Document:

Termination Agreement

 Exhibit 10.40 
  
 2004 
  
 LIBERTY MEDIA INTERNATIONAL HOLDINGS, LLC 
  
 LIBERTY MEDIA INTERNATIONAL B-L, LLC 
  
 TELEWEST COMMUNICATIONS PLC 
  

  
 TERMINATION AGREEMENT 
  

  
 [GRAPHIC] 
  

 FORM OF TERMINATION AGREEMENT 
  
 THIS AGREEMENT is made on              2004 
  
 BETWEEN: 
  
 LIBERTY MEDIA INTERNATIONAL HOLDINGS, LLC, (formerly Liberty Media International, Inc.) a company incorporated in Delaware,
USA whose principal place of business is 12300 Liberty Media Boulevard, Englewood, Colorado 80112 USA (Liberty International) (formerly known as Tele-Communications International, Inc.); 
  
 LIBERTY MEDIA INTERNATIONAL B-L, LLC, a company incorporated in Delaware, USA whose
principal place of business is 12300 Liberty Media Boulevard, Englewood, Colorado 80112 USA (Liberty B-L); 
  
 TELEWEST COMMUNICATIONS PLC, registered number 2983307, whose registered office is at Export House, Cawsey Way, Woking, Surrey GU21 6QX (Telewest).

  
 WHEREAS: 
  
 (A) Certain parties to this Agreement, together with (i) MediaOne International Holdings,
Inc.,; (ii) MediaOne UK Cable, Inc. and (iii) MediaOne Cable Partnership Holdings, Inc. (together, the MediaOne Shareholders), are parties to a relationship agreement dated 21 May 1999 (the 1999 First Relationship
Agreement). 
  
 (B) Certain parties to this Agreement, together with the
MediaOne Shareholders, are parties to a Revised Existing Relationship Agreement dated as of 3 March 2000, which replaced, to the extent provided in that agreement, the 1999 First Relationship Agreement (the 2000 First Relationship
Agreement). 
  
 (C) Microsoft Corporation subsequently agreed, pursuant to
the Microsoft MediaOne Purchase Agreement, to acquire or merge certain of its Affiliates with the MediaOne Shareholders. 
  
 (D) The parties to this Agreement are also parties to, or have covenanted to be bound as if they were a party to a Revised New Relationship Agreement, as amended by an
amendment agreement dated as of 18 May 2001, which is expressed to have effect as of 3 March 2000 and which replaced, to the extent provided in that agreement, the 2000 First Relationship Agreement (the Revised New Relationship
Agreement). 
  
 (E) The parties to this Agreement have agreed, conditional
upon the scheme of arrangement of Telewest becoming effective, to terminate the provisions of the 1999 

  

 Page 1 

 
First Relationship Agreement, the 2000 First Relationship Agreement and the Revised New Relationship Agreement on the terms set out in this Agreement.

  
 IT IS
AGREED as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

  
 1.1 In this Agreement, the following terms and expressions shall have the following meanings, unless the context otherwise requires:

  
 Affiliate means, with respect to any Person, any other Person
directly or indirectly Controlling, directly or indirectly Controlled by or under direct or indirect common Control with such Person; 
  
 Commitment Letter means the letter agreement between, among others, Telewest, Telewest Communications Networks Limited, Telewest Global, Inc. and CIBC World
Markets plc (as agent on behalf of the Telewest group’s senior lenders) in relation to the provision of certain credit facilities and the agreement of an amended and restated facility agreement; 
  
 Control means, with respect to any Person, the possession, directly or
indirectly, by another Person of the power to direct or cause the direction of the management or policies of such Person, whether through equity ownership, by contract or otherwise, but a Person shall not be deemed to Control another Person solely
by virtue of any veto rights granted to it as a minority equity owner or by virtue of super majority voting rights and the words Controlled and Controlling shall be construed accordingly; 
  
 Jersey Scheme means the proposed scheme of arrangement of Telewest Finance
(Jersey) Limited as contemplated by the Financial Restructuring (as defined in the voting agreement between Liberty International, Telewest and others); 
  
 Limited Voting Shares means the limited voting convertible ordinary shares of Telewest having the rights set out in the
articles of association of Telewest; 
  
 Microsoft MediaOne Purchase
Agreement means the merger agreement between Microsoft, MediaOne UK Cable, Inc., MediaOne Cable Partnership Holdings, Inc., MediaOne Group, Inc. and MediaOne International Inc. dated 4 October 1999; 
  
 Ordinary Shares means the ordinary shares, 10p par value, of Telewest;

  
 Person means an individual, corporation, general or limited
partnership, limited or unlimited liability company, trust, association, unincorporated organisation, government or any authority, agency or body thereof, or other entity; 
  
 Scheme means the proposed scheme of arrangement of Telewest as contemplated by the Financial Restructuring (as defined in the
voting agreement between Liberty International, Telewest and others); 
  
 Shares means the Ordinary Shares and the Limited Voting Shares. 
  

 Page 2 

 1.2 In this Agreement, unless the context otherwise requires: 
  

	(a)	the headings are inserted for convenience only and shall not affect the construction of this Agreement; 

  

	(b)	unless the context otherwise requires, the singular shall include the plural and vice versa, and references to persons shall include body corporates, unincorporated associations and
partnerships; and 

  

	(c)	references to any English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any other legal concept
shall, in respect of any jurisdiction other than England, be deemed to include the legal concept which most nearly approximates in that jurisdiction to the English legal term; and 

  
 Transfer Agreement means the conditional agreement relating to the transfer of
Telewest’s assets and liabilities to Telewest UK Limited as part of the Financial Restructuring (as defined in the voting agreement between Liberty International, Telewest and others) made between, inter alia, Telewest, Telewest Global,
Inc., and Telewest UK Limited. 
  

	2.	CONDITIONALITY 

  
 2. This Agreement is in all respects conditional upon the Scheme becoming effective on or before the later of 90 days after the date of the Commitment Letter or 60 days
after the date of any vote by creditors to approve the Scheme and the Jersey Scheme, subject to such vote occurring on or before 75 days after the date of the Commitment Letter. 
  

	3.	TERMINATION 

  
 3. Each party agrees (on its own behalf and as agent for each of its Affiliates that are party to the 1999 First Relationship Agreement and the 2000 First Relationship
Agreement) that, and with effect from the effective date of the Scheme, in consideration for the mutual promises set out in this Agreement, each of the following agreements: 
  

	(a)	the 1999 First Relationship Agreement; 

  

	(b)	the 2000 First Relationship Agreement; and 

  

	(c)	the Revised New Relationship Agreement, 

  
 shall be terminated and all rights, interests, undertakings, liabilities and obligations of that party (or any of its relevant Affiliates as the case may be), whether
past, present or future shall be irrevocably released, discharged and satisfied. 
  

 Page 3 

	4.	WARRANTIES 

  
 4.1 Telewest warrants that: 
  

	(a)	since the withdrawal by the Liberty Group (as defined in the Revised New Relationship Agreement) of its three non-executive directors from the Company’s board of directors on
17 July 2002, neither Telewest nor any other company in its group of companies has taken any action that would have required the written consent of the Liberty Group (as defined in the Revised New Relationship Agreement) pursuant to clause 13.1
(“Gain Recognition Consent Requirements and Conversion”) of the Revised New Relationship Agreement without such written consent having been obtained; and 

  

	(b)	to the knowledge of the current directors of Telewest, Telewest having made due and proper enquiry of them, neither Telewest nor any other company in its group of companies took any
such action prior to 17 July 2002 without such written consent having been obtained. 

  
 4.2 The warranties given by Telewest in clause 4.1 above are: 
  

	(a)	in addition and without prejudice to the undertakings given by Telewest Global, Inc. contained in clause 2(c) of the voting agreement between Liberty International, Telewest and
others; and 

  

	(b)	given as at the date of this Agreement and shall be deemed to be repeated and given as at, and on the date of, the effective date of the Scheme and the Jersey Scheme by reference to
the facts and circumstances then existing. 

  

	5.	FURTHER ACTS 

  
 5. Each party agrees to execute, give or perform, or use all reasonable endeavours to procure that its relevant Affiliates shall execute, give or perform, all such
assurances, deeds, acts and things as may be necessary in connection with the termination of the rights, interests, undertakings, liabilities and obligations of that party (or any of its relevant Affiliates as the case may be) as set out in clause
3. 
  

	6.	COUNTERPARTS 

  
 6. This Agreement may be entered into in any number of counterparts and by the parties to it on separate counterparts, each of which, when executed and delivered, shall
be an original, but all the counterparts shall together constitute one and the same instrument. 
  

	7.	SEVERABILITY 

  
 7. If any provision of this Agreement is, or is held to be, invalid or unenforceable, then such provision shall (so far as it is invalid or unenforceable) be given no
effect and shall be deemed not to be included in this Agreement, but without invalidating any of the remaining provisions of this Agreement. 
  

 Page 4 

	8.	NOTICES 

  
 8.1 Any notice under this Agreement shall be in writing and signed by or on behalf of the party giving it and may be served by leaving it or sending it by fax, prepaid
recorded delivery or registered post (and air mail if overseas) to the address and for the attention of the party receiving it set out in clause 8.2 or as otherwise notified under this Agreement. In the absence of evidence of earlier receipt, any
notice so served shall be deemed to have been received: 
  

	(a)	if delivered personally, when left at the relevant address; 

  

	(b)	if sent by first class mail to an address in the United Kingdom, 48 hours after posting it; 

  

	(c)	if sent by air mail to an address outside the United Kingdom, 72 hours after posting it; or 

  

	(d)	if sent by fax, on receipt of confirmation of its transmission. 

  
 8.2 The current addresses of the parties for the purpose of clause 8.1 are set out below. These may be altered by the parties by notice to the other parties at any time:

  

			
	 Liberty International and
 Liberty B-L:
	 	 12300 Liberty Boulevard
 Englewood
 Colorado 80112 USA

		
	 	 	 For the attention of: Charles Tanabe
 Fax: 00 1 720 875 5382
 and
 For the attention of: Robert Bennett
 Fax: 00 1 720 875 5434

		
	 Telewest:
	 	 160 Great Portland Street
 London W1N 5TB

		
	 	 	 For the attention of: Company Secretary
 Fax: 020 7299 6560

  

	9.	ASSIGNMENT 

  
 9. No party may assign or transfer all or any of its rights or obligations under this Agreement or dispose of any right or interest in this Agreement without the prior
written consent of the other parties except in connection with the Transfer Agreement. 
  

	10.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

  
 10. A person who is not a party to this Agreement shall have no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any of its terms. 
  

 Page 5 

	11.	GOVERNING LAW 

  
 11.1 This Agreement is governed by and shall be construed in accordance with English law. 
  
 11.2 The courts of England have exclusive jurisdiction to hear and decide any suit, action or proceeding, and to settle any disputes, which
may arise out of or in connection with this Agreement (respectively, Proceedings and Disputes) and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of England. 
  
 11.3 Each party irrevocably waives any objection which it might at any time have to the
courts of England being nominated as the forum to hear and decide any Proceedings and to settle any Disputes and agrees not to claim that the courts of England are not a convenient or appropriate forum. 
  
 11.4 Process by which any Proceedings are begun in England may be served on any party by
being delivered in accordance with clause 8 or may be served on the parties without addresses in England (as set out in clause 8.2 above) by being delivered to the agents at the addresses indicated below (or such other agent or address as the party
in question may notify to the other parties): 
  

			
	 Liberty International and
 Liberty B-L:
	 	 Grays Inn Secretaries Limited
 5 Chancery Lane
 London EC4 1BU

		
	 	 	 Fax: 0207 404 0087

		
	 	 	 Copied to:

		
	 	 	 Denton Wilde Sapte
 1 Fleet Place
 London EC4M 7WS

		
	 	 	 For the attention of:
 Jeremy Cohen
 Stephen McGlennan
 Fax: 020 7404 0087

  
 Nothing contained in this clause 11.4
affects the right to serve process in another manner permitted by law. 
  
 IN WITNESS WHEREOF the parties have caused this Agreement to be executed as a deed on the day and year first before written. 
  

 Page 6 

					
	EXECUTED as a DEED by	  	 )
	  	 
	LIBERTY MEDIA	  	 )
	  	 
	INTERNATIONAL HOLDINGS, LLC	  	 )
	  	 
	a company incorporated in Delaware	  	 )
	  	 
	acting by	  	 )
	  	 
	and	  	 )
	  	 
	being persons who, in accordance with the	  	 )
	  	 
	laws of that territory, are acting under the	  	 )
	  	 
	authority of that company	  	 )
	  	 
			
	EXECUTED as a DEED by	  	 )
	  	 
	LIBERTY MEDIA INTERNATIONAL 	  	 )
	  	 
	B-L, LLC	  	 )
	  	 
	a company incorporated in Delaware	  	 )
	  	 
	acting by	  	 )
	  	 
	and	  	 )
	  	 
	being persons who, in accordance with the	  	 )
	  	 
	laws of that territory, are acting under the	  	 )
	  	 
	authority of that company	  	 )
	  	 
			
	EXECUTED as a DEED by	  	 )
	  	 
	TELEWEST COMMUNICATIONS PLC	  	 )
	  	 
	acting by two directors/	  	 )
	  	 
	a director and the secretary	  	 )
	  	 

  
  

 Page 7Form of Waiver and Agreement Letter

 Exhibit 10.43 
  
 FORM OF WAIVER AND AGREEMENT LETTER 
  

	To:	Telewest Communications plc (Telewest) 

 Export
House Cawsey Way 
 Woking 
 Surrey 
 GU21 6QX 
  

	To:	Telewest Communications Networks Limited (TCN) 

 Export House Cawsey Way 
 Woking 
 Surrey 
 GU21 6QX 
  
 Attention:         Stephen Cook, General Counsel 
  
 (Telewest and TCN hereinafter jointly the Lessees)

  
 2004 
  
 We refer to: 
  

	(a)	a master leasing agreement dated 28 March 1996 between Telewest and R.B. Leasing March Limited (assigned to Royal Bank of Scotland (Industrial Leasing) Limited) and all lease
contracts entered into pursuant to that master leasing agreement (the Telewest Lease); and 

  

	(b)	a master leasing agreement dated 1 December 2000 made between TCN and Royal Bank Leasing Limited for itself and as agent for W. & G. Lease Finance Limited and W. & G.
Equipment Leasing Limited (assigned to Lombard Corporate Finance (June 2) Limited) (together with Royal Bank of Scotland (Industrial Leasing) Limited the Lessors) and all lease contracts entered into pursuant to that master leasing
agreement (the TCN Lease); 

  
 together, the Leases. 
  

