting of Holders by the Holders of the percentage in aggregate
principal amount at maturity of the Notes specified in this Indenture in
connection with such action, any Holder of a Note the serial number of which is
included in the Notes the Holders of which have consented to such action may,
by filing written notice with the Trustee at its Corporate Trust Office and
upon proof of holding as provided herein, revoke such consent so far as
concerns such Note. Except as aforesaid, any such consent given by the Holder
of any Note shall be conclusive 

 

99

 

and binding upon such Holder and upon all future Holders and owners of
such Note and of any Note issued in exchange therefor, in lieu thereof or upon
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon such Note.  Any action taken
by the Holders of the percentage in aggregate principal amount at maturity of
the Notes specified in this Indenture in connection with such action shall be
conclusively binding upon the Issuer, any Note Guarantors, the Trustee and the
Holders.  This Section 12.06 shall
not apply to revocations of consents to amendments, supplements or waivers,
which shall be governed by the provisions of Section 9.04.

 

ARTICLE THIRTEEN

MISCELLANEOUS

 

SECTION 13.01.    Trust Indenture Act
Controls.  If and to the extent that
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by, or with another provision (an “incorporated provision”) of
the TIA expressly incorporated herein, by reference or otherwise, such duties
or incorporated provision shall control.

 

SECTION 13.02.    Notices.  (a)  Any notice or communication shall
be in writing and delivered in person or mailed by first-class mail or sent by
facsimile transmission addressed as follows:

 

if to the Issuer:

 

ONO Finance plc

10 Upper Bank Street

London E14 5JJ

United Kingdom

Facsimile:  +44 207 600 6515

Attention:  Peter Hills

 

with a copy to:

 

Clifford Chance

10 Upper Bank Street

London E14 5JJ

United Kingdom

Facsimile:  +44 207 006 5555

Attention:  John W. Connolly III

 

if to Cableuropea or any other
Note Guarantor:

 

Cableuropa

Edificio Belagua

Calle Bassauri 7-9

Urbanización La Florida

28023 Aravaca, Madrid

Spain

 

Facsimile: + 34 91 708 393 44

 

100

 

Attention: Legal Department

 

With copies to:

Clifford Chance

10 Upper Bank Street

London E14 5JJ

 

Facsimile: +44 207 006 5555

Attention: John W. Connolly III

 

if to the Trustee:

 

The Bank of New York

One Canada Square

London E14 5AL

 

Telephone: +44 (0) 20 7964 6402

Facsimile: +44 (0) 20 7964 6399

Attention: Global Trust
Services

 

with copies to:

 

The Bank of New York
(Luxembourg) S.A.

Aerogolf Center

1A, Hoehenhof

1736 Senningerberg

Grand Duchy of Luxembourg

 

The Issuer, any Note
Guarantor or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.  All communications delivered to the Trustee
shall be deemed effective when received.

 

(b)           Notices to the Holders regarding the Notes shall be:

 

(i)            published
in a leading newspaper having general circulation in London (which is expected
to be the Financial Times) and in
New York (which is expected to be The Wall
Street Journal), (B) made available to the newswire service of
Bloomberg or, if Bloomberg does not then operate, any similar agency and, (C) if
and so long as the Notes are listed on the Luxembourg Stock Exchange and the rules and
regulations of such exchange so require, published in the Luxemburger Wort (or another leading
newspaper having a general circulation in Luxembourg); and

 

(ii)           in the case of certificated Notes, mailed to each Holder by
first-class mail at such Holder’s respective address as it appears on the
registration books of the Registrar.

 

Notices given by
first-class mail shall be deemed given five (5) calendar days after
mailing and notices given by publication shall be deemed given on the first
date on which publication is made. 
Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders.  If a notice or communication is 

 

101

 

mailed in the manner provided above, it is duly given, whether or not
the addressee receives it.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

(c)           If and so long as the Notes are listed on any securities
exchange instead of or in addition to the Luxembourg Stock Exchange, notices
shall also be given in accordance with any applicable requirements of such
alternative or additional securities exchange.

 

(d)           If and so long as the Notes are represented by Global Notes,
notice to Holders, in addition to being given in accordance with Section 13.02(b) above,
shall be given by delivery of the relevant notice to Euroclear and Clearstream
for communication to entitled account holdings in substitution for the
previously-mentioned publication.

 

(e)           Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice.  Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.

 

SECTION 13.03.    Communication by Holders
with Other Holders.  Holders may
communicate pursuant to TIA Section 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Issuer, any Note
Guarantor, the Trustee, the Registrar and anyone else shall have the protection
of TIA Section 312(c).

 

SECTION 13.04.    Certificate and Opinion as
to Conditions Precedent.  Upon any
request or application by the Issuer or any Note Guarantor to the Trustee to
take or refrain from taking any action under this Indenture (except in
connection with the original issuance of the Notes on the date hereof), the
Issuer or any Note Guarantor, as the case may be, shall furnish upon request to
the Trustee:

 

(a)           an Officer’s Certificate in form reasonably satisfactory to
the Trustee stating that, in the opinion of the signer, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(b)           an Opinion of Counsel in form reasonably satisfactory to the
Trustee stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

Any Officer’s Certificate
may be based, insofar as it relates to legal matters, upon an opinion of
counsel, unless the officer signing such certificate knows, or in the exercise
of reasonable care should know, that such Opinion of Counsel with respect to
the matters upon which such Officer’s Certificate is based are erroneous.  Any opinion of counsel may be based and may
state that it is so based, insofar as it relates to factual matters, upon an
Officer’s Certificate stating that the information with respect to such factual
matters is in the possession of the Issuer, unless the counsel signing such
opinion of counsel knows, or in the exercise of reasonable care should know,
that the Officer’s Certificate with respect to the matters upon which such
opinion of counsel is based are erroneous.

 

102

 

SECTION 13.05.    Statements Required in
Certificate or Opinion.  Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

(a)           a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein relating
thereto;

 

(b)           a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

 

(c)           a statement that, in the opinion of each such individual, he
has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(d)           a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.

 

SECTION 13.06.    Rules by Trustee,
Paying Agent and Registrar.  The
Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar and the Paying Agent may make reasonable rules for
their functions.

 

SECTION 13.07.    Legal Holidays.  If an Interest Payment Date or other payment
date is not a Business Day, payment shall be made on the next succeeding day
that is a Business Day, and no interest shall accrue for the intervening
period. If a Record Date is not a Business Day, the Record Date shall not be
affected.

 

SECTION 13.08.    Governing Law.  THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

SECTION 13.09.    Jurisdiction.  The Issuer and any Note Guarantors agree that
any suit, action or proceeding against the Issuer or any Note Guarantor brought
by any Holder of the Notes or the Trustee arising out of or based upon this
Indenture, any Guarantee or the Notes may be instituted in any state or Federal
court in the Borough of Manhattan, New York, New York, and any appellate court
from any thereof, and each of them irrevocably submits to the non-exclusive
jurisdiction of such courts in any suit, action or proceeding. Each of the
Issuer and any Note Guarantor irrevocably waives, to the fullest extent
permitted by law, any objection to any suit, action, or proceeding that may be
brought in connection with this Indenture, any Guarantee or the Notes,
including such actions, suits or proceedings relating to securities laws of the
United States of America or any state thereof, in such courts whether on the
grounds of venue, residence or domicile or on the ground that any such suit,
action or proceeding has been brought in an inconvenient forum. Each of the
Issuer and any Note Guarantor agrees that final judgment in any such suit,
action or proceeding brought in such court shall be conclusive and binding upon
the Issuer or a Note Guarantor, as the case may be, and may be enforced in any
court to the jurisdiction of which the Issuer or such Guarantor, as the case
may be, are subject by a suit upon such judgment; provided, however, that
service of process is effected upon the Issuer or any Note Guarantor, as the
case may be, in the manner provided by this Indenture. The Issuer has appointed
CT Corporation System, with offices on the date hereof at 111 Eighth Avenue,
New York, New York 10011, or any successor, as its authorized agent (the “Authorized
Agent”), upon whom process may be served in any suit, action or proceeding
arising out of or based upon this 

 

103

 

Indenture, any Guarantee or the Notes or the transactions contemplated
herein which may be instituted in any state or Federal court in the Borough of
Manhattan, New York, New York, by any Holder or the Trustee, and expressly
accepts the non-exclusive jurisdiction of any such court in respect of any such
suit, action or proceeding.  Each of the
Issuer and any Note Guarantor hereby represents and warrants that the
Authorized Agent has accepted such appointment and has agreed to act as said
agent for service of process, and the Issuer and any Note Guarantors agree to
take any and all action, including the filing of any and all documents that may
be necessary to continue such respective appointment in full force and effect
as aforesaid. Service of process upon the Authorized Agent shall be deemed, in
every respect, effective service of process upon the Issuer and any Note
Guarantor. Notwithstanding the foregoing, any action involving the Issuer or
any Note Guarantor arising out of or based upon this Indenture, any Guarantee
or the Notes may be instituted by any Holder or the Trustee in any other court
of competent jurisdiction.

 

SECTION 13.10.    No Recourse Against Others.  A director, officer, employee or shareholder,
as such, of the Issuer or any Guarantor shall not have any liability for any
obligations of the Issuer or any Note Guarantor under the Notes, this Indenture
or any Guarantee or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Note, each Holder shall waive and
release all such liability. The waiver and release shall be part of the
consideration for the issue of the Notes.

 

SECTION 13.11.    Successors.  All agreements of the Issuer and any Note
Guarantor in this Indenture and the Notes shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

 

SECTION 13.12.    Multiple Originals.  The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original but all such counterparts
shall together constitute but one and the same Indenture. One signed copy is
enough to prove this Indenture.

 

SECTION 13.13.    Table of Contents,
Cross-Reference Sheet and Headings. 
The table of contents, cross-reference sheet and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not intended to be considered a part hereof and shall not modify or
restrict any of the terms or provisions hereof.

 

SECTION 13.14.    Severability.  In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 13.15.    Currency Indemnity.   Euro is the sole currency of account and
payment for all sums payable under the Notes, any Note Guarantees and this
Indenture.  Any amount received or
recovered in respect of the Notes or any Note Guarantee in a currency other than
euro (whether as a result of, or of the enforcement of, a judgment or order of
a court of any jurisdiction, in the winding up or dissolution of the Issuer,
any Subsidiary or otherwise) by a holder of the Notes in respect of any sum
expressed to be due to such holder from the Issuer or a Note Guarantor will
constitute a discharge of such obligation only to the extent of the euro amount
which the recipient is able to purchase with the amount so received or
recovered in such other currency on the date of that receipt or recovery (or,
if it is not possible to purchase euro on that date, on the first date on which
it is possible to do so).  If the euro
amount that could be recovered following such a purchase is less than the euro
amount expressed to be due to the recipient under any Note, the Issuer and any
Note 

 

104

 

Guarantors will jointly and severally indemnify the recipient against
the cost of the recipient’s making a further purchase of euro in an amount
equal to such difference.  For the purposes
of this paragraph, it will be sufficient for the holder to certify that it
would have suffered a loss had the actual purchase of euro been made with the
amount so received in that other currency on the date of receipt or recovery
(or, if a purchase of euro on that date had not been possible, on the first
date on which it would have been possible). 
These indemnities, to the extent permitted by law:

 

(i)            constitute
a separate and independent obligation from the Issuer’s and any Note Guarantor’s
other obligations;

 

(ii)           give
rise to a separate and independent cause of action;

 

(iii)          apply
irrespective of any waiver granted by any holder of a Note; and

 

(iv)          will
continue in full force and effect despite any other judgment, order, claim or
proof for a liquidated amount in respect of any sum due under any Note or any
other judgment or order.

 

105

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  ONO FINANCE PLC,
  

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  CABLEUROPA S.A.U., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDITERRÁNEA NORTE SISTEMAS DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDITERRÁNEA SUR SISTEMAS DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

106

 

	
   

  	
  REGIÓN DE MURCIA DE CABLE, S.A., 

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VALENCIA DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   THE BANK OF NEW YORK, 

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

107

 

EXHIBIT A

[FORM OF FACE OF NOTE]

 

[If Regulation S Global
Note – ISIN Number XS0192592425/Common Code 019259242]

 

[If Restricted Global
Note – ISIN Number XS0192592938/Common Code 019259293]

 

No.

 

[Include if Global Note —
UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED AS NOMINEE FOR THE BANK OF NEW
YORK (THE “COMMON DEPOSITARY”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS REGISTERED IN THE
NAME OF THE BANK OF NEW YORK, AS COMMON DEPOSITARY OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY (AND ANY
PAYMENT IS MADE TO THE BANK OF NEW YORK OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY, ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN
AS MUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK, HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
THE COMMON DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

THIS GLOBAL NOTE AND ANY
RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON AND PROCEDURES FOR RESALES AND OTHER TRANSFERS OF
THIS GLOBAL NOTE TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE
INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED SECURITIES GENERALLY.  THE
HOLDER OF THIS GLOBAL NOTE SHALL BE DEEMED, BY THE ACCEPTANCE HEREOF, TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.]

 

[Include if Restricted
Global Note — THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE 

 

A-1

 

ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS
NOTE) (“THE RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE ISSUER, (B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE
THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO ANY REQUIREMENT OF
LAW THAT THE DISPOSITION OF ITS PROPERTY OR THE PROPERTY OF SUCH INVESTOR
ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL AND TO
COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, AND ANY APPLICABLE LOCAL
LAWS AND REGULATIONS AND FURTHER SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S
RIGHTS PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (E) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM AND (ii) IN EACH OF THE FOREGOING
CASES, TO REQUIRE THAT AN ASSIGNMENT FORM IN THE FORM APPEARING ON
THE OTHER SIDE OF THIS NOTE AND ANY OTHER CERTIFICATE REQUIRED UNDER THIS
INDENTURE ARE COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.  THE FOREGOING RESTRICTIONS ON RESALE WILL NOT
APPLY SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE.

 

EACH PURCHASER OF THIS
GLOBAL NOTE OR ANY INTEREST HEREIN IS HEREBY NOTIFIED THAT THE SELLER OF THIS
GLOBAL NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]

 

[Include if Regulation S
Global Note – UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING, AN OFFER OR
SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE U.S.
SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE U.S.
SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH
RULE 144A UNDER THE U.S. SECURITIES ACT.]

 

A-2

 

101/2%
SENIOR NOTE DUE 2014

 

ONO Finance Plc, a
limited liability company organized under the laws of England and Wales, (the “Issuer”),
for value received promises to pay to The Bank of New York Depository
(Nominees) Limited or registered assigns the principal sum as indicated on the
Security Register (as defined in the Indenture referred to on the reverse
hereof) on May 15, 2014.

 

From May 17, 2004,
or from the most recent interest payment date to which interest has been paid
or provided for, cash interest on this Note shall accrue at 101/2%,
payable semiannually on May 15 and November 15 of each year,
beginning on November 15, 2004, to the Person in whose name this Note (or
any predecessor Note) is registered at the close of business on the preceding May 1
or November 1, as the case may be.

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature of an authorized signatory, this Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory
for any purpose.

 

Reference is hereby made
to the further provisions of this Note set forth on the reverse hereof and to
the provisions of the Indenture, which provisions shall for all purposes have
the same effect as if set forth at this place.

 

IN WITNESS WHEREOF, ONO
Finance Plc has caused this Note to be signed manually or by facsimile by its
duly authorized signatory.

 

Dated: May 17, 2004

 

	
   

  	
  ONO FINANCE PLC

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

THE BANK OF NEW YORK,

as Trustee, certifies that this is one of the Notes referred to in the
Indenture.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  

 

A-3

 

[FORM OF REVERSE
SIDE OF NOTE]

 

Senior Note Due 2014

 

1.             Interest

 

ONO Finance plc, a
limited liability company organized under the laws of England (the “Issuer”),
for value received promises to pay interest on the principal amount of this Note
from May 17, 2004 semi-annually at the rate per annum shown above.  Each Note will bear interest from the date of
the Indenture or from the most recent interest payment date to which interest
has been paid or provided for, whichever is later.  Interest will be payable on each Note on May 15
and November 15 of each year, commencing on November 15, 2004.  Interest will be payable to holders of record
on each Note in respect of the principal amount thereof outstanding as of the
immediately preceding May 1 or November 1, as the case may be.  Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months and will be paid on overdue
principal and other overdue amounts at the same rate.  Any interest paid on this Note shall be
increased to the extent necessary to pay Additional Amounts as set forth in
this Note.

 

2.             Subordination

 

The guarantees
evidenced by this Note are, to the extent and in the manner provided in the
Indenture, subordinate and subject in right of payment of the prior payment in
full of all Senior Debt, and this Note is issued subject to such
provisions.  Each Holder of this Note, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Trustee on its behalf to take such action as may be necessary
or appropriate to effectuate the subordination as provided in the Indenture and
(c) appoints the Trustee its attorney-in-fact for such purpose.

 

3.             Additional
Amounts

 

 All payments that the Issuer makes under or
with respect to the Notes or that any Note Guarantor makes under or with
respect to any Note Guarantee will be made free and clear of, and without
withholding or deduction for or on account of, any present or future tax, duty,
levy, impost, assessment or other governmental charges (including, without
limitation, penalties, interest and other similar liabilities related thereto)
of whatever nature (collectively, “Taxes”) imposed or levied by or on behalf of
any jurisdiction in which the Issuer, any Note Guarantor or any Surviving
Person is incorporated, organized or otherwise resident for tax purposes or
from or through which any of the foregoing makes any payment on the Notes or by
or within any department or political subdivision thereof (each, a “Relevant
Taxing Jurisdiction”), unless the Issuer, such Note Guarantor or such Surviving
Person, as the case may be, is required to withhold or deduct Taxes by law or
by the interpretation or administration of law. 
If the Issuer, a Note Guarantor or such Surviving Person is required to
withhold or deduct any amount for, or on account of, Taxes of a Relevant Taxing
Jurisdiction from any payment made under or with respect to the Notes, the
Issuer, such Note Guarantor or such Surviving Person, as the case may be, will
pay additional amounts (“Additional Amounts”) as may be necessary to ensure
that the net amount received and retained by each holder of the Notes
(including Additional Amounts) after such withholding, deduction, imposition or
levy will be not less than the amount the holder would have received and
retained if such Taxes had not been required to be withheld or deducted.

 

A-4

 

None of the Issuer, any
Note Guarantor or any Surviving Person will, however, pay any Additional Amounts
to a holder or beneficial owner of Notes in respect or on account of:

 

(a)           any Taxes that are imposed or levied by a Relevant Taxing
Jurisdiction by reason of the holder’s or beneficial owner’s present or former
connection with such Relevant Taxing Jurisdiction (other than the mere receipt
or holding of Notes or by reason of the receipt of payments thereunder or the
exercise or enforcement of rights under any Notes or the Indenture);

 

(b)           any Taxes that are imposed or levied by reason of the
failure of the holder or beneficial owner of Notes, following the Issuer’s
written request addressed to the holder (and made at a time that would enable
the holder or beneficial owner acting reasonably to comply with that request),
to comply with any certification, identification, information or other
reporting requirements, whether required by statute, treaty, regulation or
administrative practice of a Relevant Taxing Jurisdiction, as a precondition to
exemption from, or reduction in the rate of withholding or deduction of, Taxes
imposed by the Relevant Taxing Jurisdiction (including, without limitation, a
certification that the holder or beneficial owner is not resident in the
Relevant Taxing Jurisdiction);

 

(c)           any estate, inheritance, gift, sales, transfer, personal
property or similar Taxes;

 

(d)           any Tax that is payable otherwise than by withholding or
deduction from payments made under, or with respect to, the Notes;

 

(e)           any Tax that is imposed or levied by reason of the
presentation (where presentation is required in order to receive payment) of
such Notes for payment on a date more than 30 days after the date on which
such payment became due and payable or the date on which payment thereof is
duly provided for, whichever is later, except to the extent that the holder or
beneficial owner thereof would have been entitled to Additional Amounts had the
Notes been presented for payment on any date during such 30 day period;

 

(f)            any withholding or deduction in
respect of any Taxes where such withholding or deduction is imposed on a
payment to an individual and is required to be made pursuant to European
Council Directive 2003/48/EC or any other Directive implementing the
conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the
taxation of savings income or any law implementing or complying with, or
introduced in order to conform to, such Directive; or

 

(g)           any Tax that is imposed on or with respect to a payment made
to a holder or beneficial owner who would have been able to avoid such
withholding or deduction by presenting the Notes to another paying agent in a
Member State of the European Union.

 

The Issuer and any Note
Guarantor will (i) make such withholding or deduction as is required by
applicable law and (ii) remit the full amount withheld or deducted to the
relevant taxing authority in accordance with applicable law.

 

A-5

 

At least 30 calendar days
prior to each date on which any payment under or with respect to the Notes is
due and payable, if the Issuer or any Note Guarantor will be obligated to pay
Additional Amounts with respect to such payment (unless such obligation to pay
Additional Amounts arises after the 30th day prior to the date on
which payment under or with respect to the Notes is due and payable, in which
case it will be promptly thereafter), the Issuer will deliver to the Trustee an
Officer’s Certificate stating that such Additional Amounts will be payable and
the amounts so payable and will set forth such other information necessary to
enable the Trustee to pay such Additional Amounts to holders on the payment
date.  The Issuer will promptly publish a
notice in accordance with Section 13.02 of the Indenture stating that such
Additional Amounts will be payable and describing the obligation to pay such
amounts.

 

Upon request, the Issuer
or any Note Guarantor, as the case may be, will furnish to a holder of the
Notes copies of tax receipts evidencing the payment of any Taxes by the Issuer
or such Note Guarantor in such form as provided in the normal course by the
taxing authority imposing such Taxes and as is reasonably available to the
Issuer or such Note Guarantor.  If,
notwithstanding the efforts of the Issuer to obtain such receipts the same are
not obtainable, the Issuer or such Note Guarantor will provide such holder with
other evidence reasonably satisfactory to the holder of such payments by the
Issuer or such Note Guarantor.

 

In addition, the Issuer
and any Note Guarantor will pay any present or future stamp, issue,
registration, court documentation, excise or property taxes or other similar
taxes, charges and duties, including interest and penalties with respect
thereto, imposed by or in any Relevant Taxing Jurisdiction in respect of the
execution, issue or delivery of the Notes or any other document or instrument
referred to thereunder and any such taxes, charges or duties imposed by any
jurisdiction as a result of, or in connection with, the enforcement of the
Notes or any other such document or instrument following the occurrence of any
Event of Default with respect to the Notes.

 

Whenever an Indenture or
this Note refers to, in any context, the payment of principal, premium, if any,
interest or any other amount payable under or with respect to any Note, such
reference includes the payment of Additional Amounts, if applicable.

 

4.             Method
of Payment

 

The Issuer shall pay
interest on this Note (except defaulted interest) to the persons who are
registered Holders of this Note at the close of business on the Record Date for
the next Interest Payment Date even if this Note is cancelled after the Record
Date and on or before the Interest Payment Date. The Issuer shall pay principal
and interest in euro in immediately available funds that at the time of payment
is legal tender for payment of public and private debts; provided, that payment
of interest may be made at the option of the Issuer by check mailed to the
Holder.

 

The amount of payments in
respect of interest on each Interest Payment Date shall correspond to the
aggregate principal amount of Notes represented by the Regulation S Global Note
and the Restricted Global Note, as established by the Registrar at the close of
business on the relevant Record Date. Payments of principal shall be made upon
surrender of the Regulation S Global Note and the Restricted Global Note to the
Paying Agent.

 

A-6

 

5.             Paying
Agent and Registrar

 

Initially, The Bank of
New York or one of its affiliates shall act as Paying Agent and Registrar.  The Issuer or any of its Affiliates may act
as Paying Agent, Registrar or co-Registrar.

 

6.             Indenture

 

The Issuer issued the
Notes under an indenture dated as of May 17, 2004 (the “Indenture”),
among the Issuer, the Guarantors and The Bank of New York, as trustee (the “Trustee”).
The terms of the Notes include those stated in the Indenture and those
expressly made part of the Indenture by reference to the U.S. Trust Indenture
Act of 1939 as in effect on the date of the Indenture and, to the extent
required by any amendment after such date, as so amended (the “U.S. Trust
Indenture Act”). Terms defined in the Indenture and not defined herein have
the meanings ascribed thereto in the Indenture. The Notes are subject to such
terms, and Holders are referred to the Indenture and the U.S. Trust Indenture
Act for a statement of those terms.

 

The Notes are unsecured
senior obligations of the Issuer and are issued in an initial aggregate
principal amount at maturity of €180,000,000. 
The Indenture imposes certain limitations on the Issuer and its
Affiliates, including, without limitation, limitations on the incurrence of
indebtedness and issuance of stock, the payment of dividends and other payment
restrictions affecting the Issuer and its subsidiaries, the sale of assets,
transactions with and among Affiliates of the Issuer and the Restricted
Subsidiaries, change of control and Liens.

 

7.             Optional
Redemption

 

 At any time prior May 15, 2009 the Issuer
may redeem all or a part of the Notes upon not less than 30 nor more than 60
days’ prior notice, at a redemption price equal to 100% of the principal amount
of the Notes redeemed plus the Applicable Premium (calculated as of a date no
more than three Business Days prior to the relevant redemption notice) as of,
and accrued and unpaid interest and Additional Amounts, if any, to the date of
redemption.

 

At any time and from time
to time, prior to May 15, 2007 Cableuropa may, at its option, use the
proceeds of one or more Public Equity Offerings to make prepayments under the
Fixed Rate Notes Proceeds Loan to enable the Issuer to, and the Issuer will be
required to use any such prepayments to, redeem up to a maximum of 35% of the
aggregate principal amount of the Fixed Rate Notes (calculated giving effect to
any issuance of Additional Notes) at a redemption price equal to 110.5% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the redemption date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided, however, that after giving
effect to any such redemption, at least 65% of the aggregate principal amount
of the Fixed Rate Notes remains outstanding, provided,
further, however, that prior to May 15, 2006,
to the extent that the Issuer redeems any Fixed Rate Notes pursuant to this
provision, it shall also redeem Floating Rate Notes, on a pro rata basis on the
aggregate principal amount of Fixed Rate Notes and Floating Rate Notes then
outstanding (calculated giving effect to any issuance of Additional
Notes).  The Issuer shall make any such
redemption within 90 days following the closing of any such Public Equity
Offering upon not less than 30 nor more than 60 days’ prior notice.

 

A-7

 

At any time on or after May 15,
2009, upon not less than 30 nor more than 60 days’ notice, the Issuer may
redeem all or part of the Notes.  These
redemptions will be in amounts of €1,000 or integral multiples thereof at the
following redemption prices (expressed as percentages of their principal amount
at maturity), plus accrued and unpaid interest, if any, to the redemption date,
if redeemed during the 12-month period commencing on May 15 of the years
set forth below.  

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  105.250

  	
  %

  
	
  2010

  	
   

  	
  103.500

  	
  %

  
	
  2011

  	
   

  	
  101.750

  	
  %

  
	
  20012 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

8.             Redemption
Upon Changes in Withholding Taxes

 

If, as a result of:

 

(e)           any amendments after May 17, 2004
in the laws (or regulations or rulings promulgated thereunder) of any Relevant
Taxing Jurisdiction; or

 

(c)           any changes after May 17, 2004 in the official
application or official interpretation of the laws, treaties, regulations or
rulings (including a holding, judgment or order by a court of competent
jurisdiction or a change in published practice) of any Relevant Taxing
Jurisdiction;

 

the Issuer, any Note
Guarantor or any surviving Person would be obligated to pay, on the next date
for any payment and as a result of any such amendment or change, Additional
Amounts, as described above, with respect to the Relevant Taxing Jurisdiction,
which the Issuer, any Note Guarantor or any surviving Person cannot avoid by
the use of reasonable measures available to it, then the Issuer may redeem all,
but not less than all, of the Notes at any time thereafter, upon not less than
30 nor more than 60 days’ notice, at a redemption price of 100% of their
principal amount, plus accrued and unpaid interest, if any, to the redemption
date.  Prior to the giving of any notice
of redemption described in this paragraph, the Issuer will deliver to the
Trustee:

 

(i)            an
Officer’s Certificate of the Issuer stating that the obligation to pay such
Additional Amounts cannot be avoided by the Issuer or any Note Guarantor or
surviving Person taking reasonable measures available to it; and

 

(ii)           a
written opinion of independent legal counsel to the Issuer of recognized
standing to the effect that the Issuer or any Note Guarantor or surviving
Person has or will become obligated to pay such Additional Amounts as a result
of a change, amendment, official interpretation or application described above.

 

For the avoidance
of doubt, measures will be deemed not to be “reasonable” if they would breach
the provisions of the Indenture.

 

A-8

 

9.             Notice
of Redemption

 

The Issuer will publish a
notice of any optional redemption of the Notes described above in accordance
with the provisions of Section 13.02 of the Indenture.  If the Notes are listed at such time on the
Luxembourg Stock Exchange, the Issuer will inform the Luxembourg Stock Exchange
of the principal amount of the Notes that have not been redeemed in connection
with any optional redemption.  If fewer
than all the Notes are to be redeemed at any time, the Trustee will select the
Notes by a method that complies with the requirements, as certified to the
Trustee by the Issuer, of the principal securities exchange, if any, on which
the Notes are listed at such time or, if the Notes are not listed on a
securities exchange, pro rata, by lot or by such other method as the Trustee in
its sole discretion shall deem fair and appropriate; provided, however that no such partial redemption shall
reduce the portion of the principal amount of a Note not redeemed to less than
€1,000.

 

10.           Repurchase
at the Option of Holders

 

Upon the occurrence of a
Change of Control, each holder of Notes shall have the right to require the
Issuer to repurchase all or any part (equal to €1,000 or an integral multiple
thereof) of such holder’s Notes pursuant to the offer (the “Change of Control
Offer”) described below at a purchase price (the “Change of Control Purchase
Price”) equal to 101% of the principal amount hereof, plus accrued and unpaid
interest, if any, to the date of purchase (the “Change of Control Purchase Date”)
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

When the aggregate amount
of Excess Proceeds exceeds €10 million (taking into account income earned on
such Excess Proceeds, if any), Cableuropa will be required to make an offer to
make prepayments under the Notes Proceeds Loans sufficient to enable the Issuer
to purchase Notes pursuant to the Prepayment Offer (as defined below), and the
Issuer shall be required to make an offer to purchase (the “Prepayment Offer”)
the Notes which offer shall be in the amount of the Allocable Excess Proceeds,
on a pro rata basis according to principal amount, at a purchase price equal to
100% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the purchase date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date), in
accordance with the procedures (including prorating in the event of
over-subscription) set forth in the Indenture. 
To the extent that any portion of the amount of Net Available Cash
remains after compliance with the preceding sentence and provided that all holders of Notes have
been given the opportunity to tender their Notes for purchase in accordance
with the Indenture, the Company or such Restricted Subsidiary may use such
remaining amount for any general corporate purpose and the amount of Excess
Proceeds will be reset to zero.

 

The term “Allocable
Excess Proceeds” will mean the product of (a) the Excess Proceeds and (b) a
fraction, the numerator of which is the aggregate principal amount of the Notes
outstanding on the date of the Prepayment Offer and the denominator of which is
the sum of the aggregate principal amount of the Notes outstanding on the date
of the Prepayment Offer and the aggregate principal amount of other Debt of
Cableuropa outstanding on the date of the Prepayment Offer that is pari passu in right of payment with the
Notes Proceeds Loans and subject to terms and conditions in respect of Asset
Sales similar in all material respects to the covenant described hereunder and
requiring Cableuropa to make an offer to purchase such Debt at substantially
the same time as the Prepayment Offer.

 

A-9

 

Within five Business Days
after Cableuropa is obligated to make a Prepayment Offer as described in the
preceding paragraph, the Issuer shall send a notice pursuant to Section 13.02
of the Indenture, accompanied by such information regarding the Issuer, the
Company and the Restricted Subsidiaries as the Issuer in good faith believes
will enable the holders to make an informed decision with respect to such
Prepayment Offer.  Such notice shall
state, among other things, the purchase price and the purchase date, which
shall be, subject to any contrary requirements of applicable law, a Business
Day no earlier than 30 days nor later than 60 days from the date such notice is
given.

 

11.           Denominations

 

The Notes are in
denominations of €1,000 and integral multiples thereof of principal amount at
maturity. The transfer of Notes may be registered, and Notes may be exchanged,
as provided in the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture.

 

12.           Unclaimed
Money

 

All moneys paid by the
Issuer or any Guarantor to the Trustee or a Paying Agent for the payment of the
principal of, or premium, if any, or interest on, any Notes that remain
unclaimed at the end of two years after such principal, premium or interest has
become due and payable may be repaid to the Issuer or any Guarantor, subject to
applicable law, and the Holder of such Note thereafter may look only to the
Issuer or any Guarantor for payment thereof.

 

13.           Discharge
and Defeasance

 

Subject to certain
conditions, the Issuer at any time may terminate some or all of its obligations
and the obligations of the Guarantors under the Notes, the Guarantees and the
Indenture if the Issuer irrevocably deposits with the Trustee euro or European
Government Obligations, or a combination thereof, for the payment of principal
and interest on the Notes to redemption or maturity, as the case may be.

 

14.           Amendment,
Supplement and Waiver.  (a)  The
Issuer, the Guarantors and the Trustee may:

 

(i)            reduce
the amount of Notes whose holders must consent to an amendment or waiver;

 

(ii)           reduce
the rate of or extend the time for payment of interest on any Note;

 

(iii)          reduce
the principal of or extend the Stated Maturity of any Note;

 

(iv)          make
any Note payable in money other than that stated in the Note;

 

(v)           impair
the right of any holder of the Notes to receive payment of principal of and
interest on such holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such holder’s
Notes or any Note Guarantee;

 

A-10

 

(vi)          release
any security interest that may have been granted in favor of the holders of the
Notes other than pursuant to the terms of such security interest;

 

(vii)         reduce
the amount payable upon the redemption of any Note or change the time at which
any Note may be redeemed, as described in such Note under the heading “Optional
Redemption”;

 

(viii)        reduce
the amount payable upon a Change of Control or, at any time after a Change of
Control has occurred, change the time at which the Change of Control Offer
relating thereto must be made or at which the Notes must be repurchased
pursuant to such Change of Control Offer;

 

(ix)           at
any time after the Company is obligated to make a Prepayment Offer with the
Excess Proceeds from Asset Sales, change the time at which such Prepayment
Offer must be made or at which the Notes must be repurchased pursuant thereto;

 

(x)            amend
or modify the provisions described under Section 4.17 of the Indenture;

 

(xi)           make
any change to the subordination provisions of this Indenture or the Notes
Proceeds Loans that would adversely affect the holders of the Notes;

 

(xii)          make
any change in any Note Guarantee that would adversely affect the holders of the
Notes; or

 

(xiii)         release
Cableuropa and the other Subsidiary Guarantors from any of its obligations
under the Notes Proceeds Loans otherwise than in accordance with the terms of
the Notes Proceeds Loans.

 

(b)           Notwithstanding the foregoing, the Indenture may be amended
or supplemented with the consent of the Issuer, the Note Guarantors and the
holders of a majority in aggregate principal amount of the outstanding Notes
(including consents obtained in connection with a tender offer or exchange offer
for the Notes) and any existing Default or compliance with any provisions may
also be waived (except a default in the payment of principal, premium or
interest and certain covenants and provisions of this Indenture which cannot be
amended without the consent of each holder of an outstanding Note) with the
consent of the holders of at least a majority in aggregate principal amount of
the outstanding Notes.

 

15.           Defaults
and Remedies

 

The Notes have the Events
of Default as set forth in Section 6.01 of the Indenture.

 

If a Default or an Event
of Default occurs and is continuing and is known to the Trustee, such Trustee
will mail to each holder of the Notes notice of the Default or Event of Default
within 15 Business Days after its occurrence. 
Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, Additional Amounts or interest on any Notes, the
Trustee may withhold the notice to the holders of such Notes if a committee of
its trust officers in good faith determines that withholding the notice is in
the interests of the holders of the Notes.

 

A-11

 

Holders may not enforce
the Indenture or the Notes except as provided in the Indenture. The Trustee may
refuse to enforce the Indenture or the Notes unless it receives an indemnity
satisfactory to it. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the Notes may direct the Trustee in its exercise
of any trust or power. The Holders of a majority in aggregate principal amount
of the Notes then outstanding by written notice to the Trustee may rescind any
acceleration and its consequence if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived except nonpayment of principal, premium, if any, or interest that has
become due solely because of such acceleration. The above description of Events
of Default and remedies is qualified by reference, and subject in its entirety,
to the more complete description thereof contained in the Indenture.

 

16.           Trustee
Dealings with the Issuer

 

Subject to certain
limitations imposed by the U.S. Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with and collect obligations owed to it
by the Issuer, any Guarantor or any of their Affiliates with the same rights it
would have if it were not Trustee. Any Paying Agent, Registrar, co-Registrar or
co-Paying Agent may do the same with like rights.

 

17.           No
Recourse Against Others

 

A director, officer,
employee, or stockholder, as such, of the Issuer or Guarantor shall not have
any liability for any obligations of the Issuer or any Guarantor under the
Notes, the Guarantees or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. By accepting a Note,
each Holder shall waive and release all such liability. The waiver and release
are part of the consideration for the issue of the Notes.

 

18.           Authentication

 

This Note shall not be
valid until an authorized officer of the Trustee (or an authenticating agent)
manually signs the certificate of authentication on the other side of this
Note.

 

19.           Governing
Law

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

The Issuer or any Note
Guarantor shall furnish to any Holder upon written request and without charge
to the Holder a copy of the Indenture. 
Requests may be made to:

 

Cableuropa

Edificio Belagua

Calle Bassauri 7-9

Urbanización La Florida

28023 Aravaca, Madrid

Spain

 

A-12

 

Facsimile: + 34 91 708 393 44

Attention: Legal Department

 

A-13

 

ASSIGNMENT
FORM

 

To assign and transfer
this Note, fill in the form below:

 

(I) or (the Issuer)
assign and transfer this Note to

 

	
   

  

 

(Insert assignee’s social
security or tax I.D. no.)

 

	
   

  

 

(Print or type assignee’s
name, address and postal code)

 

and irrevocably appoint ______________________________________
agent to transfer this Note on the books of the Issuer. The agent may
substitute another to act for him.

 

	
  Your Signature: 

  	
   

  

 

(Sign exactly as your
name appears on the other side of this Note)

 

	
  Signature Guarantee: 

  	
   

  

 

 

(Participant in a
recognized signature guarantee medallion program)

 

	
  Date: 

  	
   

  	
   

  

 

Certifying Signature:

 

CHECK ONE BOX BELOW

 

(1)           o            to
the Issuer; or

 

(2)           o            pursuant
to and in compliance with Rule 144A under the U.S. Securities Act  of 1933 (the “Securities Act”); or

 

(3)           o            pursuant
to and in compliance with Regulation S under the Securities Act; or

 

(4)           o            pursuant
to another available exemption from the registration requirements of the
Securities Act; or

 

(5)           o            pursuant
to an effective registration statement under the Securities Act.

 

Unless one of the boxes
is checked, the Trustee shall refuse to register any of the Notes evidenced by
this certificate in the name of any person other than the registered Holder thereof;
provided, however, that if box (2) is checked, by executing this form, the
Transferor 

 

A-14

 

is deemed to have certified that such Notes are being transferred to a
person it reasonably believes is a “qualified institutional buyer” as defined
in Rule 144A under the Securities Act who has received notice that such
transfer is being made in reliance on Rule 144A; if box (3) is
checked, by executing this form, the Transferor is deemed to have certified
that such transfer is made pursuant to an offer and sale that occurred outside
the United States in compliance with Regulation S under the Securities Act; and
if box (4) is checked, the Trustee may require, prior to registering any
such transfer of the Notes, such legal opinions, certifications and other
information as the Issuer reasonably requests to confirm that such transfer is
being made pursuant to an exemption from or in a transaction not subject to,
the registration requirements of the Securities Act.

 

 

	
  Signature: 

  	
   

  	
   

  

 

Signature Guarantee:

 

	
   

  	
   

  

 

(Participant in a
recognized signature guarantee medallion program)

 

	
  Certifying Signature:

  	
   

  	
   Date:

  	
   

  	
   

  

 

 

	
  Signature Guarantee: 

  	
   

  	
   

  

 

(Participant in a
recognized signature guarantee medallion program)

 

A-15

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to
have this Note or a portion thereof repurchased pursuant to Section 4.11
or 4.16 of the Indenture, check the box: o

 

If the purchase is in
part, indicate the portion (in denominations of €1,000 and integral multiples
thereof) to be purchased:

 

Your signature:

 

(Sign exactly as your
name appears on the other side of this Note)

 

Date:

 

	
  Certifying Signature:

  	
   

  	
   

  

 

A-16

 

SCHEDULE A

 

SCHEDULE OF
PRINCIPAL AMOUNT

 

The following
decreases/increases in the principal amount of this Security have been made:

 

	
  Date of

  Decrease/

  Increase

  	
   

  	
  Decrease in

  Principal

  Amount

  	
   

  	
  Increase in

  Principal

  Amount

  	
   

  	
  Principal

  Amount

  Following such

  Decrease/

  Increase

  	
   

  	
  Notation

  Made by or

  on Behalf

  of Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-17

 

EXHIBIT
B

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM RESTRICTED

GLOBAL NOTE TO REGULATION S GLOBAL NOTE

 

(Transfers pursuant to § 2.06(b)(ii) of
the Indenture)

 

The Bank of New York, as
Transfer Agent

One Canada Square

London E14 5AL

 

Attn: Corporate Trust
Administration

 

Re: 101/2%
Senior Notes Due 2014 (the “Notes”)

 

Reference is hereby made
to the Indenture dated as of May 17, 2004 (the “Indenture”) among
ONO Finance Plc, as Issuer, and The Bank of New York, as Trustee. Capitalized
terms used but not defined herein shall have the meanings given them in the
Indenture.

 

This letter relates to €                            
aggregate principal amount of Notes that are held as a beneficial interest in
the form of the Restricted Global Note (ISIN No XS0192592938; Common Code
019259293) with the Depositary in the name of [name of transferor](the “Transferor”).
The Transferor has requested an exchange or transfer of such beneficial
interest for an equivalent beneficial interest in the Regulation S Global Note
( ISIN No. XS0192592425;
Common Code 019259242).

 

In connection with such
request, the Transferor does hereby certify that such transfer has been
effected in accordance with the transfer restrictions set forth in the Notes
and:

 

(a)           with
respect to transfers made in reliance on Regulation S (“Regulation S”)
under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
does certify that:

 

(A)          the
offer of the Notes was not made to a person in the United States;

 

(B)           either
(i) at the time the buy order is originated the transferee is outside the
United States or the Transferor and any person acting on its behalf reasonably
believe that the transferee is outside the United States; or (ii) the
transaction was executed in, on or through the facilities of a designated
offshore securities market described in paragraph (b) of Rule 902 of
Regulation S and neither the Transferor nor any person acting on its behalf knows
that the transaction was pre-arranged with a buyer in the United States;

 

(C)           no
directed selling efforts have been made in the United States by the Transferor,
an affiliate thereof or any person their behalf in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

 

(D)          the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

 

B-1

 

 (E)          the
Transferor is not the Issuer, a distributor of the Notes, an affiliate of the
Issuer or any such distributor (except any officer or director who is an
affiliate solely by virtue of holding such position) or a person acting on
behalf of any of the foregoing.

 

(b)           with
respect to transfers made in reliance on Rule 144 the Transferor certifies
that the Notes are being transferred in a transaction permitted by Rule 144
under the Securities Act.

 

You, the Issuer, any Note
Guarantors and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

 

	
   

  	
  [Name of
  Transferor]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  cc:

  	
  •

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  •

  	
   

  	
   

  
							

 

B-2

 

EXHIBIT
C

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM REGULATION S

GLOBAL NOTE TO RESTRICTED GLOBAL NOTE

 

(Transfers pursuant to § 2.06(b)(iii) of
the Indenture)

 

The Bank of New York, as
Transfer Agent

 

One Canada Square

London E14 5AL

Attn: Corporate Trust
Office

 

Re:  101/2% Senior Notes Due
2014 (the “Notes”)

 

Reference is hereby made
to the Indenture dated as of May 17, 2004 (the “Indenture”) among
ONO Finance Plc, as Issuer, and The Bank of New York, as Trustee. Capitalized
terms used but not defined herein shall have the meanings given them in the
Indenture.

 

This letter relates to €                            
aggregate principal amount at maturity of Notes that are held in the form of
the Regulation S Global Note with the Common Depositary (ISIN No. XS0192592425;
Common Code 019259242) in the name of [name of transferor](the “Transferor”)
to effect the transfer of the Notes in exchange for an equivalent beneficial
interest in the Restricted Global Note (ISIN No. XS0192592938; Common Code 019259293).