	1.	REQUESTED WAIVERS 

  
 Telewest is in the process of implementing a recapitalisation, readjustment, rescheduling and/or reorganisation of the share capital of Telewest and members of the
Telewest group and/or any indebtedness of Telewest and members of the Telewest group (the Restructuring). The key elements of the Restructuring are as follows: 
  

	(a)	Telewest Global, Inc., a company incorporated in Delaware, will become the new holding company for the businesses that currently constitute the Telewest group;

	(b)	substantially all of the assets of Telewest will be transferred to Telewest UK Limited, a wholly owned English subsidiary of Telewest Global, Inc. Telewest UK Limited will assume
substantially all of the liabilities of Telewest that have not been compromised as a result of the Restructuring, and Telewest Global, Inc. will issue shares of common stock to an escrow agent for distribution in accordance with a creditors’
scheme of arrangement of Telewest under English law and creditors’ schemes of arrangement of Telewest’s wholly owned Jersey finance subsidiary, Telewest Finance (Jersey) Limited (Telewest Jersey) under English and Jersey law;

  

	(c)	pursuant to a scheme of arrangement of Telewest under English law Telewest’s bond debt and certain other financial obligations will be converted into an entitlement to receive
new shares of common stock of Telewest Global, Inc.; 

  

	(d)	pursuant to schemes of arrangement of Telewest Jersey under English and Jersey law Telewest Jersey’s bond debt and certain other financial obligations will be converted into an
entitlement to receive new ordinary shares in Telewest Global, Inc.; 

  

	(e)	TCN and certain of its subsidiaries and partnerships will enter into an amended and restated senior secured facility with its senior lenders; and 

  

	(f)	after the schemes of arrangement referred to in (c) and (d) above have become effective, Telewest and Telewest Jersey intend to go into solvent liquidation.

  
 Since 30 September 2002, when a preliminary agreement with
Telewest’s bondholders in relation to the Restructuring was announced, various steps have been taken by Telewest with a view to implementing the Restructuring or have been taken by Telewest’s creditors as a result of the Restructuring (the
Pre-Restructuring Events). Details of many of these Pre-Restructuring Events are contained in press releases issued by Telewest on 30 September 2002, 31 October 2002, 9 June 2003, 28 July 2003, 15 August 2003, 15 September 2003, 18
November 2003, 27 November 2003 and 20 January 2004. The Pre-Restructuring Events for the purposes of this letter are limited to the following events: 
  

	(a)	non-payment of interest and principal under certain of the bonds issued by Telewest and Telewest Jersey; 

  

	(b)	non-payment of obligations due under certain foreign exchange contracts; 

  

	(c)	presentation of a winding up petition against Telewest by Credit Agricole Indosuez on 29 October 2002; 

  

	(d)	litigation by Eximius Capital Funding Limited against Telewest and its directors, details of which are set out in each of: 

  

	 	(i)	the complaint (with index number 601492/03) dated 12 May 2003 filed in the Supreme Court of the State of New York, County of New York 

  

 Page 2 

 by Eximius Capital Funding, Ltd. as Plaintiff against various defendants including Telewest; and

  

	 	(ii)	the complaint (with index number 03-601284) dated 24 April 2003 filed in the Supreme Court of the State of New York by Eximius Capital Funding Ltd. as Plaintiff against Telewest;

  

	(e)	litigation by, inter alios, W.R. Huff CM, LLC against, inter alios, Telewest and its directors, details of which are set out in the amended complaint (with case number
02-CV-5146 (GBD)) dated 28 May 2003 filed in the United States District Court, Southern District of New York; 

  

	(f)	breach of various contracts entered into by Telewest or Telewest’s direct or indirect subsidiaries (including, but not limited to the TCN’s senior secured facility) as a
result of the events listed in sub-paragraphs (a) to (e) above, sub-paragraph (g) below and Schedule 4 of a draft supplemental deed dated 9 March 2004 to be entered into between TCN and various senior debt providers which amends and restates the
senior secured facility entered into by TCN and certain of its subsidiaries and associated partnerships on 16 March 2001 (a copy of Schedule 4 of the draft supplemental deed is attached at Schedule 3 to this letter); and 

  

	(g)	any other events which the Lessors agree (in their sole discretion) shall constitute Pre-Restructuring Events. 

  
 The Restructuring and certain of the Pre-Restructuring Events constitute repudiatory breaches
under the Leases. 
  
 You have requested that: 
  
 1.1 the Lessors waive any repudiatory breach under Clauses 13.1 and 13.2 of the Telewest
Lease and Clauses 13.1 and 13.2 of the TCN Lease which have arisen on or since 30 September 2002 or may arise in future to the extent such repudiatory breach has arisen or may arise as a sole and direct result of the Restructuring or the
Pre-Restructuring Events (the Requested Waivers); and 
  
 1.2 the
Lessors confirm that they have not accepted any repudiatory breaches which have arisen under Clauses 13.1 and 13.2 of the Telewest Lease and Clauses 13.1 and 13.2 of the TCN Lease prior to the date of satisfaction of the conditions referred to in
clause 3 below (the Requested Confirmations). 
  

	2.	WAIVER AND AGREEMENT 

  
 We are pleased to inform you that, at your request and in consideration for the conclusion of the agreements referred to in paragraph 1 of the Schedule to this letter and
the payment of the default waiver fee referred to in paragraph 4 of the Schedule to this letter, the Lessors have agreed (subject to satisfaction of the conditions referred to in clause 3 below) to grant the Requested Waivers and to make the
Requested Confirmations. 
  

 Page 3 

	3.	CONDITIONS 

  
 3.1 The provisions of paragraph 2 above will only take effect on and from the later of (i) the date on which the Lessors confirm in writing that each of the conditions
specified in Schedule 1 to this letter has been fulfilled to the satisfaction of the Lessors; and (ii) the date on which an office copy of the court order sanctioning the Telewest scheme of arrangement under section 425 of the Companies Act 1985
(the Telewest Scheme) is delivered to the registrar of companies for registration. 
  
 3.2 In the event that clause 3.1 above is not fulfilled by the later of (i) 90 days after the date when the commitment letter referred to in Schedule 1, paragraph 6(i) to this letter (the Commitment
Letter) is released from escrow; and (ii) 60 days after the date of any vote by creditors to approve the Telewest Scheme or the Telewest Jersey schemes of arrangement, subject to that vote occurring on or before 75 days after the date when
the Commitment Letter is released from escrow the provisions of paragraph 2 above will no longer be capable of taking effect. 
  

	4.	REVISED LEASING DOCUMENTS 

  

4.1 The Lessors and the Lessees undertake to enter into the documentation required to novate and amend the Telewest Lease and amend the TCN Lease, agreed forms of
which are attached in Schedule 2 to this agreement. 
  

	5.	SAVING PROVISIONS 

  
 5.1 Save as, and to the extent expressly waived or agreed in this letter, the Leases remain in full force and effect as novated and amended pursuant to the documentation
referred to in paragraph 1 of Schedule 1. 
  
 5.2 The waivers and approvals
contained herein shall apply only to the matters specifically referred to herein. The Requested Waivers shall be without prejudice to any rights which the Lessors may now or hereafter have under the Leases in relation to any other circumstances or
matters other than as specifically referred to in paragraph 2 above (and whether subsisting at the date hereof or otherwise) which right shall remain in full force and effect. 
  

	6.	INDEMNITIES 

  
 6.1 Without prejudice to the generality of the provisions of Clause 5 above, each of Telewest and TCN hereby confirms that the indemnities contained in the Leases (in
particular, but without prejudice to the generality of the foregoing, Clause 5.6 of the Telewest Lease and Clause 5.7 of the TCN Lease) shall apply to each Lessor’s negotiation, execution and/or performance of this letter and/or in respect of
any documentation in relation to any Pre-Restructuring Event and/or in respect of its participation in the Restructuring. 
  
 6.2 Notwithstanding the generality of the provisions of paragraph 6.1 above, TCN and, on a joint and several basis until the effective date of the Telewest Scheme,
Telewest agree to indemnify and hold harmless each Lessor and its directors, officers, agents and employees from and against any and all actions, liabilities, claims, 
  

 Page 4 

 demands, proceedings, judgements or requirements of any official body (whether civil or criminal) brought or established
at any time against any Lessor or its directors, officers, agents or employees and against all losses, costs, fines, charges and expenses suffered or incurred by any Lessor its directors, officers, agents or employees of whatsoever nature arising
directly or indirectly by reason of or in connection with each Lessor’s negotiation, execution and or performance of this letter and/or in respect of any documentation in relation to any Pre-Restructuring Event and/or in respect of its
participation in the Restructuring. This indemnity shall not apply to the extent such liability, claim, demand, proceeding, judgement or requirement resulted from a breach by such Lessor of the contractual obligations contained in this letter or the
letter from the Lessors dated on or about the date hereof, or such Lessor’s gross negligence or wilful misconduct. 
  
 6.3 Without prejudice to paragraphs 6.1 and 6.2 above, the Lessors confirm that they have no claim and will not make any claim under clause 6 of the Commitment Letter
dated on or about the date of this letter from CIBC World Markets Plc to Telewest and TCN by reason of (i) any change in the commercial terms of the Leases pursuant to the documentation referred to in paragraph 1 of Schedule 1 of this letter; and
(ii) any breach which is waived pursuant to clause 2 of this letter. 
  

	7.	COSTS AND EXPENSES 

  
 Telewest shall forthwith on demand pay all reasonable legal costs and expenses incurred by the Lessors in connection with this letter. 
  

	8.	THIRD PARTY RIGHTS 

  
 A person who is not a party to this letter has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this letter. 
  

	9.	COUNTERPARTS 

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

  

	10.	GOVERNING LAW 

  
 This letter and the agreement constituted by it and the Lessees’ acceptance of its terms shall be governed by and construed in accordance with English law and the
parties hereby submit to the exclusive jurisdiction of the High Court of Justice in England. 
  
 Please confirm your acceptance to the terms of this letter by signing the counterpart letter below and returning this to us. 
  
 Yours faithfully 
  

 Page 5 

	
	
	 
	

	for and on behalf of Royal Bank of Scotland (Industrial Leasing) Limited
	
	Date:

  

	
	
	 
	

	 for and on behalf
 of Royal Bank Leasing Limited for
itself and as agent for W. & G. Lease Finance Limited and Lombard Corporate Finance (June 2) Limited

	
	Date:

  

	
	
	[On Counterpart letter:]
	
	We hereby agree to the terms of this letter

  

	
	
	 
	

	 for and on behalf
 of Telewest Communications
plc

  

	
	
	 
	

	 for and on behalf
 of Telewest Communications Networks
Limited

  

 Page 6 

 Schedule 1 
  
 Conditions 
  

	1.	The execution of: (i) a Novation and Amendment Agreements in respect of the Telewest Lease and accompanying documentation and (ii) an Amendment Agreement in respect of the TCN Lease
and accompanying documentation in the agreed form attached at Schedule 2. 

  

	2.	Resolutions of the board of directors of each of the Lessees approving and authorising the entry into this letter and any accompanying documentation and authorising its appropriate
officers to execute and deliver this letter. 

  

	3.	The Royal Bank of Scotland plc reaches agreement with the Lessees in respect of their foreign exchange contracts with Telewest, such agreement to be evidenced by the settlement
agreement with, inter alios, The Royal Bank of Scotland plc referred to in paragraph 6(ii) below. 

  

	4.	Payment by TCN to the Lessors by no later than one business day before the effective date of the Telewest Scheme of a default waiver fee of 1.5% (£471,400.15) on the capital
amount outstanding on all Leases as at 31 March 2004, (£31,426,676.55). 

  

	5.	Payment by Telewest (i) on the date of this letter, of all reasonable legal costs and expenses incurred by the Lessors up to the date of this letter in respect of advice as regards
the Leases; and (ii) of all ongoing reasonable legal costs and expenses incurred by the Lessors up until the date five business days before the date the Telewest scheme of arrangement becomes effective, including costs incurred to date of Norton
Rose in respect of advice as regards the Leases by no later than one business day before the effective date of the Telewest scheme of arrangement. 

  

	6.	Receipt by the Lessors of the following executed documents: 

  

	 	(i)	a commitment letter between Telewest, TCN, Telewest Global, Inc. and Telewest UK Limited and TCN’s senior lenders (including inter alios CIBC World Markets, Canadian
Imperial Bank of Commerce, London Branch, JP Morgan Chase Bank and The Royal Bank of Scotland plc) providing that, subject to the satisfaction of certain conditions and subject to certain termination rights, an amended and restated senior secured
facility will come into effect subject to the terms therein and replace the existing senior secured facility; 

  

	 	(ii)	settlement agreements with JP Morgan Chase Bank, The Royal Bank of Scotland plc, Credit Agricole Indosuez and The Bank of New York relating to (a) the settlement of liabilities
arising under certain existing 

  

 Page 7 

 derivative agreements; and (b) new derivative agreements to be entered into by TCN with such hedging
providers; 
  

	 	(iii)	voting agreements between Telewest, Telewest Jersey and the holders of various senior debentures and senior notes issued by Telewest and Telewest Jersey where those holders
represent the Agreed Percentage (as defined in the Commitment Letter dated on or about the date of this letter referred to in paragraph 6(i) above) of the holders of various senior debentures and senior notes issued by Telewest and Telewest Jersey
in aggregate entitled to vote at the creditors’ meetings of the schemes of arrangement of Telewest and Telewest Jersey; and 

  

	 	(iv)	a voting agreement between Telewest, Telewest Jersey and IDT Corporation. 

  
 For the avoidance of doubt, nothing in this paragraph shall give the Lessors the right to approve the commercial terms of such term sheets and/or commitment letters or
agreements. 
  

	7.	Receipt by the Lessors of a copy of an office copy of the court order sanctioning the Telewest Scheme, the terms of which court order confirm that an undertaking has been given by
the directors of Telewest at the court hearing to sanction the Telewest Scheme that the Telewest Scheme will not be made effective unless and until the directors of Telewest are satisfied that TCN and various senior debt providers have entered into
the amended and restated facility and security documents and that the Recapitalisation Supplemental Deed Effective Date (as such term is defined in the amended and restated facility agreement) has occurred or its occurrence is conditional only upon
the Telewest Scheme becoming effective. 

  
  

 Page 8 

 Schedule 2 
  
 Part A: Agreed form novation and amendment agreement 
  

			
	 DATED                    
	 	                    2004

  

  

					
	 ROYAL BANK OF SCOTLAND
 (INDUSTRIAL LEASING) LIMITED
	 	(1)	 	 
			
	TELEWEST COMMUNICATIONS PLC	 	(2)	 	 
			
	TELEWEST COMMUNICATIONS NETWORKS LIMITED	 	(3)	 	 

  
  

  
 NOVATION AND AMENDMENT AGREEMENT 
 relating to a Master Leasing Agreement 
 and ancillary documentation 
 dated 28 March 1996 
  

  
  
 

 
  

 Page 9 

 Contents 
  

			
	Clause	  	Page

		
	1      Interpretation and Definitions	  	12
		
	2      Conditions	  	13
		
	3      Representations and Warranties	  	14
		
	4      Novation	  	16
		
	5      Amendments to the Master Leasing Agreement	  	16
		
	6      Amendments to the Lease Contract	  	19
		
	7      Costs and Expenses	  	20
		
	8      Notices	  	20
		
	9      Miscellaneous	  	22
		
	10    Third Party Rights	  	23
		
	11    Governing Law and Jurisdiction	  	23
		
	Schedule 1 Conditions Precedent	  	24
		
	Schedule 2 Conditions Precedent Notice	  	26

  
  

 Page 10 

 THIS NOVATION AND AMENDMENT AGREEMENT is dated 2004 and made BETWEEN: 
  

	(1)	ROYAL BANK OF SCOTLAND (INDUSTRIAL LEASING) LIMITED (Company No. SC63190) a company incorporated in Scotland whose registered office is situated at 42 St Andrew Square,
Edinburgh EH2 2YE (the “Lessor”); 

  

	(2)	TELEWEST COMMUNICATIONS PLC (Company No. 02983307) a company incorporated in England whose registered office is situated at Export House, Cawsey Way, Woking, Surrey, GU21 6QX
(“Telewest”); 

  

	(3)	TELEWEST COMMUNICATIONS NETWORKS LIMITED a company incorporated in England (with company number 03071086) whose registered office is situated at Export House, Cawsey Way,
Woking, Surrey, GU21 6QX (the “New Lessee”). 

  
 WHEREAS: 
  

	(A)	By a sale and licence agreement (the “Sale and Licence Agreement”) dated 28 March 1996 and made between (1) Nortel Limited (the “Supplier”), (2)
Telewest and (3) R. B. Leasing (March) Limited (assigned to the Lessor on 1 March 1999), the Supplier agreed (inter alios) to sell certain equipment set out in the Sale and Licence Agreement and the Lessor agreed to purchase such equipment upon the
terms and conditions therein contained. 

  

	(B)	By a master leasing agreement (the “Master Leasing Agreement”) dated 28 March 1996 and made between (1) Telewest and (2) R.B. Leasing (March) Limited (assigned to
the Lessor on 1 March 1999), the Lessor agreed to lease to Telewest and Telewest agreed to take on lease certain equipment as set out in lease contracts to be issued from time to time pursuant to the terms of the Master Leasing Agreement upon the
terms and conditions therein contained. 

  

	(C)	By a lease contract (No. RBM 96-0017-0) (the “Lease Contract”) dated 28 March 1996 and made between (1) Telewest and (2) R.B. Leasing (March) Limited (assigned to
the Lessor on 1 March 1999), the Lessor agreed to lease to Telewest and Telewest agreed to take on lease certain equipment as listed in the schedule to the Lease Contract upon the terms and conditions therein contained. 

  

	(D)	As part of the proposed financial restructuring of Telewest and the Telewest group of companies generally (the “Restructuring”), the parties have agreed that (i)
the Lease Contract shall be amended and (ii) all the rights and obligations of Telewest under the Sale and Licence Agreement, the Master Leasing Agreement and the Lease Contract (the “Lease Documents”) shall be novated to and
assumed by the New Lessee. 

  

	(E)	This Agreement sets out the terms and conditions upon which (i) the Master Leasing Agreement and the Lease Contract shall be amended and (ii) the New 

  
  

 Page 11 

 Lessee shall be substituted for Telewest in relation to all the rights and obligations of Telewest under
the Lease Documents. 
  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	Interpretation and Definitions 

  
 1.1 In this Agreement, unless the context otherwise requires: 
  
 “Conditions Precedent Notice” means the notice in the form of Schedule 2 to this Agreement; 
  
 “Commitment Letter” means the commitment letter to be entered into between Telewest, the New Lessee, Telewest Global, Inc.,
Telewest UK Limited and the New Lessee’s senior lenders in connection with certain credit facilities being made available to the New Lessee; 
  
 “Effective Time” means the later of: (i) the date and time specified in the Conditions Precedent Notice on which the conditions referred to in clause 2.1
are satisfied, and (ii) the date and time on which an office copy of the court order sanctioning the Scheme is delivered to the registrar of companies for registration; 
  
 “Long Stop Date” means the later of: (i) the date falling 90 days after the date when the Commitment Letter is released
from escrow; and (ii) the date falling 60 days after the date of any vote by creditors to approve the Scheme or the related schemes of arrangement in respect of Telewest Finance (Jersey) Limited, subject to that vote occurring on or before the date
falling 75 days after the date when the Commitment Letter is released from escrow; 
  
 “Novated Lease Documents” means the Lease Documents as novated and amended by this Agreement; 
  
 “Scheme” means a scheme of arrangement between Telewest and certain of its creditors pursuant to section 425 of the Companies Act 1985; 
  
 “TCN Master Leasing Agreement” means the master leasing agreement dated 1
December 2000 made between Telewest Communications Networks Limited and Royal Bank Leasing Limited (“RBL”) for itself and as agent for W.&G. Lease Finance Limited and Lombard Corporate Finance (June 2) Limited; 
  
 “Waiver and Agreement Letter” means the waiver and agreement letter dated
                 2004 addressed to Telewest and the New Lessee from the Lessor and RBL for itself and as agent for W. & G. Lease Finance Limited and Lombard
Corporate Finance (June 2) Limited regarding the waiver of certain breaches by the New Lessee and Telewest of the Master Leasing Agreement, the Lease Contract, the TCN Master Leasing Agreement and certain other lease agreements between the New
Lessee and RBL as a result of the Restructuring. 
  

 Page 12 

	1.2	Interpretation 

  
 1.2.1 Terms and expressions defined in the Lease Contract and the Master Leasing Agreement shall have the same meanings in this Agreement (except where the context otherwise requires or such term is defined in this
Agreement). 
  
 1.2.2 References in the Lease Contract and the Master Leasing
Agreement to “this/the Lease Contract” shall, with effect from the Effective Time and unless the context otherwise requires, be references to the Lease Contract as amended and novated by this Agreement and words such as
“herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Lease Contract, shall be construed accordingly.

  
 1.2.3 References in the Master Leasing Agreement and the Lease Contract to
“this/the Master Agreement” shall, with effect from the Effective Time and unless the context otherwise requires, be references to the Master Leasing Agreement as amended and novated by this Agreement and words such as
“herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Master Leasing Agreement shall be construed
accordingly. 
  
 1.2.4 Where the context so admits words importing the singular
number only shall include the plural and vice versa and words importing the neuter gender shall include the masculine or feminine gender. 
  
 1.2.5 References to clauses, schedules and paragraphs shall (save where otherwise expressly stated) be construed as references to clauses, the schedules and paragraphs of
this Agreement. 
  
 1.2.6 References to (or to any specified provision of) this
Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being and as amended or supplemented from time to time in accordance with the terms thereof, or, as the case
may be, with the agreement of the relevant parties. 
  
 1.2.7 The words
“including” and “in particular” shall be construed as being by way of illustration or emphasis and shall not limit or prejudice the generality of any foregoing words. 
  
 1.2.8 References to a party shall be construed as including without limitation, references to their permitted assignees, transferees and
successors from time to time. 
  
 1.3 Clause headings and the table of contents
are inserted for ease of reference only and shall be ignored in the interpretation of this Agreement. 
  

	2.	Conditions 

  
 2.1 This Agreement shall be conditional upon and shall only become effective on the occurrence by the Long Stop Date of the later of: (i) the receipt by the Lessor of the documents and evidence specified in Schedule 1
in the form and substance 
  

 Page 13 

 satisfactory to the Lessor and (ii) the delivery of an office copy of the court order sanctioning the Scheme to the
registrar of companies for registration. 
  
 2.2 Upon and simultaneously with,
satisfaction or waiver of the conditions precedent specified in clause 2.1, the Conditions Precedent Notice shall be completed and executed by the Lessor. 
  
 2.3 The Lessor shall not be obliged to complete and execute the Conditions Precedent Notice if: (i) on the date on which it would otherwise have done so, the Lessor has
actual knowledge that an Event of Default (other than any specific Event of Default waived by the Lessor pursuant to the Waiver and Agreement Letter) has occurred and is continuing or that any of the representations and warranties in clause 3 are
untrue or incorrect as at such date as if made on such date with respect to the facts and circumstances existing at such date; or (ii) the Long Stop Date has occurred. 
  

	3.	Representations and Warranties 

  
 3.1 Each of Telewest and the New Lessee represents and warrants to the Lessor that: 
  
 3.1.1 Corporate power 
  

	(a)	it is duly incorporated and validly existing under the laws of England as a limited liability company and has power to carry on its business as it is now being conducted and to own
its property and other assets; 

  

	(b)	it has power to execute, deliver and perform its obligations under the Novated Lease Documents and this Agreement and all necessary corporate, shareholder and other action has been
taken to authorise the execution, delivery and performance of the same; and 

  

	(c)	the Novated Lease Documents and this Agreement constitute the legal, valid and binding obligations of Telewest and the New Lessee enforceable in accordance with their terms;

  
 3.1.2 No conflict with other obligations 
  
 the execution and delivery of, the performance of its obligations under, and compliance with
the provisions of, the Novated Lease Documents and this Agreement by Telewest and the New Lessee will not (i) contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which Telewest or the New Lessee
is subject, (ii) conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which Telewest or the New Lessee is a party or is subject or by which it or any of its property is
bound, (iii) contravene or conflict with any provision of Telewest’s or the New Lessee’s Memorandum and Articles of Association or (iv) result in the creation or imposition of or oblige Telewest or the New Lessee to create any encumbrance,
mortgage or charge on any of the undertakings, assets, rights or revenues of Telewest or the New Lessee; 
  

 Page 14 

	3.1.3  	Consents obtained 

  
 every consent, authorisation, licence or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required by Telewest or the New Lessee to authorise, or required by
Telewest or the New Lessee in connection with, the execution, delivery, validity, enforceability or admissibility in evidence of the Novated Lease Documents or this Agreement or the performance by Telewest or the New Lessee of its obligations under
the Novated Lease Documents or this Agreement has been obtained or made and is in full force and effect and there has been no default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same;

  

	3.1.4	  No filings required 

  
 it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of the Novated Lease Documents or this Agreement that it or any other
instrument be notarised, filed, recorded, registered or enrolled in any court, public office or elsewhere in the United Kingdom or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to the Novated
Lease Documents or this Agreement and the Novated Lease Documents and this Agreement are in proper form for their enforcement in the courts of England; and 
  

	3.1.5	  Financial Statements of the Telewest Group and the TCN Group 

  
 there has been no material adverse change in the financial position of the TCN Group, (as defined in the TCN Master Leasing Agreement) and
the Telewest Group (being Telewest and all its Affiliates and Associated Partnerships (as those terms are defined in the TCN Master Leasing Agreement)) from that set forth in the consolidated audited financial statements of the TCN Group and the
Telewest Group in respect of the financial year ended on 31 December 2003. 
  

	3.2	Repetition 

  
 The representations and warranties in clauses 3.1.1 to 3.1.3 inclusive and in clause 3.1.5 (insofar as it relates to the TCN Group) shall be deemed to be repeated by the New Lessee in accordance with the provisions of
clause 19.4(v) of the Master Leasing Agreement. 
  

	3.3	Additional Representation and Warranty of the New Lessee 

  
 In addition, the New Lessee represents and warrants to the Lessor that it has received signed originals or copies of the Lease Documents and either copies or originals of
all such other documents, approvals and opinions relating to the Lease Documents as it has required to see in connection with this Agreement, and it accepts all the terms thereof. 
  

 Page 15 

	4.	Novation 

  
 4.1 Telewest agrees to novate the Lease Documents (as amended by this Agreement) to the New Lessee and the Lessor consents to such novation, on and with effect from the Effective Time, upon the following terms and
conditions: 
  
 4.1.1 Telewest irrevocably and unconditionally releases and
discharges the Lessor from all its obligations and liabilities to Telewest under the Lease Documents (as amended by this Agreement); 
  
 4.1.2 the Lessor irrevocably and unconditionally releases and discharges Telewest from all its obligations and liabilities to the Lessor under the Lease Documents (as
amended by this Agreement); 
  
 4.1.3 the Lessor agrees with the New Lessee to
irrevocably and unconditionally assume all the obligations and liabilities of the Lessor to Telewest from which the Lessor has been released and discharged pursuant to clause 4.1.1 under or arising from the Lease Documents (as amended by this
Agreement); and 
  
 4.1.4 the New Lessee agrees with the Lessor to irrevocably and
unconditionally assume all the obligations and liabilities of Telewest to the Lessor from which Telewest has been released and discharged pursuant to clause 4.1.2 under or arising from the Lease Documents (as amended by this Agreement), so that with
effect from the Effective Time, the New Lessee shall be substituted in place of Telewest as a party to the Novated Lease Documents and the Novated Lease Documents shall on and with effect from the Effective Time be construed and treated, and the
Lessor and the New Lessee shall have rights and obligations under the Novated Lease Documents in all respects, as if the New Lessee was (and had at all times been) named therein instead of Telewest and all references to Telewest shall be construed
as references to the New Lessee. 
  