 

In connection with such
request, and in respect of such Notes the Transferor does hereby certify that
such Notes are being transferred in accordance with the transfer restrictions
set forth in the Notes and that:

 

CHECK ONE BOX BELOW:

 

o            the Transferor is
relying on Rule 144A under the U.S. Securities Act of 1933, as amended
(the “Securities Act”) for exemption from such Act’s registration
requirements; it is transferring such Notes to a person it reasonably believes
is a “qualified institutional buyer” as defined in Rule 144A that
purchases for its own account, or for the account of a qualified institutional
buyer, and to whom the Transferor has given notice that the transfer is made in
reliance on Rule 144A and the transfer is being made in accordance with
any applicable securities laws of any state of the United States; or

 

o            the Transferor is
relying on an exemption other than Rule 144A from the registration
requirements of the Securities Act, subject to the Issuer’s and the Trustee’s
right prior to any such offer, sale or transfer to require the delivery of an
opinion of counsel, certification and/or other information satisfactory to each
of them.

 

You, the Issuer, any Note
Guarantors and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

 

C-1

 

	
  [Name of
  Transferor]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  •

  	
   

  	
   

  
	
  Attn:

  	
  •

  	
   

  	
   

  
						

 

C-2Exhibit 4.28

 

EXECUTION COPY

 

 

ONO FINANCE PLC,

 

AS ISSUER,

 

CABLEUROPA S.A.U., MEDITERRÁNEA NORTE SISTEMAS DE CABLE, S.A., MEDITERRÁNEA
SUR SISTEMAS DE CABLE, S.A., REGIÓN DE MURCIA DE CABLE, S.A., AND VALENCIA DE
CABLE, S.A.,

 

AS SUBSIDIARY GUARANTORS,

 

AND

 

THE BANK OF NEW YORK,

 

AS TRUSTEE

 

 

Indenture

 

Dated as of May 17,
2004

 

 

€100,000,000

Floating Rate Senior Notes due 2014

 

 

CROSS-REFERENCE TABLE

 

	
  TIA Sections

  	
   

  	
  Indenture Sections

  
	
   

  	
   

  	
   

  
	
  310

  	
   

  	
  (a)(1)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  7.11

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
  7.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N/A

  
	
  311

  	
   

  	
  (a)

  	
   

  	
  7.03; 7.10

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.03; 7.10

  
	
   

  	
   

  	
  (c)

  	
   

  	
  N/A

  
	
  312

  	
   

  	
  (a)

  	
   

  	
  2.05(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  13.03

  
	
   

  	
   

  	
  (c)

  	
   

  	
  13.03

  
	
  313

  	
   

  	
  (a)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.01(b); 7.05; 13.02(b)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.05

  
	
  314

  	
   

  	
  (a)(1)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
  4.19

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
  4.05(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
  13.04(a)

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
  13.04(b)

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (d)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (e)

  	
   

  	
  13.05

  
	
   

  	
   

  	
  (f)

  	
   

  	
  N/A

  
	
  315

  	
   

  	
  (a)

  	
   

  	
  7.01(b)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.01(b)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.01(c)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
   

  	
  (a) (last
  sentence)

  	
   

  	
  2.09

  
	
   

  	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (b)

  	
   

  	
  N/A

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.14

  
	
  317

  	
   

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
  2.04

  
	
  318

  	
   

  	
  (a)

  	
   

  	
  13.01

  
	
   

  	
   

  	
  (c)

  	
   

  	
  13.01

  

 

N/A means not applicable.

 

Note:      The
Cross-Reference Table shall not for any purpose be deemed to be a part of this
Indenture.

 

 

TABLE OF CONTENTS

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

	
  ARTICLE ONE
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions.

  	
   

  
	
  SECTION 1.02.

  	
  Other Definitions.

  	
   

  
	
  SECTION 1.03.

  	
  Trust Indenture Act Terms.

  	
   

  
	
  SECTION 1.04.

  	
  Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  The Notes.

  	
   

  
	
  SECTION 2.02.

  	
  Execution and Authentication.

  	
   

  
	
  SECTION 2.03.

  	
  Registrar, Transfer Agent and Paying
  Agent.

  	
   

  
	
  SECTION 2.04.

  	
  Paying Agent to Hold Money in Trust.

  	
   

  
	
  SECTION 2.05.

  	
  Holders List.

  	
   

  
	
  SECTION 2.06.

  	
  Transfer and Exchange.

  	
   

  
	
  SECTION 2.07.

  	
  Replacement Notes.

  	
   

  
	
  SECTION 2.08.

  	
  Outstanding Notes.

  	
   

  
	
  SECTION 2.09.

  	
  Notes Held by Issuer.

  	
   

  
	
  SECTION 2.10.

  	
  Certificated Notes.

  	
   

  
	
  SECTION 2.11.

  	
  Cancellation.

  	
   

  
	
  SECTION 2.12.

  	
  Defaulted Interest.

  	
   

  
	
  SECTION 2.13.

  	
  Computation of Interest.

  	
   

  
	
  SECTION 2.14.

  	
  ISIN and Common Code Numbers.

  	
   

  
	
  SECTION 2.15.

  	
  Issuance of Additional Notes.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE
  REDEMPTION; OFFERS TO PURCHASE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Right of Redemption.

  	
   

  
	
  SECTION 3.02.

  	
  Notices to Trustee.

  	
   

  
	
  SECTION 3.03.

  	
  Selection of Notes to be Redeemed.

  	
   

  
	
  SECTION 3.04.

  	
  Notice of Redemption.

  	
   

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price.

  	
   

  
	
  SECTION 3.06.

  	
  Payment of Notes Called for
  Redemption.

  	
   

  
	
  SECTION 3.07.

  	
  Notes Redeemed in Part.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes.

  	
   

  
	
  SECTION 4.02.

  	
  [Reserved.]

  	
   

  
	
  SECTION 4.03.

  	
  [Reserved.]

  	
   

  
	
  SECTION 4.04.

  	
  [Reserved.]

  	
   

  
	
  SECTION 4.05.

  	
  Statement as to Compliance.

  	
   

  
	
  SECTION 4.06.

  	
  Limitation on Debt.

  	
   

  
	
  SECTION 4.07.

  	
  Limitation on Restricted Payments.

  	
   

  

 

i

 

	
  SECTION 4.08.

  	
  Limitation on the Sale or Issuance
  of Capital Stock of Restricted Subsidiaries.

  	
   

  
	
  SECTION 4.09.

  	
  Limitation on Transactions with
  Affiliates.

  	
   

  
	
  SECTION 4.10.

  	
  Limitation on Liens.

  	
   

  
	
  SECTION 4.11.

  	
  Limitation on Sale of Certain
  Assets.

  	
   

  
	
  SECTION 4.12.

  	
  Limitation on Sale and Leaseback Transactions.

  	
   

  
	
  SECTION 4.13.

  	
  Limitation on Restrictions on
  Distributions from Restricted Subsidiaries.

  	
   

  
	
  SECTION 4.14.

  	
  Limitation on the Company’s
  Business.

  	
   

  
	
  SECTION 4.15.

  	
  Change of Control.

  	
   

  
	
  SECTION 4.16.

  	
  Additional Amounts.

  	
   

  
	
  SECTION 4.17.

  	
  Designation of Unrestricted and
  Restricted Subsidiaries.

  	
   

  
	
  SECTION 4.18.

  	
  Limitation on Issuer Activities.

  	
   

  
	
  SECTION 4.19.

  	
  Payment of Taxes and Other Claims.

  	
   

  
	
  SECTION 4.20.

  	
  Payments for Consent.

  	
   

  
	
  SECTION 4.21.

  	
  Reports to Holders.

  	
   

  
	
  SECTION 4.22.

  	
  Limitation on Layered Debt.

  	
   

  
	
  SECTION 4.23.

  	
  Limitation on Notarization Under
  Spanish Law.

  	
   

  
	
  SECTION 4.24.

  	
  Future Note Guarantors.

  	
   

  
	
  SECTION 4.25.

  	
  Use of Proceeds by the Issuer.

  	
   

  
	
  SECTION 4.26.

  	
  Restriction on Transfer of Assets.

  	
   

  
	
  SECTION 4.27.

  	
  Conversion of GCO Loan and
  Participative Loans into Common Stock of Cableuropa.

  	
   

  
	
  SECTION 4.28.

  	
  Further Instruments and Acts.

  	
   

  
	
  SECTION 4.29.

  	
  Listing.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE
  CONSOLIDATION, MERGER OR SALE OF ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Consolidation, Merger or Sale of
  Assets.

  	
   

  
	
  SECTION 5.02.

  	
  Successor Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE SIX
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of Default.

  	
   

  
	
  SECTION 6.02.

  	
  Acceleration.

  	
   

  
	
  SECTION 6.03.

  	
  Other Remedies.

  	
   

  
	
  SECTION 6.04.

  	
  Waiver of Past Defaults.

  	
   

  
	
  SECTION 6.05.

  	
  Control by Majority.

  	
   

  
	
  SECTION 6.06.

  	
  Limitation on Suits.

  	
   

  
	
  SECTION 6.07.

  	
  Collection Suit by Trustee.

  	
   

  
	
  SECTION 6.08.

  	
  Trustee May File Proofs of
  Claim.

  	
   

  
	
  SECTION 6.09.

  	
  Application of Money Collected.

  	
   

  
	
  SECTION 6.10.

  	
  Undertaking for Costs.

  	
   

  
	
  SECTION 6.11.

  	
  Restoration of Rights and Remedies.

  	
   

  
	
  SECTION 6.12.

  	
  Rights and Remedies Cumulative.

  	
   

  
	
  SECTION 6.13.

  	
  Delay or Omission not Waiver.

  	
   

  
	
  SECTION 6.14.

  	
  Record Date.

  	
   

  
	
  SECTION 6.15.

  	
  Waiver of Stay or Extension Laws.

  	
   

  

 

ii

 

	
  ARTICLE SEVEN TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee.

  	
   

  
	
  SECTION 7.02.

  	
  Certain Rights of Trustee.

  	
   

  
	
  SECTION 7.03.

  	
  Individual Rights of Trustee.

  	
   

  
	
  SECTION 7.04.

  	
  Trustee’s Disclaimer.

  	
   

  
	
  SECTION 7.05.

  	
  Reports by Trustee to Holders.

  	
   

  
	
  SECTION 7.06.

  	
  Compensation and Indemnity.

  	
   

  
	
  SECTION 7.07.

  	
  Replacement of Trustee.

  	
   

  
	
  SECTION 7.08.

  	
  Successor Trustee by Merger.

  	
   

  
	
  SECTION 7.09.

  	
  Eligibility: Disqualification.

  	
   

  
	
  SECTION 7.10.

  	
  Preferential Collection of Claims
  Against Issuer.

  	
   

  
	
  SECTION 7.11.

  	
  Appointment of Co-Trustee.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT DEFEASANCE;
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
  Issuer’s Option to Effect Defeasance
  or Covenant Defeasance.

  	
   

  
	
  SECTION 8.02.

  	
  Defeasance and Discharge.

  	
   

  
	
  SECTION 8.03.

  	
  Covenant Defeasance.

  	
   

  
	
  SECTION 8.04.

  	
  Conditions to Defeasance.

  	
   

  
	
  SECTION 8.05.

  	
  Satisfaction and Discharge of
  Indenture.

  	
   

  
	
  SECTION 8.06.

  	
  Survival of Certain Obligations.

  	
   

  
	
  SECTION 8.07.

  	
  Acknowledgment of Discharge by
  Trustee.

  	
   

  
	
  SECTION 8.08.

  	
  Application of Trust Money.

  	
   

  
	
  SECTION 8.09.

  	
  Repayment to Issuer.

  	
   

  
	
  SECTION 8.10.

  	
  Indemnity for Government Securities.

  	
   

  
	
  SECTION 8.11.

  	
  Reinstatement.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE
  AMENDMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of Holders.

  	
   

  
	
  SECTION 9.02.

  	
  With Consent of Holders.

  	
   

  
	
  SECTION 9.03.

  	
  [Reserved].

  	
   

  
	
  SECTION 9.04.

  	
  Effect of Supplemental Indentures.

  	
   

  
	
  SECTION 9.05.

  	
  Notation on or Exchange of Notes.

  	
   

  
	
  SECTION 9.06.

  	
  Payment for Consent.

  	
   

  
	
  SECTION 9.07.

  	
  Notice of Amendment or Waiver.

  	
   

  
	
  SECTION 9.08.

  	
  Trustee to Sign Amendments, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN
  GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
  Guarantees.

  	
   

  
	
  SECTION 10.02.

  	
  Subrogation.

  	
   

  
	
  SECTION 10.03.

  	
  Release of the Subsidiary
  Guarantees.

  	
   

  
	
  SECTION 10.04.

  	
  Limitation and Effectiveness of
  Guarantees.

  	
   

  
	
  SECTION 10.05.

  	
  Notation Not Required.

  	
   

  
	
  SECTION 10.06.

  	
  Successors and Assigns.

  	
   

  
	
  SECTION 10.07.

  	
  No Waiver.

  	
   

  
	
  SECTION 10.08.

  	
  Modification.

  	
   

  

 

iii

 

	
  ARTICLE ELEVEN SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
  Agreement to Subordinate.

  	
   

  
	
  SECTION 11.02.

  	
  Subordination of the Subsidiary
  Guarantees Prior to a Repayment Event.

  	
   

  
	
  SECTION 11.03.

  	
  Subordination of the Subsidiary
  Guarantees Upon a Repayment Event.

  	
   

  
	
  SECTION 11.04.

  	
  Enforcement Standstills.

  	
   

  
	
  SECTION 11.05.

  	
  Payment Blockage Provisions.

  	
   

  
	
  SECTION 11.06.

  	
  Subordination on Insolvency.

  	
   

  
	
  SECTION 11.07.

  	
  Turnover.

  	
   

  
	
  SECTION 11.08.

  	
  Intercreditor Agreement.

  	
   

  
	
  SECTION 11.09.

  	
  Continuing Offer.

  	
   

  
	
  SECTION 11.10.

  	
  Amendment and Modification.

  	
   

  
	
  SECTION 11.11.

  	
  Trustee Entitled to Rely.

  	
   

  
	
  SECTION 11.12.

  	
  Trustee to Effectuate
  Subordination.

  	
   

  
	
  SECTION 11.13.

  	
  Trustee Not Fiduciary for the
  Holders of Senior Debt.

  	
   

  
	
  SECTION 11.14.

  	
  Reliance on Subordination
  Provisions.

  	
   

  
	
  SECTION 11.15.

  	
  Trustee’s Compensation Not
  Prejudiced.

  	
   

  
	
  SECTION 11.16.

  	
  Subrogation to Rights of Holders of
  Senior Debt

  	
   

  
	
  SECTION 11.17.

  	
  Provisions Solely to Define
  Relative Rights.

  	
   

  
	
  SECTION 11.18.

  	
  Notice to Trustee.

  	
   

  
	
  SECTION 11.19.

  	
  Acceleration Only Pursuant to
  Section 6.02.

  	
   

  
	
  SECTION 11.20.

  	
  Trust Moneys Not Subordinated.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE HOLDERS’
  MEETINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12.01.

  	
  Purposes of Meetings.

  	
   

  
	
  SECTION 12.02.

  	
  Place of Meetings.

  	
   

  
	
  SECTION 12.03.

  	
  Call and Notice of Meetings.

  	
   

  
	
  SECTION 12.04.

  	
  Voting at Meetings.

  	
   

  
	
  SECTION 12.05.

  	
  Voting Rights, Conduct and
  Adjournment.

  	
   

  
	
  SECTION 12.06.

  	
  Revocation of Consent by Holders at
  Meetings.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE THIRTEEN
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
  Trust Indenture Act Controls.

  	
   

  
	
  SECTION 13.02.

  	
  Notices.

  	
   

  
	
  SECTION 13.03.

  	
  Communication by Holders with Other
  Holders.

  	
   

  
	
  SECTION 13.04.

  	
  Certificate and Opinion as to
  Conditions Precedent.

  	
   

  
	
  SECTION 13.05.

  	
  Statements Required in Certificate
  or Opinion.

  	
   

  
	
  SECTION 13.06.

  	
  Rules by Trustee, Paying Agent
  and Registrar.

  	
   

  
	
  SECTION 13.07.

  	
  Legal Holidays.

  	
   

  
	
  SECTION 13.08.

  	
  Governing Law.

  	
   

  
	
  SECTION 13.09.

  	
  Jurisdiction.

  	
   

  
	
  SECTION 13.10.

  	
  No Recourse Against Others.

  	
   

  
	
  SECTION 13.11.

  	
  Successors.

  	
   

  
	
  SECTION 13.12.

  	
  Multiple Originals.

  	
   

  
	
  SECTION 13.13.

  	
  Table of Contents, Cross-Reference
  Sheet and Headings.

  	
   

  
	
  SECTION 13.14.

  	
  Severability.

  	
   

  
	
  SECTION 13.15.

  	
  Currency Indemnity.

  	
   

  

 

iv

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Form of Notes

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Form of Transfer
  Certificate for Transfer from Restricted Global Note to Regulation S Global
  Note

  
	
  Exhibit C

  	
   

  	
  -

  	
   

  	
  Form of Transfer
  Certificate for Transfer from Regulation S Global Note to Restricted Global
  Note

  

 

v

 

INDENTURE dated as of May 17,
2004 among ONO Finance Plc incorporated under the laws of England and Wales as
a public limited company (the “Issuer”), Cableruopa S.A.U., Mediterránea
Norte Sistemas de Cable, S.A., Mediterránea Sur Sistemas de Cable, S.A., Región
de Murcia de Cable, S.A., Valencia de Cable, S.A., each a corporation organized
under the laws of the Kingdom of Spain, (the “Subsidiary Guarantors”)
and The Bank of New York, a New York banking corporation (the “Trustee”).

 

RECITALS OF THE ISSUER

 

The Issuer has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of its Floating Rate Senior Notes due 2014 issued on the date hereof
(the “Original Notes”) and any additional Notes (“Additional Notes”
and, together with the Original Notes, the “Notes”) that may be issued
on any other Issue Date (as defined herein). 
The Note Guarantors have duly authorized the execution and delivery of
this Indenture to provide for the issuance of their Guarantees (as defined
herein).  The Issuer and the Note
Guarantors have received good and valuable consideration for the execution and
delivery of this Indenture.  All
necessary acts and things have been done to make (i) the Notes, when duly
issued and executed by the Issuer and authenticated and delivered hereunder,
the legal, valid and binding obligations of the Issuer, (ii) the
Guarantees, when executed by the Note Guarantors and delivered hereunder, the
legal, valid and binding agreement of the Issuer and the Note Guarantors (iii) this
Indenture a legal, valid and binding agreement of the Issuer and the Note
Guarantors in accordance with the terms of this Indenture.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

For and in consideration
of the premises and the purchase of the Notes by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders, as follows:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01.      Definitions.

 

“Acquired
Debt” means, with respect to any specified Person, Debt of
any other Person (the “Acquired Person”) existing at the time such Acquired
Person merged with or into or became a Subsidiary of such specified Person,
including Debt Incurred in connection with, or in contemplation of, such
Acquired Person merging with or into or becoming a Subsidiary of such specified
Person.

 

“Acquired
Person” has the
meaning specified in the definition of “Acquired Debt”.

 

“Additional
Assets” means (a) any
Property (other than cash, cash equivalents and securities) to be used in a
Telecommunications Business; or (b) Capital Stock of a Person that becomes
a Restricted Subsidiary as a result of the acquisition of such Capital Stock by
the Company or another Restricted Subsidiary from any Person; provided, however,
that, in the case of clause (b), such Restricted Subsidiary is engaged in a
Telecommunications Business.

 

“Affiliate” of any specified Person means (a) any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person or (b) any
other Person who is a director or officer of:

 

1

 

(i)                            such
specified Person;

 

(ii)                           any
Subsidiary of such specified Person; or

 

(iii)                          any Person
described in clause (a) above.

 

For the purposes of this
definition, “control” when used with respect to any Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.  For purposes of Sections 4.09
and 4.11 only, “Affiliate” shall also mean any beneficial owner of shares
representing 5% or more of the total voting power of the Voting Stock (on a
fully diluted basis) of the Company or of rights or warrants to purchase such
Voting Stock (whether or not currently exercisable) and any Person who would be
an Affiliate of any such beneficial owner pursuant to the first sentence
hereof.

 

“Annualized
Pro Forma EBITDA” means,
with respect to any Person, such Person’s Pro Forma EBITDA for the latest
fiscal quarter multiplied by four.

 

“Applicable
Premium” means, with respect to any Note on any redemption
date, the greater of:

 

(i)            1.0%
of the principal amount of such Note; and

 

(ii)           the
excess of:

 

(A)          the present
value at such redemption date of (x) the redemption price of the Note at May 15,
2009 plus (y) all required interest payments due on the Note through May 15,
2009 (excluding accrued but unpaid interest to the redemption date), computed
using a discount rate equal to the Bund Rate as of such redemption date plus 50
basis points; over

 

(B)           the
principal amount of such Note, if greater.

 

“Asset
Sale” of the Company or a Restricted Subsidiary means any
sale, lease, transfer, issuance or other disposition (or series of related
sales, leases, transfers, issuances or dispositions) by the Company or any
Restricted Subsidiary, including any disposition by means of a merger,
consolidation or similar transaction (each referred to for the purposes of this
definition as a “disposition”), of (a) any shares of Capital Stock of a
Restricted Subsidiary (other than directors’ qualifying shares) or (b) any
other assets of the Company or any Restricted Subsidiary outside of the
ordinary course of business of the Company or such Restricted Subsidiary (other
than, in the case of clauses (a) and (b) above:

 

(i)            any
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to another Restricted Subsidiary;

 

(ii)           any disposition that constitutes a
Permitted Investment or Restricted Payment permitted under Section 4.07;
and

 

(iii)          any disposition effected in compliance
with Section 5.01(b).

 

“Asset
Sale” of the Issuer means any sale, lease, transfer, issuance
or other disposition (or series of related sales, leases, transfers, issuances
or dispositions) by the 

 

2

 

Issuer, including
any disposition by means of a merger, consolidation or similar transaction of
any assets of the Issuer.

 

“Attributable
Debt” in respect
of a Sale and Leaseback Transaction means, at any date of determination, (a) if
such Sale and Leaseback Transaction is a Capital Lease Obligation, the amount
of Debt represented thereby according to the definition of “Capital Lease
Obligation” and (b) in all other instances, the greater of:

 

(i)            the Fair
Market Value of the Property subject to such Sale and Leaseback Transaction;
and

 

(ii)           the present value (discounted at the
interest rate borne by the Notes, compounded annually) of the total obligations
of the lessee for rental payments during the remaining term of the lease
included in such Sale and Leaseback Transaction (including any period for which
such lease has been extended).

 

“Average
Life” means, as
of any date of determination, with respect to any Debt or Preferred Stock, the
quotient obtained by dividing (a) the sum of the product of the numbers of
years (rounded to the nearest one-twelfth of one year) from the date of
determination to the dates of each successive scheduled principal payment of
such Debt or redemption or similar payment with respect to such Preferred Stock
multiplied by the amount of such payment by (b) the sum of all such
payments.

 

“Bankruptcy Law” means any law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization
or relief of debtors or any amendment to, succession to or change in any such
law, including, without limitation, any (i) bankruptcy law of Spain, (ii) the
U.K. Insolvency Act 1986, as amended, and (iii) title 11, United States
Bankruptcy Code of 1978, as amended.

 

“Board
of Directors” means
the Board of Directors of the Company or any committee thereof duly authorized
to act on behalf of such Board of Directors.

 

“Bund
Rate” means (i) the rate borne by direct obligations of
the Federal Republic of Germany (Bunds or Bundesanleihen) having a constant
maturity most nearly equal to the period from the redemption date to May 15,
2014 and (ii) if there are no such obligations, the rate determined by
linear interpolation between the rates borne by the two direct obligations of
the Federal Republic of Germany maturing closest to, but straddling, such date,
in each case as published in the Financial
Times.

 

“Business
Day” means a day
other than a Saturday, Sunday or other day on which banking institutions in the
State of New York, London or the Kingdom of Spain or a place of payment are
authorized or required by law to close.

 

“Capital
Lease Obligation” means
any obligation under a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP; and the amount of Debt represented
by such obligation shall be the capitalized amount of such obligations
determined in accordance with GAAP; and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty. For purposes of Section 4.10, a Capital
Lease Obligation shall be deemed secured by a Lien on the Property being
leased.

 

3

 

“Capital
Stock” means,
with respect to any Person, any shares or other equivalents (however
designated) of any class of corporate stock or partnership interests or any
other participations, rights, warrants, options or other interests in the
nature of an equity interest in such Person, including Preferred Stock, but
excluding any debt security convertible or exchangeable into such equity
interest.

 

“Capital
Stock Sale Proceeds” means
the aggregate cash proceeds received by the Company from the issuance or sale
(other than to a Subsidiary of the Company or an employee stock ownership plan
or trust established by the Company or any such Subsidiary for the benefit of
their employees) by the Company of its Capital Stock (other than Disqualified
Stock) after the Issue Date, net of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, discounts or commissions and
brokerage, consultant and other fees actually Incurred in connection with such
issuance or sale and net of taxes paid or payable as a result thereof.

 

“Change
of Control” means
the occurrence of any of the following events:

 

(a)           prior to the first Public Equity Offering, any Person, other
than a Permitted Holder, is or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that for purposes of this clause (a) such
Person shall be deemed to have “beneficial ownership” of all shares that any
such other Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more
than 50% of the total voting power of the Voting Stock of the Company (for the
purposes of this clause (a), such Person shall be deemed to beneficially own
any Voting Stock of an entity held by any other entity (the “parent entity”),
if such other Person is the beneficial owner (as defined in this clause (a),
directly or indirectly, of more than 50% of the voting power of the Voting
Stock of such parent entity);

 

(b)           on or after the first Public Equity Offering during any period
of two consecutive years, individuals who at the beginning of such period
constituted the Board of Directors (together with (i) any new directors
whose election or appointment by such Board of Directors, or whose nomination
for election by the shareholders of GCO or the Company was approved by a vote
of a majority of the directors of the 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 or (ii) any new
directors whose nomination for election by the shareholders of GCO or the
Company was approved by a majority of Permitted Holders) cease for any reason
to constitute a majority of the Board of Directors then in office;

 

(c)           the sale, transfer, assignment, lease, conveyance or other
disposition, directly or indirectly, of all or substantially all the assets of
the Company or the Restricted Subsidiaries, considered as a whole (other than a
disposition of such assets as an entirety or substantially as an entirety to a
Wholly Owned Subsidiary or to one or more Permitted Holders) shall have
occurred, or Cableuropa or any Holdco of Cableuropa merges, consolidates or
amalgamates with or into any other Person (other than one or more Permitted
Holders) or any other person (other than one or more Permitted Holders) merges,
consolidates or amalgamates with or into Cableuropa or any Holdco 

 

4

 

of Cableuropa, in any such event pursuant to a transaction in which the
outstanding Voting Stock of Cableuropa or any Holdco of Cableuropa is
reclassified into or exchanged for cash, securities or other Property, other
than any such transaction where (i) the outstanding Voting Stock of
Cableuropa or any Holdco of Cableuropa is reclassified into or exchanged for
Voting Stock of the surviving corporation and (ii) the holders of the
Voting Stock of Cableuropa or any Holdco of Cableuropa immediately prior to
such transaction own, directly or indirectly, not less than a majority of the
Voting Stock of the surviving corporation immediately after such transaction
and in substantially the same proportion as before the transaction; or

 

(d)           Retco or another professional trust corporation (which is
not an Affiliate of or otherwise related to the Company or its Affiliates)
shall cease to directly or indirectly hold at least 98% of the Capital Stock of
the Issuer pursuant to the terms of an English law a charitable trust.

 

“Clearstream” means Clearstream Banking, société anonyme.

 

“Code” means the U.S. Internal Revenue Code
of 1986, as amended.

 

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

 

“Common Depositary” means a depositary
common to Euroclear and Clearstream, being initially The Bank of New York
Depository (Nominees) Ltd. on behalf of The Bank of New York, until a successor
Common Depositary, if any, shall have become such pursuant to this Indenture,
and thereafter Common Depositary shall mean or include each Person who is then
a Common Depositary hereunder.

 

“Company”
means, prior to a Repayment Event, Cableuropa, and thereafter means the Parent
Guarantor.

 

“Consolidated
Interest Expense” means,
for any period, the total interest expense of the Company and its consolidated
Restricted Subsidiaries determined in accordance with GAAP, plus, to the extent
not included in such total interest expense, and to the extent Incurred by the
Company or its Restricted Subsidiaries:

 

(a)           interest expense attributable to leases constituting part of
a Sale and Leaseback Transaction and to capital leases;

 

(b)           amortization of debt discount and debt issuance cost,
including commitment fees;

 

(c)           capitalized interest (other than with respect to
Subordinated Shareholder Indebtedness);

 

(d)           cash or non-Cash interest expenses (other than with respect
to Subordinated Shareholder Indebtedness);

 

(e)           commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing;

 

5

 

(f)            net costs associated with
Hedging Obligations (including amortization of fees);

 

(g)           Disqualified Stock Dividends;

 

(h)           Preferred Stock Dividends;

 

(i)            interest Incurred in connection
with Investments in discontinued operations;

 

(j)            interest accruing on any Debt of
any other Person to the extent such Debt is Guaranteed by the Company or any
Restricted Subsidiary; and

 

(k)           the cash contributions to any employee stock ownership plan
or similar trust to the extent such contributions are used by such plan or
trust to pay interest or fees to any Person (other than the Company) in
connection with Debt Incurred by such plan or trust.

 

“Consolidated
Net Income” means,
for any period, the net income (loss) of the Company and its consolidated
Restricted Subsidiaries determined in accordance with GAAP; provided, however,
that there shall not be included in such Consolidated Net Income:

 

(a)           any net income (loss) of any Person (other than the Company)
if such Person is not a Restricted Subsidiary, except that:

 

(i)            subject to
the exclusion contained in clause (c) below, the Company’s equity in the
net income of any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash distributed by such
Person during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution; and

 

(ii)           the Company’s equity in a net loss of any
such Person other than an Unrestricted Subsidiary for such period shall be
included in determining such Consolidated Net Income;

 

(b)           for purposes of Section 4.07 only, any net income
(loss) of any Person acquired by the Company or any of its consolidated
Subsidiaries in a pooling of interests transaction for any period prior to the
date of such acquisition;

 

(c)           any gain (but not loss) realized upon the sale or other
disposition of any Property of the Company or any of its consolidated
Subsidiaries (including pursuant to any Sale and Leaseback Transaction) that is
not sold or otherwise disposed of in the ordinary course of business;

 

(d)           any extraordinary gain or loss;

 

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

 

(f)            any non-cash compensation
expense realized for grants of performance shares, stock options or other
rights to officers, directors and employees of the Company or any Restricted
Subsidiary; provided that such
shares, options or other rights can be redeemed at the option of the holder
only for Capital Stock of the Company (other than Disqualified Stock).

 

6

 

Notwithstanding the
foregoing, for purposes of Section 4.07 only, there shall be excluded from
Consolidated Net Income any dividends, repayments of loans or advances or other
transfers of assets from Unrestricted Subsidiaries to the Company or a
Restricted Subsidiary to the extent such dividends, repayments or transfers
increase the amount of Restricted Payments permitted under Section 4.07(b)(iii)(D).

 

“Corporate Trust Office” means the
designated corporate trust office of the Trustee, at which at any particular time
its corporate trust business shall be administered, which office at the date of
execution of this Indenture is located at One Canada Square, London E14 5AL,
Attention: Corporate Trust Administration, or such other address as the Trustee
may designate from time to time by notice to the Holders and the Issuer, or the
principal corporate trust office of any successor Trustee (or such other
address as such successor Trustee may designate from time to time by notice to
the Holders and the Issuer).

 

“Credit
Facility” or “Credit
Facilities” means, one or more debt facilities, or commercial paper
facilities with banks, insurance companies or other institutional lenders
providing for revolving credit loans, term loans, notes, including the Senior
Bank Facility, letters of credit or other forms of guarantees and assurances or
other credit facilities, including overdrafts, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time; provided,
that such debt or commercial paper facilities may not provide for or consist of
the borrowing or issuance of any Public Debt; and provided, further,
that no such amendment, restatement, modification, renewal, refund, replacement
or refinancing may consist of or provide for the borrowing or issuance of
Public Debt.

 

“Currency
Exchange Protection Agreement” means, in respect of a Person, any foreign exchange contract,
currency swap agreement, currency option or other similar agreement or
arrangement designed to protect such Person against fluctuations in currency
exchange rates.

 

“Custodian” means any receiver, trustee,
assignee, liquidator, custodian, administrator or similar official under any
Bankruptcy Law.

 

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

 

(a)           the principal of and premium (if any) in respect of (i) debt
of such Person for money
borrowed and (ii) debt evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable;

 

(b)           all Capital Lease Obligations of such Person and all
Attributable Debt in respect of Sale and Leaseback Transactions entered into by
such Person;

 

(c)           all obligations of such Person issued or assumed as the
deferred purchase price of Property, all conditional sale obligations of such
Person and all obligations of such Person under any title retention agreement
(but excluding trade accounts payable or accrued expenses arising in the
ordinary course of business);

 

7

 

(d)           all obligations of such Person for the reimbursement of any
obligor on any letter of credit, banker’s acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in (a) through (c) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the tenth Business Day following
receipt by such Person of a demand for reimbursement following payment on the
letter of credit);

 

(e)           the amount of all obligations of such Person with respect to
the Repayment of any Disqualified Stock or, with respect to any Restricted
Subsidiary of such Person, any Preferred Stock of such Restricted Subsidiary
(but excluding, in each case, any accrued dividends);

 

(f)            all obligations of the type
referred to in clauses (a) through (e) of other Persons and all
dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor
or otherwise, including by means of any Guarantee;

 

(g)           all obligations of the type referred to in clauses (a) through
(f) of other Persons secured by any Lien on any Property of such Person
(whether or not such obligation is assumed by such Person), the amount of such
obligation being deemed to be the lesser of the value of such Property or the
amount of the obligation so secured; and

 

(h)           to the extent not otherwise included in this definition,
Hedging Obligations of such Person.

 

The amount of Debt of any
Person at any date shall be the outstanding balance at such date of all
unconditional obligations as described above and, with respect to contingent
obligations, the maximum liability upon the occurrence of the contingency
giving rise to the obligation.  For the
purposes of this definition, “Debt” shall not include Subordinated Shareholder
Indebtedness.  The amount of Debt
represented by a Hedging Obligation shall be equal to (i) zero if such
Hedging Obligation has been Incurred pursuant to Section 4.06(c)(iv) or
(c)(v) or (ii) the notional amount of such Hedging Obligation if not
Incurred pursuant to such clauses.

 

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

 

“Designated
Senior Debt” means
(a) any Senior Debt that has, at the time of determination, an aggregate
principal amount outstanding of at least €25.0 million (including the amount of
all undrawn commitments and matured and contingent reimbursement obligations
pursuant to letters of credit thereunder) that is specifically designated in
the instrument evidencing such Senior Debt and is designated in a notice
delivered by the Company to the holders or a Representative of the holders of
such Senior Debt and in an Officers’ Certificate of the Company delivered to
the Trustee as “Designated Senior Debt” of the Company for purposes of this
Indenture and (b) the Senior Bank Facility.

 

“Determination
Date,” with respect to an Interest Period, will be the day
that is two TARGET Settlement Days preceding the first day of such Interest
Period.

 

8

 

“Disqualified
Stock” means,
with respect to any Person, any Capital Stock that by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable, in either case at the option of the holder thereof) or otherwise:

 

(i)            matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

 

(ii)           is or may become redeemable or
repurchaseable at the option of the holder thereof, in whole or in part; or

 

(iii)          is convertible or exchangeable at the option
of the holder thereof for Debt or Disqualified Stock,

 

on or prior to, in the
case of clauses (i),(ii) or (iii), the first anniversary of the Stated
Maturity of the Notes.

 

“Disqualified
Stock Dividends” means
all dividends with respect to Disqualified Stock of the Company held by Persons
other than a Wholly Owned Subsidiary. 
The amount of any such dividend shall be equal to the quotient of such
dividend divided by the difference between one and the maximum statutory
federal income tax rate (expressed as a decimal number between 1 and 0) then
applicable to the Company.

 

“dollars” means the lawful currency of the
United States of America.

 

“EBITDA” means, for any period, an amount equal to,
for any Person:

 

(a)           the sum of Consolidated Net Income for such period
(exclusive of any gain or loss realized in such period upon an Asset Sale),
plus the following to the extent reducing Consolidated Net Income for such
period:

 

(i)            the provision
for taxes based on income or profits or utilized in computing net loss,

 

(ii)           Consolidated Interest Expense,

 

(iii)          depreciation,

 

(iv)          amortization of intangibles; and

 

(v)           any other non-cash items (other than any
such non-cash item to the extent that it represents an accrual of or reserve
for cash expenditures in any future period), minus

 

(b)                           all non-cash items increasing
Consolidated Net Income for such period (other than any such non-cash item to
the extent that it will result in the receipt of cash payments in any future
period), all for such Person and its subsidiaries (or, in the case of the
Company, the Restricted Subsidiaries) determined in accordance with GAAP
consistently applied.

 

“Enforcement
Action” means, in relation to any Debt of the Issuer or any
Note Guarantor, any action (whether taken by the relevant creditor or creditors
or an agent or Trustee on its or their behalf) to:

 

(a)           demand
payment, declare prematurely due and payable or otherwise seek to accelerate
payment of or place on demand all or any part of such Debt or to 

 

9

 

require the Issuer or a
Note Guarantor to redeem or purchase any part of such Debt;

 

(b)           recover
all or any part of such Debt (including, by exercising any rights of set-off or
combination of accounts);

 

(c)           exercise
or enforce any security right against sureties or any other rights under any
other document or agreement in relation to (or given in support of) all or any
part of such Debt (including under any security documents);

 

(d)           commence
legal or arbitration proceedings against any Person; or

 

(e)           apply
or petition or vote for (or take any other steps which may reasonably be
expected to lead to) a total or partial liquidation, dissolution or winding up
of any Note Guarantor or an insolvency, bankruptcy, reorganization, composition,
receivership (suspensión de pagos),
administration, voluntary arrangement, judicial intervention or similar
proceeding relating to any Note Guarantor or any of such Note Guarantor’s
Property;

 

provided
that neither (i) any legal proceedings not falling within clause (a) through
(e) above necessary to preserve the validity and existence of claims,
including the commencement of such claims before any court or governmental
authority nor (ii) legal proceedings against the Issuer or any Guarantor
to challenge the basis on which any sale or disposal is being implemented nor (iii) legal
proceedings against any person in connection with any securities violation or
fraud shall, in each case, constitute Enforcement Action.

 

“EURIBOR”
with respect to an Interest Period, will be the rate (expressed as a percentage
per annum) for deposits in euros for a three-month period beginning on the day
that is two TARGET Settlement Days after the Determination Date that appears on
Telerate Page 248 as of 11:00 a.m., Brussels time, on the
Determination Date. If Telerate Page 248 does not include such a rate or
is unavailable on a Determination Date, the Calculation Agent will request the
principal London office of each of four major banks in the Euro-zone inter-bank
market, as selected by the Calculation Agent, after consultation with the
Issuer, to provide such bank’s offered quotation (expressed as a percentage per
annum) as of approximately 11:00 a.m., Brussels time, on such
Determination Date, to prime banks in the Euro-zone interbank market for
deposits in a Representative Amount in euro for a three-month period beginning
on the day that is two TARGET Settlement Days after the Determination Date. If
at least two such offered quotations are so provided, the rate for the Interest
Period will be the arithmetic mean of such quotations. If fewer than two such
quotations are so provided, the Calculation Agent will request each of three
major banks in London, as selected by the Calculation Agent, after consultation
with the Issuer, to provide such bank’s rate (expressed as a percentage per
annum), as of approximately 11.00 a.m., London time, on such Determination
Date, for loans in a Representative Amount in euros to leading European banks
for a three-month period beginning on the day that is two TARGET Settlement
Days after the Determination Date. If at least two such rates are so provided,
the rate for the Interest Period will be the arithmetic mean of such rates. If
fewer than two such rates are so provided, then the rate for the Interest
Period will be the rate in effect with respect to the immediately preceding
Interest Period.

 

10

 

“euro” or “€” means the lawful currency of the member
states of the European Union who have agreed to share a common currency in
accordance with the provisions of the Maastricht Treaty dealing with European
monetary union.

 

“European
Government Obligations” means direct obligations (or
certificates representing an ownership interest in such obligations) of the
German government or French government (including any agency or instrumentality
thereof) for the payment of which the full faith and credit of such German government
or French government is pledged and which are not callable or redeemable at the
Issuer’s option.

 

“Euro-zone”
means the region comprised of member states of the European Union that adopt
the euro.

 

“Event
of Default” has
the meaning set forth under Article 6.

 

“Exchange
Act” means the U.S. 
Securities Exchange Act of 1934, as amended, or any successor statute,
and the rules and regulations promulgated by the Commission thereunder.

 

“Euroclear” means Euroclear S.A./N.V., as
operator of the Euroclear System.

 

“Excluded
Companies” means
Madrid Sistemas de Cable, S.A. (“MSC”), Sevilla Sistemas de Cable, S.A. (“SSC”),
Univertel Communicaçôes Universais (“UCV”), S.A., and NSEC International, B.V.
(“NSEC”). UCV and NSEC do not conduct any activities.  MSC and SSC do not conduct any activities and
are excluded from Cableuropa’s consolidated financial statements.

 

“Existing Equity Value Certificate Guarantee” means the Guarantee by Cableuropa of the Issuer’s
obligations under the Existing Equity Value Certificates.

 

“Existing
Equity Value Certificates” means
(i) the 275,000 Equity Value Certificates of the Issuer which initially
evidenced the right to receive the cash value of 632.4057 ordinary shares of
Cableuropa in dollars and the 125,000 Equity Value Certificates of the Issuer
which initially evidenced the right to receive the cash value of 305.1645
ordinary shares of Cableuropa in euro, all dated May 6, 1999 and (ii) the
200,000 Equity Value Certificates of the Issuer evidencing the right to receive
the cash value of 9,779,025.70 ordinary shares of Cableuropa in dollars and the
150,000 Equity Value Certificates of the Issuer evidencing the right to receive
the cash value of 6,898,246.97 ordinary shares of Cableuropa in euro, all dated
February 9, 2001.

 

“Existing
EVC Funding Agreements” means
the agreements dated as of May 6, 1999 and February 9, 2001 between
Cableuropa and the Issuer pursuant to which Cableuropa will pay to the Issuer
an amount sufficient to fund the Issuer’s obligations under the Existing Equity
Value Certificates.

 

“Existing
Note Guarantee” means
a Guarantee on the terms set forth in the Existing Notes Indentures by the
applicable Guarantors of the Issuer’s obligations with respect to the Existing
Notes.

 

11

 

“Existing
Notes” means the
$275,000,000 13% notes due 2009, the €125,000,000 13% notes due 2009, the
€200,000,000 14% notes due 2010 of the Issuer, the $200,000,000 14% notes due
2011 and the €150,000,000 14% notes due 2011.

 

“Existing
Notes Indentures” means
the indenture dated as of May 6, 1999 in respect of the $275,000,000 13%
notes due 2009 of the Issuer, the indenture dated as of May 6, 1999 in
respect of the €125,000,000 13% notes due 2009 of the Issuer, the indenture
dated as of June 30, 2000 in respect of the €200,000,000 14% notes due
2010 of the Issuer, the indenture dated February 9, 2001 in respect of the
$200,000,000 14% notes due 2011 of the Issuer and the indenture dated February 9,
2001 in respect of the €150,000,000 14% notes due 2011 of the Issuer.

 

“Fair
Market Value” means,
with respect to any Property, the price that could be negotiated in an arm’s-length,
free market transaction, for cash, between a willing seller and a willing
buyer, neither of whom is under undue pressure or compulsion to complete the
transaction.  Fair Market Value shall be
determined (a) if such Property has a Fair Market Value equal to or less
than €5.0 million, by any Officer of the Company or (b) if such Property
has a Fair Market Value in excess of €5.0 million, by a majority of the Board
of Directors and evidenced by a board resolution, dated within 60 days of the
relevant transaction, delivered to the Trustee.

 

“Fixed
Rate Indenture” means the indenture dated as of the date
hereof in respect of the Fixed Rate Notes.

 

“Fixed
Rate Note Proceeds Loan” means the loan dated as of the Issue
Date pursuant to which the Issuer shall loan the proceeds of the offering of
the Fixed Rate Notes to Cableuropa and the other Subsidiary Guarantors.

 

“Fixed
Rate Notes” means
the Issuer’s €180,000,000 101/2% senior notes due 2014.

 

“Floating
Rate Note Proceeds Loan” means the loan dated as of the Issue
Date pursuant to which the Issuer shall loan the proceeds of the offering of
the Notes to Cableuropa and the other Subsidiary Guarantors.

 

“GAAP” means generally accepted accounting
principles in Spain consistently applied, which are in effect from time to
time.