	5.	Amendments to the Master Leasing Agreement 

  
 5.1 The parties agree that on and with effect from the Effective Time the terms of the Master Leasing Agreement shall be amended to read as follows: 
  
 5.1.1 The definition of “Material Group Company” in Clause 1.1 shall be
deleted and replaced with the following definition of “Material Group Entity” and all references to Material Group Company in the Master Leasing Agreement and the Lease Contract shall accordingly be construed as references to
“Material Group Entity”: 
  
 “Material Group
Entity” means any member of the TCN Group which is: 
  

	(a)	an Affiliate or an Associated Partnership which is a Holding Company of a Material Group Entity; or 

  

	(b)	an Affiliate or an Associated Partnership whose Gross Assets or revenues (consolidated in the case of an Affiliate or Associated Partnership which itself has Affiliates) exceed 3
per cent of the Gross Assets or revenues of the TCN 

  

 Page 16 

 Group, in either case as calculated by reference to the latest audited accounts (consolidated or
unconsolidated, as the case may be) of such an Affiliate or Associated Partnership provided that: 
  

	 	(i)	in the case of an Affiliate or Associated Partnership acquired after the end of the financial period to which the latest relevant audited accounts relate, the reference to the
latest audited accounts for the purposes of the calculation above shall, until audited accounts for the financial period in which the acquisition is made are published, be deemed to be a reference to such first-mentioned accounts as if such an
Affiliate or Associated Partnership had been shown in such accounts by reference to its own latest audited accounts adjusted as deemed appropriate by the auditors of the Lessee, and a copy of the latest audited accounts of such an Affiliate or
Associated Partnership shall be delivered to the Owner contemporaneously with such acquisition; and 

  

	 	(ii)	if, in the case of any Affiliate or Associated Partnership which itself has Affiliates, no consolidated accounts are prepared and audited, its consolidated Gross Assets or its
consolidated revenues, as the case may be, shall be determined on the basis of pro forma consolidated accounts of the relevant Affiliate or Associated Partnership and its Affiliates prepared for this purpose by the auditors of the Lessee or the
auditors for the time being of the relevant Affiliate or Associated Partnership and a copy of such pro forma consolidated accounts of the relevant Affiliate or Associated Partnership and its Affiliates shall be delivered to the Owner
contemporaneously with such accounts being issued; or 

  

	(c)	an Affiliate or Associated Partnership not falling within sub-paragraph (b) above but which, as a result of any intra-group transfer or re-organisation would, adopting any of the
tests referred to in sub-paragraph (b) above and as if the accounts referred to in such sub-paragraph had been drawn up immediately following such transfer or re-organisation, be a Material Group Entity provided that such Affiliate or Associated
Partnership shall only become a Material Group Entity upon the completion of such transfer or re-organisation; or 

  

	(d)	an Affiliate of an Associated Partnership which holds a Licence which is required by applicable laws for the purposes of the business of any Material Group Entity falling within
paragraph (a) to (c) above; 

  
 but not including at any time, Cable
Finance Limited (registered in Jersey with number 61656) or Cable Guide Limited (registered no. 2025654); 
  
 5.1.2 The following definitions shall be added to Clause 1.1: 
  
 ““Affiliate” of a person means (a) any company or entity directly or indirectly controlled by such person (for which purpose “control” means either ownership of more than 50 per cent of
the voting share capital (or equivalent right of ownership) of such company or entity or power to direct its policies and management whether by 
  

 Page 17 

 contract or otherwise or the right to receive more than 50 per cent of any distributions (of whatever nature) made in
respect of the share capital or other ownership interests of such company or entity) and (b) (for the purposes only of the preparation of the financial statements and accounts to be prepared in accordance with generally accepted accounting
principles in the UK) in the case of a company incorporated in England and Wales or Scotland, a Subsidiary Undertaking (as such term is defined in section 258 of the Companies Act 1985); 
  
 “Associated Partnership” means, in relation to a company, a partnership that is controlled by that company, or by that
company and one or more of its Affiliates together, and a company shall be regarded as having control of a partnership for those purposes if (directly or indirectly, including through intermediate Associated Partnerships) it possesses, is entitled
to, or is entitled to acquire: 
  

	(a)	more than 50 per cent of the assets of the partnership; or 

  

	(b)	more than 50 per cent of the income of the partnership 

  
 or if it (directly or indirectly, including through intermediate Associated Partnerships) is able to direct how the affairs of the partnership are conducted; 

 
 “Gross Assets” means at any time, the aggregate amount of assets (if
appropriate, on a consolidated basis) which would be included as current assets, investments and fixed assets in a consolidated balance sheet of the relevant entity drawn up at such time; 
  
 “Licence” means such licences as are from time to time issued to any member of the TCN Group in accordance with
Telecommunications and Cable Laws; 
  
 “TCN Group” means the
Lessee all its Affiliates and all its Associated Partnerships from time to time; 
  
 “Telecommunications and Cable Laws” means the Telecommunications Act 1984, the Cable and Broadcasting Act 1984, the Broadcasting Act 1990 all as amended from time to time and all other laws, statutes, regulations and
judgments relating to telecommunications or cable television applicable to any member of the TCN Group, and/or the business carried on by, any member of the TCN Group (for the avoidance of doubt, not including laws, statutes, regulations or
judgments relating solely to consumer credit, data protection or intellectual property)”; 
  
 5.1.3 Clause 13.2 shall be amended by the addition of the following sub-clauses: 
  

	“(x)	if the Lessee ceases to be a wholly owned Affiliate of Telewest UK Limited; or 

  

	(xi)	if Telewest UK Limited ceases to be a wholly owned Affiliate of Telewest Global, Inc.”. 

  

 Page 18 

	6.	Amendments to the Lease Contract 

  
 6.1 The parties agree that on and with effect from the Effective Time the terms of the Lease Contract shall be amended to read as follows: 
  
 6.1.1 The provisions of clause 4(b) shall be amended to read as follows: 
  
 “The maximum Secondary Period shall be 5 years from 30 March 2006, the last day of the
period being 30 March 2011 or such other period as may be agreed between the parties”. 
  
 6.1.2 Clause 5 of Schedule II shall be amended to read as follows: 
  
 “If at any time (i) any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the U.S. Securities Exchange Act of 1934, as amended, but excluding any employee
benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the U.S. Securities Exchange Act of 1934, as amended), directly or indirectly, of thirty per cent or more of the Voting Stock or thirty per cent, or more of the economic interest in the equity (excluding any such interest represented by
preferred stock of such person or any debt instrument issued by such person, in each case which is not Voting Stock or exchangeable or convertible into Voting Stock) of Telewest Global, Inc.; or (ii) the first day on which a majority of the members
of the board of directors of Telewest Global, Inc. are not Continuing Directors or (iii) there is a merger, amalgamation, consolidation or any other similar arrangements involving the Lessee or any Affiliate of the Lessee not permitted by clause
11.1.2 of the Loan Agreement, the Lessee shall forthwith notify the Owner and provide the Owner with reasonable details thereof. The Owner shall following notification of such event consult in good faith with a view to determine the appropriate
course of action to adopt. Following the occurrence of such an event above (and irrespective of whether such event has been notified to the Owner by the Lessee) the Owner shall, be under no obligation to continue the leasing of the Goods and if the
Owner and the Lessee cannot agree on an alternative course of action to adopt within the period of twenty Business Days after the date on which the Owner becomes aware of such event, the Owner shall be entitled, in its absolute discretion, to
terminate the leasing of the Goods to the Lessee and the Lessee shall pay to the Owner the Termination Sum calculated in accordance with clause 13.3(b) of the Master Agreement (as modified above) and the other provisions of clause 13 of the Master
Agreement shall apply. 
  
 In this clause 5 unless the context otherwise requires:

  
 “Continuing Directors” means, as of any date of
determination, any member of the board of directors of Telewest Global, Inc. who: 
  

	(a)	was a member of the board of directors on the Recapitalisation Supplemental Deed Effective Date (as defined in the Loan Agreement); or 

  

 Page 19 

	(b)	was nominated for election or elected to the board with the affirmative vote of a majority of the Continuing Directors who were members of the board at the time of the nomination or
election. 

  
 “Loan Agreement” means the loan
agreement dated 16 March 2001 between among others the Lessee and various senior debt providers as amended and restated pursuant to a supplemental deed dated
                 2004. 
  
 “Voting Stock” of any person means all classes of capital stock or other interests of the person which ordinarily has voting power for the election of directors, managers or trustees (or persons
performing similar functions) of the person.” 
  
 6.1.3 The provisions of
Schedule V shall be deleted. 
  

	7.	Costs and Expenses 

  

	7.1	Costs and Expenses of the Lessor 

  
 The New Lessee shall pay on demand to the Lessor all reasonable costs and expenses (including legal fees) incurred by the Lessor in connection with the negotiation,
preparation and execution of this Agreement and/or any ancillary documentation and shall indemnify the Lessor against any liability owing by reason of any delay or omission by the New Lessee to pay such amounts. 
  

	7.2	Stamp and other duties 

  
 The New Lessee shall pay all stamp duty, documentary, registration or other like duties taxes or value added tax (including any stamp duty, duties, taxes or value added
tax payable by or assessed on the Lessor), if any, from time to time imposed on or in connection with this Agreement and/or any ancillary documentation and shall indemnify the Lessor against any liability arising by reason of any delay or omission
by the New Lessee to pay such stamp duty, duties or taxes. 
  

	8.	Notices 

  
 8.1 Every notice, request, demand or other communication under this Agreement shall: 
  
 8.1.1 be in writing delivered personally or by first class prepaid letter (airmail if applicable and available) or by telefax (confirmed in the case of a telefax, by
first class prepaid letter); 
  
 8.1.2 be deemed to have been received, in the
case of a letter, when delivered personally or 3 days after it has been put in the post and in the case of a telefax at the time of despatch with confirmation by the sender’s facsimile machine that the message has been received at the correct
telefax number (provided that if the date of delivery or despatch is not a Business Day in the country of the addressee or if the time of despatch of any telefax is after business hours in the country of the addressee (for this purpose
“business hour” means any hour between 9.00 a.m. and 5.00 p.m. on a Business Day) it shall be deemed to have been received at the opening of business 
  

 Page 20 

 on the next such Business Day) provided that non-service of any copy of a notice request, demand or other communication
shall not invalidate service of notice, request, demand or other communication; and 
  

	8.1.3	be sent 

  

	(a)	to the Lessor: 

  
 Royal Bank of Scotland (Industrial Leasing) Limited 
 The Quadrangle 
 The Promenade 
 Cheltenham 
 Gloucestershire GL50 1PX 
  
 Fax:               01242 224867 
 Attention:     Finance Director 
  

	(b)	to Telewest: 

  
 Telewest Communications plc 
 Export House

 Cawsey Way 
 Woking 

Surrey 
 GU21 6QX 
  
 Fax:
              020 7299 5488 
 Attention:
    General Counsel 
  
 with a copy to the
New Lessee: 
  
 Telewest Communications Networks Limited

 Export House 
 Cawsey Way

 Woking 
 Surrey 
 GU21 6QX 
  
 Fax:               020 7299 5488 
 Attention:     General Counsel 
  

	(c)	to the New Lessee: 

  
 Telewest Communications Networks Limited 
 Export House 
 Cawsey Way 
 Woking 
 Surrey 
 GU21
6QX 
  

 Page 21 

 Fax:               020 7299 5488

 Attention:     General Counsel 
  
 with a copy to Telewest: 
  
 Telewest Communications plc 
 Export House

 Cawsey Way 
 Woking 

Surrey 
 GU21 6QX 
  
 Fax:
              020 7299 5488 
 Attention:
    General Counsel 
  
 or to such other address or telefax
number as is notified by one party to the other under this Agreement. 
  

	9.	Miscellaneous 

  

	9.1	Continuation of Lease Documents Contracts and Master Leasing Agreement 

  

Save as amended and novated by this Agreement, the parties agree that the provisions of the Lease Documents and the Master Leasing Agreement shall continue in full
force and effect. 
  

	9.2	No Delay 

  
 No delay or omission by any party to exercise any right, power or remedy vested in it under this Agreement or by law shall impair such right, power or remedy, or be construed as a waiver of, or as an acquiescence in,
any default by either of the other parties hereto. 
  

	9.3	No Waiver 

  
 If any of the parties on any occasion agrees to waive any such right, power or remedy, such waiver shall not in any way preclude or impair any further exercise thereof or the exercise of any other right, power or
remedy. 
  

	9.4	Remedies Cumulative 

  
 The rights, powers and remedies of each party contained in this Agreement are cumulative and not exclusive of each other nor of any other rights, powers or remedies conferred by law, and may be exercised from time to
time and as often as that party may think fit. 
  

	9.5	Counterparts 

  
 This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts, each of which when so executed and delivered shall 
  

 Page 22 

 be an original but all such counterparts taken together shall be deemed to constitute one and the same instrument.

  

	9.6	Further Assurances 

  
 Each party hereto agrees from time to time to do and perform such other and further acts and execute and deliver any and all such other instruments as may be required by law or reasonably requested by any other party
to establish, maintain and protect the rights and remedies of the parties hereto and to carry out and effect the intent and purpose of this Agreement. 
  

	9.7	Illegality 

  
 If at any time one or more of the provisions of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law by which it may be governed or affected, the validity, legality and
enforceability of the remaining provisions shall not be in any way affected or impaired as a result. 
  

	9.8	Amendment 

  
 The provisions of this Agreement shall not be varied otherwise than by an instrument in writing executed by or on behalf of the parties hereto. 
  

	9.9	Effect as a Deed 

  
 Each of the parties hereto agree this Agreement is intended to take effect as a deed notwithstanding that the Lessor has executed it under hand only. 
  

	10.	Third Party Rights 

  
 No term of this Agreement is enforceable under the Contract (Rights of Third Parties) Act 1999 by a person who is not a party to it. 
  

	11.	Governing Law and Jurisdiction 

  
 11.1 This Agreement shall be governed by and construed in accordance with the laws of England and the parties hereto submit to the exclusive jurisdiction of the High
Court of Justice in England. 
  
 IN WITNESS whereof the parties hereto have
caused this Agreement to be duly executed the day and year first above written. 
  

 Page 23 

 Schedule 1 
 Conditions Precedent 
  
 1. Written
confirmation from the New Lessee’s insurance brokers that the New Lessee continues to be reflected as an insured party under the insurances required to be effected in respect of the Goods which are the subject matter of the Novated Lease
Documents. 
  
 2. Certified copies of resolutions duly passed by the Directors of
each of Telewest and the New Lessee evidencing approval of the transactions contemplated by this Agreement (including, in the case of the New Lessee), the performance of the transactions contemplated by the Novated Lease Documents) and authorising
the execution of the same. 
  
 3. Specimen signatures of the persons authorised in
the resolutions of the Board of Directors referred to in (2) above if different from those delivered in relation to the Lease Documents. 
  
 4. A copy, certified as a true copy by a Director of each of Telewest and the New Lessee, of all consents, authorisations, licences and approvals required by Telewest and
the New Lessee to authorise, or required by Telewest and the New Lessee in connection with, the execution, delivery, validity, enforceability and admissibility in evidence of this Agreement and the Novated Lease Documents and the performance by
Telewest and the New Lessee of its obligations under this Agreement and the Novated Lease Documents. 
  
 5. A copy, certified a true copy by a Director of Telewest of the most recent audited financial statements of Telewest and the most recent audited consolidated financial statements of the Telewest Group (as described
in clause 3.1.5 of this Agreement). 
  
 6. A copy, certified a true copy by a
Director of the New Lessee, of the most recent audited financial statements of the New Lessee and the most recent audited consolidated financial statements of the TCN Group (as defined in the TCN Master Leasing Agreement). 
  
 7. An office copy of the court order sanctioning the Scheme, the terms of which court order
confirm that an undertaking has been given by the directors of Telewest at the court hearing to sanction the Scheme that the Scheme will not be made effective unless and until the directors of Telewest are satisfied that the New Lessee and various
senior debt providers have entered into amended and restated facility and security documents and that the Recapitalisation Supplemental Deed Effective Date (as that term is defined in such amended and restated facility agreement) has occurred or its
occurrence is conditional only upon the Scheme becoming effective by the delivery of an office copy of the relevant court order to the registrar of companies for registration. 
  
 8. Payment by the New Lessee of the default waiver fee referred to at Condition 4 of Schedule 1 of the Waiver and Agreement Letter.

  

 Page 24 

 9. Payment of all reasonable fees, costs and expenses (including legal fees) incurred by the Lessor in connection with
the negotiation, preparation and execution of this Agreement and/or any ancillary documentation up until the date five business days before the date the Scheme becomes effective. 
  
 10. A Deed of Novation duly entered into by each of Nortel Networks Optical Components Limited, Telewest, the New Lessee and the Lessor in
connection with (inter alia) the novation of all the rights and obligations of Telewest under the Sale and Licence Agreement to the New Lessee and the assumption of all such rights and obligations by the New Lessee. 
  

 Page 25 

 Schedule 2 
 Conditions Precedent Notice 
  
 Date:                              2004 
  

	To:	Telewest Communication plc (“Telewest”) 

 Export
House 
 Cawsey Way 
 Woking

 Surrey 
 GU21 6QX 

 
 Telewest Communications Networks Limited (“New Lessee”)

 Export House 
 Cawsey Way

 Woking 
 Surrey 
 GU21 6QX 
  
 Novation and Amendment Agreement dated [        ] 2004 (the “Agreement”) between Telewest, the New Lessee and Royal Bank of Scotland (Industrial Leasing) Limited

  
 Reference is made to clause 2 of the Agreement and to the conditions
precedent set out in Schedule 1 to the Agreement. 
  
 Royal Bank of Scotland
(Industrial Leasing) Limited hereby confirms that the conditions precedent referred to above have as at [            ] am/pm on the date of this notice been fulfilled or waived. 

 

	
	 
	
	

	 For and on behalf of
 ROYAL BANK OF SCOTLAND (INDUSTRIAL LEASING) LIMITED

  

 Page 26 

					
	SIGNED by	 	)	  	 
			
	for and on behalf of	 	)	  	 
	ROYAL BANK OF SCOTLAND	 	)	  	 
	(INDUSTRIAL LEASING) LIMITED	 	)	  	

			
	EXECUTED and DELIVERED	 	)	  	 
	as a DEED by	 	)	  	 
	TELEWEST COMMUNICATIONS PLC	 	)	  	

	 	 	 	  	Director
			
	 	 	 	  	

	 	 	 	  	Director/Secretary
			
	EXECUTED and DELIVERED	 	)	  	 
	as a DEED by	 	)	  	 
	TELEWEST COMMUNICATIONS	 	)	  	 
			
	LIMITED	 	)	  	

	 	 	 	  	Director
			
	 	 	 	  	

	 	 	 	  	Director/Secretary

  

 Page 27 

 Part B: Agreed form amendment agreement 
  
 DATED                                     
                   2004 

  
  

			
	ROYAL BANK LEASING LIMITED	  	(1)
		
	W. & G. LEASE FINANCE LIMITED	  	(2)
		
	LOMBARD CORPORATE FINANCE (JUNE 2) LIMITED	  	(3)
		
	TELEWEST COMMUNICATIONS NETWORKS LIMITED	  	(4)

  
  

  
 AMENDMENT AGREEMENT 
 relating to a Master Leasing Agreement 
 and ancillary documentation 
 dated 1 December 2000 
  

  
 

 
  

 Page 28 

 Contents 
  

					
	Clause	  	Page

	1	  	 Interpretation and Definitions
	  	31
			
	2	  	 Conditions
	  	33
			
	3	  	 Representations and Warranties
	  	33
			
	4	  	 Amendments to the Lease Contracts and Master Leasing Agreement
	  	34
			
	5	  	 Swap Breakage Costs Indemnity
	  	43
			
	6	  	 Costs and Expenses
	  	43
			
	7	  	 Notices
	  	44
			
	8	  	 Miscellaneous
	  	45
			
	9	  	 Third Party Rights
	  	46
			
	10	  	 Governing Law and Jurisdiction
	  	47
		
	Schedule 1 Conditions Precedent	  	48
		
	Schedule 2 Conditions Precedent Notice	  	49

  
  

 Page 29 

 THIS AMENDMENT AGREEMENT is dated              2004
and made BETWEEN: 
  

	(1)	ROYAL BANK LEASING LIMITED, a company incorporated in Scotland with company number SCO58013 whose registered office is situated at 42 St Andrew Square, Edinburgh EH2 2YE
(“RBL”); 

  

	(2)	W. & G. LEASE FINANCE LIMITED, a company incorporated in England with company number 1829405 whose registered office is situated at The Quadrangle, The Promenade,
Cheltenham, GL50 1PX (“W. & G. Lease Finance”); 

  

	(3)	LOMBARD CORPORATE FINANCE (JUNE 2) LIMITED, a company incorporated in England with company number 2162406 whose registered office is situated at The Quadrangle, The
Promenade, Cheltenham, GL50 1PX (“LCF (June 2)”) (together with W. & G. Lease Finance the “Lessors”); and 

  

	(4)	TELEWEST COMMUNICATIONS NETWORKS LIMITED, a company incorporated in England with company number 3071086 whose registered office is situated at Export House, Cawsey Way,
Woking, Surrey, GU21 6QX (the “Lessee”). 

  
 WHEREAS: 
  

	(A)	By a master leasing agreement (the “Master Leasing Agreement”) dated 1 December 2000 and made between the Lessee and RBL for itself and as agent for W. & G.
Lease Finance and W.&G. Equipment Leasing Limited, RBL agreed to lease to the Lessee and the Lessee agreed to take on lease certain equipment as set out in the Lease Contracts to be issued from time to time pursuant to the terms of the Master
Leasing Agreement upon the terms and conditions therein contained. 

  

	(B)	By (1) a lease contract (No. WF200-004-0) dated 8 December 2000 between W. & G. Lease Finance and the Lessee in respect of certain Goods as referred to therein (“Lease
Contract A”); (2) a lease contract (No. WF200-0012-0) dated 19 December 2000 between W. & G. Lease Finance and the Lessee in respect of certain Goods as referred to therein (“Lease Contract B”); (3) a lease contract
(No. WE200-001-0) dated 18 April 2001 between W. & G. Equipment Leasing Limited (assigned to LCF (June 2) on 28 February 2003) and the Lessee in respect of certain Goods as referred to therein (“Lease Contract C”); and (4) a
lease contract (No. WE200-004-0) dated 17 May 2001 between W. & G. Equipment Leasing Limited (assigned to LCF (June 2) on 28 February 2003) and the Lessee in respect of certain Goods as referred to therein (“Lease Contract D”)
(together the “Lease Contracts”) the Lessors agreed to lease to the Lessee and the Lessee agreed to take on lease the equipment set out in the Lease Contracts. 

  

	(C)	Pursuant to a Deed of Sale dated 28 February 2003 between W. & G. Equipment Leasing Limited as seller and LCF (June 2) as buyer together with certain deeds of sale, novation and
amendment entered into between W. & G. Equipment Leasing Limited as Seller and LCF (June 2) as buyer, also dated 

  

 Page 30 

 28 February 2003, W. & G. Equipment Leasing Limited agreed to sell part of its leasing business and
to assign absolutely and unconditionally all its rights, title, interest and benefits present and future in and under (inter alios) Lease Contract C and Lease Contract D (each as defined above). 
  

	(D)	As part of the proposed financial restructuring of Telewest Communications plc (“Telewest”) and the Telewest group of companies generally (the
“Restructuring”), the Lessee has requested and the Lessors and RBL have agreed to amend the Master Leasing Agreement and the Lease Contracts to the extent set out in this Agreement. 

  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	Interpretation and Definitions 

  

	1.1	Definitions 

  
 In this Agreement, unless the context otherwise requires: 
  
 “Conditions Precedent Notice” means the notice in the form of Schedule 2 to this Agreement; 
  
 “Commitment Letter” means the commitment letter to be entered into between Telewest, the Lessee, Telewest Global, Inc., Telewest UK Limited and the
Lessee’s senior lenders in connection with certain credit facilities being made available to the Lessee; 
  
 “Effective Time” means the later of (i) the date and time specified in the “Conditions Precedent Notice” on which the conditions referred to in clause 2.1 are satisfied, and (ii) the date
and time on which an office copy of the court order sanctioning the Scheme is delivered to the registrar of companies for registration; 
  
 “Long Stop Date” means the later of: (i) the date falling 90 days after the date when the Commitment Letter is released from escrow; and (ii) the date
falling 60 days after the date of any vote by creditors to approve the Scheme or the related schemes of arrangement in respect of Telewest Finance (Jersey) Limited, subject to that vote occurring on or before the date falling 75 days after the date
when the Commitment Letter is released from escrow; 
  
 “Telewest
Inc.” means Telewest Global, Inc. a Delaware corporation of 1209 Orange Street, Wilmington, Delaware, 19801, United States of America; 
  
 “RBS Industrial” means Royal Bank of Scotland (Industrial Leasing) Limited of a company registered in Scotland with company number SC63190 whose
registered office is at 42 St Andrew Square, Edinburgh, EH2 2YE; 
  
 “RBS
Industrial Lease” means the lease contract dated 28 March 1996, and made between Telewest and R.B. Leasing (March) Limited (assigned to RBS Industrial on 1 March, 1999) entered into pursuant to a master leasing agreement dated 28 March
1996; 
  

 Page 31 

 “Scheme” means a scheme of arrangement between Telewest and certain of its creditors pursuant to section
425 of the Companies Act 1985; and 
  
 “Waiver and Agreement
Letter” means the waiver and agreement letter dated                  addressed to the Lessee, RBS Industrial and RBL for itself and as agent for W. & G.
Lease Finance and LCF (June 2) regarding the waiver of certain breaches by the Lessee and Telewest of the Master Leasing Agreement, the Lease Contracts and certain other lease agreements between Telewest and RBS Industrial as a result of the
Restructuring. 
  

	1.2	Interpretation 

  
 1.2.1 Terms and expressions defined in the Lease Contracts and Master Leasing Agreement shall have the same meanings when used in this Agreement (except where the context otherwise requires or such term is defined in
this Agreement). 
  
 1.2.2 References in the Lease Contracts and the Master
Leasing Agreement to “this/the Lease Contract” shall, with effect from the Effective Time and unless the context otherwise requires, be references to the Lease Contracts as amended by this Agreement and words such as
“herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Lease Contracts, shall be construed accordingly.

  
 1.2.3 References in the Master Leasing Agreement and the Lease Contracts to
“this/the Master Agreement” shall, with effect from the Effective Time and unless the context otherwise requires, be references to the Master Leasing Agreement as amended by this Agreement and words such as
“herein”, “hereof”, “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Master Leasing Agreement shall be construed
accordingly. 
  
 1.2.4 Where the context so admits words importing the singular
number only shall include the plural and vice versa and words importing the neuter gender shall include the masculine or feminine gender. 
  
 1.2.5 References to clauses, schedules and paragraphs shall (save where otherwise expressly stated) be construed as references to clauses, the schedules and paragraphs of
this Agreement. 
  
 1.2.6 References to (or to any specified provision of) this
Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being and as amended or supplemented from time to time in accordance with the terms thereof, or, as the case
may be, with the agreement of the relevant parties. 
  
 1.2.7 The words
“including” and “in particular” shall be construed as being by way of illustration or emphasis and shall not limit or prejudice the generality of any foregoing words. 
  
 1.2.8 References to a party shall be construed as including, without limitation, references to their permitted assignees, transferees and
successors from time to time. 
  

 Page 32 

 1.3 Clause headings and the table of contents are inserted for ease of reference only and shall be ignored in the
interpretation of this Agreement. 
  

	2.	Conditions 

  
 2.1 This Agreement shall be conditional upon and shall only become effective on the occurrence by the Long Stop Date of the later of: (i) the receipt by each Lessor and RBL of the documents and evidence specified in
Schedule 1 in the form and substance satisfactory to each Lessor and RBL, and (ii) the delivery of an office copy of the court order sanctioning the Scheme to the registrar of companies for registration. 
  
 2.2 Upon and simultaneously with, satisfaction or waiver of the conditions precedent
specified in clause 2.1, the Conditions Precedent Notice shall be completed and executed by each Lessor and RBL. 
  
 2.3 The Lessors and RBL shall not be obliged to complete and execute the Conditions Precedent Notice if: (i) on the date on which it would otherwise have done so, the
Lessors and RBL have actual knowledge that an Event of Default (other than any specific Event of Default waived by RBL (acting for itself and as agent for the Lessors) pursuant to the Waiver and Agreement Letter) has occurred and is continuing or
that any of the representations and warranties set out in clause 3 are untrue or incorrect as at such date as if made on such date with respect to the facts and circumstances existing at such date; or (ii) the Long Stop Date has occurred.