 

At any time after the
Issue Date, the Company may elect to apply IFRS in lieu of GAAP and, upon such
election, references herein to GAAP shall thereafter be construed to mean IFRS
as in effect from time to time after such election; provided that any such election once made shall be
irrevocable.  The Company shall give
notice of any such election to the Trustee and the holders.

 

“GCO” means Grupo Corporativo ONO, S.A., and its
successors.

 

“GCO
Loan” means the loan agreement dated February 13, 2003
between Cableuropa as borrower and GCO as lender in an aggregate principal
amount of €98.5 million.  GCO has
confirmed that Cableuropa shall convert the GCO Loan into common stock of
Cableuropa.

 

12

 

“Guarantee” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any Debt of any
other Person and any obligation, direct or indirect, contingent or otherwise,
of such Person (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Debt of such other Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services, to take-or-pay or to maintain financial
statement conditions or otherwise) or (b) entered into for the purpose of
assuring in any other manner the obligee against loss in respect thereof (in
whole or in part); provided, however, that the term “Guarantee” shall
not include (i) endorsements for collection or deposit in the ordinary
course of business or (ii) a contractual commitment by one Person to
invest in another Person for so long as such Investment is reasonably expected
to constitute a Permitted Investment under clause (b) of the definition of
Permitted Investments.  The term “Guarantee”
used as a verb has a corresponding meaning. 
The term “Guarantor” shall mean any Person Guaranteeing any obligation.

 

“Hedging
Obligation” of
any Person means any obligation of such Person pursuant to any Interest Rate
Agreement, Currency Exchange Protection Agreement or any other similar
agreement or arrangement.

 

“Holdco”
means any entity that owns 100% of the share capital of another company
(whether directly, or through wholly-owned subsidiaries).

 

“holder”
means (i) in the case of Global Notes, each Person shown in the records of
the Book-Entry Depositary as a holder of a certificated depositary interest in
respect of such Global Notes for all purposes other than with respect to the
payment of principal of, premium, if any, and interest on, such Notes the right
to which shall be vested, as against the Issuer, solely in the bearer of such
Global Note (being at the Issue Date the Book-Entry Depositary) in accordance
with and subject to its terms and the terms of this Indenture and (ii) in
the case of Definitive Notes, the Person in whose name a Definitive Note is
registered on the registrar’s books.

 

“IFRS”
means the accounting standards adopted by the International Financial Reporting
Standards Board and its predecessor.

 

“Incur” means, with respect to any Debt or other
obligation of any Person, to create, issue, incur (by merger, conversion,
exchange or otherwise), extend, assume, Guarantee or otherwise become liable in
respect of such Debt or other obligation or the recording, as required pursuant
to GAAP or otherwise, of any such Debt or obligation on the balance sheet of
such Person (and “Incurrence” and “Incurred” shall have meanings correlative to
the foregoing); provided, however, that a change in GAAP that
results in an obligation of such Person that exists at such time, and is not
theretofore classified as Debt, becoming Debt shall not be deemed an Incurrence
of such Debt; provided  further, however,
that solely for purposes of determining compliance with Section 4.06,
amortization of debt discount shall not be deemed to be the Incurrence of Debt,
provided that in the case of Debt
sold at a discount, the amount of such Debt Incurred shall at all times be the
aggregate principal amount at Stated Maturity.

 

“Indenture” means this instrument as
originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument
and any such supplemental indenture, the provisions of the TIA that are
expressly 

 

13

 

incorporated, by reference or otherwise, herein and in any such
supplemental indenture, respectively.

 

“Independent
Appraiser” means
an investment banking firm of international standing or any third party
appraiser of international standing, provided
that such firm or appraiser is not an Affiliate of the Company.

 

“Interest Payment Date” means the Stated
Maturity of an installment of interest on the Notes.

 

“Interest Period”
means the period commencing on and including an interest payment date and
ending on and including the day immediately preceding the next succeeding
interest payment date, with the exception that the first Interest Period shall
commence on and include the Issue Date and end on and include August 14,
2004.

 

“Interest
Rate Agreement” means,
for any Person, any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement or other similar agreement designed to protect
against fluctuations in interest rates.

 

“Investment” by any Person means any direct or indirect
loan (other than advances to customers in the ordinary course of business that
are recorded as accounts receivable on the balance sheet of such Person),
advance or other extension of credit or capital contribution (by means of
transfers of cash or other Property to others or payments for Property or
services for the account or use of others, or otherwise) to, or Incurrence of a
Guarantee of any obligation of, or purchase or acquisition of Capital Stock,
bonds, notes, debentures or other securities or evidence of Debt issued by, any
other Person. For purposes of Sections 4.07 and 4.17 and of the definition of “Restricted
Payment”, “Investment” shall include the portion (proportionate to the Company’s
equity interest in such Subsidiary) of the Fair Market Value of the net assets
of any Subsidiary at the time that such Subsidiary is designated an
Unrestricted Subsidiary.  In determining
the amount of any Investment made by transfer of any Property other than cash,
such Property shall be valued at its Fair Market Value at the time of such
investment.

 

“Issue
Date” means the
date on which the Notes are initially issued.

 

“Issuer” means ONO Finance Plc.

 

“Issuer Order” means a written order signed
in the name of the Issuer by any Person authorized by a resolution of the board
of directors of the Issuer.

 

“Issuer
Restricted Payment” means
with respect to the Issuer;

 

(a)           any dividend or distribution (whether made in cash,
securities or other Property) declared or paid on or with respect to any shares
of Capital Stock of the Issuer (including any payment in connection with any
merger or consolidation with or into the Issuer);

 

(b)           the purchase, repurchase, redemption, acquisition or
retirement for value of any Capital Stock of the Issuer or any securities
exchangeable for or convertible into any such Capital Stock, including the
exercise of any option to exchange any Capital Stock;

 

14

 

(c)           the purchase, repurchase, redemption, acquisition or
retirement for value, prior to the date for any scheduled maturity, sinking
fund or amortization or other installment payment, of any Subordinated
Obligation (other than the purchase, repurchase or other acquisition of any
Subordinated Obligation purchased in anticipation of satisfying a scheduled
maturity, sinking fund or amortization or other installment obligation, in each
case due within one year of the date of acquisition); or

 

(d)           any Investment (other than Permitted Investments of the
Issuer) in any Person.

 

“Lien” means, with respect to any Property of any
Person, any mortgage or deed of trust, pledge, hypothecation, assignment,
deposit arrangement, security interest, lien, charge, easement (other than any
easement not materially impairing usefulness or marketability), encumbrance, preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever on or with respect to such Property (including any Capital
Lease Obligations, conditional sale or other title retention agreement having
substantially the same economic effect as any of the foregoing or any Sale and
Leaseback Transaction).

 

“Material
License” means a
license, authorization or concession to operate a cable or telephone system
held by the Company or any of the Restricted Subsidiaries which system at the
time of determination covers a number of Total Homes which equals or exceeds
7.5% of the aggregate number of Total Homes covered by all of the licenses,
authorizations or concessions to operate cable or telephone systems held by the
Company and the Restricted Subsidiaries at such time.

 

“Maturity” means,
with respect to any indebtedness, the date on which any principal of such
indebtedness becomes due and payable as therein or herein provided, whether at
the Stated Maturity with respect to such principal or by declaration of
acceleration, call for redemption or purchase or otherwise.

 

“Moody’s” means
Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

 

“Multi-Borrower
Credit Facilities” means the multi-borrower credit facility
dated as of May 6, 1999 among the Issuer, Cableuropa and the other
borrowers thereunder pursuant to which the Issuer lent the proceeds of the
Issuer’s $275,000,000 13% notes due 2009 to Cableuropa and such other
borrowers, the multi-borrower credit facility dated as of May 6, 1999
among the Issuer, Cableuropa and the other borrowers thereunder pursuant to
which the Issuer lent the proceeds of the Issuer’s €125,000,000 13% notes due
2009 to Cableuropa and such other borrowers, the multi-borrower credit facility
dated as of June 30, 2000 among the Issuer, Cableuropa and the other
borrowers thereunder pursuant to which the Issuer lent the proceeds of the
Issuer’s €200,000,000 14% notes due 2010 to Cableuropa and such other
borrowers, the multi-borrower credit facility dated as of February 9, 2001
among the Issuer, Cableuropa and the other borrowers thereunder pursuant to
which the Issuer lent the proceeds of the Issuer’s $200,000,000 14% notes due
2011 to Cableuropa and such other borrowers, and the multi-borrower credit
facility dated as of February 9, 2001 among the Issuer, Cableuropa and the
other borrowers thereunder pursuant to which the Issuer lent the proceeds of
the Issuer’s €150,000,000 14% notes due 2011 to Cableuropa and such other
borrowers.

 

“Murcia” means
Región de Murcia de Cable, S.A. and its successors.

 

15

 

“Net
Available Cash” from
any Asset Sale means cash payments received therefrom (including any cash
payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received, but
excluding any other consideration received in the form of assumption by the
acquiring Person of Debt or other obligations relating to the Property that is
the subject of such Asset Sale or received in any other non-cash form), in each
case net of:

 

(a)           all legal, title and recording tax expenses, commissions and
other fees and expenses incurred, and all federal, state, provincial, foreign
and local taxes required to be accrued as a liability under GAAP, as a
consequence of such Asset Sale;

 

(b)           all payments made on any Debt that is secured by any
Property subject to such Asset Sale, in accordance with the terms of any Lien
upon or other security agreement of any kind with respect to such Property, or
which must by its terms, or in order to obtain a necessary consent to such
Asset Sale, or by applicable law, be repaid out of the proceeds from such Asset
Sale;

 

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

 

(d)           the deduction of appropriate amounts provided by the seller
as a reserve, in accordance with GAAP, against any liabilities associated with
the Property disposed in such Asset Sale and retained by the Company or any
Restricted Subsidiary after such Asset Sale.

 

“Net
Cash Proceeds” means:

 

(a)           with respect to any Asset Sale, the proceeds thereof in the
form of cash or cash equivalents including payments in respect of deferred
payment obligations when received in the form of, or stock or other assets when
disposed for, cash or cash equivalents (except to the extent that such
obligations are financed or sold with recourse to the Issuer or any Restricted
Subsidiary), net of:

 

(i)            brokerage
commissions and other fees and expenses (including, without limitation, fees
and expenses of legal counsel, accountants, investment banks and other
consultants) related to such Asset Sale;

 

(ii)           provisions for all taxes paid or payable,
or required to be accrued as a liability under GAAP as a result of such Asset
Sale;

 

(iii)          all payments made on any Debt that is
secured by any Property subject to such Asset Sale, in accordance with the
terms of any Lien upon or other security agreement of any kind with respect to
such Property, or which must by its terms, or in order to obtain a necessary
consent to such Asset Sale, or by applicable law, be repaid out of the proceeds
from such Asset Sale;

 

(iv)          all distributions and other payments
required to be made to any Person (other than the Issuer or any Restricted
Subsidiary) owning a beneficial interest in the assets subject to the Asset Sale;
and

 

16

 

(v)           appropriate amounts required to be
provided by the Issuer or any Restricted Subsidiary, as the case may be, as a
reserve in accordance with GAAP against any liabilities associated with such
Asset Sale and retained by the Issuer or any Restricted Subsidiary, as the case
may be, after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as reflected in an Officer’s Certificate delivered to the
Trustee; and

 

(b)           with respect to any capital contributions, issuance or sale
of Capital Stock or options, warrants or rights to purchase Capital Stock, or
debt securities or Capital Stock that have been converted into or exchanged for
Capital Stock as referred to under Section 4.07, the proceeds of such
issuance or sale in the form of cash or cash equivalents, payments in respect
of deferred payment obligations when received in the form of, or stock or other
assets when disposed of for, cash or cash equivalents (except to the extent
that such obligations are financed or sold with recourse to the Issuer or any
Restricted Subsidiary), net of attorney’s fees, accountant’s fees and brokerage,
consultation, underwriting and other fees and expenses actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result of thereof.

 

“Notarize” means, with respect to any Debt or other
obligation, to notarize (put in notarial form before a Spanish notary republic)
or to intervene (signed before a Spanish notary public), in each case in
accordance with Spanish law.

 

“Note Guarantees” means
a guarantee on the terms set forth in this Indenture by the Parent Guarantor
and the Subsidiary Guarantors of the Issuer’s obligations with respect to the
Notes.

 

“Note Guarantors” means the Parent
Guarantor and the Subsidiary Guarantors.

 

“Notes
Proceeds Loans” means
the Fixed Rate Note Proceeds Loan and the Floating Rate Note Proceeds Loan.

 

“Officer” means
any director, the Chief Executive Officer, the President, the Chief Financial
Officer or any person performing similar functions, of the Company, a
Restricted Subsidiary or the Issuer, as applicable.

 

“Officers’ Certificate” means a certificate signed by two Officers of the Company,
a Restricted Subsidiary or the Issuer, as applicable, at least one of whom
shall be the principal executive officer or principal financial officer of the
Company, such Restricted Subsidiary or the Issuer, as applicable, and delivered
to the Trustee.

 

“Opinion of Counsel” means
a written opinion from legal counsel. 
The counsel may be an employee of or counsel to the Company, the
Restricted Subsidiaries or the Issuer or the Trustee.

 

“Parent Guarantee” means a guarantee on
the terms set forth in this Indenture by the Parent Guarantor of the Issuer’s
obligations with respect to the Notes.

 

“Parent Guarantor” means a direct Holdco
of Cableuropa that is a subsidiary of GCO, which will, upon a Repayment Event,
guarantee the obligations of the Issuer under this 

 

1

 

Indenture.  The Parent Guarantor
will not engage in any business activity or undertake any other activity except
any activity relating to (i) the granting of the Parent Guarantee, (ii) fulfilling
its obligations under the Parent Guarantee, (iii) any activities permitted
by this Indenture, or (iv) directly related to the establishment and
maintenance of its corporate existence.

 

“Participative Loans”
means the loan agreements dated January 31, 2002 and March 30, 2002
between Cableuropa as borrower and GCO as lender in the aggregate principal
amount of €100 million and €200 million, respectively. GCO has
confirmed that Cableuropa will convert the Participative Loans into common
stock of Cableuropa.

 

“Permitted Debt” has
the meaning given to such term under Section 4.06.

 

“Permitted Holders” means
(a) General Electric Company; Bank of America Corporation; Caisse de dépôt
et placement du Québec; Banco Santander; Grupo Ferrovial S.A.; Grupo Multitel,
Multitel Luxco, Hidrocantabrico S.A.; VAL Telecommunications, S.L; Sodinteleco,
S.L.; any Affiliate of such Person or any Person of which the foregoing “beneficially
owns” (as defined in Rule 13d-3 under the Exchange Act), individually or
collectively with any of the foregoing, at least 662/3%
of the total voting power of the Voting Stock of such Person and (b) any
Person acting in the capacity of an underwriter in connection with a public or
private offering of the Company’s Capital Stock.

 

“Permitted Investment” means
any Investment by the Company, a Restricted Subsidiary or the Issuer, as
specifically set forth below, in:

 

(a)           in the case of the Company and the Restricted Subsidiaries,
the Company, any Restricted Subsidiary or any Person that will, upon the making
of such Investment, become a Restricted Subsidiary; provided, however,
that such Restricted Subsidiary is engaged in the Telecommunications Business;

 

(b)           in the case of the Company and the Restricted Subsidiaries,
any Person if as a result of such Investment such Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its
Property to, the Company or a Restricted Subsidiary; provided, however,
that such Person is engaged in the Telecommunications Business;

 

(c)           in the case of the Company, the Restricted Subsidiaries and
the Issuer, Temporary Cash Investments;

 

(d)           in the case of the Company and the Restricted Subsidiaries,
receivables owing to the Company or a Restricted Subsidiary, if created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; provided,
however, that such trade terms
may include such concessionary trade terms as the Company or such Restricted
Subsidiary deems reasonable under the circumstances;

 

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

 

2

 

(f)            in the case of the Company and
the Restricted Subsidiaries, loans and advances to employees made in the
ordinary course of business consistent with past practices of the Company or
such Restricted Subsidiary, as the case may be; provided, however,
that such loans and advances do not exceed €1.0 million at any one time
outstanding;

 

(g)           in the case of the Company and the Restricted Subsidiaries,
stock, obligations or other securities received in settlement of debts created
in the ordinary course of business and owing to the Company or such Restricted
Subsidiary or in satisfaction of judgments;

 

(h)           in the case of the Company and the Restricted Subsidiaries,
any Person to the extent such Investment represents the non-cash portion of the
consideration received in connection with an Asset Sale consummated in
compliance with Section 4.11;

 

(i)            in the case of the Company and
the Restricted Subsidiaries, other Investments made for Fair Market Value that
do not exceed the greater of (x) €20 million or (y) an amount equal to 10% of
any Capital Stock Sale Proceeds received in connection with a Public Equity
Offering to the extent that such Capital Stock Sale Proceeds have not been used
pursuant to Section 4.07(b)(iii)(B) to make a Restricted Payment, in
either case, outstanding at any one time in the aggregate; and

 

(j)            in the case of the Issuer, the
loan of the proceeds of (x) the Notes by the Issuer to Cableuropa and the other
Subsidiary Guarantors under the Notes Proceeds Loans and (y) a debt offering
with terms substantially similar to the offering of the Notes by the Issuer to
Cableuropa and the other Subsidiary Guarantors under an agreement or agreements
substantially similar to the Notes Proceeds Loans.

 

“Permitted
Junior Securities” means, with respect to any Person: (a) Capital
Stock in such Person; or (b) debt securities of such Person that are
subordinated to all Senior Debt and any debt securities issued in exchange for
Senior Debt to substantially the same extent as, or to a greater extent that,
Subordinated Guarantees are subordinated to Senior Debt pursuant to this
Indenture.

 

“Permitted
Liens” means (A) with
respect to the Company and the Restricted Subsidiaries:

 

(a)           Liens to secure Debt permitted to be Incurred under Sections
4.06(c)(ii), (iv) and (v);

 

(b)           Liens for taxes, assessments or governmental charges, levies
or claims on the Property of the Company or any Restricted Subsidiary if the
same shall not at the time be delinquent or thereafter can be paid without
penalty, or are being contested in good faith and by appropriate proceedings
promptly instituted and diligently concluded; provided,
however, that any reserve or
other appropriate provision that shall be required in conformity with GAAP
shall have been made therefor;

 

3

 

(c)           Liens imposed by law, such as carriers’, warehousemen’s and
mechanics’ Liens and other similar Liens, on the Property of the Company or any
Restricted Subsidiary arising in the ordinary course of business and securing
payment of obligations that are not more than 60 days past due or are being
contested in good faith and by appropriate proceedings;

 

(d)           Liens on the Property of the Company or any Restricted
Subsidiary Incurred in the ordinary course of business to secure performance of
obligations with respect to statutory or regulatory requirements, performance
or return-of-money bonds, surety bonds or other obligations of a like nature
and Incurred in a manner consistent with industry practice, in each case which
are not Incurred in connection with the borrowing of money, the obtaining of
advances or credit or the payment of the deferred purchase price of Property
and which do not in the aggregate impair in any material respect the use of
Property in the operation of the business of the Company and the Restricted
Subsidiaries taken as a whole;

 

(e)           Liens on Property existing at the time the Company or any
Restricted Subsidiary acquired such Property, including any acquisition by
means of a merger or consolidation with or into the Company or any Restricted
Subsidiary; provided, however, that any such Lien may not extend
to any other Property of the Company or any Restricted Subsidiary; provided further, however, that such Liens shall not have
been Incurred in anticipation of or in connection with the transaction or
series of related transactions pursuant to which such Property was acquired by
the Company or any Restricted Subsidiary;

 

(f)            Liens on the Property of a
Person existing at the time such Person becomes a Restricted Subsidiary; provided, however,
that any such Lien may not extend to any other Property of the Company or any
other Restricted Subsidiary that is not a direct Subsidiary of such Person; provided further, however, that any such Lien was not
Incurred in anticipation of or in connection with the transaction or series of
related transactions pursuant to which such Person became a Restricted
Subsidiary;

 

(g)           pledges or deposits by the Company or any Restricted
Subsidiary under workmen’s compensation laws, unemployment insurance laws or
similar legislation, or good faith deposits in connection with bids, tenders,
contracts (other than for the payment of Debt) or leases to which the Company
or any Restricted Subsidiary is party, or deposits to secure public or
statutory obligations of the Company or any Restricted Subsidiary, or deposits
for the payment of rent, in each case Incurred in the ordinary course of
business;

 

(h)           easements, rights of way, restrictions on the use of
properties and such other encumbrances or charges against real property as are
of a nature generally existing with respect to properties of a similar
character;

 

(i)            Liens on the Property of the
Company or any Restricted Subsidiary to secure any Refinancing, in whole or in
part, of any Debt secured by Liens referred to in clause (a), (e) or (f) above
or (p) below; provided, however, that any such Lien shall be limited
to all or part of the same Property that secured the 

 

4

 

original Lien (together with improvements and accessions to such
Property) and the aggregate principal amount of Debt that is secured by such
Lien shall not be increased to an amount greater than the sum of (i) the
outstanding principal amount, or, if greater, the committed amount, of the Debt
secured by Liens described under clause (a), (e) or (f) above or (p)
below, as the case may be, at the time the original Lien became a Permitted
Lien under this Indenture and (ii) an amount necessary to pay any fees and
expenses, including premiums and defeasance costs, incurred by the Company or
such Restricted Subsidiary in connection with such Refinancing;

 

(j)            Liens on Property of any
Unrestricted Subsidiary; provided,
however, that such Liens do not
extend to any Property of the Company and the Restricted Subsidiaries;

 

(k)           Liens in favor of the Company or any Restricted Subsidiary;

 

(l)            Liens on Property of the Company
or any Restricted Subsidiary pursuant to conditional sale or title retention
agreements;

 

(m)          Liens on Property of the Company or any Restricted
Subsidiary relating to judgments being contested in good faith by the Company
or such Restricted Subsidiary;

 

(n)           Liens on the Property of the Company or any Restricted
Subsidiary pursuant to good faith contract deposits;

 

(o)           Liens on Property of the Company or any Restricted
Subsidiary arising as a result of immaterial leases of such Property to other
persons;

 

(p)           Liens relating to escrow accounts established for the
benefit of holders of Public Debt of Cableuropa;

 

(q)           Liens to secure Debt permitted to be incurred under the
Subsidized Loans and VAT Discounting Facility pursuant to Section 4.06(c)(viii);

 

(r)            Liens existing on the Issuer
Date not otherwise described in clauses (a) through (q) above; and

 

(r)            Liens
Incurred in the ordinary course of business of the Company or any subsidiary of
the Company with respect of obligations that do not exceed €10.0 million at any
one time outstanding;

 

and (B) with respect
to the Issuer:

 

(a)           The pledge of the Notes Proceeds Loans for the benefit of
lenders under the Senior Bank Facility after a Repayment Event;

 

(b)           Liens relating to escrow accounts established for the
benefit of holders of Public Debt of Cableuropa; and

 

(c)           Liens for taxes, assessments or governmental charges, levies
or claims on the Property of the Issuer if the same shall not at the time be
delinquent or 

 

5

 

thereafter can be paid without penalty, or are being contested in good
faith and by appropriate proceedings promptly instituted and diligently
concluded; provided, however, that (x) any reserve or other
appropriate provision that shall be required in conformity with GAAP shall have
been made therefor and (y) the Issuer shall have notified the Company that a
payment under the Notes Proceeds Loans in respect thereof may be due.

 

“Permitted
Refinancing Debt” means
any Debt that Refinances any other Debt, including any successive Refinancings,
so long as:

 

(a)           such Debt is in an aggregate principal amount (or if
Incurred with original issue discount, an aggregate issue price) not in excess
of the sum of (i) the aggregate principal amount (or if Incurred with
original issue discount, the aggregate accreted value) then outstanding of the
Debt being Refinanced and (ii) an amount necessary to pay any fees and
expenses, including premiums and defeasance costs, related to such Refinancing;

 

(b)           the Average Life of such Debt is equal to or greater than
the Average Life of the Debt being Refinanced;

 

(c)           the Stated Maturity of such Debt is no earlier than the
Stated Maturity of the Debt being Refinanced; and

 

(d)           the new Debt shall not be senior in right of payment to the
Debt that is being Refinanced,

 

provided,
however, that Permitted
Refinancing Debt shall not include Debt of the Company or a Restricted
Subsidiary that Refinances Debt of an Unrestricted Subsidiary.

 

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

 

“Preferred Stock” means
any Capital Stock of a Person, however designated, which entitles the holder
thereof to a preference with respect to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of any other class of Capital Stock
issued by such Person.

 

“Preferred Stock Dividends” means all dividends with respect to Preferred Stock of
Restricted Subsidiaries held by Persons other than the Company or a Wholly
Owned Subsidiary. The amount of any such dividend shall be equal to the
quotient of such dividend divided by the difference between one and the maximum
statutory federal income rate (expressed as a decimal number between 1 and 0)
then applicable to the Issuer of such Preferred Stock.

 

“pro
forma” means,
with respect to any calculation made or required to be made pursuant to the
terms hereof, a calculation performed in accordance with Article 11 of
Regulation S-X promulgated under the Securities Act, as interpreted in good
faith by the Board of Directors after consultation with the independent
certified public accountants of the Company, or otherwise a calculation made in
good faith by the Board of Directors after 

 

6

 

consultation with the independent certified public accountants of the
Company, as the case may be.

 

“Pro Forma EBITDA” means
for any Person, for any period, the EBITDA of such Person as determined on a
consolidated basis in accordance with GAAP consistently applied after giving
effect to the following: (i) if, during or after such period, such Person
or any of its subsidiaries shall have made any Asset Sale, Pro Forma EBITDA of
such Person and its subsidiaries for such period shall be reduced by an amount
equal to the Pro Forma EBITDA (if positive) directly attributable to the assets
which are the subject of such Asset Sale for the period or increased by an
amount equal to the Pro Forma EBITDA (if negative) directly attributable
thereto for such period and (ii) if, during or after such period, such
Person or any of its subsidiaries completes an acquisition of any Person or
business which immediately after such acquisition is a Subsidiary of such
Person or whose assets are held directly by such Person or a Subsidiary of such
Person, Pro Forma EBITDA shall be computed so as to give pro forma effect to
the acquisition of such Person or business, provided
that, with respect to the Company, all of the foregoing references
to “Subsidiary” or “Subsidiaries” shall be deemed to refer only to a “Restricted
Subsidiary” or “Restricted Subsidiaries”.

 

“Property” means,
with respect to any Person, any interest of such Person in any kind of property
or asset, whether real, personal or mixed, or tangible or intangible, including
Capital Stock in, and other securities of, any other Person.  For purposes of any calculation required
pursuant to this Indenture, the value of any Property shall be its Fair Market
Value.

 

“Public
Debt” means any bonds, debentures, notes or other
indebtedness of a type that could be issued or traded in any market where
capital funds (whether debt or equity) are traded, including private placement
sources of debt and equity as well as organized markets and exchanges, whether
such indebtedness is issued in a public offering or in a private placement to
institutional investors or otherwise.

 

“Public
Equity Offering” means
an underwritten public offering of ordinary shares of Cableuropa or any Holdco
of Cableuropa, following which at least 15% of the total issued and outstanding
ordinary shares of Cableuropa or any Holdco of Cableuropa is listed on a
nationally recognized stock exchange or automated quotation system in the
United States or in a member state of the European Union.

 

“QIB” means a “Qualified Institutional
Buyer” as defined under Rule 144A.

 

“Redemption Date”, when used with respect
to any Note to be redeemed, in whole or in part, means the date fixed for such
redemption by or pursuant to this Indenture.

 

“Redemption Price”, when used with respect
to any Note to be redeemed, means the price at which it is to be redeemed
pursuant to this Indenture.

 

“Refinance” means,
in respect of any Debt, to refinance, extend, renew, refund, repay, prepay,
repurchase, redeem, defease or retire, or to issue other Debt, in exchange or
replacement for, such Debt. “Refinanced” and “Refinancing” shall have
correlative meanings.

 

“Regulation S” means Regulation S under the
Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

7

 

“Repay” means,
in respect of any Debt, to repay, prepay, repurchase, redeem, legally defease
or otherwise retire such Debt.  “Repayment”
and “Repaid” shall have correlative meanings. 
For purposes of Section 4.11, Debt shall be considered to have been
Repaid only to the extent the related loan commitment, if any, shall have been
permanently reduced in connection therewith.

 

“Repayment
Event” means the later of (i) the establishment of a
Holdco of Cableuropa that is a subsidiary of GCO; (ii) the guarantee of
the Notes on a senior unsecured basis by that Holdco; and (iii) (a) the
redemption, repurchase or maturity of all of the Existing Notes, or (b) the
Existing Notes Indentures being amended to reflect the terms of this Indenture
governing the Notes with respect to the subordination of the Subsidiary
Guarantees following the redemption, repurchase or maturity of the Existing
Notes.

 

“Representative” means
the trustee, agent or representative expressly authorized to act in such
capacity, if any, for any Senior Debt or if no person is so authorized, the
holders of such Senior Debt.

 

“Representative
Amount” means an amount of not less than €1,000,000
for a single transaction in the relevant market at the relevant time.

 

“Restricted Payment”
means;

 

(a)           any dividend or distribution (whether made in cash,
securities or other Property) declared or paid on or with respect to any shares
of Capital Stock of the Company or any Restricted Subsidiary (including any
payment in connection with any merger or consolidation with or into the Company
or any Restricted Subsidiary), except for;

 

(i)            any dividend
or distribution that is made solely to the Company or a Restricted Subsidiary;

 

(ii)           any dividend or distribution that is made
by a Restricted Subsidiary that is not a Wholly Owned Subsidiary to a
shareholder other than the Company or a Restricted Subsidiary provided that (x)
the dividend or distribution has been paid to all shareholders (including the
Company and/or any Restricted Subsidiary) on a pro rata basis, or on a basis
that results in the receipt by the Company or a Restricted Subsidiary of
dividends or distributions of greater value than it would receive on a pro rata
basis and (y) the aggregate amount of such dividends or distributions permitted
by this exception (ii) does not exceed €500,000 per year; or

 

(iii)          any dividend or distribution payable
solely in shares of Capital Stock (other than Disqualified Stock) of the
Company or such Restricted Subsidiary;

 

(b)           the purchase, repurchase, redemption, acquisition or
retirement for value of any Capital Stock of the Company (other than from the
Company or a Restricted Subsidiary) or any securities exchangeable for or
convertible into any such Capital Stock, including the exercise of any option
to exchange any Capital Stock of the Company (other than for or into Capital
Stock of the Company that is not Disqualified Stock);

 

8

 

(c)           the purchase, repurchase, redemption, acquisition or
retirement for value from any direct or beneficial shareholder of the Company
of any Capital Stock of any Restricted Subsidiary or any securities
exchangeable for or convertible into any such Capital Stock, including the
exercise of any option to exchange any Capital Stock of a Restricted Subsidiary
(other than for or into Capital Stock of a Restricted Subsidiary that is not
Disqualified Stock);

 

(d)           the purchase, repurchase, redemption, acquisition or
retirement for value, prior to the date for any scheduled maturity, sinking fund
or amortization or other installment payment, of any Subordinated Obligation
(other than the purchase, repurchase or other acquisition of any Subordinated
Obligation purchased in anticipation of satisfying a scheduled maturity,
sinking fund or amortization or other installment obligation, in each case due
within one year of the date of acquisition or in exchange for Capital Stock of
a Restricted Subsidiary); or

 

(e)           any Investment (other than Permitted Investments) in any
Person.

 

“Restricted
Subsidiaries” means
(a) any Subsidiary (other than the Excluded Companies) of the Company
unless such Subsidiary shall have been designated an Unrestricted Subsidiary as
permitted or required pursuant to the Section 4.17 and (b) an
Unrestricted Subsidiary that is redesignated as a Restricted Subsidiary as
permitted pursuant to such Section.

 

“Retco”
means Royal Exchange Trust Company Limited.

 

“Retecal”
means Retecal Sociedad Operadora de Telecommunicaciones de Castilla y León,
S.A.

 

“Rule 144” means Rule 144 under
the Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

“Rule 144A” means Rule 144A under
the Securities Act (including any successor regulation thereto), as it may be
amended from time to time.

 

“S&P” means Standard & Poor’s Ratings
Service or any successor to the rating agency business thereof.

 

“Sale
and Leaseback Transaction” means
any direct or indirect arrangement relating to Property now owned or hereafter
acquired whereby the Company or a Restricted Subsidiary transfers such Property
to another Person and the Company or a Restricted Subsidiary leases it from
such Person.

 

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

 

“Senior
Bank Facility” means the senior bank facility dated as of August 8,
2001, as subsequently amended on February 13, 2003 among the ONO Group, as
guarantors and borrowers, a series of international banks as arrangers, and
Banc of America Securities Limited as agent and security agent, and as further
amended, restated, augmented, modified, renewed, refunded, replaced, or
refinanced in whole or in part from time to time.

 

9

 

“Senior
Debt” of any
Person means:

 

(a)           all obligations consisting of any amount (including the
principal, premium, if any, and accrued and unpaid interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company to the extent post-filing interest is
allowed in such proceeding)) arising under or in respect of (i) Debt for
borrowed money and (ii) Debt evidenced by notes, debentures, bonds or
other similar instruments permitted under this Indenture;

 

(b)           all Capital Lease Obligations and all Attributable Debt in
respect of Sale and Leaseback Transactions;

 

(c)           all obligations of any Person:

 

(i)            for the
reimbursement of any obligor on any letter of credit, bankers’ acceptance or
similar credit transaction;

 

(ii)           under Hedging Obligations; or

 

(iii)          issued or assumed as the deferred
purchase price of Property and all conditional sale obligations and all
obligations under any title retention agreement permitted under this Indenture;
and

 

(d)           all obligations of other Persons of the type referred to in
clauses (a), (b) and (c) above for the payment of which such Person
is responsible or liable as Guarantor; provided,
however, that Senior Debt shall
not include:

 

(A)          Debt that is by its terms subordinate or pari passu in right
of payment to the Notes Proceeds Loans, including any Senior Subordinated Debt
or any Subordinated Obligations;

 

(B)           any Debt Incurred in violation of the provisions of this
Indenture;

 

(C)           accounts payable or any other obligations to trade creditors
created or assumed in the ordinary course of business in connection with the
obtaining of materials or services (including Guarantees thereof or instruments
evidencing such liabilities other than provided pursuant to Credit Facilities);

 

(D)          any liability for federal, state, local, foreign or other
taxes owed or owing;

 

(E)           any obligation of the Company or any Restricted Subsidiary
to any Restricted Subsidiary (other than obligations of the Company to any
Restricted Subsidiary which represent amounts provided to such Restricted
Subsidiary under Senior Debt which such Restricted Subsidiary has lent to the
Company); or

 

(F)           any obligations with respect to any Capital Stock of the
Company.

 

“Senior
Subordinated Debt”

 

(a)           With respect to the Company means the Multi-Borrower Credit
Facilities and the Notes Proceeds Loans and any other subordinated Debt of the
Company 

 

10

 

that specifically provides that such Debt is to rank pari passu with the Notes Proceeds Loans
and is not subordinated by its terms to any other subordinated Debt or other
obligation of the Company which is not Senior Debt of the Company. “Senior
Subordinated Debt” of any Restricted Subsidiary or any other Note Guarantor has
a correlative meaning; and

 

(b)           With respect to the Issuer means the Subordinated Debt of
the Issuer that specifically provides that such Debt is to rank pari passu with the Notes (after payment
of the Existing Notes) and is not subordinated by its terms to any other
Subordinated Debt or other obligation of the Issuer which is not Senior Debt of
the Issuer. “Senior Subordinated Debt” of any Restricted Subsidiary or any
other Note Guarantor has a correlative meaning.

 

“Spanish
Government Obligations” means
direct obligations (or certificates representing an ownership interest in such
obligations) of the Kingdom of Spain (including any agency or instrumentality
thereof) for the payment of which the full faith and credit of the Kingdom of
Spain is pledged and which are not callable or redeemable at the issuer’s
option.

 

“Stated
Maturity” means, with respect to any Debt or security, the
date specified in such Debt or security as the fixed date on which the payment
of principal of such Debt or security is due and payable, including pursuant to
any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

 

“Subordinated
Obligation” means
any Debt of any Note Guarantor (whether outstanding on the Issue Date or
thereafter Incurred) that is subordinate or junior in right of payment to the
Notes Proceeds Loans or the applicable Note Guarantee pursuant to a written
agreement to that effect.

 

“Subordinated
Shareholder Indebtedness”, means subordinated indebtedness
issued by the Company or any Restricted Subsidiary to any Holdco of Cableuropa
or any Permitted Holder that by its terms or pursuant to the terms of any
subordination agreement to which it is subject;

 

(i)            does not
(including upon the happening of any event) mature and is not (including upon
the happening of any event) mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder, in whole or
in part, and does not include any provision requiring re-purchase by the
Company or any Restricted Subsidiary (including upon the happening of any
event) prior to the date that is one year after the date on which the Notes
mature;

 

(ii)           does not (including upon the happening of
any event) require or provide for the payment in cash or otherwise, of interest
or any other amounts prior to its final Stated Maturity (provided that interest
may accrete while such subordinated indebtedness is outstanding and accreted
interest may become due upon acceleration of maturity as permitted by clause (iii) of
this definition and any interest may be satisfied at any time 

 

11

 

by the issues to the holders thereof of additional Subordinated
Shareholder Indebtedness);

 

(iii)          does not provide (including upon the
happening of any event) for the acceleration of its maturity or the exercise of
remedies prior to the date that is one year after the date on which the Notes
mature and are repaid other than by converting it into Capital Stock (other
than Disqualified Stock);

 

(iv)          is not secured by a Lien on any asset of
the Company or any Restricted Subsidiary and is not Guaranteed by any
Restricted Subsidiary;

 

(v)           does not (including upon the happening of
any event) restrict the payment of amounts due in respect of the Notes or the
Guarantees;

 

(vi)          is not (including upon the happening of
any event) mandatorily convertible or exchangeable, or convertible or
exchangeable at the option of the holder, in whole or in part, prior to the
date that is one year after the date on which the Notes mature other than into
or for Capital Stock (other than Disqualified Stock); and

 

(vii)         such Subordinated Shareholder
Indebtedness shall be fully subordinated and junior in right of payment to the
Notes, the Notes Guarantees and the Notes Proceeds Loans pursuant to
subordination, payment blockage and enforcement limitation terms which, taken
as a whole, are no less favorable, in any material respects, to the holders than
those contained in the Notes Proceeds Loans and the Note Guarantees, as
applicable, as in effect on the Issue Date.

 

“Subsidiary” means, in respect of any Person, any
corporation, company (including any limited liability company), association,
partnership, joint venture or other business entity of which a majority of the
total voting power of the Voting Stock is at the time owned or controlled,
directly or indirectly, by (a) such Person, (b) such Person and one
or more subsidiaries of such Person or (c) one or more subsidiaries of
such Person.

 

“Subsidiary
Guarantee” means
a guarantee on the terms set forth in this Indenture by each Subsidiary
Guarantor of the Issuer’s obligations with respect to the Notes.

 

“Subsidiary
Guarantor” means
Cableuropa; Murcia; Valencia; Valencia South; and Valencia North; and any other
Person that becomes a Note Guarantor, other than the Parent Guarantor, pursuant
to Section 4.24.

 

“Subsidized
Loans” means
loans or other Credit Facilities provided by any national or regional public
authority in Spain or the European Union, and any guarantee to secure such
loans or Credit Facilities.

 

“TARGET
Settlement Day” means any day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open.

 

“Telecommunications
Business” means (i) the
business of operating or owning a license, authorization or concession to
operate a cable or telephone or telecommunications (including Internet) system
or service principally in the European Union and (ii) any business
reasonably related, ancillary or complementary thereto, provided that the determination of 

 

12

 

what constitutes a Telecommunications Business shall be made in good
faith by the Board of Directors.

 

“Telerate
Page 248” means, the display page so designated on
Bridge’s Telerate Service (or such other page as may replace that page on
that service, or such other service as may be nominated as the information
vendor).

 

“Temporary
Cash Investments” means any of the following:

 

(a)           Investments in European Government Obligations or Spanish
Government Obligations maturing within 365 days of the date of acquisition
thereof;

 

(b)           Investments in checking accounts, time deposit accounts,
certificates of deposit and money market deposits maturing within 90 days of
the date of acquisition thereof issued by a bank or trust company organized
under the laws of the United States of America or any state thereof or any
foreign country recognized by the United States of America having capital,
surplus and undivided profits aggregating in excess of €500 million and whose
long-term debt is rated “A-3” or “A-” or higher according to Moody’s or S&P
(or such similar equivalent rating by at least one “nationally recognized statistical
rating organization” (as defined in Rule 436 under the Securities Act));

 

(c)           repurchase obligations with a term of not more than 30 days
for underlying securities of the types described in clause (a) entered
into with (i) a bank meeting the qualifications described in clause (b) above
or (ii) any primary government securities dealer reporting to the Market
Reports Division of the Federal Reserve Bank of New York;

 

(d)           Investments in commercial paper, maturing not more than 90
days after the date of acquisition, issued by a corporation (other than an
Affiliate of the Company) organized and in existence under the laws of the
United States of America or any foreign country recognized by the United States
of America with a rating at the time as of which any Investment therein is made
of “P-l” (or higher) according to Moody’s or “A-l” (or higher) according to
S&P (or such similar equivalent rating by at least one “nationally
recognized statistical rating organization” (as defined in Rule 436 under
the Securities Act) and

 

(e)           direct obligations (or certificates representing an
ownership interest in such obligations) of any state of the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of such state is pledged and which are not
callable or redeemable at the issuer’s option, provided
that (i) the long-term debt of such state is rated “A-3” or “A-” or higher
according to Moody’s or S&P (or such similar equivalent rating by at least
one “nationally recognized statistical rating organization” (as defined in Rule 436
under the Securities Act)) and (ii) such obligations mature within 180
days of the date of acquisition thereof.

 

“Trustee” means the party named as such in
this Indenture until a successor replaces it in accordance with the provisions
of this Indenture and, thereafter, means the successor serving hereunder.

 

13

 

“Trust
Indenture Act”  or “TIA”
means the U.S.  Trust Indenture Act of
1939, as amended, or any successor statute, and the rules and regulations
promulgated by the Commission thereunder.

 

“Trust Officer” means, when used with
respect to the Trustee, any vice president, assistant vice president, assistant
treasurer or trust officer in the corporate trust administration of the Trustee
or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above-designated officers, and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his or her knowledge of and familiarity with the
particular subject, and, in each case, who shall have direct responsibility for
the administration of this Indenture.

 

“Unrestricted
Subsidiary” means
the Excluded Companies and any Subsidiary or Affiliate of the Company that is
designated after the Issue Date as an Unrestricted Subsidiary as permitted or
required pursuant to Section 4.17 and not thereafter redesignated as a
Restricted Subsidiary as permitted pursuant thereto.

 

“Valencia” means Valencia de Cable, S.A. and its
successors.

 

“Valencia
North” means
Mediterrànea Norte Sistemas de Cable, S.A. and its successors.

 

“Valencia
South” means
Mediterrànea Sur Sistemas de Cable, S.A. and its successors.

 

“VAT
Discounting Facility” means
any credit facility with one or more financial institutions for the purpose of
financing VAT receivables from the Spanish tax authorities.

 

“Voting
Stock” of any
Person means all classes of Capital Stock 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.

 

“Wholly
Owned Subsidiary” means,
at any time, a Restricted Subsidiary all the Voting Stock of which (except
directors’ qualifying shares) is at such time owned, directly or indirectly, by
the Company and its other wholly owned Subsidiaries.

 

14

 

SECTION 1.02.      Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Additional
  Amounts”

  	
   

  	
  4.16(a)

  
	
  “Additional
  Notes”

  	
   

  	
  Recitals

  
	
  “Affiliate
  Transaction

  	
   

  	
  4.09(a)

  
	
  “Allocable
  Excess Proceeds”

  	
   

  	
  4.11(e)

  
	
  “Authorized
  Agent”

  	
   

  	
  13.09

  
	
  “bankruptcy
  provisions”

  	
   

  	
  6.01(a)(vii)

  
	
  “Change of
  Control Offer”

  	
   

  	
  4.15(a)

  
	
  “Change of
  Control Purchase Date”

  	
   

  	
  4.15(a)

  
	
  “Change of
  Control Purchase Price”

  	
   

  	
  4.15(a)

  
	
  “Covenant
  Defeasance”

  	
   

  	
  8.03

  
	
  “cross
  acceleration provisions”

  	
   

  	
  6.01(a)(v)

  
	
  “Defaulted
  Interest”

  	
   

  	
  2.12

  
	
  “Event of Default”

  	
   

  	
  6.01(a)

  
	
  “Excess Proceeds”

  	
   

  	
  4.11(d)

  
	
  “Global Notes”

  	
   

  	
  2.01(c)

  
	
  “incorporated
  provision”

  	
   

  	
  13.01

  
	
  “judgment
  default provisions”

  	
   

  	
  6.01(a)(vi)

  
	
  “Legal
  Defeasance”

  	
   

  	
  8.02

  
	
  “Notes”

  	
   

  	
  Recitals

  
	
  “Notice of
  Default”

  	
   

  	
  6.01(a)

  
	
  “Obligations”

  	
   

  	
  10.01(a)

  
	
  “Original Notes”

  	
   

  	
  Recitals

  
	
  “Participants”

  	
   

  	
  2.01(c)

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Blockage Notice”

  	
   

  	
  11.02(c)

  
	
  “Payment
  Blockage Period”

  	
   

  	
  11.02(c)

  
	
  “Permitted Debt”

  	
   

  	
  4.06(b)

  
	
  “Prepayment
  Offer”

  	
   

  	
  4.11(d)

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Regulation S
  Global Note”

  	
   

  	
  2.01(b)

  
	
  “Relevant Taxing
  Jurisdiction”

  	
   

  	
  4.16

  
	
  “Restricted
  Global Note”

  	
   

  	
  2.01(b)

  
	
  “Security
  Register”

  	
   

  	
  2.03

  
	
  “Significant
  Subsidiary”

  	
   

  	
  4.21(a)(iii)

  
	
  “Surviving
  Person”

  	
   

  	
  5.01(b)(i)

  
	
  “Standstill
  Period”

  	
   

  	
  11.03(a)(iii)(B)

  
	
  “Taxes”

  	
   

  	
  4.16(a)

  
	
  “Transfer Agent”

  	
   

  	
  2.03

  

 

SECTION 1.03.      Trust Indenture Act
Terms.  The following TIA terms have
the following meanings as used in this Indenture:

 

“Commission” means the Commission.

 

“indenture securities” means the Notes.

 

“indenture securities holder” means a
Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the “indenture securities” means the Issuer and
the Note Guarantors.

 

15

 

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

 

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

 

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

 

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

 

(iii)          “or”
is not exclusive;

 

(iv)          “including”
or “include” means including or include without limitation;

 

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

 

(vi)          “interest”
shall include Special Interest, if any;

 

(vii)         unsecured
or unguaranteed Debt shall not be deemed to be subordinate or junior to secured
or guaranteed Debt merely by virtue of its nature as unsecured or unguaranteed
Debt;

 

(viii)        the
words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section,
clause or other subdivision;

 

(ix)           costs,
charges, remuneration or expenses include any value added, turnover or similar
tax charged in respect thereof; and

 

(x)            “actual
knowledge” of the Trustee shall be construed to mean that the Trustee shall not
be charged with knowledge (actual or otherwise) of the existence of facts that
would impose an obligation on it to make any payment or prohibit it from making
any payment unless a Trust Officer of the Trustee has received three Business
Days’ written notice that such payments are required or prohibited by this
Indenture.

 

16

 

ARTICLE TWO

THE NOTES

 

SECTION 2.01.      The Notes.  (a)  Form and Dating.  The Notes and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A hereto with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture. 
The Notes may have notations, legends or endorsements required by law,
the rules of any securities exchange or usage.  The Issuer shall approve the form of the
Notes.  Each Note shall be dated the date
of its authentication.  The terms and
provisions contained in the form of the Notes shall constitute and are hereby
expressly made a part of this Indenture. The Notes shall be issued only in
registered form without coupons and only in denominations of €1,000 and
integral multiples thereof.

 

(b) Global Notes.  Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of one or more Global Notes
substantially in the form of Exhibit A hereto, with such applicable
legends as are provided in Exhibit A hereto, except as otherwise permitted
herein (the “Regulation S Global Note”), which shall be deposited on
behalf of the purchasers of the Notes represented thereby with the Common
Depositary, and registered in the name of the Common Depositary or its nominee,
as the case may be, for the accounts of Euroclear or Clearstream, duly executed
by the Issuer and authenticated by the Trustee (or an authenticating agent
appointed by the Trustee in accordance with Section 2.02) as hereinafter
provided. The aggregate principal amount of the Regulation S Global Note may
from time to time be increased or decreased by adjustments made by the
Registrar on Schedule A to the Regulation S Global Note and recorded in
the Security Register, as hereinafter provided.

 

Notes offered and sold to
QIBs in reliance on Rule 144A shall be issued initially in the form of one
or more Global Notes substantially in the form of Exhibit A hereto, with
such applicable legends as are provided in Exhibit A hereto, except as
otherwise permitted herein (the “Restricted Global Note”), which shall
be deposited on behalf of the purchasers of the Notes represented thereby with
the Common Depositary, and registered in the name of the Common Depositary or
its nominee, as the case may be, duly executed by the Issuer and authenticated
by the Trustee (or its agent in accordance with Section 2.02) as
hereinafter provided. The aggregate principal amount of the Restricted Global
Note may from time to time be increased or decreased by adjustments made by the
Registrar on Schedule A to the Restricted Global Note and recorded in the
Security Register, as hereinafter provided.

 

(c) Book-Entry
Provisions.  This Section 2.01(c) shall
apply to the Regulation S Global Note and the Restricted Global Note
(collectively, the “Global Notes”) deposited with or on behalf of the
Common Depositary.

 

Members of, or
participants and account holders in Euroclear and Clearstream (“Participants”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Common Depositary or by the Trustee or any custodian of
the Depositary or the Common Depositary or under such Global Note, and the
Common Depositary or its nominee may be treated by the Issuer, a Note
Guarantor, the Trustee and any agent of the Issuer, a Note Guarantor or the
Trustee as the sole owner of such Global Note for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, a Note Guarantor, the Trustee or any agent of the
Issuer, a Note Guarantor or the Trustee from giving effect to any written
certification, proxy or other authorization 

 

17

 

furnished by the Common Depositary or impair, as between the Common
Depositary and its Participants, the operation of customary practices of such
persons governing the exercise of the rights of a Holder of a beneficial interest
in any Global Note.

 

Subject to the provisions
of Section 2.10(b), the registered Holder of a Global Note may grant
proxies and otherwise authorize any Person, including Participants and Persons
that may hold interests through Participants, to take any action that a Holder
is entitled to take under this Indenture or the Notes.

 

Except as provided in Section 2.10,
owners of a beneficial interest in Global Notes shall not be entitled to
receive physical delivery of certificated Notes.

 

SECTION 2.02.      Execution and
Authentication.  An authorized member
of the board of directors or executive officer of the Issuer shall sign the
Notes for the Issuer by manual or facsimile signature.

 

If an authorized member
of the board of directors or executive officer whose signature is on a Note no
longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless.

 

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

 

Pursuant to an Issuer
Order, the Issuer shall execute and the Trustee shall authenticate (a) Original
Notes for original issue up to an aggregate principal amount of €100,000,000
and (b) Additional Notes, from time to time, subject to compliance at the
time of issuance of such Additional Notes with the provisions of Section 2.15.  Any issue of Additional Notes that is to
utilize the same ISIN or Common Code number as a Note already issued hereunder
shall be effected in a manner and under circumstances whereby the issue of
Additional Notes is treated as a “qualified reopening” (within the meaning of
U.S. Treas. Reg. 1.1275-2(k)(3), or any successor provision, all as in effect
at the time of further issue) of the issue of notes having the shared ISIN or
Common Code number, as the case may be. 
The aggregate principal amount of Notes outstanding shall not exceed the
amount set forth herein except as provided in Sections 2.07 and 2.15.

 

The Trustee may appoint
an authenticating agent reasonably acceptable to the Issuer to authenticate the
Notes. Unless limited by the terms of such appointment, any such authenticating
agent may authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by any such agent. An
authenticating agent has the same rights as any Registrar, co-Registrar
Transfer Agent or Paying Agent to deal with the Issuer or an Affiliate of the
Issuer.

 

The Trustee shall have
the right to decline to authenticate and deliver any Notes under this Section 2.02
if the Trustee, being advised by counsel, determines that such action may not
lawfully be taken or if the Trustee in good faith shall determine that such
action would expose the Trustee to personal liability to existing Holders.

 

SECTION 2.03.      Registrar, Transfer Agent
and Paying Agent.  The Issuer shall
maintain an office or agency for the registration of the Notes and of their
transfer or exchange (the “Registrar”), an office or agency where Notes
may be transferred or exchanged (the 

 

18

 

“Transfer Agent”), an office or agency where the Notes may be
presented for payment (the “Paying Agent”) and an office or agency where
notices or demands to or upon the Issuer in respect of the Notes may be
served.  The Issuer may appoint one or
more Transfer Agents, one or more co-Registrars and one or more additional
Paying Agents.

 

The Issuer shall maintain
a Transfer Agent and Paying Agent in London, England.  The Issuer shall also maintain a Transfer
Agent and Paying Agent in Luxembourg so long as the Notes are listed on the
Luxembourg Stock Exchange and the rules of the exchange so require.  The Issuer may appoint one or more Transfer
Agents, one or more co-Registrars and one or more additional Paying
Agents.  The Issuer or any of its Affiliates
may act as Transfer Agent, Registrar, co-Registrar, Paying Agent and agent for
service of notices and demands in connection with the Notes; provided, however,
that neither the Issuer nor any of its Affiliates shall act as Paying Agent for
the purposes of Articles Three and Eight and Sections 4.11 and 4.15.

 

The Issuer hereby
appoints (i) the office of The Bank of New York in London, England located
at the address set forth in Section 13.02(a) as Transfer Agent and
Paying Agent in London, England and agent for service of notices and demands in
connection with the Notes and (ii) the office of The Bank of New York in
Luxembourg located at the address set forth in Section 13.02(a) as
Transfer Agent and Paying Agent in Luxembourg. 
The Transfer Agent and the Paying Agent shall be entitled to such
compensation and indemnification as the Trustee under Section 7.06 hereof.

 

Subject to any applicable
laws and regulations, the Issuer shall cause the Registrar to keep a register
(the “Security Register”) at its corporate trust office in which,
subject to such reasonable regulations it may prescribe, the Issuer shall
provide for the registration of ownership, exchange and transfer of the Notes.
Such registration in the Security Register shall be conclusive evidence of the
ownership of Notes.  Included in the
books and records for the Notes shall be notations as to whether such Notes
have been paid, exchanged or transferred, cancelled, lost, stolen, mutilated or
destroyed and whether such Notes have been replaced. In the case of the
replacement of any of the Notes, the Registrar shall keep a record of the Note
so replaced and the Note issued in replacement thereof. In the case of the
cancellation of any of the Notes, the Registrar shall keep a record of the Note
so cancelled and the date on which such Note was cancelled.

 

The Issuer shall enter
into an appropriate agency agreement with any Paying Agent or co-Registrar not
a party to this Indenture.  The agreement
shall implement the provisions of this Indenture that relate to such agent. The
Issuer shall notify the Trustee of the name and address of any such agent.  If the Issuer fails to maintain a Registrar
or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.06.

 

SECTION 2.04.      Paying Agent to Hold
Money in Trust.  Not later than 11:00
am (London, England time) on each due date of the principal, premium, if any,
and interest on any Notes, the Issuer shall deposit with the Paying Agent money
in immediately available funds sufficient to pay such principal, premium, if
any, and interest so becoming due on the due date for payment under the
Notes.  The Issuer shall require each
Paying Agent other than the Trustee to agree in writing that such Paying Agent
shall hold in trust for the benefit of the Holders or the Trustee all money
held by the Paying Agent for the payment of principal of, premium, if any, and
interest on the Notes (whether such money has been paid to it by the Issuer or
any other obligor on the Notes), and such Paying Agent shall promptly notify
the 

 

19

 

Trustee of any default by the Issuer (or any other obligor on the
Notes) in making any such payment.  The
Issuer at any time may require a Paying Agent to pay all money held by it to
the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. 
Upon doing so, the Paying Agent shall have no further liability for the
money so paid over to the Trustee.  If
the Issuer or any Affiliate of the Issuer acts as Paying Agent, it shall, on or
before each due date of any principal, premium, if any, or interest on the
Notes, segregate and hold in a separate trust fund for the benefit of the
Holders a sum of money sufficient to pay such principal, premium, if any, or
interest so becoming due until such sum of money shall be paid to such Holders
or otherwise disposed of as provided in this Indenture, and shall promptly
notify the Trustee of its action or failure to act.

 

SECTION 2.05.      Holders List.  The Registrar shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders and shall otherwise comply with TIA Section 312(a).
If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee,
in writing no later than the record date for each Interest Payment Date and at
such other times as the Trustee may request in writing, a list in such form and
as of such Record Date as the Trustee may reasonably require of the names and
addresses of Holders, including the aggregate principal amount of Notes held by
each Holder.

 

SECTION 2.06.      Transfer and Exchange.  (a)  Where Notes are presented to the
Registrar or a co-Registrar with a request to register a transfer or to
exchange them for an equal principal amount of Notes of other denominations,
the Registrar shall register the transfer or make the exchange in accordance
with the requirements of this Section 2.06.  To permit registrations of transfers and
exchanges, the Issuer shall execute and the Trustee shall, upon receipt of an
Issuer’s order, authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Notes, of any authorized
denominations and of a like aggregate principal amount, at the Registrar’s
request. No service charge shall be made for any registration of transfer or
exchange of Notes (except as otherwise expressly permitted herein), but the
Issuer may require payment of a sum sufficient to cover any agency fee or
similar charge payable in connection with any such registration of transfer or
exchange of Notes (other than any agency fee or similar charge payable upon
exchanges pursuant to Sections 2.10, 3.07 or 9.05 or in accordance with an
Excess Proceeds Offer pursuant to Section 4.11 or Change of Control Offer
pursuant to Section 4.15, not involving a transfer).

 

Upon presentation for
exchange or transfer of any Note as permitted by the terms of this Indenture
and by any legend appearing on such Note, such Note shall be exchanged or
transferred upon the Security Register and one or more new Notes shall be
authenticated and issued in the name of the Holder (in the case of exchanges
only) or the transferee, as the case may be. No exchange or transfer of a Note
shall be effective under this Indenture unless and until such Note has been
registered in the name of such Person in the Security Register. Furthermore,
the exchange or transfer of any Note shall not be effective under this
Indenture unless the request for such exchange or transfer is made by the
Holder or by a duly authorized attorney-in-fact at the office of the Registrar.

 

Every Note presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Issuer or the Registrar) be duly endorsed, or be accompanied by a
written instrument or transfer, in form satisfactory to the Issuer and the
Registrar, duly executed by the Holder thereof or his attorney duly authorized
in writing.

 

20

 

All Notes issued upon any
registration of transfer or exchange of Notes shall be the valid obligations of
the Issuer evidencing the same indebtedness, and entitled to the same benefits
under this Indenture, as the Notes surrendered upon such registration of
transfer or exchange.

 

Neither the Issuer nor
the Trustee, Registrar or any Paying Agent shall be required (i) to issue,
register the transfer of, or exchange any Note during a period beginning at the
opening of 15 Business Days before the day of the mailing of a notice of
redemption of Notes selected for redemption under Section 3.02 and ending
at the close of business on the day of such mailing or (ii) to register
the transfer of or exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

(b)           Notwithstanding any provision to the contrary herein, so
long as a Global Note remains outstanding and is held by or on behalf of the
Common Depositary, transfers of a Global Note, in whole or in part, or of any
beneficial interest therein, shall only be made in accordance with Section 2.01(c),
Section 2.06(a) and this Section 2.06(b); provided, however,
that, although, no restrictions will be required to effect such transfers, a
beneficial interest in a Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Global Note
in accordance with the transfer restrictions set forth in the restricted Note
legend on the Note, if any.

 

(i)            Except
for transfers or exchanges made in accordance with any of clauses (ii), (iii) or
(iv) of this Section 2.06(b), transfers of a Global Note shall be
limited to transfers of such Global Note in whole, but not in part, to nominees
of the Common Depositary or to a successor of the Common Depositary or such
successor’s nominee.

 

(ii)           Restricted
Global Note to Regulation S Global Note. 
If the Holder of a beneficial interest in the Restricted Global Note at
any time wishes to exchange its interest in such Restricted Global Note for an
interest in the Regulation S Global Note, or to transfer its interest in such
Restricted Global Note to a Person who wishes to take delivery thereof in the
form of a beneficial interest in the Regulation S Global Note, such transfer or
exchange may be effected only in accordance with this clause (ii) and the rules and
procedures of Euroclear and Clearstream. Upon receipt by the Registrar from the
Transfer Agent of (A) instructions directing the Registrar to credit or
cause to be credited an interest in the Regulation S Global Note in a specified
principal amount and to cause to be debited an interest in the Restricted
Global Note in such specified principal amount and (B) a certificate in
the form of Exhibit B attached hereto given by the Holder of such
beneficial interest stating that the transfer of such interest has been made in
compliance with the transfer restrictions applicable to the Global Notes and
(x) pursuant to and in accordance with Regulation S or (y) that the Note being
transferred is being transferred in a transaction permitted by Rule 144,
then the Registrar shall instruct the Common Depositary to reduce or cause to
be reduced the principal amount of the Restricted Global Note and the Common
Depositary to increase or cause to be increased the principal amount of the
Regulation S Global Note by the aggregate principal amount of the interest in
the Restricted Global Note to be exchanged.

 

(iii)          Regulation
S Global Note to Restricted Global Note. 
If the Holder of a beneficial interest in the Regulation S Global Note
at any time wishes to transfer such 

 

21

 

interest to a Person who wishes
to take delivery thereof in the form of a beneficial interest in the Restricted
Global Note, such transfer may be effected only in accordance with this clause (iii) and
the rules and procedures of Euroclear and Clearstream. Upon receipt by the
Registrar from the Transfer Agent of (A) instructions directing the
Registrar to credit or cause to be credited an interest in the Restricted
Global Note in a specified principal amount and to cause to be debited an
interest in the Regulation S Global Note in such specified principal amount and
(B) a certificate in the form of Exhibit C attached hereto given by
the Holder of such beneficial interest stating that the transfer of such
interest has been made in compliance with the transfer restrictions applicable
to the Global Notes and stating that (x) the Person transferring such interest
reasonably believes that the Person acquiring such interest is a QIB and is
obtaining such interest in a transaction meeting the requirements of Rule 144A
and any applicable securities laws of any state of the United States or (y)
that the Person transferring such interest is relying on an exemption other
than Rule 144A from the registration requirements of the Securities Act
and, in such circumstances, such opinion of counsel as the Issuer or the
Trustee may reasonably request to ensure that the requested transfer or
exchange is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act, then the
Registrar shall instruct the Common Depositary to reduce or cause to be reduced
the principal amount of the Regulation S Global Note and to increase or cause
to be increased the principal amount of the Restricted Global Note by the
aggregate principal amount of the interest in the Regulation S Global Note to
be exchanged or transferred.

 

(iv)          Global
Notes to Certificated Notes.  In the
event that a Global Note is exchanged for Notes in certificated, registered
form pursuant to Section 2.10, such Notes may be exchanged only in
accordance with such procedures as are substantially consistent with the
provisions of clauses (ii) and (iii) above (including the
certification requirements intended to ensure that such transfers comply with Rule 144A
or Regulation S under the Securities Act, as the case may be) and such other
procedures as may from time to time be adopted by the Issuer and the Trustee.

 

(c)           If Notes are issued upon the transfer, exchange or
replacement of Notes bearing the restricted Notes legends set forth in Exhibit A
hereto, the Notes so issued shall bear the restricted Notes legends, and a
request to remove such restricted Notes legends from Notes shall not be
honoured unless there is delivered to the Issuer such satisfactory evidence,
which may include an Opinion of Counsel licensed to practice law in the State
of New York, as may be reasonably required by the Issuer, that neither the
legend nor the restrictions on transfer set forth therein are required to
ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144(k)
under the Securities Act. Upon provision of such satisfactory evidence, the
Trustee, at the direction of the Issuer, shall authenticate and deliver Notes
that do not bear the legend.

 

(d)           The Trustee shall have no responsibility for any actions
taken or not taken by Euroclear or Clearstream, as the case may be.

 

SECTION 2.07.      Replacement Notes.  If a mutilated certificated Note is
surrendered to the Registrar or if the Holder claims that the Note has been
lost, destroyed or wrongfully taken, the Issuer shall issue and the Trustee
shall, upon receipt of an Issuer Order, authenticate a replacement Note in such
form as the Note mutilated, lost, destroyed or wrongfully taken if the Holder
satisfies any other reasonable requirements of the Trustee or 

 

22

 

the Issuer. If required by the Trustee or the Issuer, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Issuer and the
Trustee to protect the Issuer, the Trustee, the Paying Agent, the Transfer
Agent, the Registrar and any co-Registrar and any authenticating agent from any
loss that any of them may suffer if a Note is replaced. The Issuer and the
Trustee may charge the Holder for their expenses in replacing a Note.

 

Every replacement Note
shall be an additional obligation of the Issuer.

 

SECTION 2.08.      Outstanding Notes.  Notes outstanding at any time are all Notes
authenticated by the Trustee except for those cancelled by it, those delivered
to it for cancellation and those described in this Section 2.08 as not
outstanding. A Note does not cease to be outstanding because the Issuer or an
Affiliate of the Issuer holds the Note.

 

If a Note is replaced
pursuant to Section 2.07, it ceases to be outstanding unless the Trustee
and the Issuer receive proof satisfactory to them that the Note that has been
replaced is held by a bona fide purchaser.

 

If the Paying Agent
segregates and holds in trust, in accordance with this Indenture, on a Redemption
Date or maturity date money sufficient to pay all principal, premium, if any,
interest and Additional Amounts, if any, payable on that date with respect to
the Notes (or portions thereof) to be redeemed or maturing, as the case may be,
and the Paying Agent is not prohibited from paying such money to the Holders on
that date pursuant to the terms of this Indenture, then on and after that date
such Notes (or portions thereof) cease to be outstanding and interest on them
ceases to accrue.

 

SECTION 2.09.      Notes Held by Issuer.  Not withstanding Section 2.08, in
determining whether the Holders of the required principal amount of Notes have
concurred in any direction or consent or any amendment, modification or other
change to this Indenture, Notes owned by the Issuer or by an Affiliate of the
Issuer shall be disregarded and treated as if they were not outstanding, except
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent or any amendment, modification
or other change to this Indenture, only Notes which a Trust Officer of the
Trustee actually knows are so owned shall be so disregarded.  Notes so owned which have been pledged in
good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the
Notes and that the pledgee is not the Issuer or an Affiliate of the Issuer.

 

SECTION 2.10.      Certificated Notes.  (a)  A Global Note deposited with the
Common Depositary or other custodian for the Common Depositary pursuant to Section 2.01
shall be transferred to the beneficial owners thereof in the form of
certificated Notes only if such transfer complies with Section 2.06 and (i) the
Common Depositary notifies the Issuer that it is unwilling or unable to
continue as the Common Depositary for such Global Note, or if at any time the
Common Depositary ceases to be a “clearing agency” registered under the
Exchange Act and a successor depositary is not appointed by the Issuer within
120 days of such notice, or (ii) the Issuer, at its option, executes and
delivers to the Trustee a notice that such Global Note be so transferable,
registrable and exchangeable, or (iii) an Event of Default, or an event
which after notice or lapse of time or both would be an Event of Default, has
occurred and is continuing with respect to the Notes or (iv) the issuance
of such certificated Notes is necessary in order for a Holder or beneficial
owner to present its Note or Notes to a Paying Agent in order to avoid any Tax
that is imposed on or with respect to a 

 

23

 

payment made to such Holder or beneficial owner.  Notice of any such transfer shall be given by
the Issuer in accordance with the provisions of Section 13.02(a).

 

(b)           Any Global Note that is transferable to the beneficial
owners thereof in the form of certificated Notes pursuant to this Section 2.10
shall be surrendered by the Common Depositary to the Transfer Agent, to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount at maturity of Notes of
authorized denominations in the form of certificated Notes. Any portion of a
Global Note transferred or exchanged pursuant to this Section 2.10 shall
be executed, authenticated and delivered only in registered form in
denominations of €1,000 and integral multiples thereof and registered in such
names as the Common Depositary shall direct. Subject to the foregoing, a Global
Note is not exchangeable except for a Global Note of like denomination to be
registered in the name of the Common Depositary or its nominee.  In the event that a Global Note becomes
exchangeable for certificated Notes, payment of principal, premium, if any, and
interest on the certificated Notes shall be payable, and the transfer of the
certificated Notes shall be registrable, at the office or agency of the Issuer
maintained for such purposes in accordance with Section 2.03. Such
certificated Notes shall bear the applicable legends set forth in Exhibit A
hereto.

 

(c)           In the event of the occurrence of any of the events
specified in Section 2.10(a), the Issuer shall promptly make available to
the Trustee a reasonable supply of certificated Notes in definitive, fully
registered form without interest coupons.

 

SECTION 2.11.      Cancellation.  The Issuer at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The
Trustee, in accordance with its customary procedures, and no one else shall
cancel (subject to the record retention requirements of the Exchange Act and
the Trustee’s retention policy) all Notes surrendered for registration of
transfer, exchange, payment or cancellation and dispose of such cancelled Notes
in its customary manner.  Except as
otherwise provided in this Indenture the Issuer may not issue new Notes to
replace Notes it has redeemed, paid or delivered to the Trustee for
cancellation.

 

SECTION 2.12.      Defaulted Interest.  (a)  Any interest on any Note that is
payable, but is not punctually paid or duly provided for, on the dates and in
the manner provided in the Notes and this Indenture (all such interest herein
called “Defaulted Interest”) shall forthwith cease to be payable to the
Holder on the relevant Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Issuer, at its election in each
case, as provided in clause (b) or (c) below:

 

(b)           The Issuer may elect to make payment of any Defaulted
Interest to the Persons in whose names the Notes are registered at the close of
business on a special record date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Issuer shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Note and the date of the proposed payment, and at the same time the Issuer
may deposit with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Defaulted Interest; or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. In
addition, the Issuer shall fix a special record date for the 

 

40

 

payment of such Defaulted Interest, such date to be not more than 15
days and not less than 10 days prior to the proposed payment date and not less
than 15 days after the receipt by the Trustee of the notice of the proposed
payment date. The Issuer shall promptly but, in any event, not less than 15
days prior to the special record date, notify the Trustee of such special
record date and, in the name and at the expense of the Issuer, the Trustee
shall cause notice of the proposed payment date of such Defaulted Interest and
the special record date therefor to be mailed first-class, postage prepaid to
each Holder as such Holder’s address appears in the Security Register, not less
than 10 days prior to such special record date. Notice of the proposed payment
date of such Defaulted Interest and the special record date therefor having been
so mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Notes are registered at the close of business on such special record date
and shall no longer be payable pursuant to clause (c) below.

 

(c)           The Issuer may make payment of any Defaulted Interest on the
Notes in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the Issuer to the
Trustee of the proposed payment date pursuant to this clause, such manner of
payment shall be deemed reasonably practicable.

 

Subject to the foregoing
provisions of this Section 2.12, each Note delivered under this Indenture
upon registration of transfer of or in exchange for or in lieu of any other
Note shall carry the rights to interest accrued and unpaid, and to accrue,
which were carried by such other Note.

 

SECTION 2.13.      Computation of Interest.   The amount of interest for each day that the
Floating Rate Notes are outstanding (the “Daily Interest Amount”) will be
calculated by dividing the interest rate in effect for such day by 360 and
multiplying the result by the principal amount of the Floating Rate Notes. The
amount of interest to be paid on the Floating Rate Notes for each Interest
Period will be calculated by adding the Daily Interest Amounts for each day in
the Interest Period.

 

All percentages resulting
from any of the above calculations will be rounded, if necessary, to the
nearest one hundred thousandth of a percentage point, with five one-millionths
of a percentage point being rounded upwards (e.g., 9.876545% (or .09876545)
being rounded to 9.87655% (or .0987655)) and all euro amounts used in or
resulting from such calculations will be rounded to the nearest cent (with
one-half cent being rounded upwards).

 

The interest rate on the
Floating Rate Notes will in no event be higher than the maximum rate permitted
by New York law as the same may be modified by United States law of general
application.

 

The Calculation Agent
will upon the request of any holder of Floating Rate Notes, provide the
interest rate then in effect with respect to the Floating Rate Notes. All
calculations made by the Calculation Agent in the absence of manifest error
will be conclusive for all purposes and binding on the Issuer, the Floating
Rate Note Guarantors and the holders of the Floating Rate Notes.

 

SECTION 2.14.      ISIN and Common Code
Numbers.  In issuing the Notes the
Issuer may use ISIN and Common Code numbers (if then generally in use), and, if
so, the Trustee shall use ISIN and Common Code numbers, as appropriate, in
notices of redemption 

 

41

 

as a convenience to Holders; provided, however, that any such notice
may state that no representation is made as to the correctness of such numbers
or codes either as printed on the Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Issuer shall promptly notify the
Trustee of any change in the ISIN or Common Code numbers.

 

SECTION 2.15.      Issuance of Additional
Notes.  The Issuer may, subject to Section 4.06
of this Indenture, issue Additional Notes under this Indenture in accordance
with the procedures of Section 2.02. 
The Original Notes issued on the date of this Indenture and any
Additional Notes subsequently issued shall be treated as a single class for all
purposes under this Indenture.

 

42

 

ARTICLE THREE

REDEMPTION; OFFERS TO PURCHASE

 

SECTION 3.01.      Right of Redemption.  The Issuer may redeem all or any portion of
the Notes upon the terms and at the Redemption Prices set forth in the Notes.
Any redemption pursuant to this Section 3.01 shall be made pursuant to the
provisions of this Article Three.

 

SECTION 3.02.      Notices to Trustee.  If the Issuer elects to redeem Notes pursuant
to Section 3.01, it shall notify the Trustee in writing of the Redemption
Date, the Redemption Price, the principal amount of Notes to be redeemed and
the paragraph of the Notes pursuant to which the redemption shall occur.

 

The Issuer shall give
each notice to the Trustee provided for in this Section 3.02 in writing at
least 35 days before the date notice is mailed to the Holders pursuant to Section 3.04
unless the Trustee consents to a shorter period. Such notice shall be
accompanied by an Officer’s Certificate from the Issuer to the effect that such
redemption shall comply with the conditions herein. If fewer than all the Notes
are to be redeemed, the record date relating to such redemption shall be
selected by the Issuer and given to the Trustee, which record date shall be not
less than 15 days after the date of notice to the Trustee.

 

SECTION 3.03.      Selection of Notes to be
Redeemed.  If less than all of the
Notes are to be redeemed, the Trustee shall select the Notes to be redeemed in
compliance with the requirements, as certified to it by the Issuer, of the
principal securities exchange or automated quotation system, if any, on which
the Notes are listed or, if the Notes are not listed on a securities exchange
or automated quotation system, pro rata, by lot or by such other method as the
Trustee in its sole discretion shall deem fair and appropriate; provided,
however, that no such partial redemption shall reduce the portion of the
principal amount of a Note not redeemed to less than €1,000.

 

The Trustee shall make
the selection from the Notes outstanding and not previously called for
redemption. The Trustee may select for redemption portions equal to €1,000 in
principal amount or integral multiples thereof. 
Provisions of this Indenture that apply to Notes called for redemption
also apply to portions of Notes called for redemption.  The Trustee shall notify the Issuer and the
Registrar promptly in writing of the Notes or portions of Notes to be called
for redemption.

 

SECTION 3.04.      Notice of Redemption.  (a)  At least 30 days but not more than
60 days before a date for redemption of Notes, the Issuer shall mail a notice
of redemption by first-class mail to each Holder to be redeemed and shall
comply with the provisions of Section 13.02(b).

 

(b)           The notice shall identify the Notes to be redeemed
(including ISIN and Common Code numbers) and shall state:

 

(i)            the
Redemption Date;

 

(ii)           the
Redemption Price and the amount of accrued interest, if any, and Additional
Amounts, if any, to be paid;

 

43

 

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

 

(iv)          that
Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price plus accrued interest, if any, and Additional Amounts, if
any;

 

(v)           that,
if any Note is being redeemed in part, the portion of the principal amount
(equal to €1,000 in principal amount or integral multiples thereof) of such
Note to be redeemed and that, on and after the Redemption Date, upon surrender
of such Note, a new Note or Notes in principal amount at maturity equal to the
unredeemed portion thereof shall be reissued;

 

(vi)          that,
if any Note contains a ISIN or Common Code number, no representation is being
made as to the correctness of such ISIN or Common Code number either as printed
on the Notes or as contained in the notice of redemption and that reliance may
be placed only on the other identification numbers printed on the Notes;

 

(vii)         that,
unless the Issuer and any Note Guarantors default in making such redemption
payment, interest on the Notes (or portion thereof) called for redemption shall
cease to accrue on and after the Redemption Date; and

 

(viii)        the
paragraph of the Notes pursuant to which the Notes called for redemption are
being redeemed.

 

At the Issuer’s written
request, the Trustee shall give a notice of redemption in the Issuer’s name and
at the Issuer’s expense. In such event, the Issuer shall provide the Trustee
with the notice and the other information required by this Section 3.04.

 

SECTION 3.05.      Deposit of Redemption
Price.  On or prior to any Redemption
Date, the Issuer shall deposit or cause to be deposited with the Paying Agent
(or, if the Issuer or a Wholly Owned Restricted Subsidiary is the Paying Agent,
shall segregate and hold in trust) a sum in same day funds sufficient to pay
the Redemption Price of and accrued interest and Additional Amounts, if any, on
all Notes to be redeemed on that date other than Notes or portions of Notes
called for redemption that have previously been delivered by the Issuer to the
Trustee for cancellation.  The Paying
Agent shall return to the Issuer any money so deposited that is not required
for that purpose.

 

SECTION 3.06.      Payment of Notes Called
for Redemption.  If notice of
redemption has been given in the manner provided above, the Notes or portion of
Notes specified in such notice to be redeemed shall become due and payable on
the Redemption Date at the Redemption Price stated therein, together with
accrued interest to such Redemption Date, and on and after such date (unless
the Issuer shall default in the payment of such Notes at the Redemption Price
and accrued interest to the Redemption Date, in which case the principal, until
paid, shall bear interest from the Redemption Date at the rate prescribed in the
Notes), such Notes shall cease to accrue interest.  Upon surrender of any Note for redemption in
accordance with a notice of redemption, such Note shall be paid and redeemed by
the Issuer at the Redemption Price, together with accrued interest, if any, to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders registered as such at the close of business on the relevant Record
Date.

 

44

 

Notice of redemption
shall be deemed to be given when mailed, whether or not the Holder receives the
notice.  In any event, failure to give
such notice, or any defect therein, shall not affect the validity of the proceedings
for the redemption of Notes held by Holders to whom such notice was properly
given.

 

SECTION 3.07.      Notes Redeemed in Part.  (a)  Upon surrender of a Global Note
that is redeemed in part, the Paying Agent shall forward such Global Note to
the Trustee who shall make a notation on the Security Register to reduce the
principal amount of such Global Note to an amount equal to the unredeemed
portion of the Global Note surrendered; provided, however, that each such
Global Note shall be in a principal amount at final Stated Maturity of €1,000
or integral multiples thereof.

 

(b)           Upon surrender and cancellation of a certificated Note that
is redeemed in part, the Issuer shall execute and the Trustee shall
authenticate for the Holder (at the Issuer’s expense) a new Note equal in
principal amount to the unredeemed portion of the Note surrendered and
cancelled; provided, however, that each such certificated Note shall be in a
principal amount at final Stated Maturity of €1,000 or integral multiples
thereof.

 

ARTICLE FOUR

COVENANTS

 

SECTION 4.01.      Payment of Notes.  The Issuer covenants and agrees for the
benefit of the Holders that they shall duly and punctually pay the principal
of, premium, if any, interest and Additional Amounts, if any, on the Notes on
the dates and in the manner provided in the Notes and in this Indenture.  Principal, premium, if any, interest and
Additional Amounts, if any, shall be considered paid on the date due if on such
date the Trustee or the Paying Agent (other than the Issuer or any of its Affiliates)
holds, as of 11:00 a.m. London, England time on the due date, in
accordance with this Indenture, money sufficient to pay all principal, premium,
if any, interest and Additional Amounts, if any then due.  If the Issuer or any of its Affiliates acts
as Paying Agent, principal, premium, if any, interest and Additional Amounts,
if any, shall be considered paid on the due date if the entity acting as Paying
Agent complies with Section 2.04.

 

The Issuer or a Note
Guarantor shall pay interest on overdue principal at the rate specified
therefor in the Notes.  The Issuer or a
Note Guarantor shall pay interest on overdue installments of interest at the
same rate to the extent lawful.

 

SECTION 4.02.      [Reserved.]

 

SECTION 4.03.      [Reserved.]

 

SECTION 4.04.      [Reserved.]

 

SECTION 4.05.      Statement as to
Compliance.  (a)  The Issuer and
the Company shall each deliver to the Trustee, within 120 days after the end of
each fiscal year of the Issuer or the Company, as appropriate, an Officer’s
Certificate stating that in the course of the performance by the signer of its
duties as an Officer he would normally have knowledge of any Default and
whether or not the signer knows of any Default that occurred during such period
and if any specifying such Default, its status and what action the Issuer or
the 

 

45

 

Company is taking or proposed to take with respect thereto.  For purposes of this Section 4.05(a),
such compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.

 

(b)           When any Default has occurred and is continuing under this
Indenture, the Issuer or Cableuropa, as the case may be, shall, upon any
Officer becoming aware of such Default, deliver to the Trustee within 30 Business
Days by registered or certified mail or facsimile transmission an Officer’s
Certificate specifying such event, notice or other action, its status and what
action the Issuer is taking or proposes to take with respect thereto.

 

SECTION 4.06.      Limitation on Debt.  (a)  The Issuer shall not Incur,
directly or indirectly, any Debt (including Acquired Debt) unless, after giving
pro forma effect to the application of the proceeds thereof, no Default or
Event of Default would occur as a consequence of such Incurrence or be
continuing following such Incurrence and such Debt is Permitted Debt of the
Issuer.  The Company shall not, and shall
not permit any Restricted Subsidiary to, nor shall any Restricted Subsidiary,
Incur, directly or indirectly, any Debt (including Acquired Debt) unless, after
giving pro forma effect to the application of the proceeds thereof, no Default
or Event of Default would occur as a consequence of such Incurrence or be
continuing following such Incurrence and either (i)(A) prior to the date
that is two years from the Issue Date, the Debt of the Company and the
Restricted Subsidiaries, on a consolidated basis, including any Debt Incurred
pursuant to the exceptions set forth in the second following paragraph, shall
be less than the product of Annualized Pro Forma EBITDA for the Company and the
Restricted Subsidiaries for the latest fiscal quarter for which interim
financial statements are available immediately preceding the date on which such
additional Debt is Incurred, determined on a pro forma basis (including a pro
forma application of the net proceeds therefrom), as if the additional Debt had
been Incurred at the beginning of such period, multiplied by 7.0 and (B) after
the date that is two years after the Issue Date, the Debt of the Company and
the Restricted Subsidiaries, on a consolidated basis, including any Debt
Incurred pursuant to the exceptions set forth in the second following
paragraph, shall be less than the product of Annualized Pro Forma EBITDA for
the Company and the Restricted Subsidiaries for the latest fiscal quarter for
which interim financial statements are available immediately preceding the date
on which such additional Debt is Incurred, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if the
additional Debt had been Incurred at the beginning of such period, multiplied
by 5.5,or (ii) such Debt is Permitted Debt of the Company and the
Restricted Subsidiaries.

 

(b)           The term “Permitted Debt of the Issuer” is defined to
include the following:

 

(i)            Debt
of the Issuer evidenced by the Notes;

 

(ii)           Debt
of the Issuer the proceeds of which are loaned to the Company and/or the
Restricted Subsidiaries under an agreement or agreements substantially similar
to either the Notes Proceeds Loans or the Multi-Borrower Credit Facilities;
provided, however, that the Company and the Restricted Subsidiaries shall have
the ability to Incur the Debt under any such agreement or agreements under the
terms of this Section; and

 

(iii)          Debt
of the Issuer outstanding on the Issue Date not otherwise described in clauses (i) and
(ii) above (including, without limitation, the Existing Notes and the
Existing Equity Value Certificates).

 

46

 

(c)           The term “Permitted Debt of the Company and the Restricted
Subsidiaries” is defined to include the following:

 

(i)            Debt of
the Company and the Restricted Subsidiaries (A) evidenced by the Note
Guarantees relating to the Notes and (B) under the Notes Proceeds Loans;

 

(ii)           Debt under
Credit Facilities in an aggregate principal amount at any one time outstanding
not to exceed €900.0 million, minus the amount of any permanent repayments or
prepayments of such Debt with the proceeds of Asset Sales made in accordance
with Section 4.11 (but only to the extent of any corresponding commitment
reduction if such Debt is revolving credit borrowings);

 

(iii)          Debt
of the Company owing to and held by any Restricted Subsidiary and Debt of a
Restricted Subsidiary owing to and held by the Company or any Restricted
Subsidiary; provided, however, that any subsequent issue or transfer of Capital
Stock or other event that results in any such Restricted Subsidiary ceasing to
be a Restricted Subsidiary or any subsequent transfer of any such Debt (except
to the Company or a Restricted Subsidiary) shall be deemed, in each case, to
constitute the Incurrence of such Debt by the issuer thereof;

 

(iv)          Debt under
Interest Rate Agreements entered into by the Company or a Restricted Subsidiary
for the purpose of limiting interest rate risk in the ordinary course of the
financial management of the Company or such Restricted Subsidiary as the case
may be, and not for speculative purposes; provided, however, that the
obligations under such agreements are directly related to payment obligations
on Debt otherwise permitted by the terms of this Section 4.06;

 

(v)           Debt under
Currency Exchange Protection Agreements entered into by the Company or a
Restricted Subsidiary for the purpose of limiting currency exchange rate risks
directly related to transactions entered into by the Company or such Restricted
Subsidiary, as the case may be, in the ordinary course of business and not for
speculative purposes;

 

(vi)          Debt in
connection with one or more standby letters of credit, bankers’ acceptances or
performance bonds issued by the Company or a Restricted Subsidiary in the
ordinary course of business or pursuant to workers’ compensation claims or
self-insurance obligations and, in each case, not in connection with the
borrowing of money or the obtaining of advances or credit;

 

(vii)         Debt
of the Company or any Restricted Subsidiary outstanding on the Issue Date not
otherwise described in clauses (i) through (vi) above and listed on a
schedule to this Indenture (including, without limitation, the Existing
Multi-Borrower Credit Facilities, the Existing Note Guarantees, the Existing
Equity Value Certificate Guarantee and the Existing EVC Funding Agreements);

 

(viii)        Debt
under the Subsidized Loans, the VAT Discounting Facility and short-term credit
facilities, as amended, restated, modified in part from time to time in an aggregate
principal amount at any time outstanding not to exceed €71.0 million.

 

(ix)           Debt of
the Company or any Restricted Subsidiary arising from the honoring by a bank or
other financial institution of a cheque, draft or similar 

 

47

 

instrument inadvertently
drawn against insufficient funds, so long as such Debt is covered within five
Business Days;

 

(x)            Debt of
the Company or any Restricted Subsidiary consisting of advance or extended
payment terms in the ordinary course of business;

 

(xi)           Debt of
the Company or any Restricted Subsidiary arising from agreements of the Company
or a Restricted Subsidiary providing for indemnification, adjustment of
purchase price, or similar obligations, in each case Incurred or assumed in
connection with the disposal of any business, assets or Capital Stock of a
Subsidiary, other than Guarantees of indebtedness of the Subsidiary disposed of
or Incurred or assumed by any Person acquiring all or any portion of such
business, assets or Capital Stock for the purpose of financing such
acquisition; provided that the
maximum liability of the Company and its Restricted Subsidiaries in respect of
all such Debt shall at no time exceed the gross proceeds, including the Fair
Market Value or non-cash proceeds (measured at the time received and without
giving effect to any subsequent changes in value) actually received by the
Company and its Restricted Subsidiaries in connection with such disposal;

 

(xii)          Debt
represented by Capital Lease Obligations, mortgage financing or purchase money
obligations, in each case, Incurred for the purpose of financing all or any
part of the purchase price or cost of construction or improvement of property,
plant or equipment used in the Telecommunications Business in an aggregate
principal amount not to exceed €10.0 million at any time outstanding;

 

(xiii)         Guarantees
by the Company or any Restricted Subsidiary of Debt of the Company or a
Restricted Subsidiary that was permitted to be Incurred by another provision of
this Section; provided, however that if the Debt being Guaranteed is
subordinated in right of payment to the Notes or the Note Guarantees, then such
Guarantees shall be subordinated to the same extent as the Debt Guaranteed;

 

(xiv)        Subordinated
Shareholder Indebtedness;

 

(xv)         Debt of the
Company and the Restricted Subsidiaries (other than Debt permitted pursuant to
clauses (i) through (xiv) above) in an aggregate principal amount
outstanding at any one time not to exceed €25.0 million; and

 

(xvii)       Permitted
Refinancing Debt Incurred in respect of Debt Incurred pursuant to paragraphs
(a)(i)(A) and (a)(i)(B) this Section and paragraphs (c)(i) and
(c)(vii).