  

	3.	Representations and Warranties 

  
 3.1 The Lessee represents and warrants to each Lessor and RBL that: 
  

	3.1.1	Corporate power 

  

	(a)	the Lessee is duly incorporated and validly existing under the laws of England as a limited liability company and has power to carry on its business as it is now being conducted and
to own its property and other assets; 

  

	(b)	the Lessee has power to execute, deliver and perform its obligations under this Agreement and the Lease Contracts, as amended by this Agreement, and all necessary corporate,
shareholder and other action has been taken to authorise the execution, delivery and performance of the same; and 

  

	(c)	this Agreement and the Lease Contracts, as amended by this Agreement, constitute legal, valid and binding obligations of the Lessee enforceable in accordance with their terms;

  

	3.1.2	No conflict with other obligations 

  
 the execution and delivery of, the performance of its obligations under, and compliance with the provisions of, this Agreement and the Lease Contracts as amended by this
Agreement, by the Lessee will not (i) contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which 
  

 Page 33 

 the Lessee is subject, (ii) conflict with, or result in any breach of any of the terms of, or constitute a default under,
any agreement or other instrument to which the Lessee is a party or is subject or by which it or any of its property is bound, (iii) contravene or conflict with any provision of the Lessee’s Memorandum and Articles of Association or (iv) result
in the creation or imposition of or oblige the Lessee to create any encumbrance, mortgage or charge on any of the undertakings, assets, rights or revenues of the Lessee; 
  

	3.1.3	Consents obtained 

  
 every consent, authorisation, licence or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required by the Lessee to authorise, or required by the Lessee in
connection with, the execution, delivery, validity, enforceability or admissibility in evidence of this Agreement or the Lease Contracts as amended by this Agreement, or the performance by the Lessee of its obligations under this Agreement or the
Lease Contracts as amended by this Agreement, has been obtained or made and is in full force and effect and there has been no default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same;

  

	3.1.4	No filings required 

  
 it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Agreement or the Lease Contracts, as amended by this Agreement, that it or any other instrument be notarised,
filed, recorded, registered or enrolled in any court, public office or elsewhere in the United Kingdom or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to this Agreement or the Lease Contracts
as amended by this Agreement and this Agreement and the Lease Contracts as amended by this Agreement are in proper form for their enforcement in the courts of England; and 
  

	3.1.5	Financial Statements of TCN Group 

  
 there has been no material adverse change in the financial position of the TCN Group from that set forth in the consolidated audited financial statement of the TCN Group
in respect of the financial year ended on 31 December 2003. 
  

	3.2	Repetition 

  
 The representations and warranties in clauses 3.1.1 to 3.1.3 inclusive and in clause 3.1.5 shall be deemed to be repeated by the Lessee in accordance with the provisions of clause 19.4.5 of the Master Leasing
Agreement. 
  

	4.	Amendments to the Lease Contracts and Master Leasing Agreement 

  
 4.1 The parties agree that on and with effect from the Effective Time the terms of the Master Leasing Agreement and each Lease Contract shall be amended to read as
follows: 
  

 Page 34 

	4.1.1	Lease Contract A 

  

	(a)	Clause 3(a) shall be amended by the deletion of “8 December 2010” and its replacement with “30 September 2006”; 

  

	(b)	Clause 3(b) shall be amended to read as follows: 

  
 “3(b) The maximum Secondary Period shall be 5 Years from 30 September 2006, the last day of the period being 30 September 2011 or such other period
as may be agreed between the parties.”; 
  

	(c)	Clause 4(a) shall be amended by the deletion of the rental table and its replacement with the following: 

  

							
	 Number of Rentals

	  	 Rental Amount

	  	 Rental Period

	  	 Rental Payments
 Commencing
on

	 Two
	  	£   272,190.16	  	Semi-Annual in Arrears	  	9 December 2000
				
	 Followed by Two
	  	£   272,190.16	  	Semi-Annual in Arrears	  	9 December 2001
				
	 Followed by Two
	  	£   272,190.16	  	Semi-Annual in Arrears	  	9 December 2002
				
	 Followed by Two
	  	£   420,054.12	  	Semi-Annual in Arrears	  	9 December 2003
				
	 Followed by Two
	  	£   478,560.57	  	Semi-Annual in Arrears	  	9 December 2004
				
	 Followed by One
	  	£   532,027.59	  	Semi-Annual in Arrears	  	9 December 2005
				
	 Followed by One
	  	 £5,932,975.21
  
 (including a supplemental rental
 of £171,519.75)
	  	Final Payment	  	30 September 2006

  

	(d)	Clause 4(b) shall be amended by deleting the reference to “8 December 2010” and replacing it with “30 September 2006”; and 

  

	(e)	Clause 5 of Schedule II shall be amended to read as follows: 

  
 “5. If at any time (i) any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the U.S. Securities
Exchange Act of 1934, as amended, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the U.S. Securities Exchange Act of 1934, as amended), directly or indirectly, of thirty per cent or more of the Voting Stock or thirty per cent, or more of the economic
interest in the equity (excluding any such interest represented by preferred stock of such person or any debt instrument issued by such person, in each case which is not Voting Stock or exchangeable or convertible into Voting Stock) of 

 

 Page 35 

 Telewest Global, Inc.; or (ii) the first day on which a majority of the members of the board of directors
of Telewest Global, Inc. are not Continuing Directors or (iii) there is a merger, amalgamation, consolidation or any other similar arrangements involving the Lessee or any Affiliate of the Lessee not permitted by clause 11.1.2 of the Loan Agreement,
the Lessee shall forthwith notify the Owner and provide the Owner with reasonable details thereof. The Owner shall following notification of such event consult in good faith with a view to determine the appropriate course of action to adopt.
Following the occurrence of such an event above (and irrespective of whether such event has been notified to the Owner by the Lessee) the Owner shall, be under no obligation to continue the leasing of the Goods and if the Owner and the Lessee cannot
agree on an alternative course of action to adopt within the period of twenty Business Days after the date on which the Owner becomes aware of such event, the Owner shall be entitled, in its absolute discretion, to terminate the leasing of the Goods
to the Lessee and the Lessee shall pay to the Owner the Termination Sum calculated in accordance with clause 13.3(b) of the Master Agreement (as modified above) and the other provisions of clause 13 of the Master Agreement shall apply. 

 
 “Continuing Directors” means, as of any date of
determination, any member of the board of directors of Telewest Global, Inc. who: 
  

	 	(a)	was a member of the board of directors on the Recapitalisation Supplemental Deed Effective Date (as defined in the Loan Agreement); or 

  

	 	(b)	was nominated for election or elected to the board with the affirmative vote of a majority of the Continuing Directors who were members of the board at the time of the nomination or
election. 

  
 “Loan Agreement”
means the loan agreement dated 16 March 2001 between among others the Lessee and various senior debt providers as amended and restated pursuant to a supplemental deed dated          2004. 
  
 “Voting Stock” of any person means all classes of capital
stock or other interests of the person which ordinarily has voting power for the election of directors, managers or trustees (or persons performing similar functions) of the person.”. 
  

	(f)	The parties agree that, notwithstanding any of the provisions of the Master Leasing Agreement and Lease Contract A, the supplementary rental element of £171,519.75 which forms
part of the final rental payable on 30 September 2006 under Lease Contract A pursuant to Clause 4.1.1(c) of this Agreement shall not be discounted in any way should a Termination Amount and/or a Termination Sum, as the case may be, become payable by
the Lessee under the terms of the Master Leasing Agreement and Lease Contract A. 

  

 Page 36 

	4.1.2	Lease Contract B 

  

	(a)	Clause 3(a) shall be amended by the deletion of “19 December 2010” and its replacement with “30 September 2006”; 

  

	(b)	Clause 3(b) shall be amended to read as follows: 

  
 “3(b) The maximum Secondary Period shall be 5 Years from 30 September 2006, the last day of this period being 30 September 2011 or such other period
as may be agreed between the parties.”; 
  

	(c)	Clause 4(a) shall be amended by the deletion of the rental table and its replacement with the following: 

  

							
	 Number of Rentals

	  	 Rental Amount

	  	 Rental Period

	  	 Rental Payments
 Commencing
on

	 Two
	  	£   142,041.90	  	Semi-Annual in Arrears	  	20 December 2000
				
	 Followed by Two
	  	£   142,041.90	  	Semi-Annual in Arrears	  	20 December 2001
				
	 Followed by Two
	  	£   142,041.90	  	Semi-Annual in Arrears	  	20 December 2002
				
	 Followed by Two
	  	£   219,204.42	  	Semi-Annual in Arrears	  	20 December 2003
				
	 Followed by Two
	  	£   249,735.89	  	Semi-Annual in Arrears	  	20 December 2004
				
	 Followed by One
	  	£   277,637.55	  	Semi-Annual in Arrears	  	20 December 2005
				
	 Followed by One
	  	 £3,087,071.03
  
 (including a supplemental rental
 of £89,161.39)
	  	Final Payment	  	30 September 2006

  

	(d)	Clause 4(b) shall be amended by deleting the reference to “19 December 2010” and replacing it with “30 September 2006”; and 

  

	(e)	Clause 5 of Schedule II shall be amended to read as follows: 

  
 “5. If at any time (i) any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the U.S. Securities
Exchange Act of 1934, as amended, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the U.S. Securities Exchange Act of 1934, as amended), directly or indirectly, of thirty per cent or more of the Voting Stock or thirty per cent, or more of the economic
interest in the equity (excluding any such interest represented by preferred stock of such person or any debt instrument issued by such person, in each case which is not Voting Stock or exchangeable or convertible into Voting Stock) of 

 

 Page 37 

 Telewest Global, Inc.; or (ii) the first day on which a majority of the members of the board of directors
of Telewest Global, Inc. are not Continuing Directors or (iii) there is a merger, amalgamation, consolidation or any other similar arrangements involving the Lessee or any Affiliate of the Lessee not permitted by clause 11.1.2 of the Loan Agreement,
the Lessee shall forthwith notify the Owner and provide the Owner with reasonable details thereof. The Owner shall following notification of such event consult in good faith with a view to determine the appropriate course of action to adopt.
Following the occurrence of such an event above (and irrespective of whether such event has been notified to the Owner by the Lessee) the Owner shall, be under no obligation to continue the leasing of the Goods and if the Owner and the Lessee cannot
agree on an alternative course of action to adopt within the period of twenty Business Days after the date on which the Owner becomes aware of such event, the Owner shall be entitled, in its absolute discretion, to terminate the leasing of the Goods
to the Lessee and the Lessee shall pay to the Owner the Termination Sum calculated in accordance with clause 13.3(b) of the Master Agreement (as modified above) and the other provisions of clause 13 of the Master Agreement shall apply. 

 
 “Continuing Directors” means, as of any date of
determination, any member of the board of directors of Telewest Global, Inc. who: 
  

	 	(a)	was a member of the board of directors on the Recapitalisation Supplemental Deed Effective Date (as defined in the Loan Agreement); or 

  

	 	(b)	was nominated for election or elected to the board with the affirmative vote of a majority of the Continuing Directors who were members of the board at the time of the nomination or
election. 

  
 “Loan Agreement”
means the loan agreement dated 16 March 2001 between among others the Lessee and various senior debt providers as amended and restated pursuant to a supplemental deed dated          2004. 
  
 “Voting Stock” of any person means all classes of capital
stock or other interests of the person which ordinarily has voting power for the election of directors, managers or trustees (or persons performing similar functions) of the person.”. 
  

	(f)	The parties agree that, notwithstanding any of the provisions of the Master Leasing Agreement and Lease Contract B, the supplementary rental element of £89,161.39 which forms
part of the final rental payable on 30 September 2006 under Lease Contract B pursuant to Clause 4.1.2(c) of this Agreement shall not be discounted in any way should a Termination Amount and/or a Termination Sum, as the case may be, become payable by
the Lessee under the terms of the Master Leasing Agreement and Lease Contract B. 

  

 Page 38 

	4.1.3	Lease Contract C 

  

	(a)	Clause 3(a) shall be amended by the deletion of “18 April 2011” and its replacement with “30 September 2006”; 

  

	(b)	Clause 3(b) shall be amended to read as follows: 

  
 “3(b) The maximum Secondary Period shall be 5 Years from 30 September 2006, the last day of the period being 30 September 2011 or such other period
as may be agreed between the parties.”; 
  

	(c)	Clause 4(a) shall be amended by the deletion of the rental table and its replacement with the following: 

  

							
	 Number of Rentals

	  	 Rental Amount

	  	 Rental Period

	  	 Rental Payments
 Commencing
on

	 Two
	  	£     93,565.19	  	Semi-Annual in Arrears	  	18 April 2001
				
	 Followed by Two
	  	£     93,565.19	  	Semi-Annual in Arrears	  	18 April 2002
				
	 Followed by Two
	  	£     93,565.19	  	Semi-Annual in Arrears	  	18 April 2003
				
	 Followed by Two
	  	£   144,393.33	  	Semi-Annual in Arrears	  	18 April 2004
				
	 Followed by Two
	  	£   164,504.88	  	Semi-Annual in Arrears	  	18 April 2005
				
	 Followed by One
	  	 £2,176,036.43
  
 (including a supplemental rental
 of £59,326.92)
	  	Final Payment	  	30 September 2006

  

	(d)	Clause 4(b) shall be amended by deleting the reference to “19 April 2011” and replacing it with “30 September 2006”; and 

  

	(e)	Clause 5 of Schedule II shall be amended to read as follows: 

  
 “5. If at any time (i) any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the U.S. Securities
Exchange Act of 1934, as amended, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the U.S. Securities Exchange Act of 1934, as amended), directly or indirectly, of thirty per cent or more of the Voting Stock or thirty per cent, or more of the economic
interest in the equity (excluding any such interest represented by preferred stock of such person or any debt instrument issued by such person, in each case which is not Voting Stock or exchangeable or convertible into Voting Stock) of Telewest
Global, Inc.; or (ii) the first day on which a majority of the members of the board of directors of Telewest Global, Inc. are not Continuing Directors 
  

 Page 39 

 or (iii) there is a merger, amalgamation, consolidation or any other similar arrangements involving the
Lessee or any Affiliate of the Lessee not permitted by clause 11.1.2 of the Loan Agreement, the Lessee shall forthwith notify the Owner and provide the Owner with reasonable details thereof. The Owner shall following notification of such event
consult in good faith with a view to determine the appropriate course of action to adopt. Following the occurrence of such an event above (and irrespective of whether such event has been notified to the Owner by the Lessee) the Owner shall, be under
no obligation to continue the leasing of the Goods and if the Owner and the Lessee cannot agree on an alternative course of action to adopt within the period of twenty Business Days after the date on which the Owner becomes aware of such event, the
Owner shall be entitled, in its absolute discretion, to terminate the leasing of the Goods to the Lessee and the Lessee shall pay to the Owner the Termination Sum calculated in accordance with clause 13.3(b) of the Master Agreement (as modified
above) and the other provisions of clause 13 of the Master Agreement shall apply. 
  