 

(d)           Notwithstanding anything to the contrary contained in this Section 4.06,
the Company shall not, and shall not permit any other Note Guarantor to, nor
shall any other Note Guarantor, Incur any Debt pursuant to this Section 4.06,
other than debt Incurred pursuant to Section 4.06(a)(i)(A) or (B), if
the proceeds thereof are used, directly or indirectly, to Refinance (i) any
Subordinated Obligations unless such Debt shall be subordinated to the Notes
Proceeds Loans or the applicable Note Guarantee, as the case may be, to at
least the same extent as such Subordinated Obligations or (ii) any Senior
Subordinated Debt unless such Debt shall be Senior Subordinated Debt or shall
be subordinated to the Notes Proceeds Loans and the applicable Note Guarantee,
as the case may be.

 

48

 

SECTION 4.07.      Limitation on Restricted
Payments.  (a)  The Issuer shall
not make, directly or indirectly, any Issuer Restricted Payment; provided that, the Issuer may make
payments in respect of the Existing Equity Value Certificates; and provided  further,
that the Issuer may pay dividends to ONO Holdings in an aggregate amount not to
exceed €75,000 per year or its equivalent for the purpose of permitting the
recipient to pay expenses related to the administration of the Issuer or ONO
Holdings.

 

(b)           The Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, make, directly or
indirectly, any Restricted Payment if at the time of, and after giving effect
thereto,

 

(i)            a Default
or Event of Default shall have occurred and be continuing,

 

(ii)           the
Company could not Incur at least €1.00 of additional Debt pursuant to Section 4.06(a)(i) or

 

(iii)          the
aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made since the Issue Date (the amount of any Restricted Payment, if
made other than in cash, to be based upon Fair Market Value) would exceed an
amount equal to the sum of:

 

(A)          50%
of Consolidated Net Income accrued during the period (treated as one accounting
period) from the beginning of the fiscal quarter immediately following the
fiscal quarter during which the Issue Date occurs to the end of the most recent
fiscal quarter ending at least 45 days prior to date of the Restricted Payment
(or in case such Consolidated Net Income will be a deficit, minus 100% of such
deficit)

 

(B)           Capital
Stock Sale Proceeds (other than that portion of such Capital Stock Sale
Proceeds in excess of €20.0 million that has been used pursuant to clause (i) of
the definition of Permitted Investment to make a Permitted Investment);

 

(C)           the
aggregate Net Cash Proceeds received by the Company or any Restricted
Subsidiary from the issuance or sale after the Issue Date of convertible or
exchangeable Debt that has been converted into or exchanged for Capital Stock
(other than Disqualified Stock) of the Company;

 

(D)          the
aggregate cash proceeds received by the Company or any Restricted Subsidiary in
connection with the Incurrence of any Subordinated Shareholder Indebtedness
after the Issue Date; and

 

(E)           an
amount equal to the sum of (I) any dividends, repayments of loans or advances
or other transfers of Property, in each case to the Company or any Restricted
Subsidiary from any Unrestricted Subsidiary, and (II) the portion
(proportionate to the Company’s equity interest in such Unrestricted Subsidiary)
of the Fair Market Value of the net assets of an Unrestricted Subsidiary at the
time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however,
that the foregoing sum shall not exceed the amount 

 

49

 

of Investments previously
made (and treated as a Restricted Payment) by the Company or any Restricted
Subsidiary in such Unrestricted Subsidiary.

 

(c)           Notwithstanding the foregoing limitation, the Company may
take the following actions:

 

(i)            pay
dividends on its Capital Stock within 60 days of the declaration thereof if, on
said declaration date, such dividends could have been paid in compliance with
this Indenture; provided, however, that such dividend shall be
included in the calculation of the amount of Restricted Payments;

 

(ii)           purchase,
repurchase, redeem, legally defease, acquire or retire for value Capital Stock
of the Company or Subordinated Obligations in exchange for, or out of the
proceeds of the substantially concurrent sale of, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary of the Company or an employee stock ownership plan or trust
established by the Company or any such Subsidiary for the benefit of their
employees); provided, however, that (A) such purchase,
repurchase, redemption, legal defeasance, acquisition or retirement shall be
excluded in the calculation of the amount of Restricted Payments and (B) the
Capital Stock Sale Proceeds from such exchange or sale shall be excluded from
the calculation pursuant to clause (b)(iii)(B) above;

 

(iii)          purchase,
repurchase, redeem, legally defease, acquire or retire for value any
Subordinated Obligations in exchange for, or out of the proceeds of the
substantially concurrent sale of, Permitted Refinancing Debt; provided, however,
that such purchase, repurchase, redemption, legal defeasance, acquisition or
retirement shall be excluded in the calculation of the amount of Restricted
Payments;

 

(iv)          make payments
in respect of the Existing Equity Value Certificate Guarantee and under the
Existing EVC Funding Agreements;

 

(v)           (A) repurchase,
redeem or otherwise acquire or retire for value any Capital Stock of Cableuropa
or any Holdco of Cableuropa or any Restricted Subsidiary held by any current or
former officer, director or employee of Cableuropa or any Restricted Subsidiary
that are issued on the Issue Date or issued to such Persons following the Issue
Date pursuant to any share option scheme, compensation plan, incentive scheme
or similar arrangement or; (B) the purchase, in the open market, at any
time following the Public Equity Offering of Cableuropa or a Holdco of
Cableuropa of listed ordinary shares of Cableuropa or a Holdco of Cableuropa to
be reserved for Issuance upon exercise of options issued to any current or
former officer, director or employee of Cableuropa or a Holdco of Cableuropa or
any Restricted Subsidiary pursuant to any share option scheme, compensation
plan, incentive scheme or similar arrangement; provided
that the aggregate price paid for all such repurchased, redeemed,
acquired, retired or purchased Capital Stock referred to in Clauses (A) and
(B) may not exceed €2.0 million in any twelve month period;

 

(vi)          the
repurchase of Capital Stock deemed to occur upon the exercise of stock options
to the extent that such Capital Stock represents a portion of the exercise
price of those stock options;

 

50

 

(vii)         the
repurchase, redemption or other acquisition for value of Capital Stock of
Cableuropa or a Holdco of Cableuropa or any Restricted Subsidiary representing
fractional shares of such Capital Stock in connection with a share dividend
distribution share split, reverse share split, merger, consolidation,
amalgamation or other business combination of Cableuropa, such Holdco or such
Restricted Subsidiary in each case permitted under this Indenture;

 

(viii)        Following
a Public Equity Offering, the payment of dividends on Capital Stock of the
Company up to 6% per annum of the net cash proceeds received by Cableuropa in
any such Public Equity Offering or any subsequent public offering of such
ordinary shares or net cash proceeds of any such Public Equity Offering or
subsequent public offering of such Capital Stock by any Holdco of Cableuropa
that are contributed in cash to Cableuropa’s equity (other than through the
issuance of Disqualified Stock) or loaned to Cableuropa in the form of
Subordinated Shareholder Indebtedness; provided
that if such Public Equity Offering was of Capital Stock of a Holdco
of Cableuropa, then that proceeds of any such dividends are used to fund an
equal dividend on the ordinary shares of such Holdco; provided, further, that at the time of such payment no
Default or Event of Default has occurred and is continuing; and

 

(ix)           cash
payments, advances, loans or expense reimbursements made to GCO to permit GCO
to pay general operating expenses (other than management, consulting or similar
fees payable by Affiliates of the Issuer), accounting, legal, corporate
reporting and administrative expenses incurred in the ordinary course of its
business in an amount not to exceed €5.0 million in the aggregate in any fiscal
year; and

 

(x)            any other
Restricted Payment, provided that
the total aggregate amount of Restricted Payments made under this clause (x)
does not exceed €7.5 million in the aggregate in any fiscal year; provided, further,
that at the time of such payment no Default or Event of Default has occurred
and is continuing.

 

The actions described in
clauses (i) and (vii) of this paragraph (c) are Restricted
Payments that will be permitted to be made in accordance with this paragraph
but that reduce the amount that would otherwise be available for Restricted
Payments under clause (b)(iii)(B) above.

 

SECTION 4.08.      Limitation on the Sale or
Issuance of Capital Stock of Restricted Subsidiaries.  The Company shall not sell or otherwise
dispose of any shares of Capital Stock of a Restricted Subsidiary, and will not
permit any Restricted Subsidiary, directly or indirectly, to issue or sell or
otherwise dispose of any shares of its Capital Stock except:

 

(a)           to the Company or another Restricted Subsidiary;

 

(b)           the Incurrence of a Lien permitted under Section 4.10
(solely to the extent such Incurrence constitutes a disposition of the Capital
Stock subject to such Lien under applicable law);

 

(c)           the issuance and sale to a citizen of any jurisdiction of
shares of Capital Stock of such Restricted Subsidiary, to the extent required
by applicable law of such jurisdiction;

 

51

 

(d)           if, immediately after giving effect to such issuance, sale
or other disposition, neither the Company nor any Restricted Subsidiary owns
any Capital Stock of such Restricted Subsidiary;

 

(e)           if, immediately after giving effect to such issuance or
sale, such Restricted Subsidiary would no longer constitute a Restricted
Subsidiary and any Investment in such Person remaining after giving effect
thereto would have been permitted to be made under Section 4.07 if made on
that date of such issuance, sale or other disposition (and such Investment
shall be deemed to be an Investment for the purposes of such Section).

 

SECTION 4.09.      Limitation on
Transactions with Affiliates.  (a) 
The Company shall not, and shall not permit any Restricted Subsidiary to, nor
shall any Restricted Subsidiary, directly or indirectly, conduct any business
or enter into or suffer to exist any transaction or series of related
transactions (including the purchase, sale, transfer, assignment, lease,
conveyance or exchange of any Property or the rendering of any service) with,
or for the benefit of, any Affiliate of the Company (an “Affiliate
Transaction”), unless:

 

(i)            the
terms of such Affiliate Transaction are (A) set forth in writing and (B) no
less favorable, in any material respect, taken as a whole, to the Company or
such Restricted Subsidiary, as the case may be, than those that could be
obtained in a comparable arm’s-length transaction with a Person that is not an
Affiliate of the Company as determined in good faith by any Officer of the
Company;

 

(ii)           if
such Affiliate Transaction involves aggregate payments or value in excess of
€10.0 million, the Board of Directors (including a majority of the
disinterested members of the Board of Directors) approves such Affiliate
Transaction and, in its good faith judgment, believes that such Affiliate
Transaction complies with clause (a)(i)(B) of this Section 4.09 as
evidenced by a board resolution promptly delivered to the Trustee; and

 

(iii)          if
such Affiliate Transaction involves aggregate payments or value in excess of
€25.0 million, the Company obtains a written opinion from an Independent
Appraiser to the effect that the consideration to be paid or received in
connection with such Affiliate Transaction is fair, from a financial point of
view, to the Company or such Restricted Subsidiary, as the case may be.

 

(b)           Notwithstanding
the foregoing limitation, the following shall not be Affiliate Transactions:

 

(i)            any
transaction or series of transactions between the Company and one or more
Restricted Subsidiaries or between two or more Restricted Subsidiaries in the
ordinary course of business;

 

(ii)           any
transaction or series of transactions between the Parent Guarantor and
Cableuropa or between the Parent Guarantor and one or more Restricted
Subsidiaries;

 

52

 

(iii)          any
Restricted Payment or Issuer Restricted Payment permitted to be made pursuant
to Section 4.07 or any Permitted Investment of the Company or the
Restricted Subsidiaries;

 

(iv)          any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors;

 

(v)           loans
and advances to employees made in the ordinary course of business and
consistent with the past practices of the Company or any Restricted Subsidiary,
as the case may be; provided, however, that such loans and advances do not
exceed €1.0 million in the aggregate at any one time outstanding, provided,
however that the Company or any Restricted Subsidiary may make loans or
advances to employees in connection with a Public Equity Offering in amounts
not to exceed €3.5 million;

 

(vi)          arrangements
in existence on the Issue Date (including any construction and equipment
purchase contracts and any consultancy agreements) and any renewal thereof;
provided, however, that any such renewal is on terms no less favorable in any
material respect, taken as a whole, than the terms of any such existing
agreement;

 

(vii)         arrangements
relating to the offer and sale of Capital Stock of the Company or any
Restricted Subsidiary that the Board of Directors determines in good faith to
be customary for such an offer and sale;

 

(viii)        any
Guarantee or grant of any Lien by the Company or a Restricted Subsidiary in
connection with any Debt (other than Subordinated Obligations) permitted
pursuant to Section 4.06;

 

(ix)           any
payments or other transactions pursuant to a tax sharing agreement between the
Company and any other Person with which the Company files a consolidated tax
return or with which the Company is part of a consolidated group for tax
purposes; 

 

(x)            (A) the
provision by Bank of America Corporation and its Affiliates and Banco Santander
and its Affiliates of investment banking or commercial banking or similar
services to the Company and the Restricted Subsidiaries; and (B) any
agreement with Grupo Ferrovial, S.A. and its Affiliates or Isolux WAT S.A. and
its Affiliates to construct the telecommunications networks of the Company and
the Restricted Subsidiaries, which, in the case of each of (A) and (B),
are fair to the Company and the Restricted Subsidiaries, in the reasonable
determination of the Board of Directors of the Company or an Officer thereof,
or are on terms no less favorable in any material respect, taken as a whole, to
the Company or such Restricted Subsidiary, as the case may be, than those that
could be obtained in a comparable arm’s-length transaction with a Person that
is not an Affiliate of the Company as determined in good faith by any Officer
of the Company; and

 

53

 

(xi)           any
payments or other transactions with respect to the lease or sharing or other
use of cable or fiber lines, equipment, transmission capacity, right-of-way or
other access rights, service agreements, content provision agreements or any
other transactions entered into in the ordinary course of business and related
to the Telecommunications Business between the Company or any Restricted
Subsidiary and Retecal provided (a) such transaction satisfies the
requirements of paragraph (a)(i) of this Section 4.09 and (b) The
Board of Directors (including a majority of disinterested directors (which
shall include at least two such directors)) approves such transaction and, in
its good faith judgment, believes such transaction complies with clause (a)(i)(B) of
this Section 4.09 as evidenced by a board resolution promptly delivered to
the Trustee.

 

SECTION 4.10.      Limitation on Liens. 
(a)  The Issuer shall not, directly or indirectly, Incur or
suffer to exist, any Lien (other than Permitted Liens) upon any of its
Property, whether owned at the Issue Date or thereafter acquired, or any
interest therein or any income or profits therefrom.

 

(b)           the Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, directly or indirectly,
Incur or suffer to exist, any Lien (other than Permitted Liens or Liens
securing Senior Debt) upon any of its Property (including Capital Stock of a
Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired,
or any interest therein or any income or profits therefrom, unless

 

(i)            if
such Lien secures Senior Subordinated Debt, the Notes Proceeds Loans and the
applicable Note Guarantee are secured on an equal and ratable basis with such
Debt, and

 

(ii)           if
such Lien secures Subordinated Obligations, such Lien shall be subordinated to
a Lien securing the Notes Proceeds Loans and the applicable Note Guarantee in
the same Property as that securing such Lien to the same extent as such
Subordinated Obligations are subordinated to the Notes Proceeds Loans and the
applicable Note Guarantee.

 

SECTION 4.11.      Limitation on Sale of
Certain Assets.  (a)  The Issuer
shall not, directly or indirectly, consummate any Asset Sale.

 

(b)           The Company shall not, and shall not permit any Restricted
Subsidiary to, nor shall any Restricted Subsidiary, directly or indirectly,
consummate any Asset Sale unless:

 

(i)            the
Company or such Restricted Subsidiary receives consideration at the time of
such Asset Sale at least equal to the Fair Market Value of the Property subject
to such Asset Sale;

 

(ii)           at
least 75% of the consideration paid to the Company or such Restricted
Subsidiary in connection with such Asset Sale is in the form of cash or cash
equivalents or the assumption by the purchaser of liabilities of the Company or
any Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Notes Proceeds Loans and the applicable Note Guarantee) as
a result of which the 

 

54

 

Company and the Restricted Subsidiaries
are no longer obligated with respect to such liabilities;

 

(iii)          the
Company delivers an Officers’ Certificate to the Trustee certifying that such
Asset Sale complies with the foregoing clauses (i) and (ii); and

 

(iv)          no
Default or Event of Default shall have occurred and be continuing immediately
prior to and after giving effect to such Asset Sale.

 

(c)           The Net Available Cash (or any portion thereof) from Asset
Sales shall be applied by the Company or a Restricted Subsidiary, to the extent
the Company or such Restricted Subsidiary elects (or is required by the terms
of any Debt):

 

(i)            to
repay Senior Debt of the Company or any other Note Guarantor (excluding, in any
such case, any Debt owed to the Company or an Affiliate of the Company);

 

(ii)           to
invest or reinvest in Additional Assets (including an Investment in Additional
Assets by a Restricted Subsidiary with Net Available Cash received by the
Company or another Restricted Subsidiary that is invested in such Restricted
Subsidiary); or

 

(iii)          Any
combination of the foregoing.

 

(d)           Any Net Available Cash from an Asset Sale not applied in
accordance with the preceding paragraph within 360 days from the date of the
receipt of such Net Available Cash or that is not segregated from the general
funds of the Company for investment in identified Additional Assets in respect
of a project that shall have been commenced, and for which binding contractual
commitments have been entered into, prior to the end of such 360-day period and
that shall not have been completed or abandoned shall constitute “Excess
Proceeds”.  When the aggregate amount of
Excess Proceeds exceeds €10.0 million (taking into account income earned on
such Excess Proceeds, if any), Cableuropa will be required to make an offer to
make prepayments under the Notes Proceeds Loans sufficient to enable the Issuer
to purchase Notes pursuant to the Prepayment Offer (as defined below), and the
Issuer shall be required to make an offer to purchase (the “Prepayment Offer”)
the Notes which offer shall be in the amount of the Allocable Excess Proceeds,
on a pro rata basis according to principal amount, at a purchase price equal to
100% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the purchase date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date), in
accordance with the procedures (including prorating in the event of
over-subscription) set forth in this Indenture. 
To the extent that any portion of the amount of Net Available Cash
remains after compliance with the preceding sentence and provided
that all holders of Notes have been given the opportunity to tender their Notes
for purchase in accordance with this Indenture, the Company or such Restricted
Subsidiary may use such remaining amount for any general corporate purpose and
the amount of Excess Proceeds will be reset to zero.

 

(e)           The term “Allocable Excess Proceeds” will mean the
product of (a) the Excess Proceeds and (b) a fraction, the numerator
of which is the aggregate principal amount of the Notes outstanding on the date
of the Prepayment Offer and the denominator of which is the sum of the
aggregate principal amount of the Notes outstanding on the date of the 

 

55

 

Prepayment Offer and the aggregate principal amount of other Debt of
Cableuropa outstanding on the date of the Prepayment Offer that is pari passu in right of payment with the
Notes Proceeds Loans and subject to terms and conditions in respect of Asset
Sales similar in all material respects to this Section and requiring
Cableuropa to make an offer to purchase such Debt at substantially the same
time as the Prepayment Offer.

 

(f)            Within five Business Days after
Cableuropa is obligated to make a Prepayment Offer as described in the
preceding paragraph, the Issuer shall send a notice pursuant to Section 13.02,
accompanied by such information regarding the Issuer, the Company and the
Restricted Subsidiaries as the Issuer in good faith believes will enable the
holders to make an informed decision with respect to such Prepayment Offer.  Such notice shall state, among other things,
the purchase price and the purchase date, which shall be, subject to any
contrary requirements of applicable law, a Business Day no earlier than 30 days
nor later than 60 days from the date such notice is given.

 

(g)           The Issuer and each of the Note Guarantors will comply, to
the extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 4.11.  To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 4.11,
each of the Issuer and the Note Guarantors will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.11 by virtue thereof.

 

SECTION 4.12.      Limitation on Sale and
Leaseback Transactions.  The Company
shall not, and shall not permit any Restricted Subsidiary to, nor shall any
Restricted Subsidiary, enter into any Sale and Leaseback Transaction with
respect to any Property unless:

 

(i)            the
Company or such Restricted Subsidiary would be entitled to (i) Incur Debt
in an amount equal to the Attributable Debt with respect to such Sale and
Leaseback Transaction pursuant to Section 4.06 and (ii) create a Lien
on such Property securing such Attributable Debt without also securing the
Notes Proceeds Loans and the applicable Note Guarantee pursuant to Section 4.10;

 

(ii)           such
Sale and Leaseback Transaction is effected in compliance with Section 4.11;
and

 

(iii)          the
net proceeds received in connection with such Sale and Leaseback Transaction
are at least equal to the Fair Market Value of such Property.

 

SECTION 4.13.      Limitation on
Restrictions on Distributions from Restricted Subsidiaries.  (a)  The Company shall not, and shall
not permit any Restricted Subsidiary to, nor shall any Restricted Subsidiary,
directly or indirectly, create or otherwise cause or suffer to exist any
consensual restriction on the right or ability of any Restricted Subsidiary
(and, in the case of clause (iv) below, Cableuropa) to:

 

(i)            pay
dividends, in cash or otherwise, or make any other distributions on or in
respect of its Capital Stock, or pay any Debt or other obligation owed, to the
Company or any other Restricted Subsidiary;

 

56

 

(ii)           make
any loans or advances to the Company or any other Restricted Subsidiary;

 

(iii)          transfer
any of its Property to the Company or any other Restricted Subsidiary; or

 

(iv)          satisfy
its obligations under the Notes Proceeds Loans.

 

(b)           The
foregoing limitations will not apply:

 

(i)            with
respect to clauses (a)(i), (a)(ii), (a)(iii) and (a)(iv), to restrictions:

 

(A)          in
effect or entered into on the Issue Date;

 

(B)           relating
to Debt of a Restricted Subsidiary and existing at the time it became a
Restricted Subsidiary if such restriction was not created in connection with or
in anticipation of the transaction or series of transactions pursuant to which
such Restricted Subsidiary became a Restricted Subsidiary or was acquired by
the Company;

 

(C)           relating
to the Senior Bank Facility;

 

(D)          under
(I) this Indenture, the Fixed Rate Indenture, the Note Guarantees or the Notes
or (II) any customary encumbrance or restriction that is contained in an
agreement or instrument governing or relating to any Indebtedness Incurred; provided, however,
that the restrictions contained in any such agreement or instrument are no less
favorable in any material respect, taken as a whole, to the holders of Notes
than the restrictions contained in this Indenture, the Fixed Rate Indenture,
the Note Guarantees or the Notes;

 

(E)           that
result from the Refinancing of Debt Incurred pursuant to an agreement referred
to in clause (b)(i)(A), (B), (C) or (D) (in respect of clause (I)
only) above or in clause (c)(i) or (ii) below; provided, however,
such restriction with respect to such Refinanced Debt is no less favorable in
any material respect, taken as a whole, to the holders of Notes than those under
the agreement evidencing the Debt so Refinanced;

 

(F)           relating
to Hedging Obligations, Subsidized Loans or the VAT Discounting Facility; or

 

(G)           any
customary encumbrance or restriction applicable to a Restricted Subsidiary that
is contained in an agreement or instrument governing or relating to Senior
Debt, provided that the provisions of any such agreement or instrument do not
prevent (other than following an event of default on such Senior Debt) the
payment of interest and mandatory payment of principal pursuant to the terms of
this Indenture and the Notes, but provided, further that such agreement or
instrument may nevertheless contain customary net worth, leverage, invested
capital and other financial covenants, customary covenants regarding 

 

57

 

the merger of or sale of
all or any substantial part of the assets of the Company or any Restricted
Subsidiary, customary restrictions on transactions with Affiliates, customary
subordination provisions governing future Debt to be Incurred by the Company or
any Restricted Subsidiary no less favorable in any material respect, taken as a
whole, to the holders of Notes than the subordination provisions applicable to
the Note Guarantees, and provisions prohibiting redemptions or repurchases of
Notes in the event of a Change of Control; and

 

(c)           with
respect to clause (a)(iii) of this Section 4.13 only, to
restrictions:

 

(A)          relating
to Debt that is permitted to be Incurred and secured without also securing the
Notes Proceeds Loans or the applicable Note Guarantee pursuant to Sections 4.06
and 4.10 that limit the right of the debtor to dispose of the Property securing
such Debt;

 

(B)           encumbering
Property at the time such Property was acquired by the Company or any Restricted
Subsidiary, so long as such restriction relates solely to the Property so
acquired and was not created in connection with or in anticipation of such
acquisition;

 

(C)           resulting
from customary provisions in leases or customary provisions in other agreements
that restrict assignment of such agreements or rights thereunder;

 

(D)          customary
restrictions contained in asset sale agreements limiting the transfer of such
Property pending the closing of such sale;

 

(E)           encumbrances
or restrictions existing by reason of customary merger or acquisition
agreements for the purchase or acquisition of the Capital Stock or assets of
the Company or any of its Subsidiaries by another Person;

 

(F)           customary
restrictions contained in operating leases for real property and restricting
only the transfer of such real property or effective only upon the occurrence
and during the continuance of a default in the payment of rent;

 

(G)           encumbrances
or restrictions arising as a result of applicable law or regulation; or

 

(H)          encumbrances
or restrictions that may be imposed by governmental licenses, concessions,
franchises or permits.

 

SECTION 4.14.      Limitation on the Company’s
Business.  The Company shall not, and
the Company and the Restricted Subsidiaries as a group shall not, engage in any
business other than a Telecommunications Business.

 

SECTION 4.15.      Change of Control.  (a)  Upon the occurrence of a Change of
Control, each holder of Notes shall have the right to require the Issuer to
repurchase all or any 

 

58

 

part (equal to €1,000 or an integral multiple thereof) of such holder’s
Notes pursuant to the offer (the “Change of Control Offer”) described
below at a purchase price (the “Change of Control Purchase Price”) equal
to 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, to the date of purchase (the “Change of Control Purchase Date”)
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

(b)           Within 30 days following any Change of Control, the Issuer
and the Company shall:

 

(i)            cause
a notice of the Change of Control Offer to be sent to the Dow Jones News
Service and Reuters News Service or similar business news services (and, if and
so long as Notes are listed on the Luxembourg Stock Exchange and the rules of
such Stock Exchange shall so require, publish a notice in a newspaper having a
general circulation in Luxembourg (which is expected to be the Luxemburger Wort)); and

 

(ii)           in
the event the Notes are in the form of definitive Notes, send, by first-class
mail, with a copy to the Trustee, to each holder of Notes, at such holder’s
address as it appears on the registration books of the Registrar, a notice
stating:

 

(A)          that a Change of Control has
occurred and a Change of Control Offer is being made pursuant to this Section 4.15
and that all Notes timely tendered will be accepted for payment;

 

(B)           the Change of Control Purchase
Price and the Change of Control Purchase Date, which shall be, subject to any
contrary requirements of applicable law, a business day no earlier than 30 days
nor later than 60 days from the date such notice is given;

 

(C)           the circumstances and relevant
facts regarding the Change of Control; and

 

(D)          the procedures that holders of
Notes must follow in order to tender their Notes (or portions thereof) for
payment, and the procedures that holders of Notes must follow in order to
withdraw an election to tender Notes (or portions thereof) for payment.

 

(c)           The Issuer and each of the Note Guarantors will comply, in
each case to the extent applicable, with the requirements of Section 14(e) of
the Exchange Act and any other securities laws or regulations, including any
securities laws of the United Kingdom, Spain and Luxembourg and the
requirements of the Luxembourg Stock Exchange or any other securities exchange
on which the Notes are listed, in connection with the Repurchase of Notes
pursuant to a Change of Control Offer. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this Section 4.15,
the Issuer and each of the Note Guarantors will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance.

 

SECTION 4.16.      Additional Amounts.  (a)  All payments that the Issuer makes
under or with respect to the Notes or that any Note Guarantor makes under or
with respect to 

 

59

 

any Note Guarantee will be made free and clear of, and without
withholding or deduction for or on account of, any present or future tax, duty,
levy, impost, assessment or other governmental charges (including, without
limitation, penalties, interest and other similar liabilities related thereto)
of whatever nature (collectively, “Taxes”) imposed or levied by or on
behalf of any jurisdiction in which the Issuer, any Note Guarantor or any
surviving Person is incorporated, organized or otherwise resident for tax
purposes or from or through which any of the foregoing makes any payment on the
Notes or by or within any department or political subdivision thereof (each, a “Relevant
Taxing Jurisdiction”), unless the Issuer or such Note Guarantor, as the
case may be, is required to withhold or deduct Taxes by law or by the
interpretation or administration of law. 
If the Issuer or a Note Guarantor is required to withhold or deduct any
amount for, or on account of, Taxes of a Relevant Taxing Jurisdiction from any
payment made under or with respect to the Notes, the Issuer or such Note
Guarantor, as the case may be, will pay additional amounts (“Additional
Amounts”) as may be necessary to ensure that the net amount received and
retained by each holder of the Notes (including Additional Amounts) after such
withholding, deduction, imposition or levy will be not less than the amount the
holder would have received and retained if such Taxes had not been required to
be withheld or deducted.

 

(b)           Neither the Issuer nor any Note Guarantor will, however, pay
Additional Amounts to a holder or beneficial owner of Notes in respect or on
account of:

 

(i)            any
Taxes that are imposed or levied by a Relevant Taxing Jurisdiction by reason of
the holder’s or beneficial owner’s present or former connection with such
Relevant Taxing Jurisdiction (other than the mere receipt or holding of Notes
or by reason of the receipt of payments thereunder or the exercise or
enforcement of rights under any Notes or this Indenture);

 

(ii)           any
Taxes that are imposed or levied by reason of the failure of the holder or
beneficial owner of Notes, following the Issuer’s written request addressed to
the holder (and made at a time that would enable the holder or beneficial owner
acting reasonably to comply with that request), to comply with any
certification, identification, information or other reporting requirements,
whether required by statute, treaty, regulation or administrative practice of a
Relevant Taxing Jurisdiction, as a precondition to exemption from, or reduction
in the rate of withholding or deduction of, Taxes imposed by the Relevant
Taxing Jurisdiction (including, without limitation, a certification that the
holder or beneficial owner is not resident in the Relevant Taxing Jurisdiction);

 

(iii)          any
estate, inheritance, gift, sales, transfer, personal property or similar Taxes;

 

(iv)          any
Tax that is payable otherwise than by withholding or deduction from payments
made under, or with respect to, the Notes;

 

(v)           any
Tax that is imposed or levied by reason of the presentation (where presentation
is required in order to receive payment) of such Notes for payment on a date
more than 30 days after the date on which such payment became due and payable
or the date on which payment thereof is duly provided for, whichever is later,
except to the extent that the holder or beneficial owner thereof would have
been entitled to Additional Amounts had the Notes been presented for payment on
any date during such 30 day period;

 

60

 

(vi)          any
withholding or deduction in respect of any Taxes where such withholding or
deduction is imposed on a payment to an individual and is required to be made
pursuant to European Council Directive 2003/48/EC or any other Directive
implementing the conclusions of the ECOFIN Council meeting of November 26-27,
2000 on the taxation of savings income or any law implementing or complying
with, or introduced in order to conform to, such Directive; or

 

(vii)         any
Tax that is imposed on or with respect to a payment made to a holder or
beneficial owner who would have been able to avoid such withholding or
deduction by presenting the Notes to another paying agent in a Member State of
the European Union.

 

(c)           The Issuer and any Note Guarantor will (i) make such
withholding or deduction as is required by applicable law and (ii) remit
the full amount withheld or deducted to the relevant taxing authority in
accordance with applicable law.

 

(d)           At least 30 calendar days prior to each date on which any
payment under or with respect to the Notes is due and payable, if the Issuer or
any Note Guarantor will be obligated to pay Additional Amounts with respect to
such payment (unless such obligation to pay Additional Amounts arises after the
30th day prior to the date on which payment under or with respect to the Notes
is due and payable, in which case it will be promptly thereafter), the Issuer
will deliver to the Trustee an Officer’s Certificate stating that such
Additional Amounts will be payable and the amounts so payable and will set
forth such other information necessary to enable the Trustee to pay such
Additional Amounts to holders on the payment date.  The Issuer will promptly publish a notice in
accordance with the provisions set forth in Section 13.02 stating that
such Additional Amounts will be payable and describing the obligation to pay
such amounts.

 

(e)           Upon request, the Issuer or any Note Guarantor, as the case
may be, will furnish to a holder of the Notes copies of tax receipts evidencing
the payment of any Taxes by the Issuer or such Note Guarantor in such form as
provided in the normal course by the taxing authority imposing such Taxes and
as is reasonably available to the Issuer or such Note Guarantor.  If, notwithstanding the efforts of the Issuer
to obtain such receipts the same are not obtainable, the Issuer or such Note Guarantor
will provide such holder with other evidence reasonably satisfactory to the
holder of such payments by the Issuer or such Note Guarantor.

 

(f)            In addition, the Issuer and any
Note Guarantor will pay any present or future stamp, issue, registration, court
documentation, excise or property taxes or other similar taxes, charges and
duties, including interest and penalties with respect thereto, imposed by or in
any Relevant Taxing Jurisdiction in respect of the execution, issue or delivery
of the Notes or any other document or instrument referred to thereunder and any
such taxes, charges or duties imposed by any jurisdiction as a result of, or in
connection with, the enforcement of the Notes or any other such document or
instrument following the occurrence of any Event of Default with respect to the
Notes.

 

(g)           Whenever this Indenture refers to, in any context, the
payment of principal, premium, if any, interest or any other amount payable
under or with respect to any Note, such reference includes the payment of
Additional Amounts, if applicable.

 

61

 

SECTION 4.17.      Designation of
Unrestricted and Restricted Subsidiaries. 
(a)  Unless so designated as an Unrestricted Subsidiary, any Person
that becomes a Subsidiary of the Company will be classified as a Restricted
Subsidiary.  The Board of Directors may
designate any Subsidiary of the Company, including any newly acquired or newly
formed subsidiary, to be an Unrestricted Subsidiary if:

 

(i)            no
Event of Default shall have occurred or be continuing at the time of or after
giving effect to such designation;

 

(ii)           the
Subsidiary to be so designated does not own any Capital Stock or Debt of, or
own or hold any Lien on any Property of, the Company or any Restricted Subsidiary;
and

 

(iii)          either
(A) the Subsidiary to be so designated has total assets of €60,000 or less
or (B) such designation is effective immediately upon such entity becoming
a Subsidiary of the Company.

 

(b)           Except as provided in the second sentence of paragraph (a) above,
no Restricted Subsidiary may be redesignated as an Unrestricted
Subsidiary.  Neither the Company nor any
Restricted Subsidiary shall at any time be directly or indirectly liable for
any Debt that provides that the holder thereof may (with the passage of time or
notice or both) declare a default thereon or cause the payment thereof to be
accelerated or payable prior to its Stated Maturity upon the occurrence of a
default with respect to any Debt, Lien or other obligation of any Unrestricted
Subsidiary (including any right to take enforcement action against such
Unrestricted Subsidiary).  Upon
designation of a Restricted Subsidiary as an Unrestricted Subsidiary in
compliance with this Section, such Restricted Subsidiary shall, by execution
and delivery of a supplemental indenture in form satisfactory to the Trustee,
be released from any Note Guarantee previously made by such Restricted
Subsidiary.

 

(c)           The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary if, immediately after giving pro forma
effect to such designation:

 

(i)            the
Company could Incur €1.00 of additional Debt pursuant to Section 4.06(a)(i);

 

(ii)           no
Default or Event of Default shall have occurred and be continuing or would
result therefrom;

 

(iii)          such
Unrestricted Subsidiary is a subsidiary of the Company; and

 

(iv)          such
Unrestricted Subsidiary executes and delivers to the Trustee a Note Guarantee
at the time such Unrestricted Subsidiary becomes a Restricted Subsidiary.

 

(d)           Any such designation or redesignation by the Board of
Directors will be evidenced to the Trustee by filing with the Trustee a board
resolution giving effect to such designation or redesignation and an Officers’
Certificate of the Company (i) certifying that such designation or
redesignation complies with the foregoing provisions and (ii) giving the
effective date of such designation or redesignation, such filing with the
Trustee to occur within 45 days after the end of the fiscal quarter of the
Company in which such designation or redesignation is made (or, in the case of
a designation or redesignation made during the

 

62

 

last fiscal quarter of the Company’s fiscal
year, within 90 days after the end of such fiscal year).

 

SECTION 4.18.      Limitation
on Issuer Activities.  (a)  The
Issuer will not engage in any business activity or undertake any other
activity, except any activity:

 

(i)            relating
to the offering, sale or issuance of the Notes or the Incurrence of Permitted
Debt of the Issuer (including the lending of the proceeds of such sale of Notes
or Permitted Debt of the Issuer to the Company and the Restricted Subsidiaries);

 

(ii)           undertaken
with the purpose of, and directly related to, fulfilling its obligations under
the Existing Notes, the Notes, this Indenture, the Fixed Rate Indenture, the
Existing Notes Indentures, the agreements relating to the Existing Equity Value
Certificates or such Permitted Debt, including the Incurrence of Permitted
Liens of the Issuer and the making of Permitted Investments of the Issuer; or

 

(iii)          directly
related to the establishment and maintenance of the Issuer’s corporate
existence.

 

(b)           All of the proceeds of the offering will be lent to
Cableuropa and the other Subsidiary Guarantors by the Issuer pursuant to the
Notes Proceeds Loans.  The Issuer shall
not:

 

(i)            Incur
any Debt other than the Notes or Permitted Debt of the Issuer;

 

(ii)           issue
any Capital Stock (other than to ONO Holdings, the Company or Retco);

 

(iii)          consummate
any Asset Sale; or

 

(iv)          take
any action which would cause it to no longer satisfy the requirements of its
exemption from the provisions of the Investment Company Act of 1940, as
amended.

 

(c)           Whenever the Issuer receives a payment or prepayment under
the Notes Proceeds Loans, it shall use the funds received solely to satisfy its
obligations (to the extent of the amount owing in respect of such obligations)
under this Indenture (including any premium paid by holders of the Notes),
except as otherwise provided pursuant to the subordination and other provisions
of the Notes Proceeds Loans and this Indenture. The Issuer’s Articles of
Association and Memorandum of Association prohibit the transfer of its shares
to any Person other than ONO Holdings, the Company or Retco.

 

SECTION 4.19.      Payment
of Taxes and Other Claims.  The
Issuer shall pay or discharge and shall cause each of its Subsidiaries to pay
or discharge, or cause to be paid or discharged, before the same shall become
delinquent: (a) all material taxes, assessments and governmental charges
levied or imposed upon (i) the Issuer or any such Subsidiary, (ii) the
income or profits of any such Subsidiary which is a corporation or (iii) the
property of the Issuer or any such Subsidiary and (b) all material lawful
claims for labor, materials and supplies that, if unpaid, might by law become a
lien upon the property of the Issuer or any such

 

63

 

Subsidiary; provided,
that the Issuer shall not be required to pay or discharge, or cause to be paid
or discharged, any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate reserves have been established.

 

SECTION 4.20.      Payments
for Consent.  Neither the Issuer nor
any of its Restricted Subsidiaries will, directly or indirectly, pay or cause
to be paid any consideration, whether by way of interest, fee or otherwise, to
any holder of any Notes for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid or is paid to all holders of
the Notes that consent, waive or agree to amend in the time frame set forth in
the solicitation documents relating to such consent, waiver or agreement.

 

SECTION 4.21.      Reports
to Holders.  (a)  So long as any
Notes are outstanding, each of the Company and the Issuer will furnish to the
Trustee (who, at the Company’s or the Issuer’s expense, as the case may be,
will furnish by mail to holders of the Notes):

 

(i)            within
120 days following the end of each fiscal year, information including “Selected
Historical Financial Data”, “Management’s Discussion and Analysis of Results of
Operations” and “Business” sections with scope and content similar to the
corresponding sections of the offering memorandum prepared in connection with
the offering of the Notes, dated May 7, 2004, (after taking into
consideration any changes to the business and operations of the Company or the
Issuer after the Issue Date), information regarding the Company’s and the
Issuer’s share capital, constitutional documents and any material contracts to
which the Company, the Issuer or the Restricted Subsidiaries are party other
than contracts entered into in the ordinary course of business, consolidated
audited income statements, balance sheets and cash flow statements and the
related notes thereof for the Company and the Issuer for the two most recent
fiscal years in accordance with GAAP, which need not, however, contain any
reconciliation to U.S.  GAAP or otherwise
comply with Regulation S-X of the Commission, together with an audit report
thereon by the Issuer’s independent auditors;

 

(ii)           within
60 days following the end of the fiscal quarters ended June 30, 2004 and September 30,
2004 and of the first three fiscal quarters in each fiscal year thereafter,
quarterly reports containing unaudited balance sheets, statements of income,
statements of shareholders equity and statements of cash flows and condensed
footnote disclosure; for the Company and the Restricted Subsidiaries on a
consolidated basis, in each case for the quarterly period then ended and the
corresponding quarterly period in the prior fiscal year and prepared in
accordance with GAAP, which need not, however, contain any reconciliation to
U.S.  GAAP or otherwise comply with Regulation
S-X of the Commission, together with a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” section for such quarterly
period;

 

(iii)          promptly
from time to time after the occurrence of a material acquisition or disposition
that would constitute a Significant Subsidiary (as defined in Regulation S-X of
the Commission), financial statements of the acquired business and a pro forma
consolidated balance sheet and statement of operations of the Company and the
Restricted Subsidiaries giving effect to the acquisition or disposition to the
extent practicable utilizing available information, (which need not be required
to 

 

64

 

contain any U.S. GAAP
information or otherwise comply with Regulation S-X of the Commission); and

 

(iv)          promptly
from time to time after the occurrence of an event required to be reported
therein, such other reports containing substantially the same information
required to be contained in Form 6-K (or any successor form) of the
Commission.

 

(b)           Each of the Company and the Issuer shall be deemed to
satisfy the foregoing obligations so long as it furnishes the foregoing
information in compliance with the corresponding obligation in the Existing
Notes Indentures.

 

(c)           In addition, so long as the Notes remain outstanding and
during any period during which Cableuropa and the Issuer are not subject to Section 13
or 15(d) of the Exchange Act or exempt therefrom pursuant to each of
Cableuropa and the Issuer will furnish to the holders of the Notes and to
prospective investors, upon the requests of such holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act so long as the Notes are not freely transferable under the
Exchange Act by Persons who are not “affiliates” under the Securities Act.

 

(d)           Each of the Issuer and the Company will also make available
copies of all reports furnished to the Trustee with 15 days after the Issuer or
the Company, as the case may be, furnishes such reports to the Trustee: (a) on
the website of the Company, as the case may be; (b) to the newswire
service of Bloomberg, or, if Bloomberg does not then operate, any similar
agency; and (c) if and so long as the Notes are listed on the Luxembourg
Stock Exchange and the rules of the Luxembourg Stock Exchange so require,
at the specified office of the paying agent in Luxembourg.

 

SECTION 4.22.      Limitation
on Layered Debt.  Cableuropa shall
not, and shall not permit any other Guarantor to, nor shall any other
Subsidiary Guarantor, Incur, create, issue, assume, Guarantee or otherwise
become liable for any Debt that is both subordinate or junior in right of
payment to any Senior Debt of Cableuropa or such Subsidiary Guarantor and
senior in any respect in right of payment to any Senior Subordinated Debt of
Cableuropa or such Subsidiary Guarantor or any other Debt of Cableuropa or such
Subsidiary Guarantor ranking equally with Senior Subordinated Debt of
Cableuropa or such Subsidiary Guarantor.

 

SECTION 4.23.      Limitation
on Notarization Under Spanish Law.  Until
September 1, 2004, the Company shall not, and shall not permit any other
Guarantor to, nor shall any other Note Guarantor, notarize any Debt or other
obligation other than Senior Debt.

 

SECTION 4.24.      Future
Note Guarantors.  The Company shall
cause each Person that becomes a Restricted Subsidiary following the Issue Date
to execute and deliver to the Trustee a Note Guarantee at the time such Person
becomes a Restricted Subsidiary.  The
Company, however, will not be obligated to cause any Restricted Subsidiary to
become a Note Guarantor if the provision by such Restricted Subsidiary of a
Note Guarantee would result in any violation of applicable law that cannot be
avoided or otherwise prevented through measures reasonably available to the Company
(including any “whitewash” or similar procedures that would be required in
order to enable such Note Guarantee to be provided in accordance with
applicable law).

 

65

 

SECTION 4.25.      Use
of Proceeds by the Issuer.  The gross
proceeds to the Issuer from the offering of the Notes shall be lent by the
Issuer to Cableuropa and the other Subsidiary Guarantors pursuant to the Notes
Proceeds Loans.

 

SECTION 4.26.      Restriction
on Transfer of Assets.  The Company
and any Restricted Subsidiary that is a Note Guarantor shall not sell, convey,
transfer or otherwise dispose of its assets or property to any Restricted
Subsidiary that is not a Note Guarantor.

 

SECTION 4.27.      Conversion
of GCO Loan and Participative Loans into Common Stock of Cableuropa.  Within one month of the Issue Date,
Cableuropa shall take all necessary actions and make all necessary submissions,
including submissions to the Mercantile Registry, to convert the GCO Loan and
the Participative Loans into common stock of Cableuropa.

 

SECTION 4.28.      Further
Instruments and Acts.  Upon request
of the Trustee (but without imposing any duty or obligation of any kind on the
Trustee to make any such request), the Issuer and any Guarantors shall execute
and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of
this Indenture.

 

SECTION 4.29.      Listing.  The Issuer and Cableuropa will use their best
efforts to cause the Notes to be listed on the Luxembourg Stock Exchange, or to
the extent that it is preceded from listing the Notes on such exchange, the
Issuer and Cableuropa shall use their best efforts to cause the Notes to be
listed on another EU recognized stock exchange. 
The Issuer and Cableuropa shall cause the Notes to be listed as required
by this Section 4.29 prior to August 15, 2004.

 

ARTICLE FIVE

CONSOLIDATION, MERGER OR SALE OF ASSETS

 

SECTION 5.01.      Consolidation,
Merger or Sale of Assets.    (a) 
The Issuer shall not merge, consolidate or amalgamate with or into any other
Person or sell, transfer, assign, lease, convey or otherwise dispose of all or
substantially all its Property in any one transaction or series of related
transactions.

 

(b)           Except with respect to an enforcement sale as described
under Section 10.03, the Company and each of the other Note Guarantors
shall not merge, consolidate or amalgamate with or into any other Person (other
than a merger of a Restricted Subsidiary into the Company or such other Note
Guarantor) or sell, transfer, assign, lease, convey or otherwise dispose of all
or substantially all its Property in any one transaction or series of related
transactions unless:

 

(i)            the
Company or such other Note Guarantor shall be the surviving Person (the “Surviving
Person”) or the Surviving Person (if other than the Company or such other
Note Guarantor, as applicable) formed by such merger, consolidation or
amalgamation or to which such sale, transfer, assignment, lease, conveyance or
disposition is made shall be a corporation organized and existing under the
laws of the United States of America, any State thereof or the District of
Columbia or a member state of the European Union on the Issue Date;

 

66

 

(ii)           the
Surviving Person (if other than the Company or such other Note Guarantor, as
applicable) expressly assumes, by supplemental indenture in form reasonably
satisfactory to the Trustee, executed and delivered to the Trustee by such
Surviving Person, the due and punctual payment of the principal of, and
premium, if any, and interest on the Notes Proceeds Loans, and the due and
punctual performance and observance of all the covenants and conditions of this
Indenture to be performed by the Company and such other Note Guarantor, as
applicable, and the due and punctual performance of all obligations of the
Company or such other Note Guarantor, as applicable, under its respective Note
Guarantee;

 

(iii)          in
the case of a sale, transfer, assignment, lease, conveyance or other
disposition of all or substantially all the Property of the Company or such
other Note Guarantor, as applicable, such Property shall have been transferred
as an entirety or substantially as an entirety to one Person, which is the
Surviving Person;

 

(iv)          immediately
before and after giving effect to such transaction or series of related
transactions on a pro forma basis, no Default or Event of Default will have
occurred and be continuing;

 

(v)           Except
with respect to the merger, consolidation or amalgamation with or into Retecal,
or of Retecal into or with any Note Guarantor, immediately after giving effect
to such transaction or series of related transactions on a pro forma basis the
Surviving Person would be able to incur €1.00 of additional Debt pursuant to Section 4.06(a)(i);

 

(vi)          the Company
shall deliver, or cause to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion
of Counsel, each stating that such transaction and the supplemental indenture
and such Note Guarantee, if any, in respect thereto comply with this Section and
that all conditions precedent herein provided for relating to such transaction
have been satisfied; and

 

(vii)         such
transaction would not result in the revocation of any Material License which is
not replaced, substituted, reinstated or reissued to the holder of such
Material License or to the Surviving Person (if other than the Company or
another Note Guarantor).

 

(c)           Except with respect to an enforcement sale as described
under Section 10.03, the Surviving Person (other than the Company) shall
succeed to, and be substituted for, and may exercise every right and power of
the Company under this Indenture, the Notes Proceeds Loans and their respective
Note Guarantees (or of such other Note Guarantor under this Indenture, the
Notes Proceeds Loans and their respective Note Guarantees, as the case may be),
but the predecessor company in the case of (i) a sale, transfer,
assignment, conveyance or other disposition (unless such sale, transfer,
assignment, conveyance or other disposition is of all the assets of the Company
(or such other Note Guarantor) as an entirety or substantially as an entirety)
or (ii) a lease, shall not be released from any of the obligations or
covenants under this Indenture, the Notes Proceeds Loans and the applicable
Note Guarantee.

 

SECTION 5.02.      Successor
Substituted.  Upon any consolidation
or merger, or any sale, conveyance, transfer, lease or other disposition of all
or substantially all of the property and assets of the Issuer in accordance
with Section 5.01 of this Indenture, any 

 

67

 

Surviving Entity formed
by such consolidation or into which the Issuer is merged or to which such sale,
conveyance, transfer, lease or other disposition is made shall succeed to, and
be substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such Surviving Entity had been named
as the Issuer herein; and thereafter, except in the case of a lease of all or
substantially all of its property and assets, the predecessor Issuer shall be
released of all obligations and covenants under this Indenture and the Notes.

 

ARTICLE SIX

DEFAULTS AND REMEDIES

 

SECTION 6.01.      Events
of Default.  (a)  Each of the
following will be an “Event of Default” under this Indenture:

 

(i)            default
for 30 days in the payment when due of any interest or any Additional Amounts
on any Note;

 

(ii)           default
in the payment of the principal of or premium, if any, on any Note at its
Maturity;

 

(iii)          failure
to comply with Section 5.01;

 

(iv)          failure
to comply with any other covenant or agreement in the Notes or in this
Indenture (other than as specified in clause (i), (ii) or (iii) above)
and such failure continues for a period of 30 days or more after written notice
is given to the Issuer and the Company as provided below;

 

(v)           a
default under any Debt by the Issuer, the Company or any Restricted Subsidiary
that results in acceleration of the maturity of such Debt, or failure to pay
any such Debt at maturity, in an aggregate amount greater than €15.0 million or
its foreign currency equivalent at the time (the “cross acceleration
provisions”);

 

(vi)          any
judgment or judgments for the payment of money in an aggregate amount in excess
of €15.0 million (or its foreign currency equivalent at the time) that shall be
rendered against the Issuer, the Company or any Restricted Subsidiary and that
shall not be waived, satisfied or discharged for any period of 30 consecutive
days during which a stay of enforcement shall not be in effect (the “judgment
default provisions”);

 

(vii)         certain
events involving bankruptcy, insolvency or reorganization of the Issuer, the
Company or any Restricted Subsidiary (the “bankruptcy provisions”);

 

(viii)        any
Note Guarantee ceases to be, or shall be asserted in writing by any Note
Guarantor, or any Person acting on behalf of any Note Guarantor, not to be in
full force and effect or enforceable in accordance with its terms (other than
in accordance with the terms of this Indenture);

 

(ix)           the
Notes Proceeds Loans cease to be in full force and effect or the Notes Proceeds
Loans are declared null and void or unenforceable or the Notes Proceeds Loans
are found to be invalid or the Company denies its liability under the 

 

68

 

Notes Proceeds Loans or
payments under the Notes Proceeds Loans become subject to any Lien;

 

(x)            an
event of default under, or modification which is adverse to the Issuer or the
holders of the Notes or, the Notes Proceeds Loans; and

 

(xi)           the
revocation of a Material License which is not replaced, substituted, reinstated
or reissued to (A) the holder of such Material License, (B) another
entity which is a Restricted Subsidiary of the Company or (C) the
Surviving Person (other than the Company or another Note Guarantor) in
connection with any transaction permitted by Section 5.01.

 

A Default under clause (vi) is
not an Event of Default under this Indenture until the Trustee or the holders
of not less than 25% in aggregate principal amount of the Notes then
outstanding notify the Company of the Default and the Company does not cure (or
cause the Restricted Subsidiaries to cure) such Default within the time specified
after receipt of such notice.  Such
notice must specify the Default, demand that it be remedied and state that such
notice is a “Notice of Default”.

 

Each of the Issuer and
the Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice in the form of an Officers’ Certificate of any event
that with the giving of notice and the lapse of time would become an Event of
Default, its status and what action the Company is taking or proposes to take
with respect thereto.

 

In case an Event of
Default shall occur and be continuing, the Trustee will be under no obligation
to exercise any of its rights or powers under this Indenture at the request or
direction of any of the holders of the Notes, unless such holders shall have
offered to such Trustee reasonable indemnity. 
Subject to such provisions for the indemnification of the Trustee, the
holders of a majority in aggregate principal amount of the Notes then
outstanding will have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on such Trustee with respect to the Notes.

 

In the case of any Event
of Default occurring by reason of any willful action (or inaction) taken (or
not taken) by or on behalf of the Issuer with the intention of avoiding payment
of the premium that the Issuer would have had to pay if the Issuer then had
elected to redeem the Notes pursuant to the optional redemption provisions of
this Indenture, an equivalent premium shall also become and be immediately due
and payable to the extent permitted by law upon the acceleration of the
Notes.  If an Event of Default occurs
during any time that the Notes are outstanding, by reason of any willful action
(or inaction) taken (or not taken) by or on behalf of the Issuer with the
intention of avoiding the prohibition on redemption of the Notes, then the
premium specified in this Indenture that would have been payable upon
redemption at the time the Event of Default occurs shall also become
immediately due and payable to the extent permitted by law upon the
acceleration of the Notes.

 

If a Default or an Event
of Default occurs and is continuing and is known to the Trustee, such Trustee
will mail to each holder of the Notes notice of the Default or Event of Default
within 15 Business Days after its occurrence. 
Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, Additional Amounts or interest on any Notes, the
Trustee may withhold the notice to the holders of such Notes if a 

 

69

 

committee of its trust
officers in good faith determines that withholding the notice is in the
interests of the holders of the Notes.

 

SECTION 6.02.      Acceleration.  If an Event of Default with respect to the
Notes (other than an Event of Default resulting from certain events involving
bankruptcy, insolvency or reorganization with respect to the Company) shall
have occurred and be continuing, the Trustee or the registered holders of not
less than 25% in aggregate principal amount of the Notes then outstanding may
declare to be immediately due and payable the principal amount of all the Notes
then outstanding and all amounts outstanding under the Notes Proceeds Loans, in
each case plus accrued but unpaid interest to the date of acceleration. In case
an Event of Default resulting from certain events of bankruptcy, insolvency or
reorganization with respect to the Company shall occur, such amount with respect
to all the Notes and the Notes Proceeds Loans shall be due and payable
immediately without any declaration or other act on the part of the Trustee or
the holders of the Notes.  Whenever
amounts are due and payable under an Indenture, the same amounts due to the
Issuer under the Notes Proceeds Loans will be due and payable.  After any such acceleration, but before a
judgment or decree based on acceleration is obtained by the Trustee, the
holders of a majority in aggregate principal amount of the Notes then
outstanding may, under certain circumstances, rescind and annul such
acceleration if all Events of Default, other than the non-payment of
accelerated principal, premium or interest, have been cured or waived as
provided in this Indenture.  Upon any
such rescission and annulment of any such declaration and its consequences with
respect to the Notes, the declaration and consequences under the Notes Proceeds
Loans shall be rescinded.

 

SECTION 6.03.      Other
Remedies.  If an Event of Default
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy.

 

All rights of action and
claims under this Indenture or the Notes may be prosecuted and enforced by the
Trustee without the possession of any of the Notes or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name and as Trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders in respect of
which such judgment has been recovered.

 

SECTION 6.04.      Waiver
of Past Defaults.  (a)  At any
time after a declaration of acceleration under this Indenture, but before a
judgment or decree for payment of the money due has been obtained by the
Trustee, the holders of a majority in aggregate principal amount of the
outstanding Notes, by written notice to the Issuer and the Trustee, may rescind
such declaration and its consequences if:

 

(i)            the
Issuer has paid or deposited with the Trustee a sum sufficient to pay:

 

(A)          all
overdue interest and Additional Amounts on all Notes then outstanding;

 

70

 

(B)           all
unpaid principal of and premium, if any, on any outstanding Notes that has
become due otherwise than by such declaration of acceleration and interest thereon
at the rate borne by the Notes;

 

(C)           to
the extent that payment of such interest is lawful, interest upon overdue
interest and overdue principal at the rate borne by the Notes; and

 

(D)          all
sums paid or advanced by the Trustee under this Indenture and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel;

 

(ii)           the
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; and

 

(iii)          all
Events of Default, other than the non-payment of amounts of principal of,
premium, if any, and any Additional Amounts and interest on the Notes that has
become due solely by such declaration of acceleration, have been cured or
waived.

 

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

(b)           The holders of not less than a majority in aggregate
principal amount of the outstanding Notes may, on behalf of the holders of all
the Notes, waive any past defaults under this Indenture, except a default:

 

(i)            in
the payment of the principal of, premium, if any, and Additional Amounts or
interest on any Note; or

 

(ii)           in
respect of a covenant or provision which under this Indenture cannot be
modified or amended without the consent of the holder of each Note outstanding.

 

SECTION 6.05.      Control
by Majority.  The Holders of not less
than a majority in aggregate principal amount of the Notes may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee under this
Indenture; provided, that:

 

(a)           the Trustee may refuse to follow any direction that
conflicts with law, this Indenture or that the Trustee determines in good faith
may be unduly prejudicial to the rights of holders not joining in the giving of
such direction;

 

(b)           the Trustee may refuse to follow any direction that the
Trustee determines is unduly prejudicial to the rights of other Holders or
would involve the Trustee in personal liability; and

 

(c)           the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction.

 

SECTION 6.06.      Limitation on Suits.  No
holder of any of the Notes has any right to institute any proceedings with
respect to this Indenture or any remedy hereunder, subject to the provisions
described under Section 11.03 through 11.07, unless the holders of at
least 25% in aggregate principal amount of the outstanding Notes have made a
written 

 

71

 

request and offered
reasonable indemnity to the Trustee to institute such proceeding as Trustee
under the Notes and this Indenture, the Trustee has failed to institute such
proceeding within 30 days after receipt of such notice and such Trustee within
such 30-day period has not received directions inconsistent with such written
request by holders of a majority in aggregate principal amount of the
outstanding Notes.  Such limitations do
not, however, apply to a suit instituted by a holder of a Note for the
enforcement of the payment of the principal of, premium, if any, and Additional
Amounts or interest on such Note on or after the respective due dates expressed
in such Note.

 

SECTION 6.07.      Collection
Suit by Trustee.  (a)  The
Issuer covenants that if default is made in the payment of:

 

(i)            any
instalment of interest on any Note when such interest becomes due and payable
and such default continues for a period of 30 days, or

 

(ii)           the
principal of (or premium, if any, on) any Note at the Maturity thereof,

 

the Issuer shall, upon
demand of the Trustee, pay to the Trustee for the benefit of the Holders of
such Notes, the whole amount then due and payable on such Notes for principal
(and premium, if any), Additional Amounts, if any and interest, and interest on
any overdue principal (and premium, if any) and Additional Amounts, if any and,
to the extent that payment of such interest shall be legally enforceable, upon
any overdue installment of interest, at the rate borne by the Notes, and, in
addition thereto, such further amount as shall be sufficient to cover the
amounts provided for in Section 7.06 and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

(b)           If the Issuer fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name as Trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Issuer or any other obligor upon the Notes and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Issuer or any other obligor upon the Notes,
wherever situated.

 

SECTION 6.08.      Trustee
May File Proofs of Claim.  The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.06) and the Holders allowed in any judicial proceedings relative
to the Issuer or any Guarantor, their creditors or their property and, unless
prohibited by law or applicable regulations, may vote on behalf of the Holders
at their direction in any election of a trustee in bankruptcy or other Person
performing similar functions, and any Custodian in any such judicial proceeding
is hereby authorized by each Holder to make payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.06.

 

Nothing herein contained
shall be deemed to empower the Trustee to authorize or consent to, or accept or
adopt on behalf of any Holder, any plan of reorganization, 

 

72

 

arrangement, adjustment
or composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

SECTION 6.09.      Application
of Money Collected.  If the Trustee
collects any money or property pursuant to this Article Six, it shall pay
out the money or property in the following order:

 

FIRST:                    to
the Trustee for amounts due under Section 7.06;

 

SECOND:               to
Holders for amounts due and unpaid on the Notes for principal of, premium, if
any, interest, if any, and Additional Amounts, if any, ratably, without preference
or priority of any kind, according to the amounts due and payable on the Notes
for principal, premium, if any, interest, if any, and Additional Amounts, if
any, respectively; and

 

THIRD:                  to
the Issuer, any Guarantor or any other obligors of the Notes, as their
interests may appear, or as a court of competent jurisdiction may direct.

 

The Trustee may fix a
record date and payment date for any payment to Holders pursuant to this Section 6.09.
At least 15 days before such record date, the Issuer shall mail to each Holder
and the Trustee a notice that states the record date, the payment date and
amount to be paid.

 

SECTION 6.10.      Undertaking
for Costs.  A court may in its
discretion require, in any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in the suit of an
undertaking to pay the costs of such suit, and such court may in its discretion
assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section 6.10 does
not apply to a suit by the Trustee, a suit by Holders of more than 10% in
aggregate principal amount of the outstanding Notes or to any suit by any
Holder pursuant to Section 6.06.

 

SECTION 6.11.      Restoration
of Rights and Remedies.  If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Issuer, any Guarantor, the Trustee and the Holders shall be
restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted.

 

SECTION 6.12.      Rights
and Remedies Cumulative.  Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or 

 

73

 

otherwise. The assertion
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION 6.13.      Delay
or Omission not Waiver.  No delay or
omission of the Trustee or of any Holder of any Note to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article Six or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

 

SECTION 6.14.      Record
Date.  The Issuer may set a record
date for purposes of determining the identity of Holders entitled to vote or to
consent to any action by vote or consent authorized or permitted by Sections
6.04, 6.05 and 11.05. Unless this Indenture provides otherwise, such record
date shall be the later of 30 days prior to the first solicitation of such
consent or the date of the most recent list of Holders furnished to the Trustee
pursuant to Section 2.05 prior to such solicitation.

 

SECTION 6.15.      Waiver
of Stay or Extension Laws.  The
Issuer covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it shall not hinder, delay or impede the execution of
any power herein granted to the Trustee but shall suffer and permit the
execution of every such power as though no such law had been enacted.

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01.      Duties
of Trustee.  (a)  If an Event of
Default has occurred and is continuing of which a Trust Officer of the Trustee
has actual knowledge, the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

 

(b)           Except during the continuance of an Event of Default of
which a Trust Officer of the Trustee has actual knowledge: (i) the Trustee
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture and no others and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and (ii) in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture.  In the
case of any such certificates or opinions which by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine
same to determine whether they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

(c)           The Trustee shall not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

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(A)          this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

(B)           the
Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

 

(C)           the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.02
or 6.05.

 

(d)           The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Issuer or
any Note Guarantor.  Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

 

(e)           No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

 

(f)            Every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section 7.01.

 

SECTION 7.02.      Certain
Rights of Trustee.  (a)  Subject
to Section 7.01:

 

(A)                  the
Trustee may rely, and shall be protected in acting or refraining from acting,
upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper person;

 

(B)           before
the Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel, which shall conform to Section 13.05.  The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate
or opinion;

 

(C)           the
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any attorney or agent appointed with due
care by it hereunder;

 

(D)          the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders, unless such 

 

75

 

Holders shall have offered to
the Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities that might be incurred by it in compliance with such
request or direction;

 

(E)           the
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers,
provided that the Trustee’s conduct does not constitute gross negligence or bad
faith;

 

(F)           whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s
Certificate;

 

(G)           the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Issuer personally or by agent or attorney;

 

(H)          the
Trustee shall not be required to give any bond or surety with respect to the
performance of its duties or the exercise of its powers under this Indenture;

 

(I)            in
the event the Trustee receives inconsistent or conflicting requests and
indemnity from two or more groups of holders, each representing less than a
majority in aggregate principal amount of the Notes then outstanding, pursuant
to the provisions of this Indenture, the Trustee, in its sole discretion, may
determine what action, if any, will be taken;

 

(J)            the
permissive right of the Trustee to take the actions permitted by this Indenture
will not be construed as an obligation or duty to do so;

 

(K)          delivery
of reports, information and documents to the Trustee under Section 4.21 is
for informational purposes only and the Trustee’s receipt of the foregoing will
not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Issuer’s
compliance with any of their 

 

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covenants hereunder (as to
which the Trustee is entitled to rely exclusively on Officer’s Certificates);

 

(L)           the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its rights to be indemnified, are extended to,
and will be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder; and

 

(M)         the
Trustee may consult with counsel and the advice of such counsel or any Opinion
of Counsel will, subject to Section 7.01(c), be full and complete
authorization and protection from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(b)           The Trustee may request that the Issuer deliver an Officer’s
Certificate setting forth the names of the individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officer’s Certificate may be signed by any person authorized
to sign an Officer’s Certificate, including any person specified as so
authorized in any such certificate previously delivered and not superseded.

 

SECTION 7.03.      Individual
Rights of Trustee.  The Trustee, any
Paying Agent, any Registrar or any other agent of the Issuer or of the Trustee,
in its individual or any other capacity, may become the owner or pledgee of
Notes and, subject to TIA Section 311, may otherwise deal with the Issuer
with the same rights it would have if it were not Trustee, Paying Agent,
Registrar or such other agent.

 

SECTION 7.04.      Trustee’s
Disclaimer.  The recitals contained
herein and in the Notes, except for the Trustee’s certificates of
authentication, shall be taken as the statements of the Issuer, and the Trustee
assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Notes, except that the
Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Notes and perform its obligations hereunder.  The Trustee shall not be accountable for the
use or application by the Issuer of Notes or the proceeds thereof or the use or
application of any money received by any Paying Agent other than the Trustee.

 

SECTION 7.05.      Reports
by Trustee to Holders.  Within 60
days after June 30 of each year commencing with June 30, 2005, the
Trustee shall transmit to the Holders, in the manner and to the extent provided
in TIA Section 313(c), a brief report dated as of such June 30, if
required by TIA Section 313(a). The Trustee also shall comply with TIA
Sections 313(b) and (c).

 

The Issuer shall promptly
notify the Trustee whenever the Notes become listed on any securities exchange
and of any delisting thereof and the Trustee shall comply with TIA Section 313(d).

 

SECTION 7.06.      Compensation
and Indemnity.  The Issue, failing
which any Note Guarantor, shall pay to the Trustee such compensation as shall
be agreed in writing for its services hereunder. The Trustee’s compensation
shall not be limited by any law on 

 

77

 

compensation of a trustee
of an express trust. The Issuer, or, where indicated herein, the Company
failing which any Note Guarantor, shall reimburse the Trustee promptly upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the Trustee’s agents and counsel.

 

The Issuer, failing which
any Note Guarantor (jointly and severally) hereby agrees to indemnify the Trustee
against any and all loss, liability or expense (including attorneys’ fees and
expenses) incurred by it without willful misconduct, gross negligence or bad
faith on its part arising out of or in connection with the administration of
this trust and the performance of its duties hereunder (including the costs and
expenses of enforcing this Indenture against the Issuer and any Note Guarantor
(including this Section 7.06) and defending itself against any claim,
whether asserted by the Issuer, any Note Guarantor, any Holder or any other
Person or liability in connection with the execution and performance of any of
its powers and duties hereunder).  The
Trustee shall notify the Issuer promptly of any claim for which it may seek
indemnity.  Failure by the Trustee to so
notify the Issuer shall not relieve the Issuer or any Note Guarantor of its
obligations hereunder. The Issuer shall, at the Trustee’s sole discretion,
defend the claim and the Trustee shall reasonably cooperate and may participate
at the Issuer’s expense in such defense. Alternatively, the Trustee may have
separate counsel of its own choosing and the Issuer shall pay the fees and
expenses of such counsel. The Issuer need not pay for any settlement made
without its consent, which consent may not be unreasonably withheld. The Issuer
shall not reimburse any expense or indemnify against any loss, liability or
expense incurred by the Trustee through the Trustee’s own willful misconduct,
gross negligence or bad faith.

 

To secure the Issuer’s
payment obligations in this Section 7.06, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee,
in its capacity as Trustee, except money or property held in trust to pay
principal of, premium, if any, and interest on particular Notes.  Such lien shall survive the satisfaction and
discharge of this Indenture.

 

When the Trustee incurs
expenses after the occurrence of a Default specified in Section 6.01(a)(vii) with
respect to the Issuer, any Note Guarantor, or any Restricted Subsidiary, the
expenses are intended to constitute expenses of administration under Bankruptcy
Law.

 

The Issuer’s obligations
under this Section 7.06 and any claim or lien arising hereunder shall
survive the resignation or removal of any Trustee, the satisfaction and
discharge of the Issuer’s obligations and any rejection or termination under
any Bankruptcy Law, and the termination of this Indenture.

 

SECTION 7.07.      Replacement
of Trustee.  (a)  A resignation
or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as
provided in this Section 7.07.

 

(b)           The Trustee may resign at any time by so notifying the
Issuer. The Holders of a majority in outstanding principal amount of the
outstanding Notes may remove the Trustee by so notifying the Trustee and the
Issuer. The Issuer shall remove the Trustee if:

 

(i)            the
Trustee fails to comply with Section 7.09;

 

78

 

(ii)           the
Trustee is adjudged bankrupt or insolvent;

 

(iii)          a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(iv)          the
Trustee otherwise becomes incapable of acting.

 

(c)           If the Trustee resigns or is removed, or if a vacancy exists
in the office of Trustee for any reason, the Issuer shall promptly appoint a
successor Trustee.  Within one year after
the successor Trustee takes office, the Holders of a majority in principal
amount of the outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Issuer. 
If the successor Trustee does not deliver its written acceptance
required by the next succeeding paragraph of this Section 7.07 within 30
days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Issuer or the Holders of a majority in principal amount of the outstanding
Notes may, at the expense of the Issuer, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

(d)           A successor Trustee shall deliver a written acceptance of
its appointment to the retiring Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, provided that all sums
owing to the Trustee hereunder have been paid and subject to the lien provided
for in Section 7.06.

 

(e)           If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Issuer or the Holders of at least 25% in outstanding principal amount of the
Notes may petition any court of competent jurisdiction for the appointment of a
successor Trustee at the expense of the Issuer.

 

(f)            If the Trustee fails to comply
with Section 7.09, any Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

(g)           Notwithstanding the replacement of the Trustee pursuant to
this Section 7.07, the Issuer’s and the Note Guarantors’ obligations under
Section 7.06 shall continue for the benefit of the retiring Trustee.

 

SECTION 7.08.      Successor
Trustee by Merger.  Any corporation
into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article Seven,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.  In case any
Notes shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes.  In case at that
time any of the Notes shall not have been authenticated, any successor Trustee
may authenticate such Notes either in the name of any predecessor hereunder or
in the name of the successor Trustee.  In

 

79

 

all such cases such
certificates shall have the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee shall have; provided,
however, that the right to adopt the certificate of authentication of any predecessor
Trustee or to authenticate Notes in the name of any predecessor Trustee shall
apply only to its successor or successors by merger, conversion or
consolidation.

 

SECTION 7.09.      Eligibility:
Disqualification.  The Trustee shall
at all times satisfy the requirements of TIA Section 310(a)(1) and
(5). The Trustee shall have a combined capital and surplus of at least
€50,000,000 or its equivalent in U.S. dollars as set forth in its most recent
published annual report of condition. No obligor upon the Notes or Person
directly controlling, controlled by, or under common control with such obligor
shall serve as trustee upon the Notes.

 

SECTION 7.10.      Preferential
Collection of Claims Against Issuer. 
The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to
the extent indicated therein.

 

SECTION 7.11.      Appointment
of Co-Trustee.  (a)  It is the
purpose of this Indenture that there shall be no violation of any law of any
jurisdiction denying or restricting the right of banking corporations or
associations to transact business as trustee in such jurisdiction. It is
recognized that in case of litigation under this Indenture, and in particular
in case of the enforcement thereof on default, or in the case the Trustee deems
that by reason of any present or future law of any jurisdiction it may not
exercise any of the powers, rights or remedies herein granted to the Trustee or
hold title to the properties, in trust, as herein granted or take any action
which may be desirable or necessary in connection therewith, it may be
necessary that the Trustee appoint an individual or institution as a separate
or co-trustee. The following provisions of this Section 7.11 are adopted
to these ends.

 

(b)           In the event that the Trustee appoints an additional
individual or institution as a separate or co-trustee, each and every remedy,
power, right, claim, demand, cause of action, immunity, estate, title, interest
and lien expressed or intended by this Indenture to be exercised by or vested
in or conveyed to the Trustee with respect thereto shall be exercisable by and
vest in such separate or co-trustee but only to the extent necessary to enable
such separate or co-trustee to exercise such powers, rights and remedies, and
only to the extent that the Trustee by the laws of any jurisdiction is
incapable of exercising such powers, rights and remedies, and every covenant
and obligation necessary to the exercise thereof by such separate or co-trustee
shall run to and be enforceable by either of them.

 

(c)           Should any instrument in writing from the Issuer be required
by the separate or co-trustee so appointed by the Trustee for more fully and
certainly vesting in and confirming to him or it such properties, rights,
powers, trusts, duties and obligations, any and all such instruments in writing
shall, on request, be executed, acknowledged and delivered by the Issuer;
provided, however, that if an Event of Default shall have occurred and be
continuing, if the Issuer does not execute any such instrument within 15 days
after request therefor, the Trustee shall be empowered as an attorney-in-fact
for the Issuer to execute any such instrument in the Issuer’s name and
stead.  In case any separate or
co-trustee or a successor to either shall die, become incapable or acting,
resign or be removed, all the estates, properties, rights, powers, trusts,
duties and obligations of such separate or co-trustee, so far as permitted by
law, shall vest in and be exercised by the Trustee until the appointment of a
new trustee or successor to such separate or co-trustee.

 

80

 

(d)           Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

 

(A)          all
rights and powers, conferred or imposed upon the Trustee shall be conferred or
imposed upon and may be exercised or performed by such separate trustee or
co-trustee; and

 

(B)           no
Trustee hereunder shall be personally liable by reason of any act or omission
of any other Trustee hereunder.

 

(e)           Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article Seven.

 

(f)            Any separate trustee or
co-trustee may at any time appoint the Trustee as its agent or attorney-in-fact
with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect of this Indenture on its behalf and in its name.
If any separate trustee or co-trustee shall die, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and
trusts shall vest in and be exercised by the Trustee, to the extent permitted
by law, without the appointment of a new or successor trustee.

 

ARTICLE EIGHT

DEFEASANCE; SATISFACTION AND DISCHARGE

 

SECTION 8.01.      Issuer’s
Option to Effect Defeasance or Covenant Defeasance.  The Issuer may, at its option by a resolution
of its Board of Directors, at any time, with respect to the Notes, elect to
have either Section 8.02 or Section 8.03 be applied to all
outstanding Notes upon compliance with the conditions set forth below in this Article Eight.

 

SECTION 8.02.      Defeasance
and Discharge.  The Issuer may, at
its option and at any time prior to the Stated Maturity of the Notes, elect to
have the obligations of the Issuer and any Note Guarantors discharged with
respect to the outstanding Notes (“Legal Defeasance”).  Legal Defeasance means that the Issuer will
be deemed to have paid and discharged the entire Debt represented by the
outstanding Notes except as to:

 

(i)            the
rights of holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest on such Notes when such payments
are due from the trust referred to below;

 

(ii)           the
Issuer’s obligations to issue temporary Notes, register, transfer or exchange
any Notes, replace mutilated, destroyed, lost or stolen Notes, maintain an
office or agency for payments in respect of the Notes and segregate and hold
such payments in trust;

 

(iii)          the
rights, powers, trusts, duties and immunities of the Trustee and the
obligations of the Issuer and any Note Guarantors in connection therewith; and

 

81

 

(iv)          the Legal
Defeasance provisions of this Indenture.

 

SECTION 8.03.      Covenant
Defeasance.  Upon the Issuer’s
exercise under Section 8.01 of the option applicable to this Section 8.03,
the Issuer shall be released from its obligations under any covenant contained
in Sections 4.03 through and including 4.15 and Sections 4.17, Section 4.18
and Sections 4.20 through and including 4.27 and Section 5.01 with respect
to the Notes on and after the date the conditions set forth below are satisfied
(hereinafter, “Covenant Defeasance”). 
For this purpose, such covenant defeasance means that, the Issuer may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default, but, except as specified above, the remainder
of this Indenture and such Notes shall be unaffected thereby.

 

SECTION 8.04.      Conditions
to Defeasance.  In order to exercise
either Legal Defeasance or Covenant Defeasance:

 

(a)           the Issuer, or the Company, as the case may be, must
irrevocably deposit or cause to be deposited in trust with the Trustee, for the
benefit of the holders of the Notes, cash in euro, European Government
Obligations, or a combination thereof, in such amounts as will be sufficient
without reinvestment, in the opinion of an internationally recognized firm of
independent certified public accountants, to pay and discharge the principal
of, premium, if any, and interest, on the outstanding Notes on the Stated
Maturity or on the applicable redemption date, as the case may be, and the
Issuer, or the Company, as the case may be, must (i) specify whether the
Notes are being defeased to maturity or to a particular redemption date and (ii) if
applicable, have delivered to the Trustee an irrevocable notice to redeem all
of the outstanding Notes of such principal, premium, if any, or interest;

 

(b)           in the case of Legal Defeasance, the Issuer, or the Company,
as the case may be, must have delivered to the Trustee an Opinion of Counsel
stating that (x) the Issuer has received from, or there has been published by,
the U.S.  Internal Revenue Service a ruling,
or (y) since the date of this Indenture, there has been a change in applicable
U.S. federal income tax law, in either case to the effect that (and based
thereon such opinion shall confirm that) the holders of the outstanding Notes
will not recognize income, gain or loss for U.S. federal income tax purposes as
a result of such Legal Defeasance and will be subject to U.S. federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such Legal Defeasance had not occurred;

 

(c)           in the case of Legal Defeasance, the Issuer, or the Company,
as the case may be, delivers to the Trustee an Opinion of Counsel in each of
the United Kingdom, the Kingdom of Spain and any other jurisdiction in which
the Issuer or the Company is conducting business in a manner which causes the
holders of the Notes to be liable for taxes on payments under the Notes for
which they would not have been so liable but for such conduct of business in
such other jurisdiction, or, in the case of any successor to the Issuer or the
Company, the jurisdiction in which such successor is organized (each a “relevant
jurisdiction”) to the effect that holders of the Notes will not recognize
income, gain or loss in the relevant jurisdiction as a result of such Legal
Defeasance and will be subject to taxes in the relevant jurisdiction (including
withholding taxes) on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

 

82

 

(d)           in the case of Covenant Defeasance, the Issuer must have
delivered to the Trustee an Opinion of Counsel to the effect that the holders
of the outstanding Notes will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such Covenant Defeasance and will be
subject to U.S. federal income tax on the same amounts, in the same manner and
at the same times as would have been the case if such Covenant Defeasance had
not occurred;

 

(e)           in the case of Covenant Defeasance, the Issuer, or the
Company, as the case may be, delivers to the Trustee an Opinion of Counsel in
each of the United Kingdom, the Kingdom of Spain and any other jurisdiction in
which the Issuer or the Company is conducting business in a manner which causes
the holders of the Notes to be liable for taxes on payments under the Notes for
which they would not have been so liable but for such conduct of business in
such other jurisdiction, or, in the case of any successor to the Issuer or the
Company, the jurisdiction in which such successor is organized (each a “relevant
jurisdiction”) to the effect that holders of the Notes will not recognize
income, gain or loss in the relevant jurisdiction as a result of such Covenant
Defeasance and will be subject to taxes in the relevant jurisdiction (including
withholding taxes) on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(f)            no Default or Event of Default
will have occurred and be continuing (i) on the date of such deposit
(other than a Default or Event of Default resulting from the borrowing of funds
to be applied to such deposit) or (ii) insofar as bankruptcy or insolvency
events described in Section 6.01(a)(vii) is concerned, at any time
during the period ending on the 185th day after the date of such deposit;

 

(g)           such Legal Defeasance or Covenant Defeasance shall not cause
the Trustee for the Notes to have a conflicting interest as defined in this
Indenture with respect to any of the Issuer’s securities;

 

(h)           such Legal Defeasance or Covenant Defeasance will not result
in a breach or violation of, or constitute a default under (other than a
Default or Event of Default resulting from the borrowing of funds to be applied
to such deposit), any material agreement or instrument to which the Issuer or
any Restricted Subsidiary is a party or by which the Issuer or any Restricted
Subsidiary is bound;

 

(i)            such defeasance or Covenant
Defeasance shall not result in the trust arising from such deposit constituting
an investment company within the meaning of the U.S.  Investment Company Act of 1940 unless such
trust shall be registered under such act or exempt from registration
thereunder;

 

(j)            the Issuer must have delivered
to the Trustee an opinion of independent counsel in the country of the Issuer’s
incorporation to the effect that after the 185th day following the deposit, the
trust funds will not be subject to the effect of any applicable bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally and an opinion of independent counsel reasonably acceptable to the
Trustee that the Trustee shall have a perfected security interest in such trust
funds for the ratable benefit of the holders of the Notes;

 

(k)           the Issuer must have delivered to the Trustee an Officer’s
Certificate stating that the deposit was not made by the Issuer with the intent
of preferring the holders of the 

 

83

 

Notes over the other
creditors of the Issuer with the intent of defeating, hindering, delaying or
defrauding creditors of the Issuer or other creditors, or removing assets
beyond the reach of the relevant creditors or increasing debts of the Issuer to
the detriment of the relevant creditors;

 

(l)            no event or condition shall
exist that would prevent the Issuer from making payments of the principal of,
premium, if any, and interest on the Notes on the date of such deposit or at
any time during the period ending on the 185th day after the date of such
deposit; and

 

(m)          the Issuer must have delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to the Legal Defeasance or the Covenant
Defeasance, as the case may be, have been complied with.

 

If the funds deposited
with the Trustee to effect Covenant Defeasance are insufficient to pay the
principal of, premium, if any, and interest on the Notes when due because of
any acceleration occurring after an Event of Default, then the Issuer and the
Note Guarantors will remain liable for such payments.

 

SECTION 8.05.      Satisfaction
and Discharge of Indenture.  This
Indenture shall be discharged and shall cease to be of further effect (except
as to surviving rights of registration of transfer or exchange of the Notes as
expressly provided for in this Indenture) when:

 

(a)           the Issuer has irrevocably deposited or caused to be
deposited with the Trustee as funds in trust for such purpose an amount in euro
or European Government Obligations sufficient to pay and discharge the entire
Debt on such Notes that have not, prior to such time, been delivered to the
Trustee for cancellation, for principal of, premium, if any, and any Additional
Amounts and accrued and unpaid interest on the Notes to the date of such
deposit (in the case of Notes which have become due and payable) or to the
Stated Maturity or redemption date, as the case may be and the Issuer has
delivered irrevocable instructions to the Trustee under this Indenture to apply
the deposited money toward the payment of Notes at Maturity or on the
redemption date, as the case may be and either:

 

(i)            all
the Notes that have been authenticated and delivered (other than destroyed,
lost or stolen Notes that have been replaced or paid and Notes for whose
payment money has been deposited in trust or segregated and held in trust by
the Issuer and thereafter repaid to the Issuer or discharged from such trust as
provided for in this Indenture) have been delivered to the Trustee for
cancellation; or

 

(ii)           all
Notes that have not been delivered to the Trustee for cancellation (x) have
become due and payable (by reason of the mailing of a notice of redemption or
otherwise), (y) will become due and payable at Stated Maturity within one year
or (z) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the Issuer’s name and at the Issuer’s expense; and

 

(b)           the Issuer has paid or caused to be paid all sums payable by
the Issuer under this Indenture; and

 

84

 

(c)           the Issuer has delivered to the Trustee an Officer’s
Certificate and an opinion of counsel, each stating that:

 

(i)            all
conditions precedent provided in this Indenture relating to the satisfaction
and discharge of such Indenture have been satisfied; and

 

(ii)           such
satisfaction and discharge will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or instrument
to which the Issuer or any Subsidiary is a party or by which the Issuer or any
Subsidiary is bound.

 

SECTION 8.06.      Survival
of Certain Obligations. 
Notwithstanding Sections 8.01 and 8.03, any obligations of the Issuer
and any Note Guarantor in Sections 2.02 through 2.14, 7.06, 7.07, and 8.07
through 8.09 shall survive until the Notes have been paid in full.  Thereafter, any obligations of the Issuer and
any Note Guarantor in Sections 7.06, 8.07 and 8.08 shall survive such
satisfaction and discharge.  Nothing
contained in this Article Eight shall abrogate any of the obligations or
duties of the Trustee under this Indenture.

 

SECTION 8.07.      Acknowledgment
of Discharge by Trustee.  Subject to Section 8.09,
after the conditions of Section 8.02 or 8.03 have been satisfied, the
Trustee upon written request shall acknowledge in writing the discharge of all
of the Issuer’s obligations under this Indenture except for those surviving
obligations specified in this Article Eight.

 

SECTION 8.08.      Application
of Trust Money.  Subject to Section 8.09,
the Trustee shall hold in trust cash in euro or European Government Obligations
deposited with it pursuant to this Article Eight. It shall apply the
deposited cash or European Government Obligations through the Paying Agent and
in accordance with this Indenture to the payment of principal of, premium, if
any, interest, and Additional Amounts, if any, on the Notes; but such money
need not be segregated from other funds except to the extent required by law.

 

SECTION 8.09.      Repayment
to Issuer.  Subject to Sections 7.06,
and 8.01 through 8.04, the Trustee and the Paying Agent shall promptly pay to
the Issuer upon request set forth in an Officer’s Certificate any excess money
held by them at any time and thereupon shall be relieved from all liability
with respect to such money.  The Trustee
and the Paying Agent shall pay to the Issuer upon request any money held by
them for the payment of principal, premium, if any, interest or Additional
Amounts, if any, that remains unclaimed for two years; provided that the
Trustee or Paying Agent before being required to make any payment may cause to
be (a) published in the Financial Times
or another leading newspaper in London, England and in New York (which is
expected to be the Wall Street Journal)
(b) made available to the newswire service of Bloomberg or, if Bloomberg
does not then operate, any similar agency and (c) if and so long as the
Notes are listed on the Luxembourg Stock Exchange and the rules and
regulations of such exchange so require, published in the Luxemburger Wort or another newspaper
having a general circulation in Luxembourg or mail to each Holder entitled to
such money at such Holder’s address (as set forth in the Security Register)
notice that such money remains unclaimed and that after a date specified
therein (which shall be at least 30 days from the date of such publication or
mailing) any unclaimed balance of such money then remaining shall be repaid to
the Issuer.  After payment to the Issuer,
Holders entitled to such money must look to the Issuer for payment as general
creditors unless an applicable law designates another Person, and all liability
of the Trustee and such Paying Agent with respect to such money shall cease.

 

85

 

SECTION 8.10.      Indemnity for Government
Securities.  The Issuer shall pay and
shall indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against deposited European Government Obligations or the principal,
premium, if any, interest, if any, and Additional Amounts, if any, received on
such European Government Obligations.

 

SECTION 8.11.      Reinstatement.  If the Trustee or Paying Agent is unable to
apply cash in euro or European Government Obligations in accordance with this Article Eight
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Issuer’s and each Note Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to this Article Eight until such time as the Trustee
or any such Paying Agent is permitted to apply all such cash or European
Government Securities in accordance with this Article Eight; provided,
however, that, if the Issuer has made any payment of principal of, premium, if
any, interest, if any, and Additional Amounts, if any, on any Notes because of
the reinstatement of its obligations, the Issuer shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the cash in
euro or euro Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENTS AND WAIVERS

 

SECTION 9.01.      Without Consent of
Holders.   Without the consent of any
holder of the Notes, the Issuer, the Note Guarantors and the Trustee may amend
or supplement this Indenture to cure any ambiguity, omission, defect or
inconsistency, to provide for the assumption by a successor corporation of the
obligations of the Issuer or the Note Guarantors under this Indenture, to add
additional Note Guarantees with respect to the Notes or to release Note
Guarantors from Note Guarantees as provided by the terms of this Indenture, to
secure the Notes, to add to the covenants of the Issuer or the Note Guarantors
for the benefit of the holders of the Notes, or to surrender any right or power
conferred upon the Issuer, to make any change that does not adversely affect
the rights of any holder of the Notes, or to make any change to the
subordination provisions of this Indenture that would limit or terminate the
benefits available to any holder of Senior Debt under such provisions (subject
to the following paragraph).