 “Continuing Directors” means, as of any date of determination, any member of the board of directors of Telewest Global, Inc. who: 
  

	 	(a)	was a member of the board of directors on the Recapitalisation Supplemental Deed Effective Date (as defined in the Loan Agreement); or 

  

	 	(b)	was nominated for election or elected to the board with the affirmative vote of a majority of the Continuing Directors who were members of the board at the time of the nomination or
election. 

  
 “Loan Agreement”
means the loan agreement dated 16 March 2001 between among others the Lessee and various senior debt providers as amended and restated pursuant to a supplemental deed dated          2004. 
  
 “Voting Stock” of any person means all classes of capital
stock or other interests of the person which ordinarily has voting power for the election of directors, managers or trustees (or persons performing similar functions) of the person.”. 
  

	(f)	The parties agree that, notwithstanding any of the provisions of the Master Leasing Agreement and Lease Contract C, the supplementary rental element of £59,326.92 which forms
part of the final rental payable on 30 September 2006 under Lease Contract C pursuant to Clause 4.1.3(c) of this Agreement shall not be discounted in any way should a Termination Amount and/or a Termination Sum, as the case may be, become payable by
the Lessee under the terms of the Master Leasing Agreement and Lease Contract C. 

  

	4.1.4	Lease Contract D 

  

	(a)	Clause 3(a) shall be amended by the deletion “17 May 2011” and its replacement with “30 September 2006”; 

  

 Page 40 

	(b)	Clause 3(b) shall be amended to read as follows: 

  
 “3(b) The maximum Secondary Period shall be 5 Years from 30 September 2006, the last day of the period being 30 September 2011 or such other period
as may be agreed between the parties.”; 
  

	(c)	Clause 4(a) shall be amended by the deletion of the rental table and its replacement with the following: 

  

							
	 Number of Rentals

	 	 Rental Amount

	 	 Rental Period

	 	 Rental Payments
 Commencing
on

	 Two
	 	£328,058.10	 	Semi-Annual in Arrears	 	17 May 2001
	 Followed by Two
	 	£328,058.10	 	Semi-Annual in Arrears	 	17 May 2002
	 Followed by Two
	 	£328,058.10	 	Semi-Annual in Arrears	 	17 May 2003
	 Followed by Two
	 	£506,271.65	 	Semi-Annual in Arrears	 	17 May 2004
	 Followed by Two
	 	£576,786.73	 	Semi-Annual in Arrears	 	17 May 2005
	 Followed by One
	 	 £7,607,832.12
  
 (including a supplemental rental of £208,591.79)
	 	Final Payment	 	30 September 2006

  

	(d)	Clause 4(b) shall be amended by deleting the reference to “17 May 2011” and replacing it with “30 September 2006”; and 

  

	(e)	Clause 5 of Schedule II shall be amended to read as follows: 

  
 “5. If at any time (i) any “person” or “group” (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the U.S. Securities
Exchange Act of 1934, as amended, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the U.S. Securities Exchange Act of 1934, as amended), directly or indirectly, of thirty per cent or more of the Voting Stock or thirty per cent, or more of the economic
interest in the equity (excluding any such interest represented by preferred stock of such person or any debt instrument issued by such person, in each case which is not Voting Stock or exchangeable or convertible into Voting Stock) of Telewest
Global, Inc.; or (ii) the first day on which a majority of the members of the board of directors of Telewest Global, Inc. are not Continuing Directors or (iii) there is a merger, amalgamation, consolidation or any other similar arrangements
involving the Lessee or any Affiliate of the Lessee not permitted by clause 11.1.2 of the Loan Agreement, the Lessee shall forthwith notify the Owner and provide the Owner with reasonable details thereof. The Owner shall following notification of
such event consult in good faith with a view to 
  

 Page 41 

 determine the appropriate course of action to adopt. Following the occurrence of such an event above (and
irrespective of whether such event has been notified to the Owner by the Lessee) the Owner shall, be under no obligation to continue the leasing of the Goods and if the Owner and the Lessee cannot agree on an alternative course of action to adopt
within the period of twenty Business Days after the date on which the Owner becomes aware of such event, the Owner shall be entitled, in its absolute discretion, to terminate the leasing of the Goods to the Lessee and the Lessee shall pay to the
Owner the Termination Sum calculated in accordance with clause 13.3(b) of the Master Agreement (as modified above) and the other provisions of clause 13 of the Master Agreement shall apply. 
  
 “Continuing Directors” means, as of any date of
determination, any member of the board of directors of Telewest Global, Inc. who: 
  

	 	(a)	was a member of the board of directors on the Recapitalisation Supplemental Deed Effective Date (as defined in the Loan Agreement); or 

  

	 	(b)	was nominated for election or elected to the board with the affirmative vote of a majority of the Continuing Directors who were members of the board at the time of the nomination or
election. 

  
 “Loan Agreement”
means the loan agreement dated 16 March 2001 between among others the Lessee and various senior debt providers as amended and restated pursuant to a supplemental deed dated          2004. 
  
 “Voting Stock” of any person means all classes of capital
stock or other interests of the person which ordinarily has voting power for the election of directors, managers or trustees (or persons performing similar functions) of the person.”. 
  

	(f)	The parties agree that, notwithstanding any of the provisions of the Master Leasing Agreement and Lease Contract D, the supplementary rental element of £208,591.79 which forms
part of the final rental payable on 30 September 2006 under Lease Contract D pursuant to Clause 4.1.4(c) of this Agreement shall not be discounted in any way should a Termination Amount and/or a Termination Sum, as the case may be, become payable by
the Lessee under the terms of the Master Leasing Agreement and Lease Contract D. 

  

	4.1.5	Master Leasing Agreement 

  

	(a)	Clause 13.2 of the Master Leasing Agreement shall be amended such that all references to “Telewest” in clause 13.2 shall be construed as references to Telewest Global,
Inc. and Telewest UK Limited. 

  

	(b)	Clause 13.2.9(b) shall be amended to read as follows: 

  
 “the Lessee ceases to be a wholly owned Affiliate of Telewest UK Limited; or” 
  

 Page 42 

	(c)	A new clause 13.2.9(c) shall be introduced to read as follows: 

  
 “Telewest UK Limited ceases to be a wholly owned Affiliate of Telewest Global, Inc.; or” 
  

	(d)	Clause 19.3.1 of the Master Leasing Agreement shall be amended to read as follows: “prepare financial statements of TCN and consolidated financial statements of the TCN Group
in accordance with generally accepted accounting principles in the UK and cause such financial statements to be reported on by their respective auditors and deliver a copy thereof to the Owner, as soon as practicable but not later than 180 days
after the end of the financial year to which they relate.” 

  

	(e)	Clause 19.3.3(a) of the Master Leasing Agreement shall be amended to read as follows: “every document or announcement issued by Telewest Global, Inc. and Telewest UK Limited to
their shareholders generally or made available by Telewest Global, Inc. and Telewest UK Limited to the public where any such documentation relates to the financial position or prospects of Telewest Global, Inc., Telewest UK Limited or the TCN Group.

  

	5.	Swap Breakage Costs Indemnity 

  
 5.1 The Lessee shall irrevocably and unconditionally indemnify each of the Lessors and RBL against all losses, costs and expenses (including swap breakage costs) suffered
or incurred by either Lessor or RBL as a consequence of the acceleration of the Rental payments under each Lease Contract referred to in clause 4 above and more particularly set out in the revised Rental Tables at clauses 4.1.1(c), 4.1.2(c),
4.1.3(c) and 4.1.4(c). 
  
 5.2 Provided that the Lessee has duly performed all of
the terms and conditions of each Lease Contract and that no Event of Default has occurred: 
  
 5.2.1 the Lessee shall be entitled by prior written notice to the Owner not less than three months prior to 30 September 2006 to request an extension of the Primary Period which request shall be considered by the
Owner in its absolute discretion; 
  
 5.2.2 the Lessee shall be entitled to submit
a written proposal to the Owner not less than three months prior to 30 September 2006 regarding the mitigation of any of the swap breakage costs referred to in clause 5.1 above which request shall be considered by the Owner in its absolute
discretion. 
  

	6.	Costs and Expenses 

  

	6.1	Costs and Expenses of the Lessors and RBL 

  
 The Lessee shall pay on demand to each Lessor and RBL all reasonable costs and expenses (including legal fees) incurred by it in connection with the negotiation,
preparation and execution of this Agreement and/or any ancillary documentation and shall indemnify each Lessor and RBL against any liability owing by reason of any delay or omission by the Lessee to pay such amounts. 
  

 Page 43 

	6.2	Stamp and other duties 

  
 The Lessee shall pay all stamp, documentary, registration or other like duties, taxes or value added tax (including any stamp duty, duties, taxes or value added tax
payable by, or assessed on, any of W. & G. Lease Finance, LCF (June 2) or RBL, if any) from time to time imposed on or in connection with this Agreement and/or any ancillary documentation and shall indemnify each of W. & G. Lease Finance,
LCF (June 2) and RBL against any liability arising by reason of any delay or omission by the Lessee to pay such stamp duty, duties or taxes. 
  

	7.	Notices 

  
 7.1 Every notice, request, demand or other communication under this Agreement shall: 
  
 7.1.1 be in writing delivered personally or by first class prepaid letter (airmail if applicable and available) or by telefax (confirmed in the case of a telefax, by
first class prepaid letter); 
  
 7.1.2 be deemed to have been received, in the
case of a letter, when delivered personally or 3 days after it has been put in the post and in the case of a telefax at the time of despatch with confirmation by the sender’s facsimile machine that the message has been received at the correct
telefax number (provided that if the date of delivery or despatch is not a Business Day in the country of the addressee or if the time of despatch of any telefax is after business hours in the country of the addressee (for this purpose
“business hour” means any hour between 9.00 a.m. and 5.00 p.m. on a Business Day) it shall be deemed to have been received at the opening of business on the next such Business Day) provided that non-service of any copy of a notice request,
demand or other communication shall not invalidate service of notice, request, demand or other communication; and 
  
 7.1.3 be sent: 
  

	(a)	to RBL: 

  
 Royal Bank Leasing Limited 
 The Quadrangle 
 The Promenade 
 Cheltenham 
 Gloucestershire 
 GL50 1PX 
  
 Fax                01242 224867 
 Attention:     Finance Director 
  

	(b)	to W. & G. Lease Finance: 

  
 W. & G. Lease Finance Limited 
 The
Quadrangle 
 The Promenade 
  

 Page 44 

 Cheltenham 
 Gloucestershire 
 GL50 1PX 
  
 Fax                01242 224867 

Attention:     Finance Director 
  

	(c)	to LCF (June 2): 

  
 Lombard Corporate Finance (June 2) Limited 
 The Quadrangle 
 The Promenade 
 Cheltenham 
 Gloucestershire 
 GL50 1PX 
  
 Fax                01242 224867 
 Attention:     Finance Director 
  

	(d)	to the Lessee: 

  
 Telewest Communications Networks Limited 
 Export House 
 Cawsey Way 
 Woking 
 Surrey 
 GU21
6QX 
  
 Fax                020 7299 5488 
 Attention:     General Counsel 
  
 or to such other address or telefax number as is notified by one party to the other under this Agreement. 
  

	8.	Miscellaneous 

  

	8.1	Continuation of the Lease Contracts and Master Leasing Agreement 

  
 Save as amended by this Agreement, the parties agree that the provisions of the Lease Contracts and the Master Leasing Agreement shall continue in full force and effect.

  

	8.2	No Delay 

  
 No delay or omission by any party to exercise any right, power or remedy vested in it under this Agreement or by law shall impair such right, power or remedy, or be construed as a waiver of, or as an acquiescence in,
any default by either of the other parties hereto. 
  

 Page 45 

	8.3	No Waiver 

  
 If any of the parties on any occasion agrees to waive any such right, power or remedy, such waiver shall not in any way preclude or impair any further exercise thereof or the exercise of any other right, power or
remedy. 
  

	8.4	Remedies Cumulative 

  
 The rights, powers and remedies of each party contained in this Agreement are cumulative and not exclusive of each other nor of any other rights, powers or remedies conferred by law, and may be exercised from time to
time and as often as that party may think fit. 
  

	8.5	Counterparts 

  
 This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts taken
together shall be deemed to constitute one and the same instrument. 
  

	8.6	Further Assurances 

  
 Each party hereto agrees from time to time to do and perform such other and further acts and execute and deliver any and all such other instruments as may be required by law or reasonably requested by any other party
to establish, maintain and protect the rights and remedies of the parties hereto and to carry out and effect the intent and purpose of this Agreement. 
  

	8.7	Illegality 

  
 If at any time one or more of the provisions of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, by which it may be governed or affected the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired as a result. 
  

	8.8	Amendment 

  
 The provisions of this Agreement shall not be varied otherwise than by an instrument in writing executed by or on behalf of the parties hereto. 
  

	8.9	Effect as a Deed 

  
 Each of the parties hereto agree this Agreement is intended to take effect as a deed notwithstanding that the Lessors and RBL have executed it under hand only. 
  

	9.	Third Party Rights 

  
 No term of this Agreement is enforceable under the Contract (Rights of Third Parties) Act 1999 by a person who is not a party to it. 
  
  

 Page 46 

	10.	Governing Law and Jurisdiction 

  
 This Agreement shall be governed and construed in accordance with the laws of England and the parties hereto submit to the exclusive jurisdiction of the High Court of
Justice in England. 
  
 IN WITNESS whereof the parties hereto have caused
this Agreement to be duly executed the day and year first above written. 
  