 

SECTION 9.02.      With Consent of Holders.  (a)  Without the consent of the holder
of each outstanding Note, the Issuer, the Note Guarantors and the Trustee may:

 

(i)            reduce
the amount of Notes whose holders must consent to an amendment or waiver;

 

(ii)           reduce
the rate of or extend the time for payment of interest on any Note;

 

(iii)          reduce
the principal of or extend the Stated Maturity of any Note;

 

(iv)          make
any Note payable in money other than that stated in the Note;

 

86

 

(v)           impair
the right of any holder of the Notes to receive payment of principal of and
interest on such holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
holder’s Notes or any Note Guarantee;

 

(vi)          release
any security interest that may have been granted in favor of the holders of the
Notes other than pursuant to the terms of such security interest;

 

(vii)         reduce
the amount payable upon the redemption of any Note or change the time at which
any Note may be redeemed, as described in such Note under the heading “Optional
Redemption”;

 

(viii)        reduce
the amount payable upon a Change of Control or, at any time after a Change of
Control has occurred, change the time at which the Change of Control Offer
relating thereto must be made or at which the Notes must be repurchased
pursuant to such Change of Control Offer;

 

(ix)           at
any time after the Company is obligated to make a Prepayment Offer with the
Excess Proceeds from Asset Sales, change the time at which such Prepayment
Offer must be made or at which the Notes must be repurchased pursuant thereto;

 

(x)            amend
or modify the provisions described under Section 4.17 of the Indenture;

 

(xi)           make
any change to the subordination provisions of this Indenture or the Notes
Proceeds Loans that would adversely affect the holders of the Notes;

 

(xii)          make
any change in any Note Guarantee that would adversely affect the holders of the
Notes; or

 

(xiii)         release
Cableuropa and the other Subsidiary Guarantors from any of its obligations
under the Notes Proceeds Loans otherwise than in accordance with the terms of
the Notes Proceeds Loans.

 

(b)           Notwithstanding the foregoing, this Indenture may be amended
or supplemented with the consent of the Issuer, the Note Guarantors and the
holders of a majority in aggregate principal principal amount of the
outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for the Notes) and any existing Default or compliance
with any provisions may also be waived (except a default in the payment of
principal, premium or interest and certain covenants and provisions of this
Indenture which cannot be amended without the consent of each holder of an
outstanding Note) with the consent of the holders of at least a majority in
aggregate principal amount of the outstanding Notes.

 

SECTION 9.03.      [Reserved].

 

SECTION 9.04.      Effect of Supplemental
Indentures.  Upon the execution of
any supplemental indenture under this Article Nine, this Indenture shall
be modified in accordance therewith, and such supplemental indenture shall form
a part of this Indenture for 

 

87

 

all purposes; and every Holder theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

 

SECTION 9.05.      Notation on or Exchange
of Notes.  If an amendment,
modification or supplement changes the terms of a Note, the Issuer or Trustee
may require the Holder to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Note and on any Note subsequently authenticated
regarding the changed terms and return it to the Holder. Alternatively, if the
Issuer so determines, the Issuer in exchange for the Note shall issue and the
Trustee shall authenticate a new Note that reflects the changed terms. Failure
to make the appropriate notation or to issue a new Note shall not affect the
validity of such amendment, modification or supplement.

 

SECTION 9.06.      Payment for Consent.  None of the Issuer, any Note Guarantor nor
any Affiliate shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver, amendment, modification or
supplement of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid to all Holders that so consent,
waive or agree to amend, modify or supplement in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.

 

SECTION 9.07.      Notice of Amendment or
Waiver.  Promptly after the execution
by the Issuer and the Trustee of any supplemental indenture or waiver pursuant
to the provisions of Section 9.02, the Issuer shall give notice thereof to
the Holders of each outstanding Note affected, in the manner provided for in Section 13.02(b),
setting forth in general terms the substance of such supplemental indenture or
waiver.

 

SECTION 9.08.      Trustee to Sign
Amendments, Etc.  The Trustee may
execute any amendment, supplement or waiver authorized pursuant, and adopted in
accordance with, this Article Nine; provided that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee’s own rights, duties or immunities under this
Indenture.  The Trustee shall be entitled
to receive, if requested, an indemnity reasonably satisfactory to it and to
receive, and shall be fully protected in relying upon, an Opinion of Counsel
and an Officer’s Certificate each stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is
authorized or permitted by this Indenture. 
Such Opinion of Counsel shall be an expense of the Issuer.

 

ARTICLE TEN

GUARANTEES

 

SECTION 10.01.    Guarantees.  (a)  Each Subsidiary Guarantor hereby
fully and unconditionally guarantees, on an unsecured, joint and several basis,
to each Holder and to the Trustee and its successors and assigns on behalf of
each Holder, the full payment of principal of, premium, if any, interest, if
any, and Additional Amounts, if any on, and all other monetary obligations of
the Issuer under this Indenture and the Notes (including obligations to the
Trustee and the obligations to pay Additional Amounts, if any) with respect to
each Note authenticated and delivered by the Trustee or its agent pursuant to
and in accordance with this Indenture, in accordance with the terms of this
Indenture (all the foregoing being hereinafter collectively called the “Obligations”).  Each Subsidiary Guarantor further agrees that
the Obligations may be extended or renewed, in whole or in 

 

88

 

part, without notice or further assent from such Subsidiary Guarantor
and that such Subsidiary Guarantor shall remain bound under this Article Ten
notwithstanding any extension or renewal of any Obligation.  All payments under such Subsidiary Guarantees
shall be made in euro.

 

(b)           Upon a Repayment Event, the Parent Guarantor will fully and
unconditionally guarantee, on an unsecured, senior, joint and several basis, to
each Holder and to the Trustee and its successors and assigns on behalf of each
Holder, the full payment of principal of, premium, if any, interest, if any,
and Additional Amounts, if any on, and all other monetary obligations of the Issuer
under this Indenture and the Notes (including obligations to the Trustee and
the obligations to pay Additional Amounts, if any) with respect to each Note
authenticated and delivered by the Trustee or its agent pursuant to and in
accordance with this Indenture, in accordance with the terms of this Indenture
(all the foregoing being hereinafter collectively called the “Obligations”).  The Parent Guarantor will agree that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Parent Guarantor and that such Parent Guarantor shall
remain bound under this Article Ten notwithstanding any extension or
renewal of any Obligation.  All payments
under such Parent Guarantee shall be made in euro.

 

(c)           Each Note Guarantor hereby agrees that its obligations
hereunder shall be as if it were principal debtor and not merely surety,
unaffected by, and irrespective of, any invalidity, irregularity or
unenforceability of any Note or this Indenture, any failure to enforce the
provisions of any Note or this Indenture, any waiver, modification or
indulgence granted to the Issuer with respect thereto by the Holders or the
Trustee, or any other circumstance which may otherwise constitute a legal or
equitable discharge of a surety or Note Guarantor (except payment in full);
provided that, notwithstanding the foregoing, no such waiver, modification,
indulgence or circumstance shall without the written consent of such Note
Guarantor increase the principal amount of a Note or the interest rate thereon
or change the currency of payment with respect to any Note, or alter the Stated
Maturity thereof.  Each Note Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with
a court in the event of merger or bankruptcy of the Issuer, any right to
require that the Trustee pursue or exhaust its legal or equitable remedies
against the Issuer prior to exercising its rights under such Note Guarantor’s
Guarantee (including, for the avoidance of doubt, any right which such Note
Guarantor may have to require the seizure and sale of the assets of the Issuer
to satisfy the outstanding principal of, interest on or any other amount
payable under each Note prior to recourse against such Note Guarantor or its
assets), protest or notice with respect to any Note or the Debt evidenced
thereby and all demands whatsoever, and covenants that such Guarantee shall not
be discharged with respect to any Note except by payment in full of the
principal thereof and interest thereon or as otherwise provided in this
Indenture.  If at any time any payment of
principal of, premium, if any, interest, if any, or Additional Amounts, if any,
on such Note is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy or reorganization of the Issuer, each Note Guarantor’s
obligations hereunder with respect to such payment shall be reinstated as of
the date of such rescission, restoration or returns as though such payment had
become due but had not been made at such times.

 

(d)           Each Note Guarantor also agrees to pay any and all costs and
expenses (including reasonable attorneys’ fees) incurred by the Trustee or any
Holder in enforcing any rights under this Section 10.01.

 

89

 

SECTION 10.02.    Subrogation.  (a)  Each Note Guarantor shall be
subrogated to all rights of the Holders against the Issuer in respect of any
amounts paid to such Holders by the Note Guarantor pursuant to the provisions
of its Guarantee.

 

(b)           Each Note Guarantor agrees that they shall not be entitled
to any right of subrogation in relation to the Holders in respect of any
Obligations guaranteed hereby until payment in full of all Obligations.  Each Note Guarantor further agrees that, as
between them, on the one hand, and the Holders and the Trustee, on the other
hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated
as provided in Section 6.02 for the purposes of such Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby, and (y) in the
event of any declaration of acceleration of such obligations as provided in Section 6.02,
such Obligations (whether or not due and payable) shall forthwith become due
and payable by such Note Guarantor for the purposes of this Section 10.02
subject to Section 10.01(c) above.

 

SECTION 10.03.    Release of the Subsidiary
Guarantees.  (a)  Upon a
Repayment Event and subject to the following paragraph, the Subsidiary Guarantee
of a Subsidiary Guarantor and any Guarantees of its Subsidiaries, once it
becomes due, is a continuing guarantee and shall (i) remain in full force
and effect until payment in full of all of its obligations under the Subsidiary
Guarantee, (ii) be binding upon each Subsidiary Guarantor and its
successors and (iii) inure to the benefit of, and be enforceable by, the
Trustee, the holders and their successors, transferees and assigns.

 

(b)           Each Subsidiary Guarantor shall automatically and
unconditionally be released from all obligations under its Subsidiary
Guarantee, and such Subsidiary Guarantee shall thereupon terminate and be
discharged and be of no further force or effect, concurrently with any sale by
way of enforcement by the senior lenders under the Senior Bank Facility of a
security interest therein of (i) all of the Capital Stock of such
Subsidiary Guarantor or any parent company of such Subsidiary Guarantor or (ii) all
or substantially all of the assets of such Subsidiary Guarantor, in each case
so long as:

 

(i)            the
proceeds of such sale are in cash (or substantially all in cash) and are
applied in the manner described under Section 11.06;

 

(ii)           such
Subsidiary Guarantor is released from its obligations in respect of all other
Debt that is subordinated or junior in right of payment to the Notes and all
other debt ranking equally with the Notes provided,
however, that nothing in this
clause (ii) shall (x) require the release by the Subsidiary
Guarantors or any of their Subsidiaries of any of its or their obligations in
respect of any other Debt that is senior in right of payment to the Notes,
including any of their obligations in respect of the Senior Bank Facility or
(y) prohibit the assignment of the Notes Proceeds Loans in accordance with
their terms; and

 

(iii)          the
sale is made pursuant to either a public auction or a competitive bid process
to obtain the best price reasonably obtainable given the then-current condition
(financial or otherwise), earnings, business, assets and prospects of such
Subsidiary Guarantor and its Subsidiaries, the senior lenders under the Senior
Bank Facility having consulted with an internationally recognized investment
bank (including without limitation and to the extent appropriate a lender under
the Senior Bank Facility or a relationship bank of the Company or its
Subsidiaries) or an internationally recognized accounting firm regarding the
appropriate procedures for 

 

90

 

obtaining the best price for
the shares or assets, considered the recommendations of that investment bank or
accounting firm and used its reasonable efforts to cause the procedures
recommended by that investment bank or accounting firm to be implemented in all
material respects in relation to the sale and to permit holders to participate
in the sale process as bidders provided,
however, that the senior lenders
under the Senior Bank Facility shall not be under any further obligation to
cause such recommendation to be implemented to the extent not implemented in connection
with such sale by the relevant court, authority or other third party required
to act in connection with such sale; provided
further, however, that
such reasonable efforts will, to the extent permitted by applicable law,
include attempting to conduct such sale process other than through a court or
legal proceeding.

 

(c)           Upon the presentation of an Officer’s Certificate with
respect to the occurrence of an event specified in the preceding paragraph
(including confirmation from the investment bank or accounting firm that it has
consulted with the senior lenders regarding the appropriate procedures for
obtaining the best price for the shares or the assets), the Trustee shall
execute any documents reasonably required in order to evidence such release, discharge
and termination in respect of the Subsidiary Guarantee.

 

(d)           Neither the Issuer nor any Subsidiary Guarantor shall be
required to make a notation on the Notes to reflect the Subsidiary Guarantee or
any such release, termination or discharge. In the event that the Subsidiary
Guarantor is released from its obligations under the Subsidiary Guarantee at a
time when the Notes are listed on the Luxembourg Stock Exchange, the Issuer
will, to the extent required by the rules of the Luxembourg Stock Exchange,
publish notice of the release of the Subsidiary Guarantee in a daily leading
newspaper with general circulation in Luxembourg (expected to be the Luxemburger Wort) and send a copy of such
notice to the Luxembourg Stock Exchange.

 

(e)           In addition, the Subsidiary Guarantee of a Subsidiary
Guarantor shall be released:

 

(i)            in
connection with any sale or other disposition of all or substantially all of
the assets of such Subsidiary Guarantor (including by way of merger or
consolidation) to a Person that is not (either before or after giving effect to
such transaction) the Issuer, the Parent Guarantor or a Restricted Subsidiary,
if the sale or other disposition is an Asset Sale and does not violate the
covenant set forth under Section 4.11;

 

(ii)           in
connection with any sale or other disposition of all of the Capital Stock of
such Subsidiary Guarantor to a Person that is not (either before or after
giving effect to such transaction) the Issuer, the Parent Guarantor or a
Restricted Subsidiary, if the sale or other disposition is an Asset Sale and
does not violate the covenant set forth under Section 4.11;

 

(iii)          upon
legal defeasance of the Issuer’s obligations or satisfaction and discharge of
this Indenture; or

 

(iv)          upon
designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of the Indenture, including Section 4.17.

 

91

 

SECTION 10.04.    Limitation and
Effectiveness of Guarantees. 
Notwithstanding any other provision of this Indenture, the obligations
of any Note Guarantor under its Guarantee shall be limited under the relevant
laws applicable to such Note Guarantor and the granting of such Guarantees
(including laws relating to corporate benefit, capital preservation, financial
assistance, fraudulent conveyances and transfers or transactions under value)
to the maximum amount payable such that such Guarantees shall not constitute a
fraudulent conveyance, fraudulent transfer, voidable preference, a transaction
under value or unlawful financial assistance or otherwise cause the Note
Guarantor to be insolvent under relevant law or such Guarantee to be void,
unenforceable or ultra vires or cause the directors of such Note Guarantor to
be held in breach of applicable corporate or commercial law providing for such
Guarantee.

 

SECTION 10.05.    Notation Not Required.  Neither the Issuer nor any Note Guarantor
shall be required to make a notation on the Notes to reflect any Guarantee or
any release, termination or discharge thereof.

 

SECTION 10.06.    Successors and Assigns.  This Article Ten shall be binding upon
any Note Guarantor and each of its successors and assigns and shall inure to
the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Notes shall automatically extend to and be vested in such transferee
or assigns, all subject to the terms and conditions of this Indenture.

 

SECTION 10.07.    No Waiver.  Neither a failure nor a delay on the part of
either the Trustee or the Holders in exercising any right, power or privilege
under this Article Ten shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of
any right, power or privilege. The rights, remedies and benefits of the Trustee
and the Holders herein expressly specified are cumulative and are not exclusive
of any other rights, remedies or benefits which either may have under this Article Ten
at law, in equity, by statute or otherwise.

 

SECTION 10.08.    Modification.  No modification, amendment or waiver of any
provision of this Article Ten, nor the consent to any departure by any
Note Guarantor therefrom, shall in any event be effective unless the same shall
be in writing and signed by the Trustee, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
No notice to or demand on any Note Guarantor in any case shall entitle any Note
Guarantor to any other or further notice or demand in the same, similar or
other circumstance.

 

ARTICLE ELEVEN

SUBORDINATION

 

SECTION 11.01.    Agreement to Subordinate.  Each Subsidiary Guarantor agrees and each
Holder by accepting a Note agrees, that all payments pursuant to the Subsidiary
Guarantees made by or on behalf of any such Subsidiary Guarantor are
subordinated to the extent and in the manner provided in this Article Eleven
to all existing and future obligations of such Subsidiary Guarantor under the
Senior Debt of such Subsidiary Guarantor and that such subordination is for the
benefit of and enforceable by the holders of the Senior Debt of such Subsidiary
Guarantor.  Each Subsidiary Guarantee shall
in all respects rank senior in 

 

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right of payment to any future Subordinated Debt of the Subsidiary
Guarantor that makes any such Subsidiary Guarantee.

 

SECTION 11.02.    Subordination of the
Subsidiary Guarantees Prior to a Repayment Event.  (a)  Prior to a Repayment Event, the
Subsidiary Guarantees will be senior subordinated, unsecured, unconditional,
joint and several obligations of the Subsidiary Guarantors. To the extent that
the Subsidiary Guarantees may be enforceable by the holders of the Notes, the
payment on the Subsidiary Guarantees shall be subordinated in right of payment
to the payment, when due, of all existing and future Senior Debt of the
relevant Subsidiary Guarantor (including the Senior Bank Facility and the VAT
Discounting Facility). The Subsidiary Guarantees shall rank pari passu in right of payment with all
Senior Subordinated Debt, including the Guarantees of the Existing Notes, and
senior to all Subordinated Obligations, of the relevant Subsidiary Guarantor,
including the Existing Equity Value Certificates. The Subsidiary Guarantees
also will be effectively subordinated to any secured Debt of the Subsidiary
Guarantors to the extent of the value of the assets securing such Debt and also
to any remaining amounts.

 

(b)           Each Subsidiary Guarantor may not make any payment on its
applicable Subsidiary Guarantee, or repurchase, redeem or otherwise retire any
Notes (collectively, “pay its Subsidiary Guarantee”), if:

 

(i)            any
amount (including principal, premium or interest) arising under or in respect
of any Senior Debt is not paid within any applicable grace period (including at
maturity); or

 

(ii)           any
other default (however described) on Senior Debt occurs and the maturity of
such Senior Debt is accelerated or becomes payable upon demand, in each case,
in accordance with its terms unless, in either case:

 

(A)          the
default has been cured or waived and any such acceleration has been rescinded
in writing by the Representative of such Senior Debt; or

 

(B)           such
Senior Debt has been paid in full in cash; provided,
however, that the applicable Subsidiary Guarantor may pay its
Subsidiary Guarantee without regard to the foregoing if the applicable
Subsidiary Guarantor and the Trustee receive written notice approving such
payment from the Representative of such issue of Senior Debt.

 

(c)           During the continuance of any default (other than a default
described in paragraphs b(i) or (b)(ii) above) with respect to any
Designated Senior Debt pursuant to which the maturity thereof may be
accelerated or declared to be payable on demand, or on the expiration of any
applicable grace period without further notice (except any notice required to
affect the acceleration), the applicable Subsidiary Guarantor may not pay its
Subsidiary Guarantee for a period (a “Payment Blockage Period”)
commencing upon the receipt by the applicable Subsidiary Guarantor and the
Trustee of written notice of such default from the Representative of the
holders of such Designated Senior Debt specifying an election to effect a
Payment Blockage Period (a “Payment Blockage Notice”) and ending
179 days thereafter (unless such Payment Blockage Period is earlier
terminated;

 

93

 

(i)            by
written notice to the Trustee and the applicable Subsidiary Guarantor from the
Representative that gave such Payment Blockage Notice;

 

(ii)           because
the Representative that gave such Payment Blockage Notice gives written notice
to the Trustee and the applicable Subsidiary Guarantors that such default is no
longer continuing or subsisting; or

 

(iii)          because
such Designated Senior Debt has been repaid in full in cash).

 

(d)           Unless the holders of such Designated Senior Debt or the
Representative of such holders have accelerated the maturity of such Designated
Senior Debt or declared it to be payable upon demand and not rescinded such
acceleration or declaration by notice in writing from the Representative of
such Designated Senior Debt, the applicable Subsidiary Guarantor may (unless
otherwise prohibited as described in the first sentence of preceding paragraph)
resume payments on its Subsidiary Guarantee after the end or termination of
such Payment Blockage Period. Not more than one Payment Blockage Notice with
respect to the same event of default, any other events of default existing and
known to the person giving such notice at the time of such notice, or any other
events of default arising directly as a result of the occurrence which gave
rise to the first-mentioned event of default, in each case in respect of the
same issue of Designated Senior Debt, may be given during any consecutive 360-day
period unless such event of default or such other events of default have been
cured or waived for a period of not less than 90 consecutive days.

 

(e)           Upon any payment or distribution of the assets of any of the
Subsidiary Guarantors upon a total or partial liquidation, dissolution or
winding up of such Subsidiary Guarantor or in a bankruptcy, reorganization,
insolvency (concurso), receivership,
judicial intervention or similar proceeding relating to such Subsidiary
Guarantor or any of its respective Property, the holders of Senior Debt will be
entitled to receive, on a pari passu basis with the Trustee’s right to receive
its fess, costs and expenses, payment in full in cash before the holders of the
Notes are entitled to receive any payment whatsoever (including principal or
interest) on the Notes, except that the holders of Notes may receive and retain
(subject to applicable law) shares of ordinary stock and any debt securities
that are subordinated to Senior Debt to at least the same extent as the
Subsidiary Guarantees. Until the Senior Debt is paid in full in cash, any
payment or distribution to which holders of the Notes would be entitled but for
the subordination provisions of the Indenture will be made to holders of the
Senior Debt. If a payment or distribution is made to, on behalf or for the
benefit of, holders of Notes that, due to the subordination provisions, should
not have been made to them, such holders are required to hold it in trust for
the holders of Senior Debt and pay it over to them as their interests may
appear (as notified by the holders of Senior Debt or their Representative).

 

(f)            If payment of any Notes is
accelerated when any Designated Senior Debt is outstanding, each Subsidiary
Guarantor may not pay its Subsidiary Guarantee until ten Business Days after
the Representatives of all issues of Designated Senior Debt receive notice of
such acceleration and, thereafter, may pay its Subsidiary Guarantee only if the
Indenture otherwise permits payment at that time.

 

(g)           By reason of such subordination provisions, in the event of
bankruptcy, reorganization, insolvency (concurso)
or similar proceedings relating to a Subsidiary Guarantor, holders of Senior
Debt and other creditors (including trade creditors) of such Note Guarantor may
recover more ratably, even if the applicable Subsidiary Guarantee is pari

 

94

 

 passu
with their claims, than the holders of the Notes. In such event, there may be
insufficient assets or no assets remaining or available to pay the principal of
or interest on the Notes.

 

SECTION 11.03.    Subordination of the
Subsidiary Guarantees Upon a Repayment Event.  Upon a Repayment Event the Subsidiary
Guarantees will be subordinated pursuant to the terms described below in
Sections 11.04, 11.05, 11.06 and 11.07.

 

SECTION 11.04.    Enforcement Standstills.  Upon and after a Repayment Event, no
Subsidiary Guarantee may become due, and neither the holders of the Notes nor
the Trustee may take any Enforcement Action against a Subsidiary Guarantor
without the prior consent of the applicable Representative unless:

 

(i)            certain
insolvency or reorganization events have occurred in relation to such
Subsidiary Guarantor; or

 

(ii)           the
holders of Designated Senior Debt have taken any Enforcement Action in relation
to such Subsidiary Guarantor; or

 

(iii)          a
Default has occurred under the Notes; and

 

(A)          the
holders of Notes or the Trustee has notified the applicable Representative; and

 

(B)           a
period of not less than 179 days has passed from the date the applicable
Representative was notified of the default (a “Standstill Period”); and

 

(C)           at
the end of the Standstill Period, the Default is continuing and has not been
waived by the holders of the Notes.

 

SECTION 11.05.    Payment Blockage
Provisions.  (a)  Upon and after
a Repayment Event, a Subsidiary Guarantor may not make any payment in respect
of its Subsidiary Guarantee (except for payments in Permitted Junior Securities
or from the trust, if any, described in Section 8) if:

 

(i)            a
payment default on Designated Senior Debt of such Subsidiary Guarantor has
occurred and is continuing beyond any applicable grace period; or

 

(ii)           any
other default occurs and is continuing on any Designated Senior Debt of such
Subsidiary Guarantor that permits the holders of such Designated Senior Debt to
accelerate its maturity and the Trustee receives a notice of such default (a “Payment
Blockage Notice”) from the Issuer or the holders of such Designated Senior
Debt.

 

(b)           Payments on any such Subsidiary Guarantee may and will be
resumed:

 

(i)            in
the case of a payment default, when such default is cured or waived; or

 

(ii)           in
the case of a non-payment default, upon the earlier of the date on which such
non-payment default is cured or waived and 179 days after the date on 

 

95

 

which the applicable Payment
Blockage Notice is received, unless the maturity of any Designated Senior Debt
has been accelerated.

 

(c)           Not more than one Payment Blockage Notice with respect to
the same event of default, any other events of default existing and known to
the person giving such notice at the time of such notice, or any other events
of default arising directly as a result of the occurrence which gave rise to
the first-mentioned event of default, in each case in respect of the same issue
of Designated Senior Debt, may be given during any consecutive 360-day period
unless such event of default or such other events of default have been cured or
waived for a period of not less than 90 consecutive days.

 

(d)           For
the avoidance of doubt, a Subsidiary Guarantor and/or Issuer will nevertheless
be entitled to pay, and the Trustee shall be entitled to receive and retain,
amounts which are for its own account by way of costs, charges, expenses or by
way of indemnity or remuneration pursuant to the Indenture or any Subsidiary
Guarantee.

 

SECTION 11.06.    Subordination on
Insolvency.  (a)  Upon and after
a Repayment Event, in the event of any distribution to the creditors of a
Subsidiary Guarantor:

 

(i)            in
a total or partial liquidation, dissolution or winding up of such Subsidiary
Guarantor;

 

(ii)           in
an insolvency, bankruptcy, reorganization, composition, receivership,
administration, voluntary arrangement, judicial intervention or similar
proceeding (quiebra, suspensión de pagos o
concurso) relating to such Subsidiary Guarantor or any of its
properties;

 

(iii)          in
an assignment for the benefit of the creditors of such Subsidiary Guarantor; or

 

(iv)          in
any marshalling of any such Subsidiary Guarantor’s assets and liabilities;

 

the holders of Senior Debt of such Subsidiary
Guarantor shall be entitled to receive payment in full in cash of all obligations
in respect of such Senior Debt (including interest after the commencement of
any proceeding at the rate specified in the applicable Senior Debt whether or
not allowed or allowable in any such proceeding) before the holders of Notes
will be entitled to receive any payment with respect to the Subsidiary
Guarantee of such Subsidiary Guarantor (except that holders of Notes may
receive and retain Permitted Junior Securities and payments made from the
trust, if any, described under Article 8).

 

(b)           As a result of the enforcement standstills, payment blockage
provisions and other subordination provisions described above, holders of Notes
may recover less, ratably, in the event of an insolvency, bankruptcy,
liquidation or reorganization of any Subsidiary Guarantor than other creditors
of such Subsidiary Guarantor, including trade creditors.

 

SECTION 11.07.    Turnover.  Upon and after a Repayment Event, if the
Trustee receives a payment in respect of the Notes (except for payments in
Permitted Junior Securities or from the trust, if any, described under Article 8)
when:

 

96

 

(i)            the
payment is prohibited by the provisions of the Indenture described in Section 11.02;
and

 

(ii)           the
Trustee has actual knowledge that payment is so prohibited;

 

then the Trustee will hold the payment on
trust for the benefit of the holders of the relevant Senior Debt and, upon the
proper written request of the holders of the relevant Senior Debt, the Trustee
will deliver the amounts in trust to the Representative or any other proper
representative of the holders of the relevant Senior Debt.

 

SECTION 11.08.    Intercreditor Agreement.  Upon a Repayment Event the Issuer, each Note
Guarantor and the Trustee may (without any further consent of the holders of
Notes) enter into any intercreditor agreement or deed in favor of the holders
of Senior Debt of the Subsidiary Guarantors to give effect to the preceding
subordination provisions of the Indenture described in Section 11.03 to
11.07 inclusive.

 

SECTION 11.09.    Continuing Offer.  This Article 11 shall constitute a
continuing offer to all persons who become holders of or continue to hold
Senior Debt, and such provisions are made for the benefit of the holders of
Senior Debt and such holders will be obligees under the Indenture and any one
or more of them may enforce such subordination provisions.

 

SECTION 11.10.    Amendment and Modification.  The provisions of this Article 11 may
not be amended or modified without the written consent of the holders of all Senior
Debt.

 

SECTION 11.11.    Trustee Entitled to Rely.  Upon any payment or distribution pursuant to
this Article Eleven the Trustee and the Holders shall be entitled to rely (i) upon
any order or decree of a court of competent jurisdiction in which any proceedings
of the nature referred to in Section 11.02 are pending, (ii) upon a
certificate of the liquidating trustee or agent or other Person making such
payment or distribution to the Trustee or to the Holders or (iii) upon the
senior agent or any other proper representative of the holders of the relevant
Senior Debt for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Eleven. 
In the event that the Trustee determines, in good faith, that evidence
is required with respect to the right of any Person as a holder of a relevant
Guarantor’s Senior Debt to participate in any payment or distribution pursuant
to this Article Eleven, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and other facts pertinent to the
rights of such Person under this Article Eleven, and, if such evidence is
not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such
payment.  The provisions of Sections
7.01, 7.02 and 7.03 shall be applicable to all actions or omissions of actions
by the Trustee pursuant to this Article Eleven.

 

SECTION 11.12.    Trustee to Effectuate
Subordination.  Each holder of a
Note, by accepting such Note, will be deemed to have:

 

(i)            appointed
and authorized the Trustee to give effect to such subordination provisions;

 

97

 

(ii)           authorized
the Trustee to become a party to any future intercreditor arrangements
described above;

 

(iii)          agreed
to be bound by such subordination provisions and the provisions of any future
intercreditor arrangements described above that do not materially adversely
affect the rights of holders of the Notes; and

 

irrevocably appointed the
Trustee to act on its behalf to enter into and comply with such subordination
provisions and the provisions of any future intercreditor arrangements
described above.

 

SECTION 11.13.    Trustee Not Fiduciary for
the Holders of Senior Debt.  The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt of the Issuer or any Guarantor and shall not be liable to any holder of
Senior Debt of the Issuer or any Guarantor if it shall in good faith mistakenly
pay over or distribute to Holders or the Issuer, a Guarantor or any other
Person, cash, property or securities to which any holder of Senior Debt of any
Guarantor shall be entitled by virtue of this Article Eleven or
otherwise.  With respect to the holders
of Senior Debt, the Issuer and any Guarantor, the Trustee undertakes to perform
or to observe only such of its covenants or obligations as are specifically set
forth in this Indenture and no implied covenants or obligations with respect to
the holders of Senior Debt, the Issuer or any Guarantor shall be read into this
Indenture against the Trustee.

 

SECTION 11.14.    Reliance on Subordination
Provisions.  Each Holder by accepting
a Note acknowledges and agrees that the foregoing subordination provisions are
intended to be an inducement and a consideration to any and all holders of
existing and future Senior Debt of the Issuer and any Guarantors to acquire and
continue to hold, or to continue to hold such Senior Debt and such shall be
deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Debt.

 

SECTION 11.15.    Trustee’s Compensation Not
Prejudiced.  Nothing in this Article Eleven
shall apply to amounts due to the Trustee pursuant to other Sections of this
Indenture.

 

SECTION 11.16.    Subrogation
to Rights of Holders of Senior Debt. 
Subject to the unconditional discharge in full of the Senior Debt of any
Guarantor and such Guarantors having no further obligations under such Senior
Debt, the Holders of the Notes shall be subrogated (equally and ratably with
the holders of all Debt of such Guarantor which by its express terms is pari
passu and subordinated to Senior Debt of such Guarantor to the same extent as such
Guarantee is subordinated and which is entitled to like rights of subrogation)
to the rights of the holders of Senior Debt of such Guarantor to receive
payments and distributions of cash, property and securities applicable to the
Senior Debt until amounts due under such Guarantee shall be paid in full.  For purposes of such subrogation, no payments
or distributions to the holders of Senior Debt of such Guarantor of any cash,
property or securities to which the Holders of the Notes would be entitled
except for the provisions of this Article Eleven, and no payments pursuant
to the provisions of this Article Eleven to the holders of Senior Debt of
such Guarantor by Holders of the Notes, shall, as among the Guarantor, its
creditors (other than the holders of Senior Debt of such Guarantor and the
Holders), be deemed to be a payment or distribution by such Guarantor to or on
account of the holders of Senior Debt of such Guarantor.

 

98

 

SECTION 11.17.    Provisions Solely to Define
Relative Rights.  The provisions of
this Article Eleven are and are intended solely for the purpose of
defining the relative rights of the Holders of the Notes on the one hand and
the holders of Senior Debt of the Issuer and each Guarantor on the other
hand.  Nothing contained in this Article Eleven
or elsewhere in this Indenture or in the Notes is intended to or shall (a) impair,
as between the Issuer or any Guarantor and the Holders of the Notes, the
obligation of the Issuer or such Guarantor to pay to the Holders of the Notes
of amounts due under the Notes or Guarantees as and when the same shall become
due and payable in accordance with its terms; or (b) affect the relative
rights against the Issuer or such Guarantor of the Holders of the Notes and
creditors of the Issuer or such Guarantor other than the holders of Senior Debt
of the Issuer or such Guarantor; or (c) prevent the Trustee or the Holder
of any Note from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this Article Eleven
of the holders of Senior Debt of the Issuer or such Guarantor.

 

SECTION 11.18.    Notice to Trustee.  (a)  The Issuer shall give prompt
written notice to the Trustee of any fact known to the Issuer which would
prohibit the making of any payment to or by the Trustee in respect of the
Notes.  Notwithstanding the provisions of
this Article Eleven or any other provision of this Indenture, the Trustee
shall not be charged with knowledge of the existence of any facts which would
prohibit the making of any payment to or by the Trustee in respect of the
Notes, unless and until a Trust Officer of the Trustee shall have received
written notice thereof from the Issuer or relevant Note Guarantor, the
representative of the holders of Senior Debt of the Issuer or from any trustee,
fiduciary or agent therefor; and, prior to the receipt of any such written
notice, the Trustee, subject to TIA Sections 315(a) through 315(d), shall
be entitled in all respects to assume that no such facts exist, provided, that,
if a Trust Officer of the Trustee shall not have received the notice provided
for in this Section at least three Business Days prior to the date upon
which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (and premium,
if any) or interest on any Note), then anything 
herein contained to the contrary notwithstanding, the Trustee shall have
full power and authority to receive such money and to apply the same to the
purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it within three Business Days
prior to such date.

 

(b)           Subject to TIA Sections 315(a) through 315(d), the
Trustee shall be entitled to rely on the delivery to it of a written notice by
a Person representing himself to be a holder of Senior Debt of the Issuer (or a
trustee, fiduciary or agent therefor) to establish that such notice has been
given by a holder of Senior Debt of the Issuer (or a trustee, fiduciary or
agent therefor).  In the event that the
Trustee determines in good faith that further evidence is required with respect
to the right of any Person as a holder of Senior Debt of the Issuer to
participate in any payment or distribution pursuant to this Article Eleven,
the Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt of the Issuer held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and any other facts pertinent to the rights of
such Person under this Article Eleven and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

 

SECTION 11.19.    Acceleration Only Pursuant
to Section 6.02.  The Trustee
shall only accelerate the Notes in accordance with Section 6.02 hereof.

 

99

 

SECTION 11.20.    Trust Moneys Not
Subordinated.  Notwithstanding
anything contained herein to the contrary, payments from cash or the proceeds
of Cash Equivalents held in trust under Article Eight hereof by the
Trustee (or other qualifying trustee) and which were deposited in accordance
with the terms of Article Eight hereof and not in violation of Section 11.05
hereof for the payment of principal of (and premium, if any) and interest on
the Notes or any Guarantee shall not be subordinated to the prior payment of
any Senior Debt of the Issuer or relevant Note Guarantor or subject to the
restrictions set forth in this Article Eleven, and none of the Holders
shall be obligated to pay over any such amount to such Guarantor or any holder
of Senior Debt of the Issuer such Note Guarantor or any other creditor of the
Issuer or such Note Guarantor.

 

ARTICLE TWELVE

HOLDERS’ MEETINGS

 

SECTION 12.01.    Purposes of Meetings.  A meeting of the Holders may be called at any
time pursuant to this Article Twelve for any of the following purposes:

 

(a)           to give any notice to the Issuer or any Note Guarantor or to
the Trustee, or to give any directions to the Trustee, or to consent to the
waiving of any Default hereunder and its consequences, or to take any other
action authorized to be taken by Holders pursuant to Article Nine;

 

(b)           to remove the Trustee and appoint a successor trustee
pursuant to Article Seven; or

 

(c)           to consent to the execution of an indenture supplement
pursuant to Section 9.02.

 

SECTION 12.02.    Place of Meetings.  Meetings of Holders may be held at such place
or places as the Trustee or, in case of its failure to act, the Issuer, any
Note Guarantor or the Holders calling the meeting, shall from time to time
determine.

 

SECTION 12.03.    Call and Notice of
Meetings.  (a)  The Trustee may
at any time (upon not less than 21 days’ notice) call a meeting of Holders to
be held at such time and at such place in London, England; New York, New York
or in such other city as determined by the Trustee pursuant to Section 12.02.
Notice of every meeting of Holders, setting forth the time and the place of
such meeting and in general terms the action proposed to be taken at such
meeting, shall be mailed, at the Issuer’s expense, to each Holder and published
in the manner contemplated by Section 12.02(b).

 

(b)           In case at any time the Issuer, pursuant to a resolution of
the Board of Directors, or the Holders of at least 10% in aggregate principal
amount at maturity of the Notes then outstanding, shall have requested the
Trustee to call a meeting of the Holders, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first giving of the notice of such meeting
within 20 days after receipt of such request, then the Issuer or the Holders of
Notes in the amount above specified may determine the time (not less than 21
days after notice is given) and the place in London, England; New York, New
York or in such other city as determined by the Issuer or the Holders pursuant
to Section 12.02 for such meeting and may call such 

 

100

 

meeting to take any action authorized in Section 12.01 by giving
notice thereof as provided in Section 12.01(a).

 

SECTION 12.04.    Voting at Meetings.  To be entitled to vote at any meeting of
Holders, a Person shall be (i) a Holder at the relevant record date set in
accordance with Section 6.15 or (ii) a Person appointed by an
instrument in writing as proxy for a Holder or Holders by such Holder or
Holders. The only Persons who shall be entitled to be present or to speak at
any meeting of Holders shall be the Person so entitled to vote at such meeting
and their counsel and any representatives of the Trustee and its counsel and
any representatives of the Issuer and any Note Guarantor and their counsel.

 

SECTION 12.05.    Voting Rights, Conduct and
Adjournment.  (a) 
Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
in regard to proof of the holding of Notes and of the appointment of proxies
and in regard to the appointment and duties of inspectors of votes, the
submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as
it shall deem appropriate. Except as otherwise permitted or required by any
such regulations, the holding of Notes shall be proved in the manner specified
in Section 2.03 and the appointment of any proxy shall be proved in such
manner as is deemed appropriate by the Trustee or by having the signature of
the Person executing the proxy witnessed or guaranteed by any bank, banker or
trust company customarily authorized to certify to the holding of a Note such
as a Global Note.

 

(b)           At any meeting of Holders, the presence of Persons holding
or representing Notes in an aggregate principal amount at Stated Maturity
sufficient under the appropriate provision of this Indenture to take action
upon the business for the transaction of which such meeting was called shall
constitute a quorum.  Subject to any
required aggregate principal amount at Stated Maturity of Notes required for
the taking of any action pursuant to Article Nine, in no event shall less
than a majority of the votes given by Persons holding or representing Notes at
any meeting of Holders be sufficient to approve an action. Any meeting of
Holders duly called pursuant to Section 12.03 may be adjourned from time
to time by vote of the Holders (or proxies for the Holders) of a majority of
the Notes represented at the meeting and entitled to vote, whether or not a
quorum shall be present; and the meeting may be held as so adjourned without
further notice. No action at a meeting of Holders shall be effective unless
approved by Persons holding or representing Notes in the aggregate principal
amount at Stated Maturity required by the provision of this Indenture pursuant
to which such action is being taken.

 

(c)           At any meeting of Holders, each Holder or proxy shall be
entitled to one vote for each €1,000 aggregate principal amount at Stated
Maturity of outstanding Notes held or represented.

 

SECTION 12.06.    Revocation of Consent by
Holders at Meetings.  At any time
prior to (but not after) the evidencing to the Trustee of the taking of any
action at a meeting of Holders by the Holders of the percentage in aggregate
principal amount at maturity of the Notes specified in this Indenture in
connection with such action, any Holder of a Note the serial number of which is
included in the Notes the Holders of which have consented to such action may,
by filing written notice with the Trustee at its Corporate Trust Office and
upon proof of holding as provided herein, revoke such consent so far as
concerns such Note. Except as aforesaid, any such consent given by the Holder
of any Note shall be conclusive 

 

101

 

and binding upon such Holder and upon all future Holders and owners of
such Note and of any Note issued in exchange therefor, in lieu thereof or upon
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon such Note.  Any action taken
by the Holders of the percentage in aggregate principal amount at maturity of
the Notes specified in this Indenture in connection with such action shall be
conclusively binding upon the Issuer, any Note Guarantors, the Trustee and the
Holders.  This Section 12.06 shall
not apply to revocations of consents to amendments, supplements or waivers,
which shall be governed by the provisions of Section 9.04.

 

ARTICLE THIRTEEN

MISCELLANEOUS

 

SECTION 13.01.    Trust Indenture Act
Controls.  If and to the extent that
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by, or with another provision (an “incorporated provision”) of
the TIA expressly incorporated herein, by reference or otherwise, such duties
or incorporated provision shall control.

 

SECTION 13.02.    Notices.  (a)  Any notice or communication shall
be in writing and delivered in person or mailed by first-class mail or sent by
facsimile transmission addressed as follows:

 

if to the Issuer:

ONO Finance plc

10 Upper Bank Street

London E14 5JJ

United Kingdom

Facsimile:  +44 207 600 6515

Attention:  Peter Hills

 

with a copy to:

Clifford Chance

10 Upper Bank Street

London E14 5JJ

United Kingdom

Facsimile:  +44 207 006 5555

Attention:  John W. Connolly III

 

if to Cableuropea or any other
Note Guarantor:

Cableuropa

Edificio Belagua

Calle Bassauri 7-9

Urbanización La Florida

28023 Aravaca, Madrid

Spain

 

Facsimile: + 34 91 708 393 44

 

102

 

Attention: Legal Department

 

With copies to:

Clifford Chance

10 Upper Bank Street

London E14 5JJ

 

Facsimile: +44 207 006 5555

Attention: John W. Connolly III

 

if to the Trustee:

The Bank of New York

One Canada Square

London E14 5AL

 

Telephone: +44 (0) 20 7964 6402

Facsimile: +44 (0) 20 7964 6399

Attention: Global Trust
Services

 

with copies to:

 

The Bank of New York
(Luxembourg) S.A.

Aerogolf Center

1A, Hoehenhof

1736 Senningerberg

Grand Duchy of Luxembourg

 

The Issuer, any Note
Guarantor or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.  All communications delivered to the Trustee
shall be deemed effective when received.

 

(b)           Notices to the Holders regarding the Notes shall be:

 

(i)            published
in a leading newspaper having general circulation in London (which is expected
to be the Financial Times) and in
New York (which is expected to be The Wall
Street Journal), (B) made available to the newswire service of
Bloomberg or, if Bloomberg does not then operate, any similar agency and, (C) if
and so long as the Notes are listed on the Luxembourg Stock Exchange and the rules and
regulations of such exchange so require, published in the Luxemburger Wort (or another leading
newspaper having a general circulation in Luxembourg); and

 

(ii)           in the case of certificated Notes, mailed to each Holder by
first-class mail at such Holder’s respective address as it appears on the
registration books of the Registrar.

 

Notices given by
first-class mail shall be deemed given five (5) calendar days after
mailing and notices given by publication shall be deemed given on the first
date on which publication is made. 
Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders.  If a notice or communication is 

 

103

 

mailed in the manner provided above, it is duly given, whether or not
the addressee receives it.

 

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

(c)           If and so long as the Notes are listed on any securities
exchange instead of or in addition to the Luxembourg Stock Exchange, notices
shall also be given in accordance with any applicable requirements of such
alternative or additional securities exchange.

 

(d)           If and so long as the Notes are represented by Global Notes,
notice to Holders, in addition to being given in accordance with Section 13.02(b) above,
shall be given by delivery of the relevant notice to Euroclear and Clearstream
for communication to entitled account holdings in substitution for the
previously-mentioned publication.

 

(e)           Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice.  Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.

 

SECTION 13.03.    Communication by Holders
with Other Holders.  Holders may
communicate pursuant to TIA Section 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Issuer, any Note
Guarantor, the Trustee, the Registrar and anyone else shall have the protection
of TIA Section 312(c).

 

SECTION 13.04.    Certificate and Opinion as
to Conditions Precedent.  Upon any
request or application by the Issuer or any Note Guarantor to the Trustee to
take or refrain from taking any action under this Indenture (except in
connection with the original issuance of the Notes on the date hereof), the
Issuer or any Note Guarantor, as the case may be, shall furnish upon request to
the Trustee:

 

(a)           an Officer’s Certificate in form reasonably satisfactory to
the Trustee stating that, in the opinion of the signer, all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

 

(b)           an Opinion of Counsel in form reasonably satisfactory to the
Trustee stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

 

Any Officer’s Certificate
may be based, insofar as it relates to legal matters, upon an opinion of
counsel, unless the officer signing such certificate knows, or in the exercise
of reasonable care should know, that such Opinion of Counsel with respect to
the matters upon which such Officer’s Certificate is based are erroneous.  Any opinion of counsel may be based and may
state that it is so based, insofar as it relates to factual matters, upon an
Officer’s Certificate stating that the information with respect to such factual
matters is in the possession of the Issuer, unless the counsel signing such
opinion of counsel knows, or in the exercise of reasonable care should know,
that the Officer’s Certificate with respect to the matters upon which such
opinion of counsel is based are erroneous.

 

104

 

SECTION 13.05.    Statements Required in
Certificate or Opinion.  Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

(a)           a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein relating
thereto;

 

(b)           a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;

 

(c)           a statement that, in the opinion of each such individual, he
has made such examination or investigation as is necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been
complied with; and

 

(d)           a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.

 

SECTION 13.06.    Rules by Trustee,
Paying Agent and Registrar.  The
Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar and the Paying Agent may make reasonable rules for
their functions.

 

SECTION 13.07.    Legal Holidays.  If an Interest Payment Date or other payment
date is not a Business Day, payment shall be made on the next succeeding day
that is a Business Day, and no interest shall accrue for the intervening
period. If a Record Date is not a Business Day, the Record Date shall not be
affected.

 

SECTION 13.08.    Governing Law.  THIS INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

SECTION 13.09.    Jurisdiction.  The Issuer and any Note Guarantors agree that
any suit, action or proceeding against the Issuer or any Note Guarantor brought
by any Holder of the Notes or the Trustee arising out of or based upon this
Indenture, any Guarantee or the Notes may be instituted in any state or Federal
court in the Borough of Manhattan, New York, New York, and any appellate court
from any thereof, and each of them irrevocably submits to the non-exclusive
jurisdiction of such courts in any suit, action or proceeding. Each of the
Issuer and any Note Guarantor irrevocably waives, to the fullest extent permitted
by law, any objection to any suit, action, or proceeding that may be brought in
connection with this Indenture, any Guarantee or the Notes, including such
actions, suits or proceedings relating to securities laws of the United States
of America or any state thereof, in such courts whether on the grounds of
venue, residence or domicile or on the ground that any such suit, action or
proceeding has been brought in an inconvenient forum. Each of the Issuer and
any Note Guarantor agrees that final judgment in any such suit, action or
proceeding brought in such court shall be conclusive and binding upon the
Issuer or a Note Guarantor, as the case may be, and may be enforced in any
court to the jurisdiction of which the Issuer or such Note Guarantor, as the
case may be, are subject by a suit upon such judgment; provided, however, that
service of process is effected upon the Issuer or any Note Guarantor, as the
case may be, in the manner provided by this Indenture. The Issuer has appointed
CT Corporation System, with offices on the date hereof at 111 Eighth Avenue,
New York, New York 10011, or any successor, as its authorized agent (the “Authorized
Agent”), upon whom process may be served in any suit, action or proceeding
arising out of or based upon this 

 

105

 

Indenture, any Guarantee or the Notes or the transactions contemplated
herein which may be instituted in any state or Federal court in the Borough of
Manhattan, New York, New York, by any Holder or the Trustee, and expressly
accepts the non-exclusive jurisdiction of any such court in respect of any such
suit, action or proceeding.  Each of the
Issuer and any Note Guarantor hereby represents and warrants that the Authorized
Agent has accepted such appointment and has agreed to act as said agent for
service of process, and the Issuer and any Guarantors agree to take any and all
action, including the filing of any and all documents that may be necessary to
continue such respective appointment in full force and effect as aforesaid.
Service of process upon the Authorized Agent shall be deemed, in every respect,
effective service of process upon the Issuer and any Note Guarantor.
Notwithstanding the foregoing, any action involving the Issuer or any Note
Guarantor arising out of or based upon this Indenture, any Guarantee or the
Notes may be instituted by any Holder or the Trustee in any other court of
competent jurisdiction.

 

SECTION 13.10.    No Recourse Against Others.  A director, officer, employee or shareholder,
as such, of the Issuer or any note Guarantor shall not have any liability for
any obligations of the Issuer or any Note Guarantor under the Notes, this
Indenture or any Guarantee or for any claim based on, in respect of or by
reason of such obligations or their creation. By accepting a Note, each Holder
shall waive and release all such liability. The waiver and release shall be
part of the consideration for the issue of the Notes.

 

SECTION 13.11.    Successors.  All agreements of the Issuer and any Note
Guarantor in this Indenture and the Notes shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

 

SECTION 13.12.    Multiple Originals.  The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original but all such counterparts
shall together constitute but one and the same Indenture. One signed copy is
enough to prove this Indenture.

 

SECTION 13.13.    Table of Contents,
Cross-Reference Sheet and Headings. 
The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not
modify or restrict any of the terms or provisions hereof.

 

SECTION 13.14.    Severability.  In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

SECTION 13.15.    Currency Indemnity.   Euro is the sole currency of account and
payment for all sums payable under the Notes, any Note Guarantees and this
Indenture.  Any amount received or
recovered in respect of the Notes or any Note Guarantee in a currency other
than euro (whether as a result of, or of the enforcement of, a judgment or
order of a court of any jurisdiction, in the winding up or dissolution of the
Issuer, any Subsidiary or otherwise) by a holder of the Notes in respect of any
sum expressed to be due to such holder from the Issuer or a Note Guarantor will
constitute a discharge of such obligation only to the extent of the euro amount
which the recipient is able to purchase with the amount so received or
recovered in such other currency on the date of that receipt or recovery (or,
if it is not possible to purchase euro on that date, on the first date on which
it is possible to do so).  If the euro
amount that could be recovered following such a purchase is less than the euro
amount expressed to be due to the recipient under any Note, the Issuer and any
Note 

 

106

 

Guarantors will jointly and severally indemnify the recipient against
the cost of the recipient’s making a further purchase of euro in an amount
equal to such difference.  For the
purposes of this paragraph, it will be sufficient for the holder to certify
that it would have suffered a loss had the actual purchase of euro been made
with the amount so received in that other currency on the date of receipt or
recovery (or, if a purchase of euro on that date had not been possible, on the
first date on which it would have been possible).  These indemnities, to the extent permitted by
law:

 

(i)            constitute
a separate and independent obligation from the Issuer’s and any Note Guarantor’s
other obligations;

 

(ii)           give
rise to a separate and independent cause of action;

 

(iii)          apply
irrespective of any waiver granted by any holder of a Note; and

 

(iv)          will
continue in full force and effect despite any other judgment, order, claim or
proof for a liquidated amount in respect of any sum due under any Note or any
other judgment or order.

 

107

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  ONO FINANCE PLC,

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CABLEUROPA S.A.U., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDITERRANEA NORTE SISTEMAS DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDITERRANEA SUR SISTEMAS DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGION DE MURCIA DE CABLE, S.A., 

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

108

 

	
   

  	
   VALENCIA DE CABLE, S.A., 

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   THE BANK OF NEW YORK, 

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

109

 

EXHIBIT A

[FORM OF FACE OF NOTE]

 

[If Regulation S Global
Note – ISIN Number XS0192591880/Common Code 019259188]

 

[If Restricted Global
Note – ISIN Number XS0192592268/Common Code 019259226]

 

No.

 

[Include if Global Note —
UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED AS NOMINEE FOR THE BANK OF NEW
YORK (THE “COMMON DEPOSITARY”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS REGISTERED IN THE
NAME OF THE BANK OF NEW YORK, AS COMMON DEPOSITARY OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY (AND ANY
PAYMENT IS MADE TO THE BANK OF NEW YORK OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE COMMON DEPOSITARY, ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN
AS MUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK, HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
THE COMMON DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

THIS GLOBAL NOTE AND ANY
RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO
MODIFY THE RESTRICTIONS ON AND PROCEDURES FOR RESALES AND OTHER TRANSFERS OF
THIS GLOBAL NOTE TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE
INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF
RESTRICTED SECURITIES GENERALLY.  THE
HOLDER OF THIS GLOBAL NOTE SHALL BE DEEMED, BY THE ACCEPTANCE HEREOF, TO HAVE
AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.]

 

[Include if Restricted
Global Note — THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE DATE
WHICH IS TWO YEARS AFTER THE LATER OF THE 

 

A-1

 

ORIGINAL ISSUE
DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE
ISSUER WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) (“THE
RESALE RESTRICTION TERMINATION DATE”) ONLY (A) TO THE ISSUER, (B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE
THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT
TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO ANY REQUIREMENT OF
LAW THAT THE DISPOSITION OF ITS PROPERTY OR THE PROPERTY OF SUCH INVESTOR
ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL AND TO
COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, AND ANY APPLICABLE LOCAL
LAWS AND REGULATIONS AND FURTHER SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S
RIGHTS PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (E) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM AND (ii) IN EACH OF THE FOREGOING
CASES, TO REQUIRE THAT AN ASSIGNMENT FORM IN THE FORM APPEARING ON
THE OTHER SIDE OF THIS NOTE AND ANY OTHER CERTIFICATE REQUIRED UNDER THIS
INDENTURE ARE COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.  THE FOREGOING RESTRICTIONS ON RESALE WILL NOT
APPLY SUBSEQUENT TO THE RESALE RESTRICTION TERMINATION DATE.

 

EACH PURCHASER OF THIS
GLOBAL NOTE OR ANY INTEREST HEREIN IS HEREBY NOTIFIED THAT THE SELLER OF THIS
GLOBAL NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]

 

[Include if Regulation S
Global Note – UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING, AN OFFER OR
SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE U.S.
SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE U.S.
SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH
RULE 144A UNDER THE U.S. SECURITIES ACT.]

 

A-2

 

FLOATING RATE SENIOR NOTE
DUE 2014

 

ONO Finance Plc, a
limited liability company organized under the laws of England and Wales, (the “Issuer”),
for value received promises to pay to The Bank of New York Depository
(Nominees) Limited or registered assigns the principal sum as indicated on the
Security Register (as defined in the Indenture referred to on the reverse
hereof) on May 15, 2014.

 

From May 17, 2004,
or from the most recent interest payment date to which interest has been paid
or provided for, cash interest on this Note shall accrue, payable quarterly on February 15,
May 15, August 15 and November 15 of each year, beginning on August 15,
2004, to the Person in whose name this Note (or any predecessor Note) is
registered at the close of business on the preceding February 1, May 1,
August 1 or November 1, as the case may be.

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature of an authorized signatory, this Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory
for any purpose.

 

Reference is hereby made
to the further provisions of this Note set forth on the reverse hereof and to
the provisions of the Indenture, which provisions shall for all purposes have
the same effect as if set forth at this place.

 

IN WITNESS WHEREOF, ONO
Finance Plc has caused this Note to be signed manually or by facsimile by its
duly authorized signatory.

 

Dated: May 17, 2004

 

	
   

  	
  ONO FINANCE PLC

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

THE BANK OF NEW YORK,

as Trustee, certifies that this is one of the Notes referred to in the
Indenture.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  

 

A-3

 

[FORM OF REVERSE
SIDE OF NOTE]

 

Floating Rate Senior Note
Due 2014

 

1.             Interest

 

ONO Finance plc, a
limited liability company organized under the laws of England (the “Issuer”),
for value received promises to pay interest on the principal amount of this
Note from May 17, 2004.  Each
Floating Rate Note will bear interest at a rate per annum, reset quarterly,
equal to EURIBOR plus 8.5%, as determined by the calculation agent (the “Calculation
Agent”), which shall initially be the Floating Rate Note Trustee. Interest on
the Floating Rate Notes will be payable quarterly in arrears on February 15,
May 15, August 15 and November 15, commencing on August 15,
2004. The Issuer will make each interest payment to the holders of record of
the Floating Rate Notes on the immediately preceding February 1, May 1,
August 1, and November 1. Interest on the Floating Rate Notes will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from and including the Issue Date.

 

“Determination Date,”
with respect to an Interest Period, will be the day that is two TARGET
Settlement Days preceding the first day of such Interest Period.

 

“EURIBOR” with respect to
an Interest Period, will be the rate (expressed as a percentage per annum) for
deposits in euros for a three-month period beginning on the day that is two
TARGET Settlement Days after the Determination Date that appears on Telerate Page 248
as of 11:00 a.m., Brussels time, on the Determination Date. If Telerate Page 248
does not include such a rate or is unavailable on a Determination Date, the
Calculation Agent will request the principal London office of each of four
major banks in the Euro-zone inter-bank market, as selected by the Calculation
Agent, after consultation with the Issuer, to provide such bank’s offered
quotation (expressed as a percentage per annum) as of approximately 11:00 a.m.,
Brussels time, on such Determination Date, to prime banks in the Euro-zone
interbank market for deposits in a Representative Amount in euro for a
three-month period beginning on the day that is two TARGET Settlement Days
after the Determination Date. If at least two such offered quotations are so
provided, the rate for the Interest Period will be the arithmetic mean of such
quotations. If fewer than two such quotations are so provided, the Calculation
Agent will request each of three major banks in London, as selected by the
Calculation Agent, after consultation with the Issuer, to provide such bank’s rate
(expressed as a percentage per annum), as of approximately 11.00 a.m.,
London time, on such Determination Date, for loans in a Representative Amount
in euros to leading European banks for a three-month period beginning on the
day that is two TARGET Settlement Days after the Determination Date. If at
least two such rates are so provided, the rate for the Interest Period will be
the arithmetic mean of such rates. If fewer than two such rates are so
provided, then the rate for the Interest Period will be the rate in effect with
respect to the immediately preceding Interest Period.

 

“Euro-zone” means the
region comprised of member states of the European Union that adopt the euro.

 

“Interest Period” means
the period commencing on and including an interest payment date and ending on
and including the day immediately preceding the next succeeding interest
payment date, with the exception that the first Interest Period shall commence
on and include the Issue Date and end on and include August 14, 2004.

 

A-4

 

“Representative Amount”
means an amount of not less than €1,000,000 for a single transaction in the
relevant market at the relevant time.

 

“TARGET Settlement Day”
means any day on which the Trans-European Automated Real-Time Gross Settlement
Express Transfer (TARGET) System is open.

 

“Telerate Page 248”
means, the display page so designated on Bridge’s Telerate Service (or
such other page as may replace that page on that service, or such
other service as may be nominated as the information vendor).

 

The amount of interest
for each day that the Floating Rate Notes are outstanding (the “Daily Interest
Amount”) will be calculated by dividing the interest rate in effect for such
day by 360 and multiplying the result by the principal amount of the Floating
Rate Notes. The amount of interest to be paid on the Floating Rate Notes for
each Interest Period will be calculated by adding the Daily Interest Amounts
for each day in the Interest Period.

 

All percentages resulting
from any of the above calculations will be rounded, if necessary, to the
nearest one hundred thousandth of a percentage point, with five one-millionths
of a percentage point being rounded upwards (e.g., 9.876545% (or .09876545)
being rounded to 9.87655% (or .0987655)) and all euro amounts used in or
resulting from such calculations will be rounded to the nearest cent (with
one-half cent being rounded upwards).

 

2.             Subordination

 

The guarantees
evidenced by this Note are, to the extent and in the manner provided in the
Indenture, subordinate and subject in right of payment of the prior payment in
full of all Senior Debt, and this Note is issued subject to such
provisions.  Each Holder of this Note, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Trustee on its behalf to take such action as may be necessary
or appropriate to effectuate the subordination as provided in the Indenture and
(c) appoints the Trustee its attorney-in-fact for such purpose.

 

3.             Additional
Amounts

 

 All payments that the Issuer makes under or with
respect to the Notes or that any Note Guarantor makes under or with respect to
any Note Guarantee will be made free and clear of, and without withholding or
deduction for or on account of, any present or future tax, duty, levy, impost,
assessment or other governmental charges (including, without limitation,
penalties, interest and other similar liabilities related thereto) of whatever
nature (collectively, “Taxes”) imposed or levied by or on behalf of any
jurisdiction in which the Issuer, any Note Guarantor or any Surviving Person is
incorporated, organized or otherwise resident for tax purposes or from or
through which any of the foregoing makes any payment on the Notes or by or
within any department or political subdivision thereof (each, a “Relevant Taxing
Jurisdiction”), unless the Issuer, such Note Guarantor or such Surviving
Person, as the case may be, is required to withhold or deduct Taxes by law or
by the interpretation or administration of law. 
If the Issuer, a Note Guarantor or such Surviving Person is required to
withhold or deduct any amount for, or on account of, Taxes of a Relevant Taxing
Jurisdiction from any payment made under or with respect to the Notes, the
Issuer, such Note Guarantor or such Surviving Person, as the case may be, will
pay additional amounts (“Additional Amounts”) as may be necessary to ensure
that the net amount received and retained by each 

 

A-5

 

holder of the Notes (including Additional Amounts) after such
withholding, deduction, imposition or levy will be not less than the amount the
holder would have received and retained if such Taxes had not been required to
be withheld or deducted.

 

None of the Issuer, any
Note Guarantor or any Surviving Person will, however, pay any Additional
Amounts to a holder or beneficial owner of Notes in respect or on account of:

 

(a)           any Taxes that are imposed or levied by a Relevant Taxing
Jurisdiction by reason of the holder’s or beneficial owner’s present or former
connection with such Relevant Taxing Jurisdiction (other than the mere receipt
or holding of Notes or by reason of the receipt of payments thereunder or the
exercise or enforcement of rights under any Notes or the Indenture);

 

(b)           any Taxes that are imposed or levied by reason of the
failure of the holder or beneficial owner of Notes, following the Issuer’s
written request addressed to the holder (and made at a time that would enable
the holder or beneficial owner acting reasonably to comply with that request),
to comply with any certification, identification, information or other
reporting requirements, whether required by statute, treaty, regulation or
administrative practice of a Relevant Taxing Jurisdiction, as a precondition to
exemption from, or reduction in the rate of withholding or deduction of, Taxes
imposed by the Relevant Taxing Jurisdiction (including, without limitation, a
certification that the holder or beneficial owner is not resident in the
Relevant Taxing Jurisdiction);

 

(c)           any estate, inheritance, gift, sales, transfer, personal
property or similar Taxes;

 

(d)           any Tax that is payable otherwise than by withholding or
deduction from payments made under, or with respect to, the Notes;

 

(e)           any Tax that is imposed or levied by reason of the
presentation (where presentation is required in order to receive payment) of
such Notes for payment on a date more than 30 days after the date on which
such payment became due and payable or the date on which payment thereof is
duly provided for, whichever is later, except to the extent that the holder or
beneficial owner thereof would have been entitled to Additional Amounts had the
Notes been presented for payment on any date during such 30 day period;

 

(f)            any withholding or deduction in
respect of any Taxes where such withholding or deduction is imposed on a
payment to an individual and is required to be made pursuant to European
Council Directive 2003/48/EC or any other Directive implementing the
conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the
taxation of savings income or any law implementing or complying with, or
introduced in order to conform to, such Directive; or

 

(g)           any Tax that is imposed on or with respect to a payment made
to a holder or beneficial owner who would have been able to avoid such withholding
or deduction by presenting the Notes to another paying agent in a Member State
of the European Union.

 

A-6

 

The Issuer and any Note
Guarantor will (i) make such withholding or deduction as is required by
applicable law and (ii) remit the full amount withheld or deducted to the
relevant taxing authority in accordance with applicable law.

 

At least 30 calendar days
prior to each date on which any payment under or with respect to the Notes is
due and payable, if the Issuer or any Note Guarantor will be obligated to pay
Additional Amounts with respect to such payment (unless such obligation to pay
Additional Amounts arises after the 30th day prior to the date on
which payment under or with respect to the Notes is due and payable, in which
case it will be promptly thereafter), the Issuer will deliver to the Trustee an
Officer’s Certificate stating that such Additional Amounts will be payable and
the amounts so payable and will set forth such other information necessary to
enable the Trustee to pay such Additional Amounts to holders on the payment
date.  The Issuer will promptly publish a
notice in accordance with Section 13.02 of the Indenture stating that such
Additional Amounts will be payable and describing the obligation to pay such
amounts.

 

Upon request, the Issuer
or any Note Guarantor, as the case may be, will furnish to a holder of the
Notes copies of tax receipts evidencing the payment of any Taxes by the Issuer
or such Note Guarantor in such form as provided in the normal course by the
taxing authority imposing such Taxes and as is reasonably available to the
Issuer or such Note Guarantor.  If,
notwithstanding the efforts of the Issuer to obtain such receipts the same are
not obtainable, the Issuer or such Note Guarantor will provide such holder with
other evidence reasonably satisfactory to the holder of such payments by the
Issuer or such Note Guarantor.

 

In addition, the Issuer
and any Note Guarantor will pay any present or future stamp, issue, registration,
court documentation, excise or property taxes or other similar taxes, charges
and duties, including interest and penalties with respect thereto, imposed by
or in any Relevant Taxing Jurisdiction in respect of the execution, issue or
delivery of the Notes or any other document or instrument referred to
thereunder and any such taxes, charges or duties imposed by any jurisdiction as
a result of, or in connection with, the enforcement of the Notes or any other
such document or instrument following the occurrence of any Event of Default
with respect to the Notes.

 

Whenever an Indenture or
this Note refers to, in any context, the payment of principal, premium, if any,
interest or any other amount payable under or with respect to any Note, such
reference includes the payment of Additional Amounts, if applicable.

 

4.             Method
of Payment

 

The Issuer shall pay
interest on this Note (except defaulted interest) to the persons who are
registered Holders of this Note at the close of business on the Record Date for
the next Interest Payment Date even if this Note is cancelled after the Record
Date and on or before the Interest Payment Date. The Issuer shall pay principal
and interest in euro in immediately available funds that at the time of payment
is legal tender for payment of public and private debts; provided, that payment
of interest may be made at the option of the Issuer by check mailed to the
Holder.

 

The amount of payments in
respect of interest on each Interest Payment Date shall correspond to the
aggregate principal amount of Notes represented by the Regulation S Global Note
and the Restricted Global Note, as established by the Registrar at the close of

 

A-7

 

business on the relevant Record Date. Payments of principal shall be
made upon surrender of the Regulation S Global Note and the Restricted Global
Note to the Paying Agent.

 

5.             Paying
Agent and Registrar

 

Initially, The Bank of
New York or one of its affiliates shall act as Paying Agent and Registrar.  The Issuer or any of its Affiliates may act
as Paying Agent, Registrar or co-Registrar.

 

6.             Indenture

 

The Issuer issued the
Notes under an indenture dated as of May 17, 2004 (the “Indenture”),
among the Issuer, the Guarantors and The Bank of New York, as trustee (the “Trustee”).
The terms of the Notes include those stated in the Indenture and those
expressly made part of the Indenture by reference to the U.S. Trust Indenture
Act of 1939 as in effect on the date of the Indenture and, to the extent
required by any amendment after such date, as so amended (the “U.S. Trust
Indenture Act”). Terms defined in the Indenture and not defined herein have
the meanings ascribed thereto in the Indenture. The Notes are subject to such
terms, and Holders are referred to the Indenture and the U.S. Trust Indenture
Act for a statement of those terms.

 

The Notes are unsecured
senior obligations of the Issuer and are issued in an initial aggregate
principal amount at maturity of €100,000,000. 
The Indenture imposes certain limitations on the Issuer and its
Affiliates, including, without limitation, limitations on the incurrence of
indebtedness and issuance of stock, the payment of dividends and other payment
restrictions affecting the Issuer and its subsidiaries, the sale of assets,
transactions with and among Affiliates of the Issuer and the Restricted
Subsidiaries, change of control and Liens.

 

7.             Optional
Redemption

 

At any time and from time to time, prior to May 15,
2006 Cableuropa may, at its option, use the proceeds of one or more Public
Equity Offerings to make prepayments under the Floating Rate Note Proceeds Loan
to enable the Issuer to, and the Issuer will be required to use any such
prepayments to, redeem up to a maximum of 35% of the aggregate principal amount
of the Floating Rate Notes (calculated giving effect to any issuance of
Additional Notes) at a redemption price equal to 100% of the principal amount
thereof plus a premium equal to the interest rate per annum on the Floating
Rate Notes applicable on the date on which notice of redemption is given plus
accrued and unpaid interest thereon, if any, to the redemption date (subject to
the right of holders of record on the relevant record date to receive interest
due on the relevant interest payment date); provided,
however, that after giving effect to any such redemption, at least
65% of the aggregate principal amount of the Floating Rate Notes remains
outstanding  (calculated giving effect to
any issuance of Additional Notes); provided,
further, however, that prior to May 15, 2006, to the extent
that the Issuer redeems any Floating Rate Notes pursuant to this provision, it
shall also redeem Fixed Rate Notes, on a pro-rata basis based on the aggregate principal
amount of Floating Rate Notes and Fixed Rate Notes then outstanding (calculated
giving effect to any issuance of Additional Notes). The Issuer shall make any
such redemption within 90 days following the closing of any such Public
Equity Offering upon not less than 30 nor more than 60 days’ prior notice.

 

A-8

 

At any time on or after May 15,
2006, upon not less than 30 nor more than 60 days’ notice, the Issuer may
redeem all or part of the Notes.  These
redemptions will be in amounts of €1,000 or integral multiples thereof at the
following redemption prices (expressed as percentages of their principal amount
at maturity), plus accrued and unpaid interest, if any, to the redemption date,
if redeemed during the 12-month period commencing on May 15 of the years
set forth below.  

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  103.000

  	
  %

  
	
  2007

  	
   

  	
  102.000

  	
  %

  
	
  2008

  	
   

  	
  101.000

  	
  %

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

8.             Redemption
Upon Changes in Withholding Taxes

 

If, as a result of:

 

(e)           any amendments after May 17, 2004
in the laws (or regulations or rulings promulgated thereunder) of any Relevant
Taxing Jurisdiction; or

 

(c)           any changes after May 17, 2004 in the official
application or official interpretation of the laws, treaties, regulations or
rulings (including a holding, judgment or order by a court of competent
jurisdiction or a change in published practice) of any Relevant Taxing
Jurisdiction;

 

the Issuer, any Note
Guarantor or any surviving Person would be obligated to pay, on the next date
for any payment and as a result of any such amendment or change, Additional
Amounts, as described above, with respect to the Relevant Taxing Jurisdiction,
which the Issuer, any Note Guarantor or any surviving Person cannot avoid by the
use of reasonable measures available to it, then the Issuer may redeem all, but
not less than all, of the Notes at any time thereafter, upon not less than 30
nor more than 60 days’ notice, at a redemption price of 100% of their
principal amount, plus accrued and unpaid interest, if any, to the redemption
date.  Prior to the giving of any notice
of redemption described in this paragraph, the Issuer will deliver to the
Trustee:

 

(i)            an
Officer’s Certificate of the Issuer stating that the obligation to pay such
Additional Amounts cannot be avoided by the Issuer or any Note Guarantor or
surviving Person taking reasonable measures available to it; and

 

(ii)           a
written opinion of independent legal counsel to the Issuer of recognized
standing to the effect that the Issuer or any Note Guarantor or surviving
Person has or will become obligated to pay such Additional Amounts as a result
of a change, amendment, official interpretation or application described above.

 

For the avoidance
of doubt, measures will be deemed not to be “reasonable” if they would breach
the provisions of the Indenture.

 

A-9

 

9.             Notice
of Redemption

 

The Issuer will publish a
notice of any optional redemption of the Notes described above in accordance
with the provisions of Section 13.02 of the Indenture.  If the Notes are listed at such time on the
Luxembourg Stock Exchange, the Issuer will inform the Luxembourg Stock Exchange
of the principal amount of the Notes that have not been redeemed in connection
with any optional redemption.  If fewer
than all the Notes are to be redeemed at any time, the Trustee will select the
Notes by a method that complies with the requirements, as certified to the
Trustee by the Issuer, of the principal securities exchange, if any, on which
the Notes are listed at such time or, if the Notes are not listed on a
securities exchange, pro rata, by lot or by such other method as the Trustee in
its sole discretion shall deem fair and appropriate; provided, however that no such partial redemption shall
reduce the portion of the principal amount of a Note not redeemed to less than
€1,000.

 

10.           Repurchase
at the Option of Holders

 

Upon the occurrence of a
Change of Control, each holder of Notes shall have the right to require the
Issuer to repurchase all or any part (equal to €1,000 or an integral multiple
thereof) of such holder’s Notes pursuant to the offer (the “Change of Control
Offer”) described below at a purchase price (the “Change of Control Purchase
Price”) equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, to the date of purchase (the “Change of Control Purchase Date”)
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date).

 

When the aggregate amount
of Excess Proceeds exceeds €10 million (taking into account income earned on
such Excess Proceeds, if any), Cableuropa will be required to make an offer to
make prepayments under the Notes Proceeds Loans sufficient to enable the Issuer
to purchase Notes pursuant to the Prepayment Offer (as defined below), and the
Issuer shall be required to make an offer to purchase (the “Prepayment Offer”)
the Notes which offer shall be in the amount of the Allocable Excess Proceeds,
on a pro rata basis according to principal amount, at a purchase price equal to
100% of the principal amount thereof, plus accrued and unpaid interest, if any,
to the purchase date (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date), in
accordance with the procedures (including prorating in the event of
over-subscription) set forth in the Indenture. 
To the extent that any portion of the amount of Net Available Cash
remains after compliance with the preceding sentence and provided that all holders of Notes have
been given the opportunity to tender their Notes for purchase in accordance
with the Indenture, the Company or such Restricted Subsidiary may use such
remaining amount for any general corporate purpose and the amount of Excess
Proceeds will be reset to zero.

 

The term “Allocable
Excess Proceeds” will mean the product of (a) the Excess Proceeds and (b) a
fraction, the numerator of which is the aggregate principal amount of the Notes
outstanding on the date of the Prepayment Offer and the denominator of which is
the sum of the aggregate principal amount of the Notes outstanding on the date
of the Prepayment Offer and the aggregate principal amount of other Debt of
Cableuropa outstanding on the date of the Prepayment Offer that is pari passu in right of payment with the
Notes Proceeds Loans and subject to terms and conditions in respect of Asset
Sales similar in all material respects to the covenant described hereunder and
requiring Cableuropa to make an offer to purchase such Debt at substantially
the same time as the Prepayment Offer.

 

A-10

 

Within five Business Days
after Cableuropa is obligated to make a Prepayment Offer as described in the
preceding paragraph, the Issuer shall send a notice pursuant to Section 13.02
of the Indenture, accompanied by such information regarding the Issuer, the
Company and the Restricted Subsidiaries as the Issuer in good faith believes
will enable the holders to make an informed decision with respect to such
Prepayment Offer.  Such notice shall
state, among other things, the purchase price and the purchase date, which
shall be, subject to any contrary requirements of applicable law, a Business
Day no earlier than 30 days nor later than 60 days from the date such notice is
given.

 

11.           Denominations

 

The Notes are in
denominations of €1,000 and integral multiples thereof of principal amount at
maturity. The transfer of Notes may be registered, and Notes may be exchanged,
as provided in the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture.

 

12.           Unclaimed
Money

 

All moneys paid by the
Issuer or any Guarantor to the Trustee or a Paying Agent for the payment of the
principal of, or premium, if any, or interest on, any Notes that remain
unclaimed at the end of two years after such principal, premium or interest has
become due and payable may be repaid to the Issuer or any Guarantor, subject to
applicable law, and the Holder of such Note thereafter may look only to the
Issuer or any Guarantor for payment thereof.

 

13.           Discharge
and Defeasance

 

Subject to certain
conditions, the Issuer at any time may terminate some or all of its obligations
and the obligations of the Guarantors under the Notes, the Guarantees and the
Indenture if the Issuer irrevocably deposits with the Trustee euro or European
Government Obligations, or a combination thereof, for the payment of principal
and interest on the Notes to redemption or maturity, as the case may be.

 

14.           Amendment,
Supplement and Waiver.  (a)  The
Issuer, the Guarantors and the Trustee may:

 

(i)            reduce
the amount of Notes whose holders must consent to an amendment or waiver;

 

(ii)           reduce
the rate of or extend the time for payment of interest on any Note;

 

(iii)          reduce
the principal of or extend the Stated Maturity of any Note;

 

(iv)          make
any Note payable in money other than that stated in the Note;

 

(v)           impair
the right of any holder of the Notes to receive payment of principal of and
interest on such holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such
holder’s Notes or any Note Guarantee;

 

A-11

 

(vi)          release
any security interest that may have been granted in favor of the holders of the
Notes other than pursuant to the terms of such security interest;

 

(vii)         reduce
the amount payable upon the redemption of any Note or change the time at which
any Note may be redeemed, as described in such Note under the heading “Optional
Redemption”;

 

(viii)        reduce
the amount payable upon a Change of Control or, at any time after a Change of
Control has occurred, change the time at which the Change of Control Offer
relating thereto must be made or at which the Notes must be repurchased
pursuant to such Change of Control Offer;

 

(ix)           at
any time after the Company is obligated to make a Prepayment Offer with the
Excess Proceeds from Asset Sales, change the time at which such Prepayment
Offer must be made or at which the Notes must be repurchased pursuant thereto;

 

(x)            amend
or modify the provisions described under Section 4.17 of the Indenture;

 

(xi)           make
any change to the subordination provisions of this Indenture or the Notes
Proceeds Loans that would adversely affect the holders of the Notes;

 

(xii)          make
any change in any Note Guarantee that would adversely affect the holders of the
Notes; or

 

(xiii)         release
Cableuropa and the other Subsidiary Guarantors from any of its obligations
under the Notes Proceeds Loans otherwise than in accordance with the terms of
the Notes Proceeds Loans.

 

(b)           Notwithstanding the foregoing, the Indenture may be amended
or supplemented with the consent of the Issuer, the Note Guarantors and the
holders of a majority in aggregate principal principal amount of the
outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for the Notes) and any existing Default or compliance
with any provisions may also be waived (except a default in the payment of
principal, premium or interest and certain covenants and provisions of this
Indenture which cannot be amended without the consent of each holder of an outstanding
Note) with the consent of the holders of at least a majority in aggregate
principal amount of the outstanding Notes.

 

15.           Defaults
and Remedies

 

The Notes have the Events
of Default as set forth in Section 6.01 of the Indenture.

 

If a Default or an Event
of Default occurs and is continuing and is known to the Trustee, such Trustee
will mail to each holder of the Notes notice of the Default or Event of Default
within 15 Business Days after its occurrence. 
Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, Additional Amounts or interest on any Notes, the
Trustee may withhold the notice to the holders of such Notes if a committee of
its trust officers in good faith determines that withholding the notice is in
the interests of the holders of the Notes.

 

A-12

 

Holders may not enforce
the Indenture or the Notes except as provided in the Indenture. The Trustee may
refuse to enforce the Indenture or the Notes unless it receives an indemnity
satisfactory to it. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the Notes may direct the Trustee in its exercise
of any trust or power. The Holders of a majority in aggregate principal amount
of the Notes then outstanding by written notice to the Trustee may rescind any
acceleration and its consequence if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived except nonpayment of principal, premium, if any, or interest that has
become due solely because of such acceleration. The above description of Events
of Default and remedies is qualified by reference, and subject in its entirety,
to the more complete description thereof contained in the Indenture.

 

16.           Trustee
Dealings with the Issuer

 

Subject to certain
limitations imposed by the U.S. Trust Indenture Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with and collect obligations owed to it
by the Issuer, any Guarantor or any of their Affiliates with the same rights it
would have if it were not Trustee. Any Paying Agent, Registrar, co-Registrar or
co-Paying Agent may do the same with like rights.

 

17.           No
Recourse Against Others

 

A director, officer,
employee, or stockholder, as such, of the Issuer or Guarantor shall not have
any liability for any obligations of the Issuer or any Guarantor under the
Notes, the Guarantees or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. By accepting a Note,
each Holder shall waive and release all such liability. The waiver and release
are part of the consideration for the issue of the Notes.

 

18.           Authentication

 

This Note shall not be
valid until an authorized officer of the Trustee (or an authenticating agent)
manually signs the certificate of authentication on the other side of this
Note.

 

19.           Governing
Law

 

THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

The Issuer or any Note
Guarantor shall furnish to any Holder upon written request and without charge
to the Holder a copy of the Indenture. 
Requests may be made to:

 

Cableuropa

Edificio Belagua

Calle Bassauri 7-9

Urbanización La Florida

28023 Aravaca, Madrid

Spain

 

A-13

 

Facsimile: + 34 91 708 393 44

Attention: Legal Department

 

A-14

 

ASSIGNMENT
FORM

 

To assign and transfer
this Note, fill in the form below:

 

(I) or (the Issuer)
assign and transfer this Note to

 

	
   

  

 

(Insert assignee’s social
security or tax I.D. no.)

 

__________________________________________________________________________

 

(Print or type assignee’s
name, address and postal code)

 

and irrevocably appoint ______________________________
agent to transfer this Note on the books of the Issuer. The agent may
substitute another to act for him.

 

	
  Your Signature: 

  	
   

  

 

(Sign exactly as your
name appears on the other side of this Note)

 

	
  Signature Guarantee: 

  	
   

  

 

(Participant in a
recognized signature guarantee medallion program)

 

	
  Date: 

  	
   

  	
   

  

 

Certifying Signature:

 

CHECK ONE BOX BELOW

 

(1)           o            to
the Issuer; or

 

(2)           o            pursuant
to and in compliance with Rule 144A under the U.S. Securities Act  of 1933 (the “Securities Act”); or

 

(3)           o            pursuant
to and in compliance with Regulation S under the Securities Act; or

 

(4)           o            pursuant
to another available exemption from the registration requirements of the
Securities Act; or

 

(5)           o            pursuant
to an effective registration statement under the Securities Act.

 

Unless one of the boxes
is checked, the Trustee shall refuse to register any of the Notes evidenced by
this certificate in the name of any person other than the registered Holder
thereof; provided, however, that if box (2) is checked, by executing this
form, the Transferor 

 

A-15

 

is deemed to have certified that such Notes are being transferred to a
person it reasonably believes is a “qualified institutional buyer” as defined
in Rule 144A under the Securities Act who has received notice that such
transfer is being made in reliance on Rule 144A; if box (3) is
checked, by executing this form, the Transferor is deemed to have certified
that such transfer is made pursuant to an offer and sale that occurred outside
the United States in compliance with Regulation S under the Securities Act; and
if box (4) is checked, the Trustee may require, prior to registering any
such transfer of the Notes, such legal opinions, certifications and other
information as the Issuer reasonably requests to confirm that such transfer is
being made pursuant to an exemption from or in a transaction not subject to,
the registration requirements of the Securities Act.

 

 

	
  Signature: 

  	
   

  	
   

  

 

Signature Guarantee:

 

	
   

  	
   

  

 

(Participant in a
recognized signature guarantee medallion program)

 

	
  Certifying Signature:

  	
   

  	
   Date:

  	
   

  	
   

  

 

 

	
  Signature Guarantee: 

  	
   

  	
   

  

 

(Participant in a
recognized signature guarantee medallion program)

 

A-16

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to
have this Note or a portion thereof repurchased pursuant to Section 4.11
or 4.16 of the Indenture, check the box: o

 

If the purchase is in
part, indicate the portion (in denominations of €1,000 and integral multiples
thereof) to be purchased:

 

Your signature:

 

(Sign exactly as your
name appears on the other side of this Note)

 

Date:

 

	
  Certifying Signature:

  	
   

  	
   

  

 

A-17

 

SCHEDULE A

 

SCHEDULE OF
PRINCIPAL AMOUNT

 

The following
decreases/increases in the principal amount of this Security have been made:

 

	
  Date of

  Decrease/

  Increase

  	
   

  	
  Decrease in

  Principal

  Amount

  	
   

  	
  Increase in

  Principal

  Amount

  	
   

  	
  Principal

  Amount

  Following such

  Decrease/

  Increase

  	
   

  	
  Notation

  Made by or

  on Behalf

  of Registrar

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-18

 

EXHIBIT
B

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM RESTRICTED

GLOBAL NOTE TO REGULATION S GLOBAL NOTE

 

(Transfers pursuant to § 2.06(b)(ii) of
the Indenture)

 

The Bank of New York, as
Transfer Agent

One Canada Square

London E14 5AL

 

Attn: Corporate Trust
Administration

 

Re: 101⁄2% Senior Notes Due
2014 (the “Notes”)

 

Reference is hereby made
to the Indenture dated as of May 17, 2004 (the “Indenture”) among
ONO Finance Plc, as Issuer, and The Bank of New York, as Trustee. Capitalized
terms used but not defined herein shall have the meanings given them in the
Indenture.

 

This letter relates to €                            
aggregate principal amount of Notes that are held as a beneficial interest in
the form of the Restricted Global Note (ISIN No XS0192592268; Common Code
019259226) with the Depositary in the name of [name of transferor](the “Transferor”).
The Transferor has requested an exchange or transfer of such beneficial
interest for an equivalent beneficial interest in the Regulation S Global Note
( ISIN No. XS0192591880;
Common Code 019259188).

 

In connection with such
request, the Transferor does hereby certify that such transfer has been
effected in accordance with the transfer restrictions set forth in the Notes
and:

 

(a)           with
respect to transfers made in reliance on Regulation S (“Regulation S”)
under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
does certify that:

 

(A)          the
offer of the Notes was not made to a person in the United States;

 

(B)           either
(i) at the time the buy order is originated the transferee is outside the
United States or the Transferor and any person acting on its behalf reasonably
believe that the transferee is outside the United States; or (ii) the
transaction was executed in, on or through the facilities of a designated
offshore securities market described in paragraph (b) of Rule 902 of
Regulation S and neither the Transferor nor any person acting on its behalf
knows that the transaction was pre-arranged with a buyer in the United States;

 

(C)           no
directed selling efforts have been made in the United States by the Transferor,
an affiliate thereof or any person their behalf in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

 

(D)          the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

 

B-1

 

(E)           the
Transferor is not the Issuer, a distributor of the Notes, an affiliate of the
Issuer or any such distributor (except any officer or director who is an
affiliate solely by virtue of holding such position) or a person acting on
behalf of any of the foregoing.

 

(b)           with
respect to transfers made in reliance on Rule 144 the Transferor certifies
that the Notes are being transferred in a transaction permitted by Rule 144
under the Securities Act.

 

You, the Issuer, any Note
Guarantors and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

 

	
   

  	
  [Name of
  Transferor]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  cc:

  	
  •

  	
   

  	
   

  
	
   

  	
  Attn:

  	
  •

  	
   

  	
   

  
							

 

B-2

 

EXHIBIT
C

FORM OF TRANSFER CERTIFICATE FOR TRANSFER FROM REGULATION S

GLOBAL NOTE TO RESTRICTED GLOBAL NOTE

 

(Transfers pursuant to § 2.06(b)(iii) of
the Indenture)

 

The Bank of New York, as
Transfer Agent

One Canada Square

London E14 5AL

 

Attn: Corporate Trust
Office

 

Re:  101⁄2% Senior Notes Due 2014 (the “Notes”)

 

Reference is hereby made
to the Indenture dated as of May 17, 2004 (the “Indenture”) among
ONO Finance Plc, as Issuer, and The Bank of New York, as Trustee. Capitalized
terms used but not defined herein shall have the meanings given them in the
Indenture.

 

This letter relates to €                            
aggregate principal amount at maturity of Notes that are held in the form of
the Regulation S Global Note with the Common Depositary (ISIN No. XS0192591880;
Common Code 019259188) in the name of [name of transferor](the “Transferor”)
to effect the transfer of the Notes in exchange for an equivalent beneficial
interest in the Restricted Global Note (ISIN No. XS0192592268; Common Code 019259226).

 

In connection with such
request, and in respect of such Notes the Transferor does hereby certify that
such Notes are being transferred in accordance with the transfer restrictions
set forth in the Notes and that:

 

CHECK ONE BOX BELOW:

 

o:           the Transferor is
relying on Rule 144A under the U.S. Securities Act of 1933, as amended
(the “Securities Act”) for exemption from such Act’s registration
requirements; it is transferring such Notes to a person it reasonably believes
is a “qualified institutional buyer” as defined in Rule 144A that
purchases for its own account, or for the account of a qualified institutional
buyer, and to whom the Transferor has given notice that the transfer is made in
reliance on Rule 144A and the transfer is being made in accordance with
any applicable securities laws of any state of the United States; or

 

o            the Transferor is
relying on an exemption other than Rule 144A from the registration
requirements of the Securities Act, subject to the Issuer’s and the Trustee’s
right prior to any such offer, sale or transfer to require the delivery of an opinion
of counsel, certification and/or other information satisfactory to each of
them.

 

You, the Issuer, any Note
Guarantors and the Trustee are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

 

C-1

 

	
  [Name of
  Transferor]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:

  	
  •

  	
   

  	
   

  
	
  Attn:

  	
  •

  	
   

  	
   

  
						

 

C-2

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