 Page 47 

 Schedule 1 
 Conditions Precedent 
  
 1. Certified
copies of resolutions duly passed by the Directors of the Lessee evidencing approval of the transactions contemplated by this Agreement (including the performance of the transactions contemplated by this Agreement) and authorising the execution of
the same. 
  
 2. Specimen signatures of the persons authorised in the resolutions
of the Board of Directors referred to in 1 above if different from those delivered in relation to the Lease Contracts. 
  
 3. A copy, certified as a true copy by a Director of the Lessee, of all consents, authorisations, licences and approvals required by the Lessee to authorise, or required
by the Lessee in connection with, the execution, delivery, validity, enforceability and admissibility in evidence of this Agreement and/or the Lease Contracts as amended by this Agreement and the performance by the Lessee of its obligations under
this Agreement and/or the Lease Contracts as amended by this Agreement. 
  
 4. A
copy, certified a true copy by a Director of the Lessee, of the most recent audited financial statements of the Lessee and the most recent audited consolidated financial statements of the TCN Group. 
  
 5. An office copy of the court order sanctioning the Scheme, the terms of which court order
confirm that an undertaking has been given by the directors of Telewest at the court hearing to sanction the Scheme that the Scheme will not be made effective unless and until the directors of Telewest are satisfied that TCN and various senior debt
providers have entered into amended and restated facility and security documents and that the Recapitalisation Supplemental Deed Effective Date (as that term is defined in such amended and restated facility agreement) has occurred or its occurrence
is conditional only upon the Scheme becoming effective by the delivery of an office copy of the relevant court order to the registrar of companies for registration. 
  
 6. Payment by the Lessee of the default waiver fee referred to at Condition 4 of Schedule 1 of the Waiver and Agreement Letter. 

 
 7. Payment of all reasonable fees, costs and expenses (including legal fees) incurred by
the Lessors and RBL in connection with the negotiation, preparation and execution of this Agreement and/or any ancillary documentation up until the day five business days before the date the Scheme becomes effective. 
  

 Page 48 

 Schedule 2 
 Conditions Precedent Notice 
  

	To:	Telewest Communications Networks Limited (the “Lessee”) 

 Export House 
 Cawsey Way 
 Woking 
 Surrey GU21 6QX 
  
 Date:                 2004 
  
 Amendment Agreement dated [    ] 2004 (the “Agreement”)
between the Lessee and W. & G. Lease Finance Limited, Lombard Corporate Finance (June 2) Limited and Royal Bank Leasing Limited dated 1 December 2000 
  
 Reference is made to clause 2 of the Agreement and to the conditions precedent set out in Schedule 1 to the Agreement. 
  
 Each of W. & G. Lease Finance Limited, Lombard Corporate Finance (June 2) Limited and
Royal Bank Leasing Limited hereby confirms that the conditions precedent referred to above have, as at [                        ]
am/pm on the date of this notice been, fulfilled or waived. 
  

	
	
	 
	

	 For and on behalf of
 ROYAL BANK LEASING
LIMITED

  

	
	
	 
	

	 For and on behalf of
 W. & G. LEASE FINANCE
LIMITED

  

	
	
	 
	

	 For and on behalf of
 LOMBARD CORPORATE FINANCE
(JUNE 2) LIMITED

  

 Page 49 

							
	 SIGNED by
  
	 	 )
 )
 )
 )
	 	 	 	 
	 for and on behalf of
 ROYAL BANK LEASING
LIMITED
	 	 	 	 
	 	 	 	 	 	 	

  

							
	 SIGNED by
  
	 	 )
 )
 )
 )
	 	 	 	 
	 for and on behalf of
 W. & G. LEASE FINANCE
LIMITED
	 	 	 	 
	 	 	 	 	 	 	

  

							
	 SIGNED by
  
	 	 )
 )
 )
 )
 )
	 	 	 	 
	 for and on behalf of
 LOMBARD CORPORATE
FINANCE
 (JUNE 2) LIMITED
	 	 	 	 
	 	 	 	 	 	 	

  

													
	 EXECUTED and DELIVERED
 as a DEED
by
 TELEWEST COMMUNICATIONS
 NETWORKS
LIMITED
	 	 	 	 )
 )
 )
 )
	 	 	 	 	 	 	 	Director
	 	 	 	 	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Director/
Secretary
	 	 	 	 	 	 	 	 	 	 	
	 	 

  

 Page 50 

 Schedule 3 
  
 Schedule 4 to the draft supplemental deed dated 9 March 2004 to be entered into 
 between TCN and various senior debt providers 
  
 Part A—Waivers and consents to the Finance Documents 
 on the Transfer Effective Date 
  
 Composite Guarantee and Debenture dated 16 March 2001 (the “Composite Guarantee and Debenture”) 
  
 1. Clause 16.3.2 (Subsidiaries) in respect of the representation given in Clause 16.3.2 (Subsidiaries) of the Composite Guarantee and Debenture. 

 
 2. Clause 16.3.4 (Repetition) on an ongoing basis until the Recapitalisation
Supplemental Deed Effective Date in respect of the representation given in Clause 16.3.2 (Subsidiaries) of the Composite Guarantee and Debenture. 
  
 Telewest Subordination Deed dated 16 March 2001 
  
 3. Clause 2.1.3 (Restricted Payments) in respect of the cancellation of certain intercompany loans owed by TCN to Telewest as set out in Part 1, A, Step Number 1
of the agreed form steps and documentation paper produced by Freshfields Bruckhaus Deringer (the “Steps Paper”). 
  
 Telewest Assignment of Loans dated March 2001 
  
 4. Clause 2.2.1 (Restrictions on dealing with Assigned Assets) in respect of the Encumbrance in favour of the New Security Trustee to be created by Telewest UK
over the Assigned Assets. 
  
 5. Clause 2.2.2 (Restrictions on dealing with
Assigned Assets) and clause 10.6.2 (Restriction of the Company’s rights) in respect of (i) the transfer as set out in Part 1, B, Step Number 9 of the Steps Paper by Telewest of, inter alia, all the Telewest Loans to Telewest
UK which is itself not a TCN Entity and (ii) the earlier release of some of the intercompany debt owed by TCN to Telewest as set out in Part 1, A, Step Number 1 of the Steps Paper. 
  
 6. Clause 10.6.1 (Restriction of the Company’s rights) in respect of the indemnity from Telewest UK contained in clause
[9] of the Transfer Agreement (in its form as at the Transfer Effective Date). 
  
 7. Clause 13.1.10 (Ownership of Assigned Assets) in respect of (i) the transfer by Telewest of the Assigned Assets to Telewest UK as set out in Part 1, B, Step Number 9 of the Steps Paper and (ii) the Encumbrance created by Telewest
UK in favour of the New Security Trustee over the Assigned Assets. 
  

 Page 51 

 Telewest Charge over Shares of Telewest Communications Networks Limited dated 16 March 2001 (“Charge over
Shares”) 
  
 8. Clause 3.1.1 (Title to Shares) in respect of the
transfer by Telewest of, inter alia, all the Shares and Secured Property to Telewest UK as set out in Part 1, B, Step Number 9 of the Steps Paper. 
  
 9. Clause 3.2 (Repetition of representations and warranties) on an ongoing basis in respect of waiver of Clause 3.1.1 of the Charge over Shares. 
  
 10. Clause 4.2.3(a) (Negative undertakings) in respect of the Encumbrance to be
created by Telewest UK in favour of the New Security Trustee over the Secured Property. 
  
 11. Clause 4.2.3(b) (Negative undertakings) in respect of Telewest UK being registered as holder of the Secured Property pursuant to the transfer by Telewest of the Secured Property to Telewest UK under Part 1, B, Step Number 9 of
the Steps Paper. 
  
 12. Clause 4.2.3(c) (Negative undertakings) in respect
of the transfer by Telewest of the Secured Property to Telewest UK which is itself not a directly, wholly owned subsidiary of Telewest under Part 1, B, Step Number 9 of the Steps Paper. 
  
 13. Clause 4.2.3(g) (Negative undertakings) in respect of the transfer by Telewest of the Secured Property to Telewest UK.

  
 14. Clause 11.6.1 (Restriction of the Shareholder’s rights) in
respect of the indemnity from Telewest UK contained in clause [9] of the Transfer Agreement (in its form as at the Transfer Effective Date). 
  
 15. Clause 11.6.2 (Restriction of the Shareholder’s rights) in respect of (i) the transfer as set out in Part 1, B, Step Number 9 of the Steps Paper by
Telewest of, inter alia, all the Telewest Loans to Telewest UK which is itself not a TCN Entity and (ii) the earlier release of some of the intercompany debt owed by TCN to Telewest as set out in Part 1, A, Step Number 1 of the Steps Paper.

  
 Original Credit Agreement 
  
 1. Clause 12.1.1 (Negative Pledge) in respect of the Encumbrances to be created by
the TCN Entities in favour of the New Security Trustee under the New Restructuring Hedge Security Documents. 
  
 2. Clause 12.1.3 (Disposals) in respect of the novations of intercompany debts referred to in Part 1, A, Step Numbers 2-8 (inclusive). 
  

 Page 52 

 Part B—Waivers and consents to the Finance Documents 
 on the Equitisation Effective Date 
  
 Original Credit Agreement/Charge over Shares (as defined in Schedule 4 Part A above) 
  
 1. Clause 12.1.6 (Issue of Shares) of the Original Credit Agreement/Clause 4.2.3(d) of the Charge over Shares in respect of TCN
issuing new shares to Telewest UK which is not itself a TCN Entity as set out in Part 1, C, Steps Number 13 and 14 of the Steps Paper. 
  
 Telewest Assignment of Loans dated 16 March 2001 
  
 2. Clause 2.2.2 (Restrictions on dealing with the Assigned Assets) in respect of the equitisation of various Telewest Loans as set out in Part 1, C, Steps Number
13 and 14 of the Steps Paper. 
  
 3. Clause 3.1.3 (Variation, amendment
etc) in respect of the equitisation of various Telewest Loans as set out in Part 1, C, Steps Number 13 and 14 of the Steps Paper. 
  

 Page 53 

 Part C—Waivers and consents to the Finance Documents 
 on the Recapitalisation Supplemental Deed Effective Date 
  
 Events of default relating to events surrounding the proposed recapitalisation, readjustment, rescheduling and/or reorganisation of the share capital of Telewest
and/or any Indebtedness of Telewest (the “Recapitalisation”). 
  
 Original Credit Agreement 
  
 1. Clause 14.1.2 (Breach of
certain obligations) in respect of TCN’s failure to notify the Agent of any likely Default or breach of clause 13 (Financial Covenants) and in respect of TCN’s failure to meet the financial covenants at Clause 13.1.1 (Total TCN
Group Senior Debt/Consolidated Annualised TCN Group Net Operating Cash Flow and at Clause 13.1.3 (TCN GroupCash Paying Debt Interest Cover) for the Quarterly Periods ending on December 31 2002, 31 March 2003 and 30 September 2003. 

 
 2. Clause 14.1.4 (Misrepresentation) in respect of the Recapitalisation to the
extent that it has resulted in a breach of the representation at Clause 10.1.7 (No Litigation) in respect of any claims relating to the Recapitalisation which have been made against Telewest by, inter alios, its creditors including
without limitation the legal process specified at paragraph 6 below; 
  
 3. Clause
14.1.6 (Cross-default) in respect of the failure by Telewest to meet certain interest payments when due under its high yield bond Indebtedness and in respect of the resulting cross default of certain hedging agreements including, inter alia,
(a) the agreement dated 14 October 1997 between The Royal Bank of Scotland plc and Telewest and the schedule and confirmations thereto; (b) the agreement dated 8 October 1998 between JPMorgan Chase Bank and Telewest and the schedule and
confirmations thereto; (c) the agreement dated 21 August 2000 between The Bank of New York and Telewest and the schedule and confirmations thereto and certain Lease Agreements entered into by Telewest or by TCN prior to the date hereof; 

 
 4. Clause 14.1.7 (Hedging Default) in respect of the Recapitalisation which has
entitled the hedge counterparties to accelerate the hedge agreements specified at (a), (b) and (c) of paragraph 3 above; 
  
 5. Clause 14.1.9 (Insolvency) in respect of the failure by Telewest to meet certain interest payments when due under its high yield bond Indebtedness and in
respect of the Recapitalisation; 
  
 6. Clause 14.1.10 (Legal process) in
respect of, inter alia, the winding up petition relating to Telewest made by Credit Agricole Indosuez (London branch) supported by The Royal Bank of Scotland plc and The Huff Alternative Fund, L.P; 
  
 7. Clause 14.1.11 (Compositions) in respect of the steps and negotiations leading up
to the proposed Recapitalisation; 
  

 Page 54 

 8. Clause 14.1.14 (Analogous Proceedings) in respect of any analogous breaches of Clauses 14.1.9
(Insolvency), 14.1.10 (Legal Process), 14.1.11 (Compositions), 14.1.12 (Winding-up) and 14.1.13 (Administration) in Jersey or in New York or in any other jurisdiction in relation to the failure by Telewest to meet certain
interest payments when due under its high yield bond Indebtedness or relating to the Recapitalisation generally; and 
  
 9. Clause 14.1.15(b) (Change of control of TCN or any Charging Subsidiary or Charging Partnerships) in respect of the transfer by Telewest of its shareholding in
TCN to Telewest UK and in respect of TCN ceasing to be a wholly owned Subsidiary of Telewest. 
  
 10. Clause 14.1.20 (Material Events) in respect of the Recapitalisation. 
  
 Deed of Subordination relating to the Original Credit Agreement 
  
 11. Clause 2.1.1 (Restricted Payments) in respect of any payments made by TCN to Telewest which were not Permitted Payments as defined in the Original Credit
Agreement. 
  
 12. Clause 3.2 (Payments Contrary to this Deed) in respect
of the payments specified at paragraph 11 above. 
  
 13. Clause 5.1.5 (No
Litigation) in respect of the litigation specified at paragraph 2 above. 
  
 14. Clause 6.1.1 (Change to Agreed Securities) in respect of the Recapitalisation. 
  
 15. Clause 6.1.3 (TCN to be wholly-owned) in respect of the transfer by Telewest of, inter alia, all assets (including the shares of TCN) to Telewest UK and in respect of TCN ceasing to be wholly-owned
by Telewest. 
  

 Page 55

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